News Roundup — Blockchain Regulations and Legislation
Here are some of the latest developments in blockchain-related regulation and legislation from around the world:
Spanish lawmakers approve pro-blockchain legislation
At the end of May, Spain’s Congress unanimously approved new legislation designed to promote the introduction of blockchain and cryptocurrency applications “through controlled testing environments”. The law paves the way for the use of regulatory sandboxes to ensure such applications comply with tax requirements and inform investors of potential risks, among other things, according to Europa Press. It also expresses the importance of promoting blockchain for its potential to save on costs and reduce the need for third parties in financial transfers and payments.
Singapore authorities warn against tokenised securities, futures contracts, ICOs
The Monetary Authority of Singapore (MAS) recently issued warnings to several digital token exchanges not to engage in securities or futures contracts trading, and told an organisation to cease its initial coin offering (ICO) activities in Singapore. According to the country’s central bank, using digital tokens as securities or futures contracts requires prior authorisation by the MAS. In a press statement, Lee Boon Ngiap, MAS assistant managing director for capital markets, said: “The number of digital token exchanges and digital token offerings in Singapore has been increasing. We do not see a need to restrict them if they are bona fide businesses. But if any digital token exchange, issuer or intermediary breaches our securities laws, MAS will take firm action. The public should be aware that there is no regulatory safeguard if they choose to trade on unregulated digital token exchanges or invest in digital tokens that fall outside the remit of MAS’ rules.”
US agency seeks public comments on emerging tech such as blockchain
The US National Telecommunications and Information Administration (NTIA), part of the Department of Commerce, issued a notice of inquiry on 4 June seeking input regarding its future policies on several key topics. These include emerging technologies such as blockchain. In a statement David J Redl, NTIA administrator and assistant secretary for communications and information, said: “We want risk-taking American entrepreneurs to have access to global markets for their digital products and services. We expect that in the coming years, our focus will increasingly be on artificial intelligence, automated workforces, blockchain technologies and more. We want to know how we should participate in international discussions of these issues.” The deadline for comments is 2 July.
Legislation in Wyoming and Ohio promotes use of blockchain
The US states of Wyoming and Ohio are among those looking to guide development of blockchain and cryptocurrency applications through a variety of measures. This spring, for example, Wyoming lawmakers approved — among other bills — legislation exempting blockchain tokens from some state securities laws and exempting virtual currencies from state money transmitter licence requirements. Meanwhile, Ohio senators last month referred to committee a bill that would define blockchain-secured contracts as electronic records and allow the use of smart-contract terms.
Kenya eyes blockchain innovation despite regulatory guidance vacuum
Bitange Ndemo, the head of Kenya’s Blockchain and AI Taskforce, recently said full development of distributed ledger technologies in Kenya is currently limited by a lack of legislation and guidance. Speaking at East Africa Com 2018, Ndemo said that — in the interim — blockchain-related projects for finance, education and transport will move forward through testing in sandbox environments. “In each of these areas there is no full comprehensive legal framework and if we went without the legal framework there will be problems,” he said, according to a report in ITWeb Africa. “We have no option but to move on with digital transformation. Globally, most things will be done through distributed networks. We have to join this bandwagon. If we don’t understand it we will depend on others for innovation.”
