July 12, 2022

Veriscope Regulatory Recap (July 04 — July 10)

Veriscope Regulatory Recap (July 04 — July 10)

Veriscope Regulatory Recap — July 4th to July 10th

Stablecoins, Global Crypto Regulation and Demands for Stricter Frameworks in this Week’s Recap

Welcome to another edition of Veriscope’s Weekly Regulatory Recap. The crypto prices were comparatively stable last week. Yet, there was no stopping the regulatory blitzkrieg from taking shape as calls for strict regulations continued from various authorities globally. So, without further ado, let’s dive straight into it.

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US Treasury Pitches a Framework for Global Crypto Regulation

In a move that announced the United States’ intention to lead from the front in shaping global crypto regulations, the US Treasury published a fact sheet consisting of a blueprint on how international regulators could team up to tackle the challenges presented by the growing market of digital assets.

Based on US president Joe Biden’s executive order on crypto, the fact sheet aims to ensure global interoperability for better protection of crypto consumers, investors, and businesses. It also seeks to stop the use of digital assets in illicit activities, such as terrorist financing and money laundering, among other things.

All in all, this fact sheet will “…reinforce U.S. leadership in the global financial system.”

Read more here: https://www.coindesk.com/policy/2022/07/07/us-treasury-develops-framework-for-international-crypto-regulation/

Bank of England Demands Tough Regulations Citing $2 Trillion Drop in Global Crypto Market Cap

The $2 Trillion drop in the global crypto market cap has attracted the attention of international financial regulators, with the recent one being the Bank of England.

The United Kingdom’s central bank demanded stricter regulations highlighting a brutal crypto market meltdown. It noted that such a massive fall in the global market cap shines a light on the high vulnerability of crypto assets.

Although the central bank agreed that the overall health of the financial market remains very much unaffected by the falling crypto prices, it went on to say that in time both sectors will become much more intertwined, which will affect the country’s financial stability. Thus, stricter regulation is the need of the hour.

Read more here: https://www.usnews.com/news/business/articles/2022-07-05/bank-of-england-crypto-crashes-show-need-for-tougher-rules

Singapore Considers Taking Tougher Measures Against Digital Assets Amid Falling Crypto Prices

Known for being one of the most crypto-friendly countries, the Singaporean government is now compelled to act tough against the digital assets market amid a drastic fall in the crypto market cap.

Previously, it had barred crypto service providers from advertising in public spaces. And last week, Senior Minister and Minister in Charge of the Monetary Authority of Singapore (MAS), Tharman Shanmugaratnam, said that such an unprecedented drop in crypto prices demonstrates the clear need for strict regulatory measures.

The measures may include retail trading limits and outlawing crypto leverage in the country.

Read more here: https://zeenews.india.com/international-business/crypto-friendly-singapore-mulls-tougher-restrictions-amid-meltdown-2482176.html

UK Stablecoin Regulation is Likely to be Introduced in August

Reports indicate that the UK Treasury is collaborating with the Payments Systems Regulator, the Bank of England, the Financial Conduct Authority, and a few more to prepare a regulatory framework for stablecoins. The legislation is likely to be introduced in August.

The stablecoin legislation could have been rolled out much earlier. But it was affected by the recent changes in the UK government, such as the resignation of UK Prime Minister Boris Johnson & Chancellor of the Exchequer Rishi Sunak.

Read more here: https://shyftnetwork.medium.com/uk-stablecoin-regulations-only-weeks-away-from-taking-shape-a13687a3ed6d

Although the crypto market cap was comparatively stable last week, with minimal downward pressure, regulators continue to demand stricter regulations to protect investors and the broader financial market. Thus, Virtual Asset Service Providers must prepare themselves for the uphill task of complying with a plethora of national and international crypto regulations. But before that, start complying with current digital asset regulations.

When it comes to international digital asset rules, begin with the FATF’s Travel Rule, a global piece of law that aims to put an end to the use of digital assets for terrorism financing and money laundering. And the first thing that a VASP will need to comply with the Travel Rule is a Travel Solution Provider.

Interestingly, we have a world-class TRSP to suggest — Veriscope! It is the only solution to the “Sunrise Issue” that almost all VASPS suffer from while complying with the Travel Rule. Read more about Veriscope here: https://www.veriscope.network/ and contact our BizDev team for a discussion here: https://www.veriscope.network/contact