Veriscope Regulatory Recap — 16th April to 30th April 2024
Welcome to our latest edition of Veriscope Regulatory Recap. In this edition, we will break down recent developments in cryptocurrency regulations across Europe and the UK.
Europe Strengthens Crypto Oversight with New Regulations
The European Parliament recently passed a new set of rules aimed at making cryptocurrency transactions safer and more transparent.
These rules are part of the Anti-Money Laundering Regulations (AMLR) and mainly affect companies that handle crypto transactions, such as exchanges.
Under these new regulations, companies must now do more thorough checks on their customers and monitor any suspicious activities. They’ll report these to a new regulatory body called the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA).
According to the authorities, this step will prevent crimes such as money laundering and terrorism financing through crypto transactions.
Central to these regulations is the EU’s Markets in Crypto Assets (MiCA) framework, which will be fully enforced by the end of this year.
UK Plans New Framework for Crypto and Stablecoins
Over in the UK, the government is working on new guidelines for cryptocurrencies and stablecoins, expected to be introduced by July. Their reported aim is to foster innovation while ensuring consumer protection.
Bim Afolami, the economic secretary to the Treasury, highlighted this at the Innovate Finance Global Summit 2024, stressing the importance of the UK staying competitive in financial technology. The upcoming regulations will cover various aspects of crypto operations, including trading and managing digital assets.
“Once it goes live, a whole host of crypto asset activities, including operating in exchange, taking custody of customer assets and other things, will come within the regulator perimeter for the first time.”
- Bim Afolami, economic secretary to the Treasury
This move comes as part of a broader effort to modernize the UK’s financial system. Authorities are also set to get more power to directly access crypto assets in cases of suspected illegal activities.
Although the UK’s crypto community and industry at large are welcoming the UK’s plan to roll out new crypto regulations by June/July this year, they are also worried about its possible impact on the broader ecosystem.
Hence, the authorities must ensure that the crypto users aren’t burdened with overly stringent measures that could stifle innovation and growth in the sector. All stakeholders must ensure that the user experience and security remain intact despite the new regulatory measures in place.
Interestingly, here’s how the UK and the EU compare in terms of their approach to crypto regulations:
Overall, the new developments in Europe and the UK demonstrate their effort to keep pace with the fast-evolving world of cryptocurrency. While focusing on security and transparency, these regulations also show an understanding of the need to adapt to the ever-changing digital landscape, ensuring that the crypto industry can continue to grow and evolve.
Interesting Reads
Guide to FATF Travel Rule Compliance in Mexico
Guide to FATF Travel Rule Compliance in Indonesia
Guide to FATF Travel Rule Compliance in Canada
The Visual Guide on Global Crypto Regulatory Outlook 2024
Almost 70% of all FATF-Assessed Countries Have Implemented the Crypto Travel Rule
About Veriscope
Veriscope, the compliance infrastructure on Shyft Network, empowers Virtual Asset Service Providers (VASPs) with the only frictionless solution for complying with the FATF Travel Rule. Enhanced by User Signing, it enables VASPs to directly request cryptographic proof from users’ non-custodial wallets, streamlining the compliance process.
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