Regulatory News
European Union (EU)
EBA seeks input on guidelines for sanctions compliance - On December 21, the European Banking Authority (EBA) launched a public consultation on guidelines addressing internal controls for compliance with Union and national restrictive measures. These measures, including financial sanctions and embargoes, apply to entities within Member States. The guidelines aim to establish a shared understanding among payment and Crypto Asset Service Providers (CASP) and supervisors. With a deadline of March 25, 2024, the consultation emphasizes reinforcing internal controls to mitigate legal and reputational risks. These guidelines, stemming from a legislative anti-money laundering package, extend to fund and crypto-asset transfers, emphasizing KYC, screening, and due diligence.
Norway explores wholesale CBDC following retail CBDC experiments - This month, Norges Bank, Norway's central bank, has completed the fourth phase of CBDC experiments, deciding against a retail CBDC. Instead, it will focus on a wholesale CBDC for interbank settlement of tokenized deposits. The fifth phase, until late 2025, will determine whether to proceed with launching a CBDC, providing fundamental requirements, specifications, regulations, and a launch plan. Concerns include currency substitution risks from cryptocurrencies and foreign stablecoins. The central bank also considered using the digital euro infrastructure for its CBDC, testing on Ethereum's Hyperledger Besu and exploring multiple blockchains for diverse applications.
LATAM
Argentina proposes cryptocurrency regulation bill - On December 27, Argentina's new government, led by President Javier Milei, introduces a bill simplifying the legalization of cryptocurrency holdings, even for those with inaccurate tax reports. The proposed legislation includes an "asset regularization scheme" with a tiered tax rate for timely declarations. While Milei isn't explicitly a pro-crypto advocate, he hints at Bitcoin as a potential alternative to traditional monetary authorities. The reforms also involve dissolving the central bank and reducing government size and spending.
Argentina's Foreign Minister announces legal use of Bitcoin in contracts - Argentina's Minister of Foreign Affairs, International Trade, and Worship, Diana Mondino, announced that the Argentine government's recent economic reform and deregulation decree would permit the use of Bitcoin and other cryptocurrencies in contracts and payments under specific conditions. The "Bases for the Reconstruction of the Argentine Economy" decree, passed on December 20, did not explicitly mention crypto but allowed debtors to pay in currencies not recognized as legal tender in Argentina. According to Mondino, the decree provides the freedom to settle contracts using Bitcoin and other cryptocurrencies, along with unconventional options like liters of milk or steers. The move aligns with the government's broader economic measures following President Javier Milei's election victory, which is perceived positively for crypto adoption in Argentina.
MENA
Financial Services Regulatory Authority (FSRA) updates anti-money laundering rules in the UAE - The Financial Services Regulatory Authority (FSRA) has announced revisions to its Anti-Money Laundering and Sanctions Rules and Guidance (AML Rulebook) in the UAE. The changes aim to clarify requirements aligned with the federal regulatory framework against money laundering, terrorism financing, and proliferation financing. Notably, minor drafting adjustments have been made to provisions related to wire transfers to explicitly state that the FATF "Travel Rule" applies to Virtual Assets. These updates apply to all entities under the AML Rulebook, including authorized firms in the financial services sector and Designated Non-Financial Businesses and Professions. Further details on the changes and enhancements can be found in the FSRA Rules document.
Industry News
European Union (EU)
Circle gains provisional approval as Digital Asset Service Provider in France - The issuer of stablecoins has received provisional approval as a Digital Asset Service Provider (DASP) from the French regulator Autorité des Marchés Financiers (AMF). Final approval is pending the acquisition of an e-money license, for which Circle applied to the Banque de France's prudential regulator ACPR in March. The approval aligns with the European Union's Markets in Crypto-Assets Regulation (MiCAR), allowing Circle to operate across the EU. Coralie Billmann, with experience at PayPal and 3S Money, will lead Circle in France. Circle launched the EURC stablecoin in mid-2022, backed by Euro reserves with US banks.
Spain witnesses 56% surge in registered crypto firms in 2023 - In 2023, Spain experienced a notable 56% increase in officially registered cryptocurrency companies, with 30 entities receiving virtual asset service provider licenses, as per the country's central bank registry. Although the 2022 figure of 53 registered companies surpasses 2023's count, it's important to note that the registry was initiated in 2022. International platforms like Revolut, Bitpanda, Crypto.com, and Vivid joined the registry in 2023, while domestic companies continue to dominate with 61 licenses out of 85. Spanish regulators have recently taken an active stance on crypto, implementing the European Union's Markets in Crypto-Assets Regulation ahead.
United Kingdom (UK)
Sotheby's reports nearly $35 Million in digital art sales in 2023 - Sotheby's, the iconic auction house founded in the United Kingdom 279 years ago, reported a remarkable year in digital art sales, generating close to $35 million in 2023. The company conducted over 25 auctions dedicated to digital art, including its first live digital art auction with 300 attendees, resulting in $12 million in sales. Sotheby's set a new record by selling Dmitry Chernyak's NFT 'Ringers #879' for $6.2 million. The auction house also entered the NFT space in 2021 and launched its on-chain marketplace for NFTs called Sotheby’s Metaverse. Sotheby's plans to refine its strategies in the primary market and continue supporting creators in the digital art space.
LATAM
Hamsa, a global tokenization firm, enters Brazil with a former Ripple executive - Hamsa has announced its establishment in Brazil, setting up its headquarters in São Paulo. Henrique Teixeira, a former executive from Ripple and Ripio, takes on the role of LATAM General Director at Hamsa. Teixeira emphasizes the progressive approach of the Brazilian Central Bank as an attraction for the company to provide its innovative technology and global connectivity in the country. Hamsa, selected by the Central Bank for the Real Digital/Drex pilot, is currently collaborating with banks in the region. The company offers services such as programmable payments, RWA tokenization, and automated settlement.
Global News
Rejuve utilizes AI and Blockchain for health and longevity enhancement - Caribbean-based company Rejuve combines artificial intelligence (AI) and blockchain to enhance health and longevity. Leveraging AI, Rejuve creates sophisticated models of human bodily functions, assisting clinical providers in personalized medicine. The Longevity App, set to launch in 2024, allows users to monitor health metrics, receive tailored recommendations, and earn RJV tokens, the app's utility tokens. Rejuve.AI collaborates with SingularityNET for decentralized health research, utilizing advanced AI models, including Bayesian Network and Generative Cooperative Network - according to Crypto News article. The company rewards contributors with RJV tokens and aims to pioneer affordable and accessible longevity research and therapies.
Crypto hacking incidents see first decline since 2021, still Totaling $2 billion in 2023 - According to Crypto News article, in 2023, hacking incidents targeting the cryptocurrency industry decreased for the first time since 2021, though losses still amounted to around $2 billion. Notable breaches included Euler Finance ($200 million), Multichain ($126 million), BonqDAO ($120 million), Poloniex ($114 million), and Atomic Wallet ($100 million). This marks a slight improvement compared to 2022, where cybercriminals stole a record-high $3.8 billion, with the Lazarus Group accounting for $1.7 billion. While security measures evolve, attackers remain adaptable, leading to an ongoing cat-and-mouse game.
