Regulatory News
European Union (EU)
EBA finalizes complaints handling standards for ART issuers - On March 13, 2024, the European Banking Authority (EBA) released final draft Regulatory Technical Standards (RTS) for handling complaints by ART issuers. These standards, developed under MiCAR, outline procedures and requirements for complaints management policies, information provision, and investigation procedures. The draft RTS, developed with ESMA, underwent public consultation and received general support. However, some respondents sought greater alignment between EBA's RTS and ESMA's standards for crypto asset service providers. In response, the EBA made targeted amendments to enhance clarity and alignment with ESMA.
EBA releases draft guidelines for MiCA issuers' redemption plans - On March 8, 2024, the European Banking Authority (EBA) has issued a consultation on draft guidelines concerning issuers' redemption plans under the Markets in Crypto Assets (MiCA) Regulation. These guidelines aim to ensure swift redemption of asset-referenced and e-money tokens (ARTs/EMTs) in case of issuer insolvency or inability to fulfill obligations. MiCA mandates issuers to develop plans for such contingencies, with triggers outlined by the EBA reflecting the crypto market's volatility. National Competent Authorities (NCAs) are urged to consider various factors, including market perception, crypto market conditions, and macro-economic trends, when assessing issuers' ability to meet MiCA obligations. The consultation period ends on 10th June 2024.
United Kingdom (UK)
FCA updates position on Crypto Asset Exchange Traded Notes for professional investors - On March 11, 2024, the Financial Conduct Authority (FCA) has announced that it will not oppose requests from Recognised Investment Exchanges (RIEs) to establish a UK listed market segment for crypto asset-backed Exchange Traded Notes (cETNs) targeted at professional investors. However, the ban on selling cETNs and crypto derivatives to retail consumers remains in place due to the significant risks involved. The FCA emphasizes that cryptoassets are high-risk and largely unregulated, warning investors to be prepared to lose all their money. The FCA is actively collaborating with government, international partners, and industry to develop the UK's crypto asset regulatory regime and set international standards in this domain.
FCA warns Annex 1 firms over anti-money laundering failings - On March 5, 2024, the FCA has cautioned Annex 1 firms regarding anti-money laundering deficiencies, urging them to promptly address issues like activity inconsistencies and inadequate controls. Failure to rectify weaknesses may result in regulatory action. Emphasis is placed on combating financial crime to uphold market integrity, with ongoing efforts outlined in the FCA's strategy to reduce and prevent financial crime, requiring collaboration between public and private sectors.
LATAM
Receita Federal introduces 15% tax on Bitcoin, effective immediately in Brazil - On March 11, 2024, the Brazilian Federal Revenue Office has enacted a new regulation imposing a 15% tax on Bitcoin and cryptocurrencies held abroad. According to the new directive, users with crypto assets held on foreign exchanges will be subject to this tax. The regulation aims to address issues related to offshore assets and applies to profits from digital asset operations conducted on exchanges not registered in Brazil. The move reflects the government's efforts to regulate the growing crypto market and ensure compliance with tax laws. Brazilian taxpayers with overseas assets, including cryptocurrencies, are now required to disclose their earnings on a new form in their tax declarations. Additionally, experts provide guidance on how to properly declare and pay taxes on cryptocurrency transactions to comply with the law.
MENA
DIFC introduces groundbreaking Digital Assets Law and enhanced security regulations - On March 13, 2024, Dubai International Financial Centre (DIFC) announced enactment of new digital assets law, new law of security and related amendments to selected legislation. The Digital Assets Law, effective March 8, 2024, delineates the legal characteristics of digital assets and provides a framework for their control and transfer, while updates to existing laws accommodate specific issues related to this asset class. Additionally, the new Law of Security, also effective March 8, 2024, aligns with international best practices and clarifies procedures for securing digital assets, ensuring DIFC remains at the forefront of regulatory excellence.
Dubai launches Unified Digital Platform for company setup, enhancing investor experience - Dubai introduces a Unified Digital Platform for establishing companies in the region, aiming to streamline licensing processes and enhance the investor experience. Decree No. (13) of 2024, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, integrates licensing procedures across various entities and aims to regulate license issuance for clarity and simplicity. The platform, part of Dubai's digital transformation efforts, aligns with the city's goal to become a digital economy hub. Additionally, Resolution No. (5) of 2024 facilitates investors' journeys by mandating streamlined procedures and utilizing the 'Invest in Dubai' digital platform for registration and unified data submission.
ADGM proposes a whistleblowing framework to enhance market integrity - On March 7, 2024, Abu Dhabi Global Market (ADGM) has released a Consultation Paper outlining a proposed whistleblowing framework aimed at bolstering transparency, accountability, and market integrity. The framework, building upon ADGM's existing regulatory frameworks, encourages the reporting of "protected disclosures'' through internal and external channels, with provisions for non-retaliation protections. The measures seek to cultivate a culture of speaking up within ADGM's financial ecosystem, fostering investor confidence and aligning with global standards of business practice. The Consultation Paper is open for feedback until April 30, 2024.
Global News
El Salvador drops income tax for foreign investments and remittances - El Salvador has eliminated income tax on foreign investments and remittances, reducing the rate from 30% to 0% with no caps on the amount. President Nayib Bukele announced the change on social media, calling it a significant reform to attract international investments and facilitate money transfers.
HKMA launches stablecoin issuer sandbox arrangement - The Hong Kong Monetary Authority (HKMA) introduced the stablecoin issuer sandbox arrangement on March 12, 2024, coinciding with a consultation on implementing a regulatory regime for stablecoin issuers. The sandbox aims to outline supervisory expectations for parties interested in issuing fiat-referenced stablecoins in Hong Kong and gather feedback on proposed regulatory requirements. Applicants must demonstrate genuine interest and present a viable business plan, operating within a limited scope and risk-controlled environment. Mr. Eddie Yue, Chief Executive of HKMA, emphasized the sandbox's role in fostering dialogue with the industry to develop appropriate regulatory standards for sustainable and responsible stablecoin issuance.
Indonesia’s Financial Regulator issues new crypto regulations ahead of January 2025 transition - The Financial Services Authority (OJK) of Indonesia has unveiled new regulations covering cryptocurrencies, set to take effect in January 2025. The directives aim to strengthen the financial industry by addressing digital financial assets and their impact on various sectors, including banking and insurance. The move reflects proactive steps by OJK to prepare for increased crypto control, with a transition team established to oversee the supervision of digital financial assets. Indonesia's efforts in developing comprehensive crypto policies involve collaborations with other nations such as Malaysia, Singapore, and Dubai, aiming to establish a robust regulatory framework for the growing digital economy.
Industry News
European Union (EU)
French teenagers turning to crypto investment. Report - A recent report reveals that French teenagers, particularly those aged 18-24, are increasingly investing in cryptocurrencies, with 15% of this demographic already involved in the crypto market. Despite restrictions on crypto platforms for minors, adolescents and young adults are drawn to the potential profits and adrenaline rush of trading. However, alongside this trend, there is a growing concern about scammers exploiting the rising interest in crypto, as evidenced by recent complaints against fraudulent investment platforms and fake news articles promoting cryptocurrency schemes.
LATAM
Historic Printing House partners with Banco do Brasil to introduce DREX offline payments - Giesecke & Devrient (G&D), a renowned printing house with a 168-year history of printing physical currency in Europe, has teamed up with Banco do Brasil (BB) to facilitate offline payments for Brazil's digital currency, DREX. This partnership marks a significant shift for G&D, which has transitioned its focus to producing central bank digital currencies since 2020. The collaboration aims to explore innovative ways to integrate DREX into everyday transactions in Brazil, leveraging offline capabilities to enhance financial access, especially in regions with limited internet connectivity. The proposed solution, presented during the Lift Challenge program by the Brazilian Central Bank, involves a card-like device loaded with DREX stablecoins, allowing users to conduct transactions seamlessly without the need for internet connectivity.
Dynasty tokenizes hangar at Dubai International Airport - Dynasty, a company, has tokenized an airport hangar at Dubai International Airport. The initiative grants the company rights to revenue generated from real estate operations and a share in aircraft maintenance services for the next 50 years. This move represents a unique approach to investment in airport infrastructure, leveraging blockchain technology for asset ownership. The tokenization allows for broader investment participation and potential revenue streams for the company over the long term.
Crypto.com joins ABCripto following partnership with BTG - Crypto.com, a global cryptocurrency exchange with 80 million customers worldwide, has joined the Brazilian Crypto-Economy Association (ABCripto). This move marks another significant step for the company in Brazil following its partnership with BTG Pactual. The association sees Crypto.com's membership as crucial for strengthening the evolution of the crypto economy, emphasizing technology, security, and privacy. With a commitment to regulatory compliance and responsible blockchain development, Crypto.com aims to contribute to Brazil's vibrant digital assets community and institutional framework through its ABCripto membership.
MENA
DMCC's record year: Driving Dubai's growth across industries - DMCC, Dubai Multi Commodities Centre, Dubai's free trade zone, experienced its second most successful year with 2,692 new companies joining in 2023. Notably, DMCC serves as a hub for various commodities and high-growth sectors like cryptocurrency, gaming, and AI. The opening of Uptown Tower marks the expansion of DMCC's Uptown Dubai district and drives economic growth, and innovation in the region.
Phoenix Group Named "Bitcoin Mining Company of the Year" at Entrepreneur E-Business Awards" - UAE-based tech conglomerate, Phoenix Group PLC, was honored as the "Bitcoin Mining Company of the Year" at the Entrepreneur E-Business Awards ceremony held in Dubai. The event, sponsored by Entertainment Middle East, celebrated digital businesses, startups, and SMEs shaping the e-business landscape in the region. Phoenix Group, listed on the Abu Dhabi Securities Exchange, raised $370 million during its initial public offering and is committed to revolutionizing the digital era through innovative and sustainable crypto-mining solutions. Co-founders expressed gratitude for the award, emphasizing the company's dedication to empowering individuals and businesses through blockchain and cryptocurrency technologies. Phoenix Group operates nine mining facilities globally and is recognized for its significant contributions to the blockchain, crypto, and tech revolution.
Binance partners with Hassan II University in Casablanca to launch blockchain courses - Binance partners with Hassan II University in Casablanca to launch blockchain courses. ENSET faculty to undergo a 10-week online training program to integrate blockchain into the curriculum. The initiative aims to equip students with future-ready skills in blockchain technology. Hassan II University is known for its diverse faculties and commitment to technological advancement. The expansion into Morocco reflects the growing demand for blockchain education worldwide.
Global News
OKX granted in-principle approval for MPI license by MAS - OKX achieves in-principle approval for MPI License from MAS in Singapore, marking a pivotal milestone. The approval underscores OKX's commitment to global expansion and responsible innovation. Singapore's regulatory framework and talent pool position it as an ideal market for OKX's growth strategy. Initial focus will be on offering spot products, with plans for expanding the product suite gradually. OKX remains dedicated to nurturing the local Web3 community and enhancing Singapore's ecosystem.
