Welcome to another edition of Veriscope Regulatory Recap! We are back with some of the most interesting news from the world of crypto regulations this week, from the crypto regulations being discussed at the Commonwealth Law Ministers meeting to Kenya’s plans to tax crypto transactions. So, let’s dive straight into it without further ado.
Amid the flurry of devastating blows that the crypto industry has experienced this year, digital asset regulations remain a hotly debated topic in various global forums.
The most recent meeting where crypto regulations were discussed was the 2022 Commonwealth Law Ministers Meeting in Mauritius, where leading global public policy influencer Loretta Joseph briefed the honorable ministers on effective regulations of digital assets.
The ministers agreed that the work on potential crypto framework model law must begin at the earliest in line with the 54-nation grouping’s values. Considering the growing usage of virtual assets and the vulnerability of smaller member states to it, they demanded the Secretariat work with finance ministers to plan a data-backed course of action.
This year's V20 summit comes at a time when the crypto industry is facing an existential crisis caused by back-to-back setbacks since 2021, the most recent one ^being the FTX collapse.
Industry leaders have realized the need for global alignment at such a crucial phase. This is why they agreed to implement a single, global VASP counterparty discovery system at V20, which is not only a big win for the industry but for the Shyft Network as well.
We are coming up with a special editorial on it this week with details on what transpired at the V20 summit and its crucial role in shaping the direction the global crypto industry takes from here on.
The International Monetary Fund (IMF) is urging local authorities and governments to tighten the regulations of the region's crypto industry. And while noting it, the IMF said that it is "one of the fastest-growing markets in the world," and yet, only 25% of the countries in the sub-Saharan African region regulate crypto.
The international organization cited the FTX collapse and its ripple effect on the global crypto market while demanding strong crypto regulations in Africa. After all, it is "prompting renewed calls for greater consumer protection and regulation of the crypto industry" for increased oversight.
Additionally, the IMF said in its blog that the "risks from crypto assets are evident, and thus, "it's time to regulate" to find a balance between minimizing risk and maximizing innovation.
The agency further stated that policymakers are worried that crypto "can be used to transfer funds illegally out of the region and to circumvent local rules to prevent capital outflows."
On top of this, the widespread use of cryptocurrencies can "undermine the effectiveness of the monetary policy, creating risks for financial and macroeconomic stability."
US Congressman Tom Emmer criticized the US Securities and Exchange Commission (SEC) chair, Gary Gensler, on his approach towards regulating the crypto industry as "his strategy (missed) Celsius, Voyager, Terra/Luna– and now FTX."
He also accused Gensler of being in cahoots with the FTX CEO Sam Bankman-Fried, intending to "give them special treatment from the SEC that others aren't getting."
Meanwhile, the good actors in the industry face prosecutions and investigations from the regulator, said Emmer, noting that "we need to get to the bottom of this" and understand why the agency and Gensler "were not doing their job."
According to Emmer, "Congress shouldn't have to learn the details about the SEC's oversight agenda through planted stories in progressive publications," while criticizing the mainstream media for their portrayal of SBF.
Kenya has introduced an amendment to The Capital Markets Bill, 2022, allowing the government to tax crypto exchanges, digital wallets, and transactions.
Under the bill, crypto investors would have to shell out capital gains tax to the Kenya Revenue Authority on crypto transactions. Besides that, local investors would also be required to inform the government's financial regulator – Capital Markets Authority – of the details of their crypto ownership.
The bill, authored by Mosop MP Abraham Kirwa, would define digital currencies as securities and set a base for a nationwide centralized electronic register to track crypto transactions within the borders of the country, provide licensing to individual crypto traders, and institute consumer protection measures.
According to a Chainalysis survey released in September, with about 8.5% of the population crypto users, Kenya has the world's fifth-highest rate of crypto ownership.
After Shyft DAO approved the Veriscope VASP grant proposal, an aggregate of 10,000 SHFT has been granted for Virtual Asset Service Providers (VASPs) that integrate to the Veriscope mainnet by September 30, 2022. The fund will enable VASPs to pay the Shyft Network gas fees while using Veriscope. This offer will remain valid until December 31, 2022, or till the VASP exhausts its SHFT grant.
After Shyft DAO approved the Veriscope VASP grant proposal, an aggregate of 10,000 SHFT has been granted for Virtual Asset Service Providers (VASPs) that integrate to the Veriscope mainnet by September 30, 2022. The fund will enable VASPs to pay the Shyft Network gas fees while using Veriscope. This offer will remain valid until December 31, 2022, or till the VASP exhausts its SHFT grant.
Interesting Reads:
Industry Reps Propose Decentralized VASP Discovery System at V20 Summit
From "Dynamite to Metaverse," Global Community Discusses Crypto's Role in Terror Financing
JP Morgan believes regulation will lead to convergence of crypto, TradFi
El Salvador Forges Ahead With Crypto Regulation
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