July 31, 2023

Veriscope Regulatory Recap - 18th July to 31st July

Veriscope Regulatory Recap - 18th July to 31st July

Welcome to the latest edition of our biweekly crypto regulatory recap, where we shed light on the significant shifts in the global landscape of cryptocurrency regulation. 

In this issue, we cover essential regulatory updates from different corners of the world. From the United States, where a landmark bill is reshaping the way digital assets are understood, to Peru, where the government has stepped up to curb money laundering activities in the crypto industry. We also touch base with India, where the Supreme Court has emphasized the necessity for a clear regulatory framework.

Each of these key movements is pushing the boundaries of crypto regulation, illustrating the dynamic global view of cryptocurrencies. 

So, let's delve into these updates and discuss what they could mean for the future of the crypto world.

World Overview 🌍

Crypto Regulations: The Global Landscape Shifts

The world is starting to adjust to the growing importance of cryptocurrencies, and it's also evident in the recent regulatory actions across the globe.

The US: A bipartisan bill, designed to provide a clear regulatory structure for digital assets, successfully passed through a congressional committee. This pivotal bill, the first of its kind to be voted on in Congress, strives to classify cryptocurrencies either as securities or commodities. 

But the action doesn't stop there. The US has also tagged crypto-focused amendments onto the National Defense Authorization Act (NDAA) of 2024. Backed by Senators Lummis and Gillibrand, these amendments focus on limiting anonymous crypto transactions to deter illicit activities.

Peru:  The government has chosen to tackle the issue of money laundering within its crypto sector. A new decree requires Peruvian cryptocurrency exchanges to adhere to stringent anti-money laundering (AML) rules. This step is part of the government's determined effort to prevent the misuse of digital assets within its jurisdiction.

India: An important call comes from India's Supreme Court. Highlighting a spike in crypto-related crimes, the court has stressed the need for a well-defined regulatory framework for cryptocurrencies in India. The court's appeal could drive India towards an improved and secure crypto regulatory environment.

 Now we will look closer into two of these new developments. 

US Congressional Committee Advances Crypto Bill: A Double-Edged Sword?

A US Congressional Committee greenlit bill aimed at managing cryptocurrencies. The bill aiming to define if digital currencies are more traditional stocks or commodities, could significantly change the future of these digital assets.

(Image Source)

The bill has won already backing from across the political aisle suggests that more and more people in power are warming up to cryptocurrencies. That said, not everyone is on board. Some critics worry that these new rules could make things more confusing and unsafe for people investing in or using these digital currencies.

At the same time, lawmakers are looking at another proposal dealing with stablecoins. The plan aims to create standards for issuing these kinds of cryptocurrencies while still letting individual states have a say. 

What could all these legal changes mean for the end users? Having clear rules could make more institutions trust cryptocurrencies, helping them become more widely used. Yet, if the rules are too strict, it could stop new ideas from being developed, making it harder for new companies to get started.

One thing is clear. The world of digital currencies is standing at a crossroads as cryptocurrencies are being taken seriously now, as these potential laws show. Finding the right balance, where people are protected, but new ideas are still allowed to flourish, is going to be a tricky task for the people making the rules.

Peru Tightens Its Crypto Grip With New AML Regulations 

Peru's government has stepped up, issuing a new decree requiring all cryptocurrency exchanges to follow anti-money laundering (AML) regulations. The Financial Intelligence Unit (UIF-Peru) is set to watch over all entities, including individuals involved in crypto activities, strengthening oversight of the financial landscape.

The decree presses on the FATF's “Travel Rule,” compelling exchanges to adhere to Know Your Customer (KYC) standards, ensuring increased transparency.

This change could echo through Peru's crypto ecosystem in varied ways. It may provide a safety net for traditional investors and potentially draw in larger institutional players, stimulating growth. However, the weight of new regulations might also hinder startups, raising entry barriers.

UIF-Peru is expected to roll out further details on preventive measures against money laundering and terrorism financing for crypto exchanges in the coming days. As Peru shifts gears, the world's crypto community keeps an attentive eye, ready to gauge the real impact of these changes on digital assets within the nation.

Interesting Reads

A New Regulatory Summer for the USA

Namibia Passes Virtual Asset Regulations Bill


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Visit our website to read more, and contact our team for a discussion.

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