Crypto regulation in the world: weekly digest #39
It seems that Dubai's Virtual Assets Regulatory Authority (VARA) is tightening rules for crypto companies. According to Bloomberg, major crypto exchange Binance, which already has been operating in Dubai under VARA’s license, received a request to provide additional information about the company.
The regulator is asking for more details about Binance's owners, governance structure, and audit procedures. Similar requests were sent to companies that are currently trying to obtain a license to operate in Dubai.
Earlier this year, VARA has released a series of rulebooks that set up a legal framework for crypto companies in the Emirate. It could be that the regulator was gathering information from crypto exchanges in order to check them for compliance with the new guidelines. It is also possible that following the U.S. CFTC attack on Binance, VARA wants to play it safe and make sure that the company operates transparently and honestly in the UAE. The CFTC charges Binance with the U.S. regulatory requirements evasion, as well as creating shell companies to obscure the ownership and business transactions. Not surprisingly, VARA has also decided to check the exchange and take a closer look at new applicants.
Due to the unprecedented pressure of the U.S. financial authorities on crypto companies and the collapse of several crypto-friendly banks in the USA some major American crypto companies are considering moving to more crypto-friendly locations. Gemini, Bittrex and Coinbase are planning to move their headquarters outside the U.S., and many other large exchanges, such as OKX and Bybit, have already applied for registration in Hong Kong.
Regulation in Hong Kong is much more liberal than in the U.S., making it a center of attraction for cryptocurrency trading platform and investments in virtual assets. The city has long been the technological and financial center of Asia, and in recent years has made efforts to position itself as a center of innovation in the field of cryptocurrency and blockchain.
The Hong Kong authorities have recently updated the rules for the operation of crypto exchanges and, unlike the U.S., are interested in cooperation between banks and crypto companies. Hong Kong has every opportunity to become a leading player in the global crypto and blockchain ecosystem, which will have a serious impact on the entire global cryptocurrency industry as a whole.
The Seychelles authorities plan to develop a regulatory framework for regulating the cryptocurrency industry. At the same time, the largest global crypto exchanges, such as OKX, UCHS and others, have long been headquartered in the Republic.
The government has begun to develop requirements for the registration and licensing of virtual assets service providers. The decision to develop the legal framework for crypto was taken following a national risk assessment conducted by the Seychelles Financial Services Authority (FSA). According to the report of the regulator, the number of complaints related to cryptocurrencies has increased significantly in the Seychelles.
Citizens of the Seychelles are also showing increasing interest in investing in cryptocurrencies. This cause the necessity to create a regulatory framework that will allow users to invest in crypto safely and protect their interests in the courts. As Seychelles is the center of offshore registration of crypto companies, it can be assumed that increased regulation will protect users not only in the Republic, but around the Globe.
News from other countries:
• In Kenya a bill proposal to regulate cryptocurrencies same as securities has been introduced. It obliges crypto companies and token issuers to comply with a range of requirements.
• Coinbase upheld a lawsuit filed against the U.S. Office of Foreign Assets Control (OFAC) to lift sanctions against the Tornado Cash mixer.
• The UK Financial Conduct Authority (FCA) and the Advertising Standards Authority (ASA) have teamed up to create a single set of rules for influencers promoting digital assets.
We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!