More New Regulations, More Drafts, Some Innovation … Regulators Find It Hard to Stay Put with One Plan

Russia edits its draft law on cryptos, Japanese crypto exchanges gain power to self-regulate, Albania plans for regulatory framework, FATF to come up with its first set of crypto rules, CGL partners with National Bank of Canada and Skuchain, China plans implementation of new rules, SEC confirms the launch of FinHub, owner of Unocoin arrested for operating BTC ATM

  • Russian lawmakers have zeroed upon removing the definition of crypto mining from Russia’s draft law on digital financial assets. No definition of crypto mining refers to the negation of taxes for crypto miners, however, people in the industry looked forward to it as a major development as it would have demonstrated the call of the Russian government on cryptos.

Earlier, we had been considering the matter of Bitcoins and their possible integration into our economic system. But since we came to the conclusion that we don’t need these incomprehensible Bitcoins, consequently, we don’t need mining as well.

Anatoly Aksakov, chairman of the Duma committee

  • Japan’s Financial Services Agency has rendered crypto exchanges the power to self-regulate themselves. The power to look over the industry now lies in the hands of Japan Virtual Currency Exchange Association. According to officials, the rules of the self-regulatory body are stricter as compared to the present ones which will help regain the trust of the public in the exchanges.
  • The government of Albania is working over its framework to regulate the crypto industry. The government not only seeks to inspire investors to invest in digital currency but also become a hub for such investments. Considering the sceptical response of the countries financial central bank and watchdog in the recent past, this comes as a great move for all crypto enthusiasts in the country.

The Bank of Albania has licensed no financial operator whose activity involves the use of virtual currencies. As a result, every company that is involved in these operations in the Republic of Albania is not licensed and its activity does not comply with the regulatory and supervisory framework of the Bank of Albania.

Bank of Albania (July 2017)

  • The first set of rules to regulate cryptocurrency is about to be released by the Financial Action Task Force (FATF), an entity responsible for taking action against criminal activity across the globe. They intend to implement a risk-based approach to regulating the industry. After the implementation of the new rules, they further plan to conduct regular reviews to ensure that the rules are followed strictly across all countries.
  • CGI has partnered with National Bank of Canada and Skuchain to improve the process of completion of complex conditional agreements banks use to secure financial transactions. The integration of CGI Trade360 and Skuchain’s Contract Builder will help National Bank of Canada provide finance services digitally to customers conducting business on a blockchain B2B solution
  • Draft of new crypto rules in China demands users to register on blockchain platforms using their real names and national identification numbers. It also calls for the proper storage of users’ data by blockchain companies that provide information services. The draft has been posted on the website of Cyberspace Administration of China for public consultation until 2nd of November, however, it remains unclear as to when these rules will come into effect.
  • In yet another positive response towards the crypto industry, SEC has come up with FinHub, a fintech portal focused on helping blockchain startups. Commissioner Hester Peirce while disagreeing to the negative notion following the crypto industry stated: Apparently, bitcoin is not ripe enough, respectable enough, or regulated enough to be worthy of our markets. I dissent.
  • Harish BV, Co-founder of Unocoin, faced an arrest by Bengaluru Police for operating India’s first Bitcoin ATM. The arrest was made under the obligation that no regulatory permissions were taken by Harish for the installation of the ATM. Despite cryptos not being illegal in India, the arrest of Harish reflects the negativity that prevails in the country towards the crypto industry.
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