The Financial Action Task Force (FATF) believes that regulating cryptocurrency will ultimately increase trust in the blockchain technology.
According to the money laundering watchdog, this will instill confidence in the technology “as the backbone behind a robust and viable means to transfer value”.
This was noted in the Financial Action Task Force Supervisors Forum to discuss how to regulate crypto assets and virtual assets service providers (VASP).
The forum was held in France with 135 representatives from 50 delegations involved in crypto supervision in attendance.
The forum aim was “to promote more effective supervision by national authorities”. It examined three areas in the meeting where they laid emphasis on advantage of cooperation internationally because crypto assets are borderless.
Areas of Interest
One of the areas of interest focussed on during the forum was the lessons learned so far by countries who already have their regulatory framework for virtual assets and providers set up.
The Supervisor forum also discussed issues encountered when coming up with virtual assets service provider laws and regulations.
Attendees poured their knowledge and approaches in developing AML regulations for VASPs in their various regions and how they were implementing the FATF recommendations.
The third item of the discussion centered around the tools, skills, procedures and technology that are needed to effectively supervise VASPs.
FATF’s focus on crypto assets seeks to prevent financial crimes as well terrorist financing. Crypto assets as global products poses unique features that can be utilized to finance crimes globally.
Therefore, adopting its rules will “ensure transparency of virtual asset transactions and keep funds with links to crime and terrorism out of the cryptosphere.”
It has identified several areas that require further actions and had scheduled by mid, 2020 for its next session where it will discuss further.
Challenges to Implementation
According to the forum, there are challenges to the implementation of FATF by countries but the forum is beginning to develop a global knowledge base on what works in crypto assets supervision.
And it believes that “it will ultimately increase trust in blockchain technology as the backbone behind a robust and viable means to transfer value.”
Nigeria is showing signs of readiness to implement blockchain – Lucky Uwakwe
The Nigerian state is showing signs of readiness for blockchain integration across the nation. This was made known by the Chief Operating Officer of Sabi Exchange, Lucky Uwakwe at the Inside Blockchain show on CryptoTvplus on monday the 23rd of November, 2020.
He went further saying the Private sector is ready, while the public sector shows signs of readiness, this is reflected in the moves by government bodies especially NITDA in recent times.
Speaking on the topic of Nigeria generating between $6bn to $10bn from now till 2030, Mr. Luck said it’s possible and that more than that can really be captured by the government over the ten year period if the policies and frameworks are well put in place.
He compared Nigeria to Malta emphasizing the growth over the few years in terms of blockchain policy, regulations & infrastructures and that if Nigeria can do what Malta has done, it can easily generate the amount it wishes to generate.
Mr. Lucky was pressed further by the CryptoTvplus host, Tony Obiajuru on what steps had been taken since the stakeholders meeting in Abuja earlier to pursue the agenda of the meeting, Mr. Lucky said the industry stakeholders are currently submitting contributions to support a comprehensive policy. Basically, the current phase is still the adoption phase – phase one.
He also commented on the cryptocurrency market on the program. He said the market is currently into four segments which are the BTC, ALTs, DeFi and NFT.
You can watch the program here before:
Hong Kong’s SFC To Oversee All Crypto Exchanges
Like many nations, The Government of Hongkong’s is set to take advantage of Blockchain technology and its many financial products. This time it appears that the government is after changing the regulations for firms that operate Crypto Exchanges in the Hong Kong terrain.
The director of Licensing at Hong Kong’s Securities and Futures Commission (SFC), Clara Chiu, will present a consultation paper in her Keynote Speech at the Hong Kong FinTech Week 2020 in the coming Tuesday. She is to recommend that the SFC be granted increased surveillance authority over all “centralized virtual asset trading platforms” in Hong Kong. Irrespective of whether the Virtual Asset Exchange enables the trading of tokens deemed securities or strictly crypto like bitcoin (BTC, +1.50%), the SFC is projected to exercise oversight powers and functions over them.
The Hong Kong government agency curated the regulatory guidance in 2019 and the soft law classifies virtual asset firms dealing in (even if it is) one security as being in the same category as securities brokerages, thereby subjecting them to the same rules. In this light, these firms will be mandated to sign up with the SFC.
Ashley Alder, the CEO of the SFC related on Tuesday that;
“Under the current legislative framework if a platform operator is really determined to operate completely off the regulatory radar it can do so simply by ensuring that its traded crypto assets are not within the legal definition of a security,”
At this rate, all Crypto Exchanges will have to apply for an SFC Permit or License under Hong Kong’s anti-money laundering law. This is the proposed guideline from the Financial Action Task Force (FATF).
Iran Modifies Digital Law to Allow the Use of Crypto for Import Funding
As reported by Iran Daily, the Islamic Republic News Agency (IRNA) recounted earlier this week that the Irani Legislative cabinet has altered its current law on digital assets to allow the Central Bank of Iran (CBI) to use crypto for import funding. Upon careful observations, both the CBI and the Cabinet had earlier made recommendations for this alteration to be made.
Essence of the Alteration
Essentially, this modification has opened Iran to an era where legally mined crypto in Iran can only be traded when it is being used to finance importations from other countries of the world.
Crypto Miners to Present the Crypto to CBI
IRNA also highlighted that miners of crypto in Iran will present the crypto to the CBI within an officially approved cap. It behoves on Iran’s Ministry of Energy to publish instructions on the permitted volume of subsidized energy that a crypto miner can use. The lawful limit of crypto mined which will be allowed to be delivered to the CBI will be based on the volume of subsidized energy a miner uses. Because Iran is burdened by a number of U.S. sanctions and is just recovering from the Coronavirus Pandemic like many other nations, it is turning to Crypto to alleviate its many economic woes.
Although the Irani government authorized the mining of crypto in its territory, it has since burdened the sector with stringent regulations, thereby laying a yoke on many Blockchainpreneurs in the space.
Iran Daily Says Using BTC for Import Payments Will Help Iran Circumvent US Sanctions
This move by the Irani Cabinet is perceived to be a smart one as the Iran Daily recently hinted that using bitcoin (BTC, +1.39%) for import payments will help Iran get around penalties that restrict the nation from gaining access to the US Dollar.
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