Regulatory News
European Union (EU)
EC adopts delegated acts for EU Markets in Crypto-Assets Regulation - On February 22, 2024, the European Commission (EC) issued four delegated acts to enhance regulatory frameworks for cybersecurity in the financial sector and crypto-assets under the Markets in Crypto-Assets Regulation (MiCA). The acts outline procedural rules for the European Banking Authority (EBA) to impose fines on issuers of significant asset-referenced and e-money tokens, as well as criteria for classifying these tokens as significant. Additionally, the acts establish fees for the EBA and provide criteria for intervention powers of the European Securities Markets Authority (ESMA) and the EBA, along with competent authorities. Next steps include a three-month review by the European Parliament and the Council, with the potential for extension and early conclusion.
Spanish regulator warns investors about 18 unlicensed entities, including crypto companies - The CNMV, Spain’s main financial regulator, has cautioned investors against 18 companies operating without proper licensing. Among them are several crypto firms, like Bitbinx, Crytomerge, and CryptoMaxiTrade. The CNMV urges affected investors to consider legal action, noting its limitations. As per the latest Cointelegraph article, despite the crackdown, Spain saw a 56% increase in registered crypto companies in 2023. Spain's crypto regulations have been in development, with the Markets in Crypto-Assets Regulation expected to be enforced soon.
LATAM
Deputies grant urgent status to cryptocurrency asset segregation bill in Brazil - On February 27, 2024, the Brazilian Chamber of Deputies approved an urgent status for the Project of Law (PL) 4932/23 that imposes asset segregation on cryptocurrency exchanges in Brazil. This allows the proposal to be considered for discussion in future sessions without having to go through committees. The project stipulates that cryptocurrency assets of platform users constitute a separate estate from the virtual asset service provider and therefore cannot be affected by the provider's obligations or judicial actions. The bill also prohibits the offering and trading of cryptocurrency derivatives without authorization from the Brazilian Securities Commission (CVM). The proposal aims to address concerns about certain exchange practices and ensure better financial security.
Global News
G20 finance leaders addressing global financial stability - On February 26, 2024, Financial Stability Board (FSB) published a comprehensive work plan for 2024. G20 finance ministers and central bank governors are addressing concerns over financial stability amid geopolitical uncertainty and inflation. They're focusing on addressing vulnerabilities in non-bank financial intermediation (NBFI), digital innovation, and climate change. They also aim to improve cross-border payments and tackle the challenges posed by the growth of the crypto market.
Addressing the digital money landscape in Pacific Island countries: opportunities and challenges - On February 25, 2024, the International Monetary Fund (IMF) published departmental paper "Rise of Digital Money: Implications for Pacific Island Countries" that explores the evolving landscape of digital money in Pacific Island Countries (PICs). It highlights the macroeconomic and financial consequences of digital money and provides an overview of its development in the region. The paper discusses potential benefits and risks of digital money and payment systems, emphasizing financial inclusion and payment efficiency. It proposes a strategic framework for policy decisions in PICs and advocates for a gradual, well-informed approach to digital money adoption. The paper also suggests a regional approach to address challenges in introducing new digital money forms and payment methods in PICs.
Unlicensed cryptocurrency exchanges in Hong Kong must cease operations by May 31, 2024 - On March 1, 2024,tThe Securities and Futures Commission (SFC) of Hong Kong has announced a deadline of May 31, 2024, for all cryptocurrency exchanges operating without a license to cease their operations. The SFC also encourages investors currently using unlicensed platforms to transition to exchanges that have either obtained or applied for a license. The move aligns with the SFC's efforts to regulate and license the cryptocurrency sector more comprehensively.
Industry News
European Union (EU)
Union Investment launches Blockchain Fund - Union Investment, Germany’s third-largest asset manager, has launched the UniThemen Blockchain fund, signaling its entry into the digital assets market. With a focus on stocks related to blockchain, DLT, and digital assets, this fund aims to diversify its portfolio while tapping into the potential of crypto tokens through certificates.
United Kingdom (UK)
Lloyds Bank spearheads UK's trade digitalisation with WaveBL Partnership - Lloyds Bank joins forces with WaveBL for the UK's first trade digitalisation partnership, enabling clients to streamline trade processes using electronic Bills of Lading (eBLs) and fostering sustainability. The move signals Lloyds Bank's ongoing commitment to trade digitalisation and aligns with its participation in the FIT Alliance, aiming for a 100% global eBL uptake by 2030. This initiative follows Lloyds Bank's prior achievements in completing the UK's first digital promissory note transaction and successfully adopting the Electronic Trade Documents Act (ETDA) in 2023.
OANDA launches cryptocurrency trading in the UK - OANDA, owned by CVC Capital, has launched its cryptocurrency offering in the UK, leveraging technology from its acquisition of Coinpass. The move provides access to 63 crypto trading pairs and comes amid the UK's ongoing establishment of cryptocurrency regulations. OANDA already offers a range of financial services in the UK, including CFD trading and cross-border payments, with a focus on making crypto trading more accessible to all levels of investors.
LATAM
Crypto.com and BTG Pactual Partner to Boost Latin American Crypto Banking - Crypto.com and BTG Pactual, Latin America's largest investment bank, have teamed up to advance crypto banking services in the region. Their initial focus includes listing BTG DOL, the world's first dollar-backed stablecoin, and promoting it as an efficient trading pair with major crypto assets. This collaboration aims to bridge traditional and digital finance in Latin America, fostering the digital economy.
MENA
DKK Partners receives initial approval from Dubai's Virtual Assets Regulatory Authority - DKK Partners FZE, a subsidiary of DKK Partners, secures an Initial Approval from the Dubai Virtual Assets Regulatory Authority (VARA) to offer Virtual Asset Broker Dealer Services. This approval enhances their digital asset strategy, positioning Dubai as a crucial hub for their Middle Eastern operations. The approval enables DKK Partners to strengthen their compliance and innovation in the Virtual Asset space and cater to the needs of corporate and institutional customers in Dubai and the UAE. This development is seen as a significant move in the rapidly evolving digital asset landscape in Dubai.
