From Beijing to Tokyo, Asian nations are becoming more proactive in regulating the dynamic world of cryptocurrencies. Lawmakers in Japan have recently decided to enforce stricter Anti-Money Laundering measures from June 1, which include the enforcement of the “Travel Rule” that keeps a closer track of criminal proceeds in cryptocurrency transactions. The South Korean government is implementing new laws that mandate officials to report their holdings in cryptocurrencies like Bitcoin, effectively placing cryptocurrency on the list of registered property by lawmakers. Meanwhile, the Hong Kong Securities and Futures Commission (SFC) has announced it will soon allow licensed platforms to serve retail investors who comply with the SFC’s proposed guidelines.
Beijing’s municipal government is fostering innovation in the Web3 industry by unveiling a white paper that acknowledges Web3 technology as an inevitable trend for future Internet industry development. Despite China’s legal stance on crypto remaining prohibitive, Beijing is focusing on enhancing policy support and expediting technological advancements to foster the industry’s growth.
The International Organization of Securities Commissions (IOSCO) is working to help policymakers regulate cryptocurrency more effectively by pushing for global regulators to analyze the applicability and adequacy of their crypto regulatory frameworks. Regulators should apply such an approach to all types of assets, including stablecoins like Tether.
In Europe, Norges Bank, the central bank of Norway, has released its annual “Financial Infrastructure Report” and dedicated a considerable part of the report to crypto assets and whether Norway should depend on international regulatory examples to control its market. The European Union’s Markets in Crypto-Assets regulation is set to come into force in a year or two, and it is expected that Norway will assess its EEA (European Economic Area) relevance and implementation.
These regulatory steps in various countries showcase the growing need for governments to recognize and adapt their regulations to cater to the evolving cryptocurrency landscape. By implementing transparent and well-thought-out legislation, these nations hope to foster innovation while eliminating the fraudulent or malicious activities often associated with the crypto industry. While the ongoing debate about the best path for regulatory frameworks for cryptocurrencies remains, the progress made by these Asian countries demonstrates that the future of blockchain is swiftly moving forward.
Source: Cointelegraph
