Welcome to another edition of Veriscope Weekly Recap. The crypto market was comparatively stable last week, with a majority of leading digital assets in green. That said, despite the recovering market, the digital assets regulatory landscape remained heated. So, let’s dive straight into it.
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Recently, the Bank of Central African States, the regional financial regulator, claimed that the government of the Central African Republic requested its assistance in drafting crypto regulations.
This is a sign of cooling tensions between the regional Central Bank and the Bangui government over the latter’s decision to adopt Bitcoin as a legal tender.
The Bank of Central African States oversees the financial industry in six countries, combinedly known as “the Economic and Monetary Community of Central Africa.”
During an interview with Forkast Media, the Philippines Central Bank Governor Felipe Medalla shared his views on crypto regulation, noting that he doesn’t want to ban crypto.
While answering the question “What’s your take on cryptocurrency?” Medalla responded, “I don’t want it banned, but I don’t want to call it cryptocurrency.” Instead, the governor referred to cryptocurrencies as “crypto assets” to highlight their volatile nature.
The central bank governor further commented on the ongoing crypto winter and advised the investors not to invest money they could not afford to lose.
Medalla also emphasized from a policy aspect that crypto assets should not be utilized to dodge anti-money laundering and know your customer laws.
As for cryptocurrency exchanges, the governor said it’s the central bank’s policy to implement “all the rules that are needed to prevent money laundering, especially to finance crimes.”
A Forex Suggest report declared Hong Kong as the most crypto-ready country in 2022 by examining the number of blockchain firms in each nation, the laws and tax regulations governing digital assets, the number of ATMs, and the interest in the industry per capita.
For starters, the Hong Kong government is pretty welcoming of the crypto industry and doesn’t charge investors or firms any taxes over their profits from trading digital currencies.
As for the density of crypto ATMs, Hong Kong had two machines per 100,000 people. Thus, Hong Kong came in the top position with 8.6 points out of 10.
The United States, which had the crown previously, earned 7.7 points. There are ten machines for every 100,000 individuals in the United States, with a total number of crypto ATMs in the country over 33,000.
Switzerland came in the third spot with a score of 7.5 points. The country has a large number of blockchain firms and does not tax cryptocurrency gains.
The UK Government published the Financial Services and Market Bill, whose Section 22 will enable the UK Treasury to enforce laws governing cryptocurrency payments referred to as “digital settlement assets” in the proposed bill.
If implemented, it would enable the UK authorities to exert control over specific types of stablecoin as a means of payment in the United Kingdom, besides giving more powers to the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).
Amid the upward market movement last week, the investor sentiment has become much more positive than it was a week or two before.
Yet, it did not affect global regulators’ resolve to reign in the crypto industry, which is evident from the Philippines Central Bank governor’s statement on cryptocurrencies.
As such, Virtual Asset Service Providers (VASPs) will see more crypto regulations in the coming days. Thus, VASPs must comply with all the international and national digital assets to stay on the safe side.
Take the FATF’s Travel Rule, for instance, which only a few countries have adopted, such as South Korea and Singapore. The number of countries that have adopted the FATF Travel Rule may seem small now, but with the FATF urging countries to adopt the rule soon, the number will go up in the coming days.
And VASPs that do not have to comply with the Travel Rule now may have to begin doing so soon.
Thus, it’s better to stay prepared. There’s nothing to worry though. All VASPs need to comply with the Travel Rule is a Travel Rule Solution (TRS), and none beats Veriscope.
Veriscope is the only solution to the much-dreaded “Sunrise Issue.” Check it out here: https://www.veriscope.network/ and reach out to our BizDev team for a discussion here: https://www.veriscope.network/contact