Veriscope Weekly Regulatory Recap June 12th to 18th.
The regulatory landscape remains heated, with authorities from many countries calling for regulating virtual assets
Welcome to Veriscope’s Weekly Regulatory Recap. This week, too, the regulatory landscape remains heated, with authorities from many countries calling for regulating virtual assets. Without further ado, let’s dive straight into it. We hope you enjoy it.
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Travel Rule Compliance to Become Mandatory in the UK From 23rd September 2023
Amid concerns around sanctioned individuals & entities using digital assets to bypass sanctions, the United Kingdom recently introduced “Amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 Statutory Instrument 2022.”
The recent amendment proposal is aimed at strengthening the country’s Anti-Money Laundering/ Counter Financing of Terrorism framework. The UK government believes that although the implementation of the Travel Rule will increase the cost of compliance for Virtual Asset Service Providers (VASPs), it will be beneficial for the crypto industry in the long run.
The government has also agreed to provide a grace period for ease of compliance. Hence, the UK-based VASPs will now have until 22nd September 2023 to prepare for the Travel Rule compliance. If the amendment receives green light from the legislature, complying with the Travel Rule will become mandatory from 23rd September 2023.
Click here to read more about the UK government’s recent amendment proposal.
South Korean Government Asks Country’s Crypto Industry for Suggestions to Further Strengthen the Digital Asset Regulations
The Terra-Luna debacle continues to be a hot topic among the South Korean government and authorities. Recently, a Korean media report mentioned that the ruling party in South Korea has called for suggestions from the crypto industry to prevent Terra-Luna-like instances in the future.
As per the report, the South Korean government met industry representatives for consultation on Monday. And it was during the consultation, the officials and lawmakers asked industry players to come up with innovative suggestions to help ensure the safety of the country’s crypto industry.
Click here to read more about it.
Kazakhstan to Allow Authorized Virtual Asset Service Providers to Open Local Banking Accounts
The government of Kazakhstan is taking multiple initiatives to become a regional hub for the digital assets industry. Recently, the country’s Ministry of Digital Development adopted the framework that will allow Astana International Financial Center-registered VASPs to open accounts and avail of various financial services from local tier-II banks.
This positive news comes after the country’s central bank, the National Bank of Kazakhstan, said that the talk around legalizing the virtual asset industry is not something they are considering now. That said, the financial regulator is keeping an eye on the nascent sector.
Click here to read more about it.
India’s Central Bank Governor Calls for Global Coordination for Crypto Regulations
While speaking at the Financial Express-organized Modern BFSI Summit on June 17, Shaktikanta Das, the Governor of the Reserve Bank of India, said that global coordination is necessary for digital asset regulations.
Das also gave the example of decentralized finance (DeFi) to explain why global regulators should come together and cooperate to regulate virtual assets. He said that DeFi’s “No-intermediary Approach” presents a unique challenge to regulators, which can only be tackled through a “globally-coordinated regulatory and inter-regulatory coordination.”
Click here to read more about the RBI governor’s recent statement on the need for global cooperation for digital asset regulation.
With the global crypto market tumbling, regulators are demanding international coordination for regulating the industry. Thus, sooner or later, regulators will come together and work on a global regulatory framework for digital assets. In the meantime, the virtual asset service providers should begin complying with local and international digital assets regulations.
Speaking of international digital asset regulations, VASPs must first comply with the FATF’s Travel Rule. So, from where should VASPs start? Well, first, they should zero in on a Travel Rule Service Provider (TRSP), and no solution’s better than Veriscope. Visit here to know more about Veriscope here: https://www.veriscope.network/ and contact our BizDev team for a discussion.