Regulatory News
European Union (EU)
European Parliament adopts eIDAS Regulation: Advancing digital identity and trust services - The European Parliament plenary has approved the final text of the European Digital Identity Regulation (eIDAS) on 29 February. This regulation, once endorsed by the Council and published in the Official Journal of the EU, will introduce the EU Digital Wallet. This wallet aims to facilitate online identification and authentication for citizens without reliance on commercial providers, offering free "qualified electronic signatures" to users. Additionally, the regulation delineates ledgers from other trust services like electronic time stamps. The next step involves the Council's endorsement of the final text at the ministerial level, with a date yet to be confirmed.
Hungary's crypto regulation proposal: Banking on accessibility and oversight - Hungary proposed last week changes to its crypto regime regulation aligning it with MiCA, allowing amongst others also traditional banks to offer crypto assets like bitcoin, overseen by the central bank - Magyar Nemzeti Bank (MNB). The draft law aims to foster innovation while ensuring consumer protection and financial stability. With a focus on transparency and tax revenue, the legislation may lead to increased budget revenues. Analysts predict the law will provide safety for investors, particularly appealing to young tech-savvy individuals, albeit without substantial demand generation. As per the original MiCA regulation (Point 4, Paragraph 11) the law will come into effect on June 30, 2024.
United Kingdom (UK)
UK Government launches consultation on crypto-asset reporting framework - On March 7, 2024, the UK Government has initiated a consultation to gather opinions on implementing the Crypto-Asset Reporting Framework (CARF) as part of its strategy to address the tax gap. Originally announced in November 2023, this initiative aligns with OECD tax transparency standards and aims to facilitate information exchanges in the UK by 2027. The consultation seeks feedback on proposed amendments to the UK's Common Reporting Standards to accommodate CARF and will be open for submissions until May 29, 2024.
Former BoE fintech lead: UK to allow coexistence of stablecoins and CBDCs, says Paul Varun in Cointelegraph interview - Varun Paul, former head of Fintech at BoE, shared insights in an exclusive interview with Cointelegraph about the UK's coordinated regulatory approach towards cryptocurrencies, stablecoins and CBDCs. Collaborative efforts between the Treasury, BoE and FCA aim to balance innovation and stability. Paul highlights the advantage of streamlined regulations in the UK compared to the EU and emphasizes the significance of stablecoins in the crypto ecosystem. Paul suggests specific use cases will determine the preference between stablecoins and CBDCs. Economic Secretary to the Treasury, Bim Afolami, hints at forthcoming legislation regulating stablecoins and crypto staking by 2024 end.
LATAM
The Brazilian Tax Authority releases new rules for reporting cryptocurrency in Income Tax Returns - The Brazilian Federal Revenue Service has announced new regulations for the Income Tax declaration of 2024, applicable to the fiscal year 2023. Notable changes include categorizing cryptocurrencies into 'altcoins' and 'stablecoins' for reporting purposes, and the requirement to disclose the CNPJ of the custodian for each cryptocurrency held. Additionally, regulations for crypto-assets held abroad are clarified, with a new form for declaring income from foreign investments, including offshore cryptocurrency exchanges. The deadline for submissions is set for May 29, 2024.
MENA
UAE Launches Sanadak: Independent ombudsman unit for financial consumer complaints - On March 7, 2024, the Central Bank of UAE released a paper that introduces Sanadak, an independent ombudsman unit, pioneering in the region. Managed solely by Emiratis, it focuses on resolving financial disputes, ensuring consumer rights protection. With a transparent and impartial approach, it aims to enhance efficiency and effectiveness in complaint resolution. Consumers can lodge complaints online or in person, promoting accessibility and inclusivity. Sanadak represents a significant step towards bolstering competitiveness and fostering financial stability in the UAE.
Dubai Financial Services Authority (DFSA) releases Consultation Paper no 156 seeking public comment on proposals for changes to the crowdfunding regime - On Mach 5, 2024, DFSA issued the Consultation Paper (CP) that outlines proposed changes to the crowdfunding regime based on supervisory experience and feedback from a Call for Evidence published in May 2023. The paper targets crowdfunding operators, potential applicants for licensing, service providers and investors. The paper invites public comment on these proposals through an online response form until May 6, 2024. After the consultation, relevant changes will be made to the regulatory framework, with notifications issued on the regulatory authority's website.
Global News
Hong Kong Monetary Authority launches Project Ensemble to support tokenization market development - On March 7, 2024, the Hong Kong Monetary Authority (HKMA) announced the launch of Project Ensemble, aimed at supporting the development of the tokenisation market in Hong Kong. This wholesale central bank digital currency (wCBDC) project will explore innovative financial market infrastructure to facilitate seamless interbank settlement of tokenized money. Initially focusing on tokenized deposits, the project aims to enable transactions involving tokenized real-world assets. A wCBDC Sandbox will be launched to research and test tokenisation use cases, with participation from industry stakeholders. Project Ensemble is part of HKMA's broader initiatives to foster the tokenisation market and reinforce Hong Kong's position in digital finance.
NTC implements SEC Directive, blocks unlicensed platforms - The National Telecommunications Commission (NTC) in the Philippines has started blocking unlicensed investment platforms following a directive from the Securities and Exchange Commission (SEC). The SEC warned the public against engaging with unlicensed platforms and cautioned individuals associated with them about potential legal consequences.
Taiwan plans new digital currency laws to safeguard investors - The Financial Supervisory Commission (FSC) of Taiwan is set to propose new digital asset regulations in September 2024 to enhance investor protection. The draft bill aims to establish stricter regulations for digital asset markets and warns against potential fraud risks. The legislation seeks to safeguard the stability of the traditional financial system amidst the growing influence of digital assets. Additionally, Taiwan's Chamber of Commerce will release a study on Bitcoin ETFs in April, considering the acceptance of spot Bitcoin ETFs under regulatory oversight. Foreign virtual asset service providers (VASPs) are prohibited from operating in Taiwan without regulatory approval.
Industry News
European Union (EU)
Deutsche Börse launches regulated crypto spot platform for institutional customers - Deutsche Börse Group has launched the Deutsche Börse Digital Exchange (DBDX), a regulated crypto spot platform for institutional customers. It offers a secure ecosystem for trading, settlement, and custody of crypto assets. Trading initially operates via a price request function, with multilateral trading planned. Crypto Finance (Deutschland) GmbH handles transaction processing and custody. This initiative aligns with Deutsche Börse's goal of offering innovative financial solutions and strengthens its presence in the digital asset market.
LATAM
Mercado Bitcoin announces annual audit by Ernst & Young - Mercado Bitcoin (MB) has revealed that its financial statements and custody are now subject to annual audits by Ernst & Young (EY), one of the world's largest auditing and consulting firms. As one of the few exchanges worldwide, and the only one in Latin America, to undergo EY's annual audit, MB emphasizes its commitment to transparency and security for its customers and partners. The rigorous audit process conducted by EY includes thorough examination of MB's blockchain and cryptocurrency holdings, involving analysis of thousands of wallets and millions of transactions.
Ripio's LAceleradora Program seeks web3 projects for 2024 investment - Ripio's LAceleradora program, led by CEO Sebastián Serrano, is scouting up to ten Web3 projects for potential investment of up to $50,000. The initiative, part of Ripio Ventures, aims to foster innovation in DeFi, payments, NFTs, gaming and social spheres. Selected startups will receive eight weeks of support and training, culminating in a Demo Day for investor pitches. Ripio, with over 10 years of experience and 8 million users, continues to lead crypto adoption in Latin America through initiatives like LaChain.
MENA
UAE’s RAK DAO partners with Tencent Cloud to boost the crypto startup ecosystem - Tencent Cloud, a leading cloud services provider, has forged a strategic partnership with RAK DAO, an emerging crypto-focused free economic zone in the UAE. This collaboration, outlined in a memorandum of understanding (MoU), is designed to foster the growth of startups within RAK DAO by offering various support initiatives. One key aspect of the agreement involves the establishment of a Tencent Cloud training center within RAK DAO, aimed at enhancing skills development and education in the crypto sector. By providing internship opportunities and resources to companies licensed within RAK DAO, Tencent Cloud aims to catalyze innovation and drive the digital transformation of the economy. This partnership underscores the commitment of both parties to advancing the Web3 space and unlocking new opportunities in the rapidly evolving digital landscape.
Nexo clears regulatory hurdles and receives license approval in the Middle East - Nexo has overcome its final hurdles with the approval of its license in the Middle East. The Dubai entity, Nexo Services FZE, has received preliminary approval from the Dubai Virtual Assets Regulatory Authority (VARA) for virtual asset lending and borrowing, management, investment, and brokerage-dealer services. The company now aims to obtain a preparatory license followed by a final operating license to fully offer its cryptocurrency services to regional clients. This move to the UAE follows setbacks in Bulgaria and the US, where Nexo faced regulatory challenges and penalties. The UAE's regulatory clarity and compliance paths make it an attractive destination for global cryptocurrency players like Nexo.
Global News
Binance launches luxury fragrance for Women´s Day to encourage Women's participation in crypto industry - Binance is promoting women's participation in the crypto industry by launching a luxury fragrance called "Crypto" as part of its inclusivity campaign, "Crypto is Yours." The fragrance aims to attract more women to the space, challenging norms and stereotypes. Binance plans to reward the first 5,000 women who complete beginner crypto courses with $25 in Tether. This initiative reflects the industry's broader efforts to promote gender diversity and inclusivity, with other platforms also taking steps to support women-led startups in Web3.
SafePal launches crypto-friendly banking gateway and Visa card for mainstream adoption - SafePal has partnered with Swiss bank Fiat24 to launch a new banking gateway and virtual crypto Visa card, aiming to improve accessibility to cryptocurrency usage. Users can open free Swiss bank accounts within the SafePal app, allowing them to seamlessly use cryptocurrencies for daily expenses and transfers. The virtual Visa cards support payments via third-party platforms. Users can also earn points for various activities to unlock additional benefits and privileges. SafePal and Fiat24 plan to expand their services globally.
