Crypto regulation in the world: weekly digest #47


The United Arab Emirates Central Bank has issued a new anti-money laundering and counter-terrorism financing (AML/CFT) guidance for financial institutions dealing with virtual assets, including cryptocurrencies and non-fungible tokens. The new guidance, which will come into effect within a month, applies to banks, finance companies, exchange houses, payment service providers, registered hawala providers, and insurance companies, agents, and brokers.

The guidance discusses the risks arising from dealing with virtual assets and virtual asset service providers, including on due diligence, and takes into account Financial Action Task Force (FATF) standards. The UAE has passed strict laws to prevent money laundering and the financing of terrorism, and has issued a number of regulations over the years to clamp down on financial crime.

The country was included in the FATF's «grey» list in March 2022, which means it is subject to increased monitoring. The UAE responded by saying it was committed to working closely with FATF to improve its regulations. Hamid Al Zaabi, director general of the Executive Office for AML/CFT, said the UAE was an important trade and investment hub and the federal government was working closely with authorities across the country and the private sector to ensure that all entities were implementing effective AML/CFT measures.

The UAE Central Bank's move is part of a global trend towards greater regulation of the cryptocurrency industry. In Dubai, businesses must apply to the SCA and the Virtual Assets Regulatory Authority (VARA) via a streamlined application procedure. We will public a review of the Guidance shortly.


The Commodity Futures Trading Commission (CFTC) has proposed a new rule to revise its risk management requirements, accounting for risks related to «evolving technologies» like cryptocurrencies and artificial intelligence. The proposal aims to address the risks associated with digital asset markets, operational risks, and risks associated with rampant fraud and illicit finance in some parts of the crypto markets.

The Commission emphasized the need to address the risks associated with cryptocurrencies and artificial intelligence, which have emerged as areas that can carry significant risk. The CFTC has invited comments on possible changes to the agency's risk management program, as these technological advancements, with their accompanying risks, necessitate the commission revisiting its regulatory oversight, including its risk management requirements.

The proposal also highlights the ongoing issues regarding the industry's custody practices, saying that brokers should prepare themselves for crypto volatility and the risks from holding customers' digital assets. The CFTC has been monitoring the crypto industry and taking aim at some of its larger entities.

As we reported earlier the CFTC sued Binance and its SEO alongside with 82 lawsuits against representatives of the financial sector in the amount of $2.5 billion, including 18 crypto companies in 2022.


The European Union has signed the MiCA regulation into law, making it the first major jurisdiction in the world with tailored rules for the crypto sector. The regulation was signed into law on Wednesday, May 31, 2023, and will enter into force in a few weeks after being published in the EU’s official journal, which is likely in June.

The provisions of the regulation offer crypto exchanges and wallet providers a license to operate across the 27-nation bloc and require stablecoin issuers to hold appropriate reserves. The regulation will take effect between 12 and 18 months later. MiCA was first proposed by the European Commission in 2020, and it aims to create a consistent regulatory framework for crypto assets among the European Union member states.

MiCA requires crypto firms such as wallet providers and exchanges to seek a license to operate across the bloc, and stablecoin issuers to hold suitable reserves. Its main features were politically agreed in June 2022, but it’s been subject to administrative hold-ups. Major provisions take effect just over a year after it’s published in the bloc’s official journal, which is now likely in June or July.

The EU's Markets in Crypto-Assets regulation is part of the EU's larger digital finance package, which also establishes a pilot regime for market infrastructures based on distributed ledger technology (DLT), an overall digital finance strategy, and transactions more generally.

News from other countries:

  • One of the world’s leading crypto exchanges Bybit is leaving Canada citing «recent regulatory development».
  • Tether's market capitalization reached an all-time high of $83.2 billion.
  • In Russia four new laws regulating cryptocurrency mining, cross-border crypto payments, taxation and liability for illegal use of digital assets are expected to be voted on by the Russian legislature by the end of July 2023.

We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!

The TokenScope Team
#TokenScope #CryptoNews #cryptoregulation #stablecoins #MiCA #CFTC #UAE #VARA #AML #DLT
More about TokenScope cryptocurrency risk assessment & investigation platform at: