European Banking Authority Increases Oversight on Non-Bank Financial Institutions, Including Crypto
The European Banking Authority (EBA) is increasing its efforts to assess the potential impacts of strains in non-bank financial institutions (NBFIs), including those related to crypto assets. EBA Chair José Manuel Campa expressed concerns over contagion and the need to understand the interconnectedness between banks and various financial entities. The move reflects a proactive stance by regulatory authorities to enhance the resilience of the financial sector against emerging risks, particularly in the evolving landscape of digital assets and cryptocurrencies. The evaluation of indirect links between banks and NBFIs seeks to enhance regulatory measures and fortify the financial system against potential vulnerabilities.
Indian Crypto Exchange CoinDCX Under Legal Scrutiny for Alleged Bank Fraud and Irregularities
CoinDCX, a major player in India's cryptocurrency landscape, is under investigation by the Delhi Police for alleged bank fraud on its mobile application. Multiple complainants have reported irregularities, claiming they were coerced into paying additional funds during the withdrawal of their crypto investments. The allegations involve demands beyond the stipulated tax, raising questions about the platform's conduct. The unfolding scandal sheds light on potential misconduct within one of India's prominent crypto platforms, highlighting the need for transparency and adherence to regulations in the burgeoning cryptocurrency space. Investors await clarity on the fate of their funds as the police investigate the matter.
The European Banking Authority will deepen its investigation into the links between banks and crypto entities
According to the European Banking Authority (EBA), which regulates stress tests on EU banks, additional measures will be taken to predict how stress on non-bank financial institutions (NBFIs), including cryptocurrency-related entities, will affect lending institutions. EBA Chairman José Manuel Campa said in an interview that concerns about the spread of the crisis prompted the need to "dig deeper into the connections between banks and other financial institutions. We should do more, and we will do more. We need to understand the entire potential chain of non-bank financial institutions." Non-bank financial institutions are said to hold around $219 trillion in assets, almost half of the world's financial assets. (Financial Times)
South Korea’s Ministry of Personnel will conduct regular reports before February 29, and declared assets include virtual assets.
South Korean Ministry of Personnel Management announced on the 2nd that it will require approximately 290,000 public officials to submit regular reports on their financial changes through the civil service ethical system by February 29, 2024. The declared assets include real estate, securities, bonds, liabilities, jewelry, antiques, art, membership rights, and intellectual property. Starting this year, virtual assets and virtual asset deposits have been added. Those who are obligated to register their assets must report all virtual assets and deposits they hold, regardless of the amount or quantity. The changes in the assets of the object of the asset disclosure will be integrated and disclosed through the public service ethical system at the end of March.
"Measures for the Administration of Banks' Foreign Exchange Business Development (Trial)": Banks should report suspected illegal cross-border financial activities involving virtual currencies to the f
On December 29th, in order to further enhance the foreign exchange exhibition capabilities of banks, promote cross-border trade and investment facilitation, and prevent cross-border capital flow risks, the State Administration of Foreign Exchange formulated the "Bank Foreign Exchange Exhibition Management Measures (Trial)" in accordance with the "Foreign Exchange Administration Regulations of the People's Republic of China" and related laws and regulations, which will be implemented from January 1, 2024.
Nigerian Financial Professionals: Cryptocurrency Companies Partnering with CBN Will Lead the Industry in the Future
Olumide Adesina, a financial professional in Nigeria, stated that cryptocurrency companies that have been working with the Central Bank of Nigeria (CBN) will be in the best position to lead the industry in the future, following the lifting of the ban on digital assets for Nigerian banks and financial institutions on December 23. He added that Nigerian cryptocurrency participants who actively collaborate with regulatory agencies have achieved great success in lobbying the central bank to soften its previous stance. With renewed focus on financial stability, the central bank's goal is to open up the country's financial ecosystem to digital securities approved by local regulators.
Indonesia Requires All Crypto Exchanges to Register with National Bourse for Digital Assets
The Indonesian government has mandated that all crypto exchanges operating in the country must register with the newly launched national bourse for digital assets. The Commodity Future Exchange (CFX) is designed to operate like traditional stock exchanges but with a focus on digital assets. The government hopes that the bourse will help monitor asset liquidity and record crypto transactions for tax purposes. Indonesia has more than 18 million registered crypto traders compared to around 12 million stock traders, according to official data from 2023.
U.S. crypto regulation in 2024 will be led by state-level agencies
Blockworks has written an article stating that by 2024, cryptocurrency regulation in the United States will be led by state-level agencies rather than Washington. State-level governors and legislative bodies are taking decisive action on meaningful digital asset regulation. The focus is on California Governor Gavin Newsom signing Assembly Bill 39 into law. The bill, known as the Digital Financial Asset Law (DFAL), establishes comprehensive rules for digital financial asset businesses operating in the state. Beginning in 2025, California's digital financial asset industry will be subject to a licensing and supervisory regulatory regime, including capital and liquidity requirements, periodic disclosures, and stablecoin approval standards. Another attorney general hoping to expand the scope of digital asset regulation is New Jersey Attorney General Matt Platkin, with the cryptocurrency industry currently waiting to see if the New Jersey legislature will pass legislation to include cryptocurrency regulation under the attorney general's jurisdiction and the Department of Law and Public Safety.
Central Bank of Nigeria lifts ban on crypto services for local banks
The Central Bank of Nigeria has lifted its ban on local banks and financial institutions serving crypto firms, which is expected to increase the use of cryptocurrencies in one of the world's fastest adopters of digital assets. The decision reverses a 2021 directive against institutions facilitating cryptocurrency transactions, although users continued to switch to peer-to-peer trading. The lifting of restrictions on crypto exchanges and other service providers from opening bank accounts could boost adoption, with pan-African exchange Yellow Card saying it will seek a crypto license in the country. The change was prompted by the global trend of regulating crypto, with international standard setters recommending supervision of the industry rather than blanket bans.
Hong Kong digital asset insurance company OneDegree: Received more than 100 project teams expressing interest in developing stablecoins
According to the public consultation documents on stablecoins jointly issued by the Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority, Kelvin Guo, co-founder of OneDegree, a Hong Kong digital asset insurance company, stated that stablecoins are crucial for the development of Web3 and can help mainstream investors enter the Web3 and cryptocurrency ecosystem. Stablecoins are supported by legal tender and can be easily converted into legal tender while maintaining value stability, providing investors with flexibility and protection.
