Last week, several countries announced new rules and regulations regarding digital assets, signaling a growing trend of increased oversight in the cryptocurrency space. These regulations aim to protect consumers and mitigate risks associated with cryptocurrency trading.
The Securities and Exchange Commission of Thailand issued new rules that require digital asset service providers to warn customers about the risks of cryptocurrency trading. The warning message must be clearly visible, and customers must give their consent and acknowledge the risks before using the service. The guidelines also prohibit service providers from using customers’ funds for lending or investment purposes.
In Singapore, the Monetary Authority announced new requirements for crypto service providers. By the end of 2023, these providers will be required to hold customer assets in a statutory trust. This measure aims to safeguard customers’ assets and facilitate their recovery in the event of a provider’s insolvency.
South Africa’s Financial Sector Conduct Authority announced that all crypto exchanges in the country must obtain licenses by the end of 2023. Failure to comply may result in enforcement action, including fines or the closure of noncompliant firms. This move is aimed at ensuring the regulation and supervision of the crypto exchange industry.
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Meanwhile, Belarus is planning to prohibit peer-to-peer (P2P) cryptocurrency transactions. The Ministry of Foreign Affairs argues that P2P services are often used by fraudsters to cash out and convert stolen funds, facilitating criminal schemes. This prohibition aims to prevent such illicit activities and protect the integrity of the financial system.
In Australia, the Australian Securities and Investments Commission conducted searches at Binance Australia offices as part of an ongoing probe into Binance’s now-defunct Australian derivatives business. While Binance did not confirm or deny the searches, they stated that they are cooperating with authorities and focused on meeting local regulatory standards.
In Denmark, the Danish Financial Supervisory Authority (DFSA) ordered investment bank Saxo Bank to dispose of its own holdings in cryptocurrencies. The DFSA stated that it is not appropriate for local banks to hold cryptocurrencies as a hedge against trading risks. This order is part of the DFSA’s efforts to regulate and supervise cryptocurrency-related activities in the country.
On a different note, Twitter Payments, a subsidiary of Elon Musk’s Twitter social network, received money transmitter licenses in three U.S. states. Michigan, New Hampshire, and Missouri approved the company’s applications, allowing it to provide transfer services or payment instruments. This move by Twitter indicates its potential entry into the financial services sector.
It is important to note that the specific offerings and timeline for these developments are still unclear. The regulatory landscape for cryptocurrencies continues to evolve, with more countries taking steps to regulate and supervise digital asset activities. These actions aim to protect consumers, prevent illicit activities, and ensure the integrity of the financial system.
As the cryptocurrency market grows and becomes more mainstream, it is crucial for regulators to establish clear guidelines and enforce compliance to safeguard investors and promote transparency.
