Welcome to another edition of Veriscope Regulatory Recap! We have brought some of the hottest news from the world of crypto regulations this week, from the Bank of England Governor’s statement on bringing digital assets under the existing financial regulatory framework to Paraguayan lawmakers rejecting the president’s veto of the crypto bill. So, let’s dive straight into it.
Jon Cunliffe, deputy governor of the Bank of England, said financial regulations should be extended to cryptocurrencies before the industry becomes large enough to potentially threaten broader financial stability during the Operations, Post Trade, Technology, and Innovation Conference in London.
“Regulators need to begin extending existing standards and regulatory regimes to crypto before, not after it becomes systemically important,” Cunliffe said. “And done carefully, the development of regulatory regimes helps, not hinders, innovation by reducing the risks of confidence destroying crashes and by giving innovators a framework within which to innovate.”
Despite flagging these risks, Cunliffe also praised the underlying technology, saying that even bigwigs like HSBC are investing and experimenting in it due to its potentially game-changing impact on banking operations.
As per the new legislation authored by the National Agency of Perspective Projects (NAPP) under the President of Uzbekistan, crypto firms in Uzbekistan will now have to pay monthly fees to the state.
For instance, crypto exchanges will be charged the highest tariff of 120 million Uzbekistani soum (worth almost $11,000), while custodial service providers will enjoy the lowest fee at just $135. On the other hand, Crypto stores will pay around $540 per month, individual miners will have to shell out $270 per month, and mining pools will have to pay $2700 per month.
And any VASPs that fail to comply with this legislation will be penalized, which may range from license suspension to cancelation.
U.S. senators Marsha Blackburn (R-TN) and Cynthia Lummis (R-WY) have introduced the Cryptocurrency Cybersecurity Information Sharing Act to help crypto companies report cybersecurity threats.
The bill will provide a voluntary mechanism for crypto companies to report bad actors. It seeks to mitigate losses from crypto-related incidents, including network damage, business interruption, data breaches, and ransomware attacks.
According to Sen. Blackburn, “some bad actors have used cryptocurrency as a way to hide their illegal practices and avoid accountability.”
But that is about to change once this bill comes into force, as it “will update existing regulations to address this misuse directly.”
A total of 33 Paraguayan lawmakers have rejected President Mario Abdo Benitez’s veto of a major Bitcoin mining regulation bill.
Paraguay’s legislature approved the bill in July to create a tax and regulatory framework regulating Bitcoin mining in the South American country. But the president vetoed it, claiming mining uses high amounts of energy but brings relatively small employment benefits.
According to a release from the country’s Congress, the bill would benefit the Latin American nation by bringing in income through mining taxes, creating “new forms of employment,” and tracking the energy consumption of crypto miners.
The bill will now be passed to the National Deputy chamber, which will decide to reject or approve the presidential veto. If rejected, the bill will finally be sanctioned.
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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Coinfirm Integrated Into Veriscope, Shyft Network’s Market-Leading Travel Rule Compliance Provider
California Governor Vetoes Crypto Bill, Citing its Rigid Nature
India Freezes Bitcoin at Binance Amid Investigation Involving Crypto Exchange Wazirx
IMF urges regulation of the crypto-asset ecosystem
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