Crypto regulation in the world: weekly digest #41

UAE

The Securities and Commodities Authority of the United Arab Emirates (SCA) announced that it started receiving license applications from companies wishing to provide virtual asset services. All UAE-based companies that provide virtual asset services (except for those licensed to operate in financial free zones) are required to comply with the provisions of these decisions and file their license application with the SCA.

Companies operating in the emirate of Dubai, on the other hand, should submit their license application to the VARA in addition to seeking the SCA’s approval according to uniform procedures developed to facilitate and expedite the licensing process.

Legislative amendments have been also introduced to the Financial Activities Rulebook with respect to virtual assets. New financial activities were included, namely virtual asset brokers, custodians, and platform operators. A new category was also added for virtual asset service providers and a document was annexed to Chapter 3 of the Financial Activities Rulebook, which contains virtual asset portfolio provisions in terms of creation, management, and controls.

USA

We already wrote about the crusade of the U.S. financial watchdogs SEC and CFTC against crypto companies. The trial of Ripple and SEC is coming to an end, but the regulators are not ready to give up and continue to file new lawsuits against other companies, such as Binance and Tron Foundation.

This time, according to the SEC’s Press Release the Commission has charged crypto exchange Bittrex, its co-founder and former CEO William Shihara and Bittrex’s entities in the USA and abroad. The reason is still the same - for operating an unregistered national securities exchange, broker, and clearing agency. Bittrex Global GmbH was charges for failing to register as a national securities exchange in connection with its operation of a single shared order book along with Bittrex.

The SEC’s complaint, filed in the U.S. District Court for the Western District of Washington, alleges that Bittrex and Bittrex Global should have registered as an exchange, clearing agency and a broker.

As a response, Bittrex has announced that it is winding down operations in the USA due to «regulatory uncertainty». Such attacks on crypto companies already have a negative impact on the crypto climate in the United States. Some firms, even big ones like Coinbase, have already announced plans to abandon the US before comprehensive crypto legislation is passed.t

By now only the draft of the U.S. Stablecoin Bill is under consideration in the Senate. The bill proposal that has been released by the Financial Services Committee proposes a moratorium on crypto-backed stablecoins and is considering introducing a central bank digital currency (CBDC). The bill follows the collapse of TerraUSD (UST), which was backed by the LUNA token, and remains the key incidents related to stablecoins. Another Bill to regulate crypto, the Responsible Financial Innovation Act is not represented in the Senate’s agenda for the nearest future.

News from other countries:

• The European MiCA bill has finally passed the European Parliament. It will enter into force after ratification in all the EU countries.
• India is calling on the G20 to introduce a unified regulation of cryptocurrencies. Recall that in India there is still no legislative framework for cryptocurrencies, except for the rules for taxing crypto transactions.
• Russia plans to create a national crypto exchange. We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!