Current Crypto Regulatory Policy Updates in Some Countries
As the famous saying goes, “to each their own,” and that’s exactly how governments around the world take to regulating cryptocurrencies. Some governments went strict, others chose lax. Some chose to make a whole new set of laws, others choose to update existing laws to enfold crypto assets. Each ruling body has chosen its own path. And just like the crypto world itself, regulations policy is ever-shifting and ever-changing to keep up with the pace of the world it’s trying to adjust to.
Trying to keep up with all these new regulations policies can seem daunting, and if you’re an ICO or STO, regulations can heavily affect how and where you run your offering. This is why we’ve compiled a short list of all the recent updates to crypto regulation from around the world:
On March 25, 2019, Helsinki-based crypto exchange, LocalBitcoins, informed their users in a blog post that the Finnish parliament had just approved new legislation that would make crypto assets legal underneath Finnish securities laws, as well as bringing crypto-related services, such as the exchange under regulation. The crypto exchange has announced that they are working on updates that will allow them to comply with the new regulations. The approval of the legislation comes as an amendment to a preexisting anti-money laundering law that now reaches out to include crypto assets. This Act will go into full effect at the beginning of November 2019.
In a statement released on the 28th of March, 2019, the Hong Kong Securities and Futures Commission (SFC) issued official guidance on security token offerings (STOs) in which they stated that Security Tokens are likely to be considered “securities” under the law, and therefore subject to securities laws. The statement offers a working definition of security tokens, and in doing this, states that if you wish to market and distribute security tokens in Hong Kong, whether in Hong Kong or marketing to Hong Kong investors, you will need “to be licensed or registered for Type 1 regulated activity (dealing in securities) under the [Securities and Futures Ordinance] SFO”. Regulations are set to go into full effect in July 2019.
Already having one of the most advanced legal frameworks on cryptocurrency, Japanese financial authorities expounded on that by approving draft amendments to Japan’s financial instruments and payment services law, as reported by a local news agency, Nikkei, on March 19, 2019. These new amendments would introduce new regulations for cryptocurrency margin trading by capping leverage in virtual currency margin trading at two to four times initial deposits. Any crypto exchange that handles margin trading will be required to obtain new government registration, separate from an existing registry that focused mainly on cash platforms. In short, cryptocurrency exchange operators will be monitored in a similar way to securities traders to protect investors. The rules are set to go into effect in April 2020 and margin cryptocurrency exchange operators would need to be registered within 18 months of that date.
Cointelegraph reported that on March 12, 2019, the Russian State Duma voted to enact new digital rights legislation in October of this year. The new law reportedly establishes the concept of “digital rights” in Russian legislation which determines how digital rights can be exercised and transferred, as well establishes rules for digital transactions, including contracts.
On March 26, 2019, The Spanish National Securities Market Commission (CNMV) issued a statement in which they affirmed that they have not authorized any entity to operate an initial coin offering (ICO) with the agency’s official sanction, as reported by Cointelegraph. Basically, in the statement they made they highlighted the fact that they have not exercised any power of authorization or vetting of any project from the ICO sector and warned prospective ICO investors to be aware of this fact. The CNMV indicated that any ICO-related document sent to these investors should carry a disclaimer clarifying that neither the CNMV nor any other regulatory body had reviewed or regulated it in any way. Spain does not heavily regulate token or coin sales but does warn potential investors that they may be scams.
Rather than create new legislation for the regulation of all things crypto, Switzerland has decided to simply adapt existing legislation to include cryptocurrency regulation. On March 20, the Swiss Federal Assembly approved a motion to instruct the Federal Council to adapt existing provisions on procedural instruments of judicial and administrative authorities to be applied to cryptocurrencies. This decision aims to protect those who engage in crypto activities from being scammed or involved in illicit behaviors. Cointelegraph reported that “The legislation is set to determine how to stifle cryptocurrency-associated risks, as well as whether entities operating crypto trading platforms should be equated with financial intermediaries, and thus be subject to financial market supervision.”
The Thai Securities and Exchange Commission’s (SEC) board of directors approved the first ICO portal and are likely to issue criteria for applications for STOs soon as well, according to Thai news outlet, the Bangkok Post. The ICO portal will help screen ICOs, conduct due diligence, prove smart contract source codes, and verify the know-your-customer process. Soon the first ICO deal will be available for public offering under the digital asset royal decree.
All around the world, crypto regulations are changing, as made clear above. Governments are trying to keep up with the rapidly shifting landscape of the crypto world and some are doing better than others. With all of the new regulations, it can be hard to keep up with all the those you need to comply with for your ICO or STO, which is why AssetRush is here to rocket your project to success. We’re well-versed in ICO and STO promotion and therefore are aware of all regulatory changes. Our services can help you through the confusing regulatory landscape to token success! Speed on over to our website where you can get a free quote, without all the regulations