Welcome to another edition of Veriscope Regulatory Recap! Here we have covered some of the hottest news from the world of crypto regulations this week, including the Biden administration’s push to Congress to accelerate crypto regulation development to Indonesia’s decision to pause issuing crypto licenses for the time being. So, without further ado, let’s dive straight into it.
The Biden administration is urging Congress to pass laws that will clarify how crypto should be regulated. This comes at a time when the UN’s report warned of a Fed-induced global recession.
Speaking of the matter, a group of financial regulators issued a report titled “Digital Asset Financial Stability Risks and Regulation,” calling on lawmakers to reach an agreement on crypto-related matters, including how it is sold on the spot market.
The report also reviewed financial stability risks and regulatory gaps posed by crypto and provided recommendations to address such risks.
The European Union (EU) has approved its Markets in Crypto Asset Regulation (MiCA), which covers stablecoins, issuers of unbacked crypto assets, trading venues, and wallets, along with rules to reveal the identity of those transacting cryptocurrencies.
The legislation will now pass through a further vote in the European Parliament next week, and if approved, the laws will be implemented in 2024. As for the categorization of crypto, MiCA has classified it into three types: Utility tokens, Asset-referenced tokens, and E-money tokens.
Overall, MiCA has attracted a fair share of praise and criticism. For instance, some industry proponents may criticize the proposed move to make it mandatory for all crypto asset service providers (CASP) or investment firms providing custodial services in the EU to be based within the borders of the 27-nation bloc.
On top of that, these institutions must also fulfill strong requirements to protect consumer wallets and declare information on their environmental footprint.
That said, there are many points that industry proponents will praise, such as MiCA’s focus on minimizing insider trading and other market manipulation activities related to crypto to preserve the market’s integrity.
Upping the ante against non-regulated crypto firms operating in Ontario, the head of the Ontario Securities Commission, Grant Vingoe, said global crypto platforms must register with the Ontario market regulator or face bans or other sanctions.
The growth of international crypto trading platforms that operate in “regulatory ambiguity” without permission from their home countries or the jurisdictions where targeted investors live — created a “compelling” case for regulation in Canada, he said.
His remarks came amidst the reports of unregulated global crypto companies using VPNs to disguise their location. Vingoe said the OSC would seek “the most serious consequences” for those encouraging investors to use VPNs to conceal their online identities and location to invest in crypto.
“Compliance systems are improving rapidly, and we will demand vigilance,” Vingoe wrote in his LinkedIn post. Ultimately crypto firms will be required to register with the IIROC because they deal with retail investors, he added.
The chief executive of Canada’s largest capital markets watchdog also discussed the “great potential” of the underlying blockchain technology, stating, “it has broad applications for businesses, institutions, and governments that would benefit from transaction records that cannot be altered.”
Indonesia has put a moratorium on the issues of new crypto exchange licenses starting August 15, 2022.
According to the Circular Letter, Bappebti no longer accepts applications for Virtual Asset Service Provider (VASP) licenses. Surprisingly, there’s no expected date when the moratorium will be lifted.
As for the reason that may have led the Indonesian regulator to pause granting crypto licenses, there are speculations that Bappebti is drafting new regulations for exchanges that is likely to be made public by the end of 2022.
Meanwhile, the head of Bappebti, Didid Noordiatmoko, said 383 crypto assets are recognized and licensed by the Indonesian government to be traded by 25 registered companies.
After Shyft DAO approved the Veriscope VASP grant proposal, an aggregate of 10,000 SHFT has been granted for Virtual Asset Service Providers (VASPs) that integrate to the Veriscope mainnet by September 30, 2022. The fund will enable VASPs to pay the Shyft Network gas fees while using Veriscope. This offer will remain valid until December 31, 2022, or till the VASP exhausts its SHFT grant.
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#1. Kim Kardashian Slapped by the SEC With Over a $1M Penalty for an Unlawful Crypto Promotion
#2. The ranking of countries with the most stringent crypto regulations
#3. Mastercard pushes deeper into crypto with a new tool for combating fraud
#4. South Korean Authorities Officially Void Do Kwon’s Passport
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