Digital Assets Regulation Newsletter #1 – 07/04/2022
Welcome to the first edition of our Digital Regulation Newsletter. As digital assets become mainstream, regulators around the world are playing catch up. In most of the countries we cover at Digital Assets Regulation, there is no framework for cryptocurrencies or NFTs. The biggest country in the world, the US of A, has not been able to bring the assets under one umbrella. There are no laws against front running, market manipulation, no laws enforcing transparency, or declaration of ownership.
Bitcoin Ban in Nigeria: What has changed?
n order from the Central Bank of Nigeria (CBN) barring financial institutions from servicing cryptocurrency transactions, effectively “banning Bitcoin” in the country, withstands more than 16 months later, despite the Nigerian Security and Exchange Commission (SEC) recently releasing new regulations for digital assets and the continued significant adoption and use of Bitcoin in the country.
https://bitcoinmagazine.com/culture/latest-on-bitcoin-regulations-in-nigeria
Acting Comptroller Discusses Vulnerabilities, Volatility with Cryptocurrency
https://www.occ.gov/news-issuances/news-releases/2022/nr-occ-2022-60.html
EU reaches provisional agreement on markets in crypto-assets
The European Parliament and Council have reached a provisional agreement on a new bill to ensure that crypto-asset transfers can always be traced and blocked when necessary.
This legislation was confirmed by negotiators from the Parliament and Council and will align with the Markets in Crypto-asset Rules (MICA) and a new EU anti-money laundering program. To promote the “traceability” of crypto-assets, the agreement develops the “travel rules” existing for traditional financial assets and fund flows, requiring parties on both sides of the transaction to maintain information regarding the source of the asset and the beneficiary.
Crypto-asset service (CASPs) providers are required to disclose this information to financial supervisors in case of an investigation into money laundering and terrorist financing. No minimum thresholds or de minimis exemptions will be applied for low-value transfers.
Under MICA, a public register will be created of non-compliant and non-supervised CASPs and EU CASPs will not be permitted to trade with entities on this list.
Before processing any transfer of assets to beneficiaries, CASPs will be required to verify that the assets are not subject to sanctions or restrictive measures and that the transfer does not present a risk of enabling money laundering or terrorist financing.
Link
Federal Regulation for Digital Assets Could Be Coming Soon
Significant federal regulation may be coming soon for cryptocurrencies, blockchain, and non-fungible tokens (NFTs). On June 6, 2022, U.S. Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced the Responsible Financial Innovation Act (RFIA), which seeks to establish a comprehensive regulatory system for digital assets. The proposed legislation provides for a system to regulate digital assets in much the same way as traditional commodities futures and swaps.
The Upshot
- The RFIA would allocate regulation of stablecoins to banking regulators; tokens that include equity-like rights to the Securities and Exchange Commission (SEC); and ancillary assets such as cryptocurrencies to the Commodity Futures Trading Commission (CFTC).
- Notably, the RFIA would classify many of the top cryptocurrencies, including Bitcoin and Ether – the two cryptocurrencies with the highest market capitalization – as commodities within the purview of the CFTC.
- Providers of digital asset services would be responsible for consumer protection, including entering into a customer agreement that contains specified business terms and notices relating to the risk of engaging in digital assets, including source code version changes. Such providers include federal and state registrants and licensees who may conduct market activities relating to digital assets and financial institutions.
https://www.jdsupra.com/legalnews/federal-regulation-for-digital-assets-8181125/
Binance to assist Cambodia in developing digital asset regulations
Crypto exchange Binance has signed a memorandum of understanding with the Securities and Exchange Regulator of Cambodia (SERC), according to a June 30 announcement.
Binance and SERC will work together to develop digital assets regulations in the country. SERC is looking to leverage Binance’s technical expertise and experience in the field to develop its own legal framework for the digital asset market.
Cryptocurrencies are not regulated in Cambodia, and any unlicensed activity involving these digital assets is highly prohibited. The partnership could prove pivotal for the South Asian country, where any crypto-linked activity has been deemed illegal since 2018.
https://cointelegraph.com/news/binance-to-assist-cambodia-in-developing-crypto-regulations