Compliance Wednesday: Latest Regulatory Updates in Crypto
Hey everyone,
Welcome back to Compliant Wednesday with the latest batch of policy updates from our around the world:
- 🇩🇰 Denmark clarifies stance on self-custodial wallets
- 🇸🇬 Singapore updates crypto risk assessment
- 🇪🇺 Cardano releases sustainability data for MiCA compliance
🇩🇰 Denmark clarifies stance on self-custodial wallets
Recent social media reports about Denmark planning to ban self-custodial cryptocurrency wallets are misinformation. The Danish Financial Supervisory Authority (DFSA) has denied proposing any such ban. The explanation follows a regulatory assessment of decentralization in the context of the Markets in Crypto-Assets (MiCA) Regulation, which exempted fully decentralized crypto-asset services from regulation. Self-custodial wallets, which do not involve an intermediary, are not subject to MiCA by nature. The responsibility of maintaining the wallet security and the safety of the private key falls exclusively on the owner in self-custodial wallets. The DFSA’s assessment aimed to increase awareness of potential regulatory requirements, emphasizing that the DFSA is open for dialogue to understand whether specific offers in Denmark are in scope of MiCA or not.
Our take:
This move highlights the importance of user awareness around decentralized crypto services and maintaining security. The DFSA remains open to discussions to clarify any regulatory uncertainties.
Read more here.
🇸🇬 Singapore updates crypto risk assessment
Singapore’s Monetary Authority’s update to its laws on Countering the Financing of Terrorism (CFT) increases the risk level for crypto exchange platforms from medium-low to medium-high and identifies cross-border online payments as high-risk for terrorist financing activities. The update follows a report flagging digital payment tokens as high-risk for money laundering. The Monetary Authority of Singapore (MAS) has been actively involved in regulating the digital asset market, expanding the scope of regulated payment services to include digital token services providers. Singapore is considered a pro-crypto nation with a high adoption rate, and the MAS acknowledges Bitcoin and Ether as cryptocurrencies with legal status in the country.
Our take:
Singapore’s MAS raising the risk level for crypto exchanges to medium-high reflects its proactive stance on combating financial crimes. This update underscores the need for robust compliance and risk management practices
Read more here.
🇪🇺 Cardano releases sustainability data for MiCA compliance
The Cardano Foundation, along with the Crypto Carbon Ratings Institute (CCRI), has released sustainability indicators for the Cardano network to comply with the upcoming Markets in Crypto-Assets (MiCA) regulation in the European Union. This new report provides data on Cardano’s energy efficiency, electricity consumption, carbon footprint, and power demand per transaction per second. It aims to meet the draft regulatory technical standards from the European Securities and Markets Authority. Frederik Gregaard, CEO of the Cardano Foundation, emphasized the importance of meeting EU regulations and setting a benchmark for the crypto industry, especially in terms of environmental, social, and governance (ESG) concerns.
Our take:
Cardano’s initiative to publish sustainability data is a significant stride towards meeting MiCA regulations and setting an industry benchmark. Transparency in energy efficiency and carbon footprint is crucial for aligning with ESG principles.
Read more here.
And that’s it! What do you think about this week’s news? Let us know in the comments!
