Biweekly round-up of global round up of crypto regulations

Crypto Regulations

South Korea

South Korean Crypto Firms Must Disclose Users’ Identities Under Planned Law Change

South Korea’s Financial Services Commission (FSC) is seeking legal amendments that would make it mandatory for virtual asset service providers (VASPs) within the country to report the names of their customers.

According to a press release from the financial watchdog, a proposed update to the Act on Reporting and Using Specified Financial Transaction Information is aimed to help guard against money laundering.

The act defines VASPs as “business entities that engage in the purchase and sale of virtual assets, exchanges between virtual assets,” as well as custodians, digital wallet service providers and brokerages.

UK

UK Treasury to publish draft stablecoin regulations

Chancellor Rishi Sunak has put stablecoins and central bank digital currencies (CBDCs) front and center of the U.K.’s efforts to remain a financial services hub post-Brexit.

In a statement issued, the U.K. Treasury said it would put forward proposals for regulating “relevant stablecoin initiatives” to ensure they are held to the same standard as rival payment methods, reported a crypto news site.

Other News

Coinbase is on a Hiring Spree in Japan

 Coinbase, the U.S. largest Cryptocurrency exchange, had recently announced that it is shifting its base to Japan. In the wake of joining the new territories soon, the company is accelerating towards securing more manpower to expand in Japan.

The company had posted jobs related to Japan on the website. Brian Armstrong tweets that there are a lot of jobs in Japan. This is not the first time the company is looking for the right candidates from Japan, but they are expanding the job scale. The location for all the listed jobs is in Tokyo.

Leaked ‘Tai Chi’ Document Reveals Binance’s Elaborate Scheme To Evade Bitcoin Regulators

Binance Holdings Limited, the world’s largest cryptocurrency exchange conceived of an elaborate corporate structure designed to intentionally deceive regulators and surreptitiously profit from crypto investors in the United States, according to a document thought to be created by its senior executives and obtained by Forbes. Cayman Islands-based Binance is currently responsible for about $10 billion in total crypto trades per day and its founder and CEO Changpeng “CZ” Zhao is one of the few known cryptocurrency billionaires.

The 2018 document details plans for a yet-unnamed U.S. company dubbed the “Tai Chi entity,” in an allusion to the Chinese martial art whose approach is built around the principle of “yield and overcome,” or using an opponent’s own weight against him. While Binance appears to have gone out of its way to submit to U.S. regulations by establishing a compliant subsidiary, Binance.US, an ulterior motive is now apparent. Unlike its creator Binance, Binance.US, which is open to American investors, does not allow highly leveraged crypto-derivatives trading, which is regulated in the U.S., reported Forbes.

South Korea To Ban Crypto Exchanges From Handling Privacy Coins 

South Korea is to ban crypto exchanges from handling digital assets it considers “dark coins”. Regulator Financial Services Commission (FSC) is specifically targeting privacy coins such as dash, monero and zcash. South Korean platforms such as Okex have since been forced to delist several privacy coins

The ban is in effect from March 2021. In an update to crypto regulations under the Special Payments Act, the FSC accuses privacy coins of facilitating money laundering activities, reported a crypto news site.

British Fintech Firm To Introduce Physical Crypto Bank In Collaboration With Indian Company, Is India Ready For Cryptocurrency?

According to reports, Indian bank United Multistate Credit Co. Operative Society is scheduling to enlarge its banking amenities to cryptocurrencies and cryptocurrency merchandises.

In association with the crypto-banking service supplier Cashaa, United has recognized a joint venture called UNICAS that targets to deliver both online crypto banking services and walk-in services through its 34 corporal branches in northern India.

This change by United and Cashaa comes among India’s unclear crypto regulations. While the Supreme Court of India took down the crypto banking ban positioned by the Reserve Bank of India in March, most banks are still sceptical of providing services to crypto companies and persons allocating in digital currencies.

Busan City launches blockchain-based voucher service

On 29 October 2020, South Korea’s Busan Bank (BNK) unveiled a blockchain-based digital wallet to support digital voucher services. The types of vouchers provided include subsidies issued by public institutions and employee welfare points.

For voucher issuers, they can set rules such as where the vouchers can be spent and during what period. The current voucher status is available to view on the blockchain. The digital wallet is accessible through BNK’s app and a QR code enables users to make payments at affiliated stores or gift the vouchers to others, reported a crypto news site.

China’s UnionPay and Korea’s Danal to launch crypto-supporting digital card

According to reports, major financial services corporation China UnionPay, an analog to card providers like Visa (NYSE:V) and Mastercard (NYSE:MA), has partnered with the South Korean payment provider Danal to launch a cryptocurrency-supporting digital card.

Danal’s crypto wallet Paycoin and its crypto token of the same name will be the interface for the new, prepaid mobile card. Paycoin has indicated that users will be able to use both the card and Paycoin to pay for goods and services at over 30 million UnionPay merchants across 179 countries and regions.

Mongolian Bank TDB to Begin Offering Crypto Services

According to the announcement, Mongolia’s largest bank, Trade and Development Bank (TDB), has disclosed plans to begin offering crypto-related services. It explained that support for crypto custody, deposits, loans, remittance, and digital asset management would be added via the new initiative.

Singapore’s Biggest Bank DBS To Launch Cryptocurrency Trading And Custody

DBS Bank in Singapore is planning to launch a cryptocurrency exchange and digital asset custody service. DBS noted that its crypto service will have the advantage of “institutional-grade security”. Bitcoin moves up with the news of another bank entering the cryptocurrency space, reported a crypto news site.

Hong Kong Slams Door on Retail Trading — Plans to Regulate Cryptocurrency Markets

According to reports, In a massive crackdown on fraud and money-laundering, Hong Kong has announced a ban on the retail trading of digital currencies, and will now for all cryptocurrency exchanges to be licensed under new regulations. The new regulations will allegedly bring down the hammer on a massive amount of unregulated cryptocurrency trading in the city.

Some pundits are noting that the proposed regulation, if it can garner support and go ahead, should spell the end for an era of relaxed regulation of bitcoin and other virtual assets in Hong Kong. At present, most crypto-exchanges are not regulated.

Wirex’s ‘Rising Women in Crypto Power List’ Announced

According to reports, leading payments company, Wirex, in partnership with The Fintech Times, has revealed its 2020 ‘Rising Women in Crypto Power List’. After receiving 367 entries, the esteemed judging panel have chosen the 10 most inspirational women at the forefront of the crypto industry.

Shanghai, Hong Kong Stock Exchanges Pause Ant Group IPO Over Regulatory Concerns

According to reports, Ant Group’s initial public offering has been suspended on both the Shanghai and Hong Kong stock exchanges due to significant changes in China’s regulatory environment for fintech firms that are expected to affect the company.

The Shanghai exchange said the changes will create new requirements such as more financial disclosures ahead of IPOs, making it more difficult for fintech companies to list. HKEX made a similar announcement soon after.

China’s Central Bank Ready to Ban Cryptos Issuance

Another day another China crypto-related ban. China has never hesitated to ban cryptos before. It earlier in 2017 banned Initial coin Offering (ICO). It had also been considering banning crypto mining due to the rising costs. The mining also brought challenges as miners would also steal electric power.

Through the years, the country is ever placing restrictions on cryptocurrency commerce. The latest in a row of restrictions is the People’s Bank of China (PBOC) call to ban crypto issuance. The central bank is collecting public comments to stop the digital currencies.The document seeks to stop any unit from creating or reselling crypto tokens. It also bars the circulation of coupons and other currencies that rival the Chinese Yuan, reported a crypto news site.

Beijing Municipal Government Conference Notes Plans to Pilot CBDC in China’s Capital

Two Beijing-area regional bodies – the Beijing Local Financial Supervision and Administration and the Tongzhou District government – held a conference that made note of the People’s Bank of China (PBoC) Digital Currency Research Institute’s plan to build a legal digital currency test zone and digital financial system in China’s capital as part of the “China (Beijing) Pilot Free Trade Zone Overall Plan.”

While plans to test the digital yuan in Beijing were discussed in August, the talk at this regional-level conference indicates the pilot is being included in state-level planning, as noted in the policy document about the “pilot free trade zone” in Beijing and other cities, reported a crypto news site.

Binance begins blocking access to the main exchange

According to reports, Binance has begun to block the login of US citizens from its main platform.

In June 2019, Binance announced that US individual or corporate users would not be able to use the exchange’s main platform as of September of the same year, but there was no clear ban on the issue so far, US users click on the “I am not an American citizen” box while registering on the exchange.

The UK financial watchdog’s new crypto register is surprisingly empty as crucial deadline looms

Crypto firms in the UK have until January 10 to be registered by the FCA or they are supposed to cease trading. Some in the industry are growing concerned over what appears to be a registration backlog, reported a crypto news site.

 

 

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