Regulatory News
European Union
European Parliament: The European Parliamentary Research Service (EPRS) has recommended that non-EU nations tighten their regulation of cryptocurrencies to safeguard financial stability and the mainstream adoption of stablecoins. The report highlights concerns over the fragmented regulatory landscape in the United States and anticipates a significant divergence in crypto asset regulation between the UK and the EU. As the Markets in Crypto-Assets Regulation (MiCA) Act progresses towards implementation by December 2024, the EU emphasizes the importance of consistent international oversight in the crypto market to protect its financial autonomy.
ECB Digital Euro: European Central Bank President, Christine Lagarde, stated that a "digital Euro" pilot is likely at least two years away from reaching a final decision, while speaking before the EU Parliament's Economic and Monetary Affairs Committee. She emphasized that a Central Bank Digital Currency (CBDC) wouldn't replace cash but should be user-friendly, free, and offer universal digital payment options throughout the Euro system. Lagarde also addressed concerns about privacy and the potential for CBDCs to be perceived as surveillance tools, stating that the focus should be on privacy, not anonymity, in digital currency transactions.
Cyprus - International Investment: Cyprus has set a September 30th deadline for existing companies to report beneficial ownership information. The new online register which replaces the system introduced in March 2021, will launch by the end of October as per International Investment report, with companies given a one-month grace period for updates. Non-compliance will incur €200 daily fines.
United Kingdom
Bybit: Crypto exchange Bybit is suspending its services in the UK due to regulatory changes imposed by the Financial Conduct Authority (FCA). Starting from October 1, Bybit will no longer accept new account applications from UK residents, followed by the suspension of new deposits, new contracts, and position changes for existing users on October 8. The move comes in response to the FCA's rules on marketing and communications by crypto businesses, aimed at ensuring clear and fair marketing practices. Bybit plans to use the suspension period to align with the FCA's regulations in the future.
LATAM
Brazil - InfoMoney: The President of Brazil's central bank, Roberto Campos Neto, has announced plans to tighten cryptocurrency regulations and increase oversight of exchanges. This decision comes in response to a 44.2% surge in cryptocurrency imports by Brazilians, totaling $7.4 billion from January to August, raising concerns about potential tax evasion and illicit activities. Campos Neto also mentioned the upcoming launch of the digital currency Drex, expected to play a significant role in Brazil's crypto landscape. Presentation available in Portuguese here. The Central Bank, responsible for crypto asset regulation since June, will define criteria for exchange licenses, with public hearings, including a conceptual discussion, scheduled for the near future.
MENA
Dubai Financial Services Authority: The UAE Sustainable Finance Working Group, comprising the Central Bank of the UAE, the Securities and Commodities Authority, the Dubai Financial Services Authority, and the Financial Services Regulatory Authority of Abu Dhabi Global Market, has initiated a consultation on the proposed "Principles for Sustainability-Related Disclosure for Reporting Entities". These principles aim to establish a baseline for sustainability-related reporting disclosure frameworks and enhance transparency in matters related to sustainability reporting. By seeking input from stakeholders, including investors, the group intends to issue these principles in November 2023. Comments can be provided by clicking on this link no later than 20 October 2023.
Global
Bank of International Settlements comments on CBDCs: Agustín Carstens, the General Manager of the Bank of International Settlements (BIS), emphasized the significance of clear legal frameworks in the adoption of Central Bank Digital Currencies (CBDCs). Speaking at a conference in Switzerland, Carstens highlighted that a CBDC's legitimacy is closely tied to the central bank's legal authority to issue it. He also mentioned the need to safeguard user privacy and the freedom to choose between CBDCs and other forms of money. Additionally, he addressed concerns about potential misuse of CBDCs for social credit scoring and stressed the importance of defined rights and obligations in CBDC operation.
Industry News
European Union
Spain - Coinbase: Coinbase has secured registration as a cryptocurrency exchange and custodian wallet provider from the Bank of Spain, allowing it to offer its services to users in Spain while adhering to local regulations. The services encompass custody of crypto assets, buying and selling cryptocurrencies in legal tender, and crypto-to-crypto trading. Spain has seen growing interest in cryptocurrencies, with 29% of adults viewing them as the future of finance, and crypto becoming the second most popular payment method in the country, surpassing bank transfers. Additionally, Kraken also recently secured an EMI license from the Bank of Spain earlier this month.
Belgium - Binance: Binance has reopened new registrations for Belgian residents as of September 25, 2023. Existing users in Belgium can regain access to specific Binance products and services by accepting the updated Terms of Use. The announcement expresses gratitude for users' patience and support.
France - BFMTV: Binance France has extended its partnership with Paysafe temporarily due to withdrawals and deposits in euros being blocked on the platform. This decision was prompted by the challenge of finding a new banking partner after Binance changed its EUR banking partner following Paysafe's cessation of services on September 25. Customers are advised to convert their traditional currency balances into cryptocurrencies while they work on finding new partners and solutions.
Netherlands - Crypto News: Gemini will cease its cryptocurrency services in the Netherlands starting November 17, 2023, due to regulatory pressures from the Dutch Central Bank. The exchange plans to comply with the Markets in Crypto-Assets Regulation (MiCAR) and aims to resume operations in the Netherlands once compliance is achieved.
Poland - DLNews: Poland is currently the leading destination for crypto companies in the EU, hosting almost half of the 2,000 registered firms across the bloc - as per DLNews analysis. This is due to its straightforward and cost-effective registration process. However, France is making strides to overtake Poland as the EU's crypto hub by streamlining its registration process and attracting top companies. As the EU's MiCA law approaches in December 2024, countries like Poland and France are competing to attract crypto entrepreneurs.
United Kingdom
World Federation of Exchanges principles on crypto trading: The World Federation of Exchanges (WFE) has released a set of six principles aimed at promoting safe and credible crypto trading platforms (CTPs). These principles include segregating market infrastructure functions within CTPs, maintaining orderly market operations, and ensuring adequate financial resources. The WFE also suggests that CTPs should not refer to themselves as exchanges until they adhere to these principles and receive regulatory oversight.
Daily Coin: JPMorgan-owned Chase Bank has announced a ban on cryptocurrency-related payments, raising concerns about the UK government's efforts to position the country as a global cryptocurrency hub. The ban, set to take effect from October 16, 2023, has sparked controversy within the crypto community. Chase Bank argues that the policy change is aimed at protecting customers from digital asset fraud and scams. However, the move contradicts the UK government's pro-crypto stance, as a recent study revealed that fewer than half of major UK banks are considered crypto-friendly, indicating a gap between policy and practice.
LATAM
Brazil - SERPRO: The Brazilian Federal Data Processing Service (Serpro), under the Ministry of Finance, has announced the adoption of blockchain technology for the issuance of the new National Identity Cards (CIN). Initially rolled out in the states of Goiás, Paraná, and Rio de Janeiro, the blockchain-powered system enhances data security and fraud prevention while providing a more secure digital experience for citizens. The move is part of Brazil's efforts to improve public services and digital identity infrastructure, with all identity issuance authorities in the country expected to implement this blockchain-based system by November, as mandated by a government decree D10997.
Argentina - Crypto News: Tecpetrol, a major Argentinian oil producer, has announced plans to start cryptocurrency mining operations using associated gas from its oil fields near Vaca Muerta. The firm aims to generate electricity with this gas to power crypto mining rigs, although it has not disclosed the specific cryptocurrencies it will mine. The crypto mining operations are set to begin between the end of October and the beginning of November. This move not only allows Tecpetrol to reduce gas flaring but also enhances its oil production efficiency.
Argentina - zkSync: The City of Buenos Aires is collaborating with QuarkID to introduce a blockchain-based digital identification program. Starting in October, residents can use QuarkID wallets to access personal identification documents like birth and marriage certificates. This initiative, supported by zkSync Era, prioritizes privacy and transparency while enabling citizens to manage their data securely when dealing with administrative services.
MENA
Arabian Business: Despite the recent cooling of the global cryptocurrency market, the UAE and Saudi Arabia have continued to embrace digital assets, showcasing resilience in the face of market fluctuations. The UAE recorded over $34.8 billion in cryptocurrency transactions between July 2022 and June 2023, while Saudi Arabia experienced a 12 percent growth in crypto volumes during the same period.
Global
Cointelegraph: NASA, in collaboration with Lonestar and the Isle of Man, will send data cubes to the Moon in February 2024. Blockchain technology will be used to verify this data when it returns to Earth, providing conclusive evidence of Moon landings during NASA's Artemis 3 mission in 2025. The data will include digital stamps stored in data cubes on the Moon, which blockchain will ensure are complete and untampered, potentially dispelling any future lunar landing conspiracy theories.
Google Cloud: Google Cloud's BigQuery service has added 11 new blockchain networks, including Avalanche, Arbitrum, Polkadot, and Tron, to its data warehouse. BigQuery allows enterprise firms to store and query data, including public datasets. It previously added Bitcoin and Ethereum datasets and has continued to expand its blockchain coverage. Additionally, Google has introduced new user-defined functions to make handling long-form decimal results from blockchains easier and more precise. These additions demonstrate Google Cloud's increasing interest in blockchain technology in 2023.
