Regulatory News
European Union (EU)
Prioritization of AMLA in ECON and LIBE votes on AML Package - The ECON and LIBE Committees voted on the AML Package provisional trilogue agreement, including the Anti-Money Laundering Regulation (AMLR), Anti-Money Laundering Authority (AMLA), and the Sixth Anti-Money Laundering Directive (AMLD6), on March 19, 2024. As previously indicated in early March, it's expected that AMLR and AMLD6 will undergo the corrigendum procedure. However, AMLA may receive priority attention from lawyer linguists and could be finalized before the others.
ECB seeks experts for digital euro Rulebook Development - On March 18, 2024 the European Central Bank initiated seven workstreams to establish the digital euro Rulebook. Experts are invited to contribute, with applications closing on April 5, 2024. The Rulebook Development Group (RDG) includes representatives from various parts of the ecosystem, focusing on interactions between consumers, retailers, intermediaries, and the Digital Euro Service Platform (DESP). The rulebook aims to set minimum user experience standards for the central bank digital currency (CBDC) and address certification, approvals, and risk management for different participants.
BaFin highlights EU regulations, calls for simplicity in MiCA implementation - On March 20, 2024, Dr. Thorsten Pötzsch, Executive Director of Securities Supervision / Asset Management at BaFin, expressed concerns about the complexity of EU digital regulations, particularly MiCA, calling for clearer rules and reduced bureaucracy to avoid hindering the potential of capital markets. While acknowledging the need for legislation to ensure a safe jurisdiction for capital market players, Dr. Pötzsch questioned the efficacy of the extensive regulatory framework, comprising MiCA and an additional 57 guidelines or legal rules. He emphasized the importance of speed, clarity, and minimal bureaucracy in regulatory processes to facilitate innovation and growth in the capital markets.
Riksbank's report highlights challenges in offline CBDC payments - On March 20, 2024, Swedish Riksbank's published final report on its digital krona pilot project that explores offline functionality, revealing mixed results. It proposes a new model involving a "shadow wallet" and payment card for offline transactions, yet security and accounting issues persist. Challenges include user-friendliness concerns with mobile phones as communication devices and the need for synchronized payment cards to prevent illiquidity. The report underscores the necessity for trusted infrastructure before the potential launch of Sweden's CBDC.
United Kingdom (UK)
UK regulator to tighten measures against crypto market abuse - On March 19, 2024, FCA published the business plan for 2024/25 with the plan to enhance its capabilities in detecting and addressing market abuse within the crypto sector over the next year. This includes improving monitoring systems and developing advanced analytics for better oversight. Additionally, the FCA aims to establish a proportionate market abuse regime for crypto assets and the PISCES facility. Despite potential challenges for crypto companies, the FCA aims to support innovation while also supervising financial promotions and enhancing investor education to combat scams.
LATAM
Cointelegraph Brasil Live addresses cryptocurrency tax declaration concerns for 2024 income tax - Cointelegraph Brasil hosted a YouTube live session on Thursday, March 21, to guide investors on declaring Bitcoin and other cryptocurrencies for the 2024 Income Tax. Legal expert Rafael Steinfeld, specializing in crypto-assets, will discuss regulations set by the Brazilian Revenue Service. The live session will tackle the complexity of the topic and stress the need for specialized guidance due to the lack of specific regulations. The recently published RFB Instruction Normative 2,180/2024 will be a key focus of discussion.se users. Citi's involvement underscores a commitment to shaping the future of finance through blockchain technology.
Argentinian CNV advances in regulation of Virtual Asset Service Providers registry - The National Securities Commission (CNV) is implementing Law No. 27,739, which reforms the National Regulatory System for the Prevention of Money Laundering and Financing of Terrorism (ML/FT). One key aspect is the establishment of the Registry of Virtual Asset Service Providers (PSAV) to centralize information on providers of virtual asset services. The CNV will supervise, regulate, inspect, and sanction these providers in line with FATF/GAFILAT recommendations and Argentina's Fourth Round of Mutual Evaluation. President Roberto E. Silva and director Sonia F. Salvatierra emphasized the importance of compliance with FATF/GAFILAT evaluations. The CNV board, including Patricia Boedo, aims to coordinate efforts to ensure effective implementation of new regulations and promote transparency in combating organized crime.
MENA
Consultation Paper 157: Proposed changes to DFSA's fees - The Dubai Financial Services Authority (DFSA) issues Consultation Paper 157 on March 14, 2024, proposing amendments to its fee structure. The aim is to align fees with regulatory responsibilities while considering commercial interests. Stakeholders, including authorized firms and market institutions, have until May 15, 2024, to provide feedback via the provided link. Following consultation, changes to the DFSA's Fee Rulebook will be made, with updates communicated through the DFSA website.
DIFC announces amendments to Select Legislation in 2024 - Dubai International Financial Centre (DIFIC) has enacted amendments to its Employment Law, Trust Law, Foundations Law, and Operating Law to align with international best practices. These legislative changes aim to ensure DIFC laws remain robust while catering to the unique needs of the region. Key amendments include requiring employers to make "top-up" payments into Qualifying Schemes for GCC national employees, strengthening DIFC Courts' jurisdiction over trusts and foundations, and enhancing the Registrar of Companies' powers to regulate entities operating outside standard business hours. These amendments, effective from March 8, 2024, reflect DIFC's commitment to maintaining a transparent and robust legal and regulatory framework in line with global best practices.
Global News
Uzbekistan increases fees for crypto operations - On March 19, 2024, Uzbekistan’s National Agency for Prospective Projects (NAPP) raised monthly fees for crypto market participants, citing improved profitability in the sector. Crypto exchanges will now pay 740 basis reference value (BRV) per month, up from 400 BRV, while crypto retailers face a fee increase from 20 BRV to 185 BRV. The NAPP expects doubled state revenue from the crypto sector with the new fees, effective June 20, 2024.
IMF recommends taxation of cryptocurrencies - The International Monetary Fund (IMF) urges Pakistan's FBR to expand the Capital Gains Tax to include cryptocurrencies and to review real estate and securities taxation slabs. It proposes obligating property developers to track and report property transfers, imposing penalties for non-compliance. These recommendations could become part of the upcoming bailout package, ensuring taxation of gains from real estate transactions and listed securities, regardless of ownership duration.
China's CBDC guide for tourists - China's Central Bank and it´s Digital Currency Research Institute have introduced support for foreign visitors to use the eCNY digital currency on the mainland. A how-to guide has been issued, detailing usage via mobile apps or hardware wallets like payment cards or wearables. The eCNY app allows sign-up with a mobile number and supports 210 countries, offering top-up options through Visa/Mastercard or bank/kiosk visits. While Alipay remains popular, the eCNY hardware wallets are advantageous for cash preference. Shenzhen issued 30,000 digital yuan hardware wallets during a shopping festival, with a new facility introduced for card issuance without the internet, requiring only a passport.
