Regulation on Crypto

  • Report: Israeli Bitcoiners Petition Banks to Disclose Crypto Policies

    The petition purportedly seeks to require local banks to disclose their policies on money originating from digital currencies.

    Aug 20, 2019
  • Korean Financial Regulator Planning to Directly Regulate Cryptocurrency Exchanges

    The Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) has disclosed a plan to directly regulate cryptocurrency exchanges and bring them into the regulatory system. Currently, the FIU indirectly controls cryptocurrency exchanges through administrative guidance to banks. An FIU official said on Aug. 6 that the government will enhance the transparency of cryptocurrency transactions by introducing a “cryptocurrency exchange licensing system” recommended by the Financial Action Task Force (FATF). Lee Tae-hoon, head of administration and planning at the FIU, said, “If an amendment to the Act on Reporting and Use of Certain Financial Transaction Information, which reflects the FATF’s international standards for cryptocurrencies, passes the National Assembly, it will be possible to prevent money laundering through cryptocurrencies.” Lee was speaking at a public hearing on the enactment of a law to improve transparency in virtual asset trading held at the National Assembly Member’s Office building. “If the amendment is approved by lawmakers, we can raise the effectiveness of regulations by shifting from the current indirect regulation through commercial banks to direct regulation,” Lee said. In this regard, crypto…

    Aug 7, 2019
  • Iran Announces New Rules to Regulate Cryptocurrency Market

    New rules have been introduced by the Iranian government for regulation of cryptocurrency market as more people become interested in mining digital coins as a way of accessing international currencies at the time US sanctions. A bill ratified by the Iranian Cabinet and released on Sunday said that the government will not recognize as lawful any trade activity carried out inside Iran involving cryprocurrencies. It said the government and the banking system would not view the digital coins as legal tender and the Central Bank of Iran would not guarantee their value. However, the bill said mining digital currencies would be allowed inside Iran under certain conditions, including if miners obtain the approval of Iran’s industry ministry, do not mine the currencies inside a 30-kilometer boundary of all provincial centers except for the capital Tehran and the central city of Esfahan where tougher restrictions apply. It said the miners should also observe rules set by Iran’s standardization and communications authorities for mining machines, adding that certain fees will be applied for the energy used for mining the currencies. Discussing the…

    Aug 5, 2019
  • UK Finance Watchdog Issues Guidance on Regulation for Bitcoin and Crypto Assets

    The U.K. Financial Conduct Authority (FCA) has finalized its guidance on crypto assets, clarifying which tokens fall under its jurisdiction. Most of the rules issued Wednesday were proposed in consultation paper CP19, which was released for public comment in January. As widely expected, the final guidance does not drastically alter the regulatory landscape, instead specifying when certain types of crypto assets fall under existing categories. True cryptocurrencies like bitcoin and ether, which the FCA classes “exchange tokens,” are not regulated, though anti-money-laundering rules apply. The FCA said some 92 responses to the consultation paper were received from an assortment of firms, including banks, trade associations and crypto exchanges. Most respondents supported the proposals, said the FCA Importantly, the guidance provides a definition of security tokens. When issued, these assets behave like shares or debt instruments, including ownership rights, thus falling under the category of a “specified investment” and, in turn, the FCA’s remit. Almost all respondents who answered the question agreed with the regulator’s assessment of security tokens in relation to the regulatory perimeter. Utility tokens, by contrast, do not grant the same sorts of rights as regulated financial…

    Aug 1, 2019
  • Senate Wrestles With Bitcoin vs. Crypto, Gauges Need for Regulation in Latest Hearing

    The United States Senate Committee on Banking, Housing, and Urban Affairs hosted a hearing today, July 30, 2019, on cryptocurrency and blockchain regulation. This is the third in a recent spate of cryptocurrency-specific hearings in Congress, which began two weeks ago with Libra’s rounds in both the U.S. House of Representatives and the Senate. Libra’s hearings were notably longer than today’s (two hours and 18 minutes in the Senate and six and a half in the House). Politicians punctuated these sessions with worries over Facebook’s past privacy and data scandals. If Facebook can’t keep our data safe — and moreover, if we can’t trust what it says compared to what it actually does with this data — then why should regulators trust something like Libra with monetary policy?  Within the spectre of these pervasive fears, Bitcoin looked good by comparison. REGULATING THE INEVITABLE  Today’s hearing played out like a follow-up to some of Congress’ broader queries on cryptocurrency during the Libra discussions. Legislators grilled three panelists — Circle’s CEO Jeremy Allaire; University of California at Irvine School of Law professor Mehrsa Baradaran; and…

    Jul 31, 2019
  • Senate Banking Committee to Hold Hearing on Crypto Regulation

    The Senate Banking Committee will hold a hearing on regulatory frameworks for cryptocurrencies and blockchain next week. The committee said in a press release that it would hold an open session titled “Examining Regulatory Frameworks for Digital Currencies and Blockchain” on July 30, though it is unclear if this would be a fact-finding mission or if any specific pieces of legislation would be discussed. Circle CEO Jeremy Allaire, representing the Blockchain Association; Rebecca Nelson, a member of the Congressional Research Service specializing in international trade and finance; and Mehrsa Baradaran, a law professor at the University of California Irvine School of Law will testify as expert witnesses. The hearing will be livestreamed. The Senate Banking Committee has held a number of hearings around the space, with the most recent taking place last week, focused on Facebook’s Libra. Members asked David Marcus, the head of Facebook’s crypto project and the CEO of its Calibra subsidiary, a number of pointed questions about the project, but rarely brought up bitcoin or other cryptocurrencies. Instead, Senators took pains to distinguish between the broader crypto ecosystem and Facebook’s efforts…

    Jul 24, 2019
  • France’s Financial Watchdog Proposes ‘Voluntary’ Regulatory Framework for Crypto Firms

    The Financial Markets Authority (AMF), France’s top financial organization, plans to release an experimental regulatory framework for crypto firms later this month, according to a Reuters report. The rules will include capital requirements, tax mandates, and consumer protection protocols – which “crypto-related firms will voluntarily abide by” in exchange for regulatory approval, reports Reuters. Anne Marechal, executive director for legal affairs at the AMF, called the experimental arrangement a “precursor” for international crypto-specific legislation, rather than the mismatched application of financial regulations written prior to the advent of the asset class. This is not the first time France has unveiled a “tit for tat” regulatory scheme. In April, the AMF released a requirement for banks to open accounts for crypto firms that “opt in” to being regulated. Part of the PACTE law, crypto exchanges and custodians were also extended the “option” to attain an operating visa. At the time, Finance Minister Bruno Le Maire suggested the European Union follow “the French experience” by using the PACTE guidance to set up a “single regulatory framework” for digital assets in the EU single market. These relatively…

    Jul 18, 2019
  • India to Educate High-Ranking Police Officers on Cryptocurrency

    India’s national police academy has launched a cryptocurrency course for high-ranking officers of the Indian Police Service. Among the objectives of the course are the functioning and legal aspects of cryptocurrencies, as well as investigations of cases involving digital coins. The Indian police continue to regularly uncover crypto-related schemes as the government deliberates on the regulatory framework for cryptocurrency. Crypto Course for Indian Police Officers As the Indian government prepares the regulatory framework for cryptocurrency, the country’s police force is working on educating law enforcement officers on cryptocurrency. India’s premier police training academy, the Sardar Vallabhbhai Patel National Police Academy (SVP NPA), has announced a course on the subject to train officers of the Indian Police Service (IPS). The course entitled “Investigation of cases involving cryptocurrencies” is scheduled to be held on Sept. 5 and 6 at the institute which is located in Hyderabad. Enrollees will be nominated IPS officers of the rank of Additional Superintendent of Police to Inspector General of Police, the institute explained. The academy has begun accepting nominations for the course; self-nominations are not accepted. According…

    Jul 9, 2019
  • Brazilian Financial Authorities Announce Regulatory Sandbox For Blockchain

    Four of Brazil’s major financial authorities have come together to regulate emerging technologies, including blockchain.

    Jun 18, 2019
  • Global Cryptocurrency Ushers in Joint Regulation, FATF Will Announce Tough Measures

    The FATF’s advance notice did not cause much fluctuations in the current mainstream cryptocurrency market, and Bitcoin still floated between $7,900 and $8,100.

    Jun 13, 2019
  • Gov’t of Brazil to Consider Bill Requiring Public Administration to Promote Blockchain

    The Brazilian government will consider a draft bill that requires all units of local public administrations to promote new technologies such as blockchain.

    Jun 13, 2019
  • G20 Starts Crypto Discussions – A Look at Global Standards

    Finance ministers and central bank governors from the G20 countries have gathered for a two-day meeting ahead of the G20 summit, and cryptocurrency is among the topics of discussion. Global standard-setting bodies have submitted their policies and provided tools to help the member countries with the regulation of crypto assets in their own jurisdictions.

    Jun 10, 2019
  • Japan Hopes to Set Global Crypto Law Benchmark With Latest Regulatory Update

    On May 31, the Japanese House of Representatives amended two cryptocurrency-related laws, the Payment Services Act and the Financial Instruments and Exchange Act, which will come into effect in April 2020.

    Jun 6, 2019
  • Official Confirms: Indian Cryptocurrency Regulation Is Ready

    Ahead of the G20 summit, India’s new finance secretary has confirmed that the report detailing the country’s crypto regulation is now ready.

    Jun 3, 2019
  • Australian Securities Watchdog Updates Guidance on Crypto Assets

    The Australian Securities and Investments Commission (ASIC) has issued updated regulatory guidance for businesses involved with ICOs and crypto assets. Announced Thursday, the guidance details the legal obligations for cryptocurrency firms under the country’s Corporations Act, the ASIC Act and other laws. “These regulatory requirements are in place to maintain the integrity of Australia’s financial market and ensure consumer protection,” the regulator said. ICOs and crypto assets in many cases are financial products or involve financial products that are regulated under the Corporations Act, according to ASIC. Therefore, if a firm is issuing a token that falls within the definition of a financial product (such as an interest in a managed investment scheme or a security), laws will apply, including the requirement to hold an Australian financial services (AFS) license. Laws also cover those giving advice, dealing, or providing other intermediary services for crypto-based financial products. Cryptocurrency wallet and custody service providers, on the other hand, need to ensure they hold the appropriate custodial and depository authorizations. Cryptocurrency miners, if assisting the clearing and settlement of tokens that are financial products, are also…

    May 31, 2019
  • Regulator Explains: Japan Advances New Crypto Bill

    Japan’s House of Representatives has passed a new cryptocurrency bill with additional requests for the government to incorporate into law.

    May 31, 2019