Crypto regulation in the world: weekly digest #70


In the U.S. Congress was introduced a «Keep Your Coins Act», a bill proposal to protect the right to self-custody of crypto assets. The bill aims to preserve Americans' right to privacy in transacting with crypto assets and to empower individuals to maintain full custody of their digital assets without reliance on third-party intermediaries like exchanges. Specifically, the bill, if it becomes a law, would prohibit any federal agency from promulgating a rule that would impair a person's ability to act as self-custodian, allowing individuals to conduct peer-to-peer transactions with their crypto assets without the need to utilize a third-party intermediary.

The bill is designed to protect the permissionless nature of cash and ensure that individuals will always have the ability to transact without any intermediaries. The Keep Your Coins Act was introduced by Senator Ted Budd, has passed the U.S. House Committee on Financial Services and is currently under consideration in the Senate. As the bill is still under consideration it may face opposition or amendments during the legislative process. A bill proposal with similar objectives introduced by Congressman Warren Davidson in 2022 has also faced criticism from some quarters, with some arguing that it could facilitate money laundering and other illicit activities by allowing individuals to transact without any intermediaries.

The UK

The Bank of England and the Financial Conduct Authority (FCA) have published proposals for regulating stablecoins, which are digital currencies designed to maintain a stable value relative to another asset, such as a fiat currency. The proposed regulatory regime aims to protect consumers, prevent money laundering, and safeguard financial stability.

The Bank of England's proposed regulatory framework focuses on systemic payment systems using stablecoins, which are used for everyday payments in the UK, and related service providers. The framework builds on the Bank's previous discussion paper on new forms of digital money published in 2021 and the Financial Policy Committee's expectations for stablecoins set out in the December 2019. The Bank of England's regulatory regime for systemic payment systems and service providers will need to be extended to capture new technologies and risks, as will the FCA regime for payment providers.

The proposals require sterling stablecoins to be fully backed by deposits at the Bank of England, have capital requirements to make up any potential shortfalls, and safeguards on how they are held by firms on a customer's behalf. Customers would have a right to swift redemptions at par, but there would be a yet-to-be-determined holding limit to avoid stablecoins being used for wholesale purposes. Arrangers of stablecoins issued overseas would have to ensure that UK consumers have the same protections as for UK issued coins.


The National Anti-Money Laundering and Combating Financing of Terrorism and Financing of Illegal Organizations Committee (NAMLCFTC) in collaboration with UAE supervisors has issued guidelines on combating the use of unlicensed virtual asset service providers (VASPs). The guidelines aim to educate licensed financial institutions and the wider public sector on the risks associated with unlicensed VASPs and include penalties for VASPs operating without proper licenses within the jurisdiction.

The supervisory authorities expect all licensed financial institutions, designated non-financial businesses and professions, and licensed VASPs to report transactions from suspicious parties. The guidance also encourages whistleblowing mechanisms to report any information related to unlicensed virtual asset activities to help regulatory authorities in their efforts to uphold the law and protect the UAE financial system. VASPs operating in the UAE without a valid license will be subjected to civil and criminal penalties, including financial sanctions against the entity, owners, and senior managers. Furthermore, reporting entities that demonstrate willful blindness in their dealings with unlicensed VASPs and have weak AML/CFT and Counter Proliferation Financing controls may be subject to

The cost of obtaining a crypto license in Dubai ranges from USD 11,900 to USD 35,000, depending on the applicable laws and regulations. The regulatory authorities require that all crypto companies must fulfill general rules, such as providing certified copies of the founders' documents, making a business plan, and complying with KYC and AML policies.

News from other countries:

  • On November 10, 48 national governments have issued a joint pledge to «swiftly transpose» the Crypto-Asset Reporting Framework (CARF), a new international standard on automatic exchange of information between tax authorities, into their domestic law systems.

  • Hong Kong is considering allowing spot crypto ETFs, which would invest directly in crypto, for retail investors, provided that regulatory concerns are met. By present, Hong Kong, same as the US, currently allow futures-based crypto ETFs.

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

The TokenScope Team
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