Search Results for: vasps

Taiwan’s Financial Supervisory Commission (FSC) is implementing new regulations to improve safeguards for crypto investors. These regulations seek to control virtual asset service providers (VASPs) like Binance, Kraken, and ByBit, emphasizing asset safety, self-regulation, and legal operation in Taiwan. This overhaul coincides with local exchanges forming a regulatory body, and precedes FSC’s expected 2023 takeover as Taiwan’s primary crypto regulator.

Taiwan’s Financial Supervisory Commission (FSC) introduces fresh directives for Virtual Asset Service Providers (VASPs) to improve cryptocurrency users’ security. Guidelines demand a clear separation of company and customer assets, increased transparency, fortified internal controls within crypto firms, and adherence to robust anti-money laundering mechanisms. These regulations aim to encourage self-regulation in the crypto industry.

Taiwan’s crypto community is set to establish an operational group this October, designed to facilitate digital currency adoption and self-compliance. Spearheaded by nine local cryptocurrency exchanges, this initiative aims to foster a healthy industrial environment and ensure the industry’s robust wellbeing, ultimately propelling Taiwan onto the global cryptocurrency stage.

“Major Taiwan crypto exchanges have initiated the Taiwan Virtual Asset Platform and Transaction Business Association in response to impending regulations. It provides industry direction, consensus building, and representation and also rallies diverse stakeholders in the volatile crypto market. This appears as a progress towards the industry’s maturity.”

“Taiwan is crafting restrictions for offshore cryptocurrency exchanges operating within its domains. The Financial Supervisory Commission (FSC) is formulating a guidebook to help virtual asset services providers establish regulatory norms, focusing on information disclosure, virtual asset listing standards, and secure division of corporate and customer assets.”

“Taiwan drafts guidelines to regulate unregistered foreign virtual asset service providers (VASPs). The Financial Supervisory Commission (FSC) produced a draft of ten principles, aiming to protect the market from abusive practices while promoting transparency and differentiating custody of assets.”

The UK’s Financial Conduct Authority now requires Virtual Asset Service Providers to gather and validate information on crypto transactions, even beyond local jurisdiction. This regulation, known as the Travel Rule, aims to counter money laundering and terrorist financing, yet raises concerns regarding privacy and curbing innovation within the growing crypto industry.

The UK’s recent implementation of the ‘Travel Rule’ for crypto transactions aims to deter anti-money laundering and counter-terrorist financing on-chain. This rule requires UK-based virtual-asset service providers to collect, verify, and share information about crypto-asset transfers, even from overseas jurisdictions.

Starting September 1, UK crypto businesses will follow the Financial Action Task Force’s Anti-Money Laundering and Counter-Terrorist Financing regulations, including the ‘Travel Rule’. This may increase operations and marketing costs, but aims to prevent fraud and enhance customer protection in the crypto market.

Binance, a leading cryptocurrency exchange, has applied for registration in Taiwan under the jurisdiction’s Money Laundering Control Act and Financial Supervisory Commission compliance. This aligns with Taiwan’s efforts to implement Anti-Money Laundering laws for virtual asset service providers amidst a developing regulatory environment.

“Namibia has signed a law regulating Virtual Asset Service Providers, reversing its 2017 ban on crypto exchanges. The law aims to enhance consumer protection, curb market abuse, and mitigate money laundering and terrorism financing risks. However, severe penalties apply for non-compliance and cryptocurrencies still hold no legal tender status in Namibia, potentially creating a hostile environment for crypto businesses.”

Namibia’s National Assembly is taking steps towards regulating cryptocurrencies and their service providers, with penalties for non-compliance including a N$15 million fine or 10-years jail. The proposed legislation establishes a Regulatory Authority aimed at safeguarding consumer interests, preventing market manipulation and fostering innovation in virtual assets.

South Korea recently passed the ‘Virtual Asset User Protection’ legislation, a collection of 19 crypto-related bills aimed at safeguarding investors and addressing unfair trading in the cryptocurrency arena. This law also holds Virtual Asset Service Providers (VASPs) accountable for users’ deposits and insurance provisions, aimed at protecting against risks including hacks and computer failures.

Slovakia’s National Council has approved an amendment reducing taxation on cryptocurrencies. The personal income tax on crypto profits will drop to 7% from either 19% or 25%. Additionally, crypto payments under 2400 euros and crypto income won’t be subject to typical health insurance contributions.

Binu Paul, former head of digital assets at the FCA, leaves the organization after nine months, and Victoria McLoughlin steps in as interim Head of Market Interventions for digital assets. This leadership change occurs amid the FCA’s intense focus on regulating the emerging crypto industry and enforcing stricter advertising rules for crypto services. McLoughlin’s experience at the FCA signals a continued stable approach to cryptoasset regulation.

The Japanese National Tax Agency has softened its crypto taxation stance, benefiting corporations dealing with digital assets and potentially making Japan a hub for such companies. However, investors must remain vigilant as regulations and risks continuously evolve in this rapidly growing market.

The Hong Kong Monetary Authority (HKMA) is pressuring major banks like HSBC and Standard Chartered to accept crypto exchanges as clients, highlighting growing cryptocurrency acceptance and the need for traditional financial institutions to adapt to this evolving landscape.

The UAE Central Bank introduces new anti-money laundering and counter-terrorism financing guidelines for crypto businesses and financial institutions handling digital assets, reinforcing supervisory frameworks and mitigating risks. These measures support UAE’s push to become a global hub for the crypto industry while adhering to international standards.

A study commissioned by the European Parliament suggests that crypto assets may soon be treated as securities by default, based on the EU’s existing financial regulation framework. This move could lead to a more stringent regulatory environment for cryptocurrencies in the EU. Meanwhile, cross-compatibility of blockchain addresses gains momentum, and Gemini plans to acquire a crypto license in the UAE.

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Georgia plans to commence mandatory supervision of virtual asset service providers (VASPs) starting Sept. 1, 2023, to prevent money laundering and comply with sanctions. Alongside VASP supervision, foreign bank account restrictions will be implemented to support Georgia’s economic stability. The country also prepares to approve cryptocurrency regulations, aiming to establish itself as a global crypto hub.

The Hong Kong Monetary Authority (HKMA) and the Central Bank of the United Arab Emirates (CBUAE) collaborate on virtual asset regulations and developments, aiming to strengthen cooperation, promote fintech initiatives, and improve cross-border trade settlement. This partnership coincides with Hong Kong’s Securities and Futures Commission allowing virtual asset service providers to cater to retail investors.

Hong Kong’s retail trading regime launches on June 1st, with several cryptocurrency companies, like CoinEx and Huobi, announcing their Virtual Asset Service Provider (VASP) license applications. This has generated a competitive atmosphere among crypto firms, as they aim to establish a strong presence in the region. However, concerns remain regarding potential risks and regulatory challenges for investors.

Estonia enhanced its AML laws, impacting 400 Virtual Asset Service Providers (VASPs) that voluntarily shut down or lost authorizations. Despite stricter regulations, Estonia hosts 100 active crypto firms, showcasing the challenge of balancing safety and innovation in the crypto ecosystem.