Hong Kong Proposes Licensing Regime for Stablecoin Issuers
Hong Kong's financial regulators have released proposals for a licensing regime and regulatory sandbox to supervise stablecoin issuers and provide guidance on compliance. The Hong Kong Monetary Authority (HKMA) and the Financial Services and the Treasury Bureau (FSTB) are seeking feedback on the proposals until Feb. 29. The regime will require issuers who meet certain conditions to obtain a license from the HKMA, and firms looking to issue a fiat-referenced stablecoin in Hong Kong or market stablecoins to the Hong Kong public will need a license to operate. The move is part of Hong Kong's efforts to position itself as a regional crypto hub and follows the implementation of a licensing regime for crypto service providers in June.
PwC report: 25 countries/regions have enacted stablecoin legislation in 2023
According to the "PwC Global Cryptocurrency Regulatory Report 2023" released on December 19, BlockBeats news reported that as many as 25 countries/regions will have stablecoin legislation or regulation in place by 2023. These countries, according to PwC's analysis and regulatory assessment, include Austria, the Bahamas, Denmark, Estonia, Finland, France, Germany, Greece, Japan, Luxembourg, Portugal, Spain, Sweden, Switzerland, and others. The vast majority of countries/regions that have enacted stablecoin laws have also ensured or implemented all other regulatory reviews, including cryptocurrency regulatory frameworks, licensing or registration, and travel rules of the Financial Action Task Force.
PwC: The number of countries implementing encryption market regulation will increase by 25% in 2023
PwC, in the 43 countries analyzed, 25 countries have passed regulations for stablecoin market management by 2023. Another 10 regions have legislative drafts being developed or under review. However, there are also some governments in certain regions that have not started the process of developing stablecoin market regulatory frameworks. The report states that there are eight such countries, including Brazil, India, the Cayman Islands, Qatar, Turkey, Taiwan, and Qatar.
Taiwan Finance Commission Legislator: Currently, 26 virtual currency companies have completed declarations of compliance with money laundering prevention laws.
Taiwan's Legislative Yuan member Luo Ming stated that we should think carefully about how to regulate virtual currencies, so that legitimate companies have norms to follow, support the development of this industry, and increase job opportunities for young people. Now is a good time to promote Taiwan as the "Asian blockchain center". In March, the Executive Yuan designated the Financial Supervisory Commission as the competent authority for financial investment or payment-related virtual asset platforms. The Financial Supervisory Commission has established the "Guidelines for the Management of Virtual Asset Platforms and Trading Businesses (VASP)", and currently 26 virtual currency companies have completed their declaration of compliance with anti-money laundering laws.
Korea Financial Supervisory Authority asks Jeonbuk Bank to strengthen risk management of crypto operators
South Korean Financial Supervisory Service has required the KB Kookmin Bank to establish control measures and deploy dedicated personnel to effectively manage risks related to VASP. In February last year, KB Kookmin Bank signed an agreement with Gopax operator Streamy to issue real-name accounts. Since then, the bank's financial situation has deteriorated, prompting the financial regulator to require it to manage risks.
Japan Cabinet Approves Proposal to End Taxation of Unrealized Cryptocurrency Gains
The Japanese cabinet has approved a proposal by the ruling Liberal Democratic party to end taxation on unrealized cryptocurrency gains. This move is expected to benefit the development of the country's Web3 industry. The proposal, which still needs to be debated in parliament, would end corporate taxation on the difference between the market and book values of crypto assets issued by other companies. The tax has been a hindrance to Web3 businesses in Japan, causing some to move overseas. The government sees the development of the industry as a key part of economic reform and has been considering submissions from industry associations.
Hong Kong Financial Development Council report: More asset tokenization products are expected to be launched
Hong Kong Monetary Authority and Oxford Metrica (OM), an international consulting firm, released a 2023 survey report, pointing out that Hong Kong has become one of the top ten global technology innovation centers outside of Silicon Valley in the United States, and is in a favorable position in developing regional centers for virtual assets, further consolidating Hong Kong's position as a global financial hub. The report suggests that Hong Kong, under the lack of clear regulatory frameworks in other markets, should attract digital and virtual asset companies and investors to develop in Hong Kong by using its own advantages. Looking ahead, the report expects more asset tokenization products to emerge, and the report also states that "now is the appropriate time for Hong Kong to promote the development of the virtual asset market". The Hong Kong Monetary Authority is also studying the regulatory system of stablecoins, with the goal of implementing relevant measures next year.
New York releases new standards for listing and delisting virtual currencies
New York Department of Financial Services (NYDFS) has released new standards for the listing and delisting of virtual currencies (coins). These new regulations apply to Bitlicenses and limited purpose trust companies, including considerations for the business model of virtual currency entities (VCE), the latest risk assessment expectations for VCE, new advance notification requirements, and updated definitions.According to the latest guidelines, VCEs that have obtained prior approval for coin listing policies must obtain NYDFS approval for their coin listing and coin delisting policies before self-certifying any coins. Once NYDFS approves these two policies, VCEs can self-certify coins for activity in New York. However, without NYDFS-approved listing policies, VCEs are almost always restricted to listing coins on the NYDFS green list, unless there is specific NYDFS approval. In addition, NYDFS reserves the right of discretion to require VCEs to delist coins or restrict the use of non-green list coins by New Yorkers.
Prometheum receives final approval from regulators, becoming first compliant special purpose cryptocurrency broker
According to FINRA's summary of the expanded licensing scope, Prometheum Inc. has the latest regulatory level and is about to test whether a feasible encryption platform can operate entirely within the regulatory scope of the US Securities and Exchange Commission (SEC).Prometheum is the first and only special-purpose cryptocurrency broker licensed under SEC rules. It has already obtained approval for digital asset securities trading clearing and settlement. Although the company has not yet made its first trade or earned its first dollar of revenue, co-CEO Aaron Kaplan said it will begin hosting institutional clients' assets within the next four months.
The battered crypto industry is setting its sights on Abu Dhabi
Abu Dhabi is becoming a popular destination for cryptocurrency companies seeking enthusiastic investors and more friendly regulatory agencies, while major markets such as the United States are currently lacking in both.
