Global Digital Assets Digest: August 2023
Introduction:
Welcome to this month’s Global Digital Assets Digest. In this edition, we will take a closer look at the latest updates and guidance from international bodies, as well as developments in the UK, Europe, APAC, Australia, North America, and the Middle East. From regulatory frameworks to the use of digital currencies, the digital assets landscape continues to evolve rapidly. Let’s dive in!
Related Facts:
– Draft Prudential Practice Guide released in Australia, providing guidance on activities associated with crypto assets.
– Westpac and Commonwealth Bank in Australia enable the use of a digital version of AUD for trading and paying for real certificates of deposit.
– UK regulators communicate important information for cryptoasset service providers ahead of the Travel Rule implementation in 2023.
– Significant activity in Congress in the US regarding digital assets legislation, including the Financial Innovation and Technology for the 21st Century Act.
Updates and Guidance: International Bodies
1. European Commission: Joint Statement on the EU-U.S. Financial Regulatory Forum – The Forum allows for discussions on financial regulatory framework topics, including cryptoassets. Emphasis is placed on market developments, enforcement initiatives, and cross-border implications.
2. G20: Third meeting of G20 Finance Ministers and Central Bank Governors – The Indian G20 Presidency considers the macro financial implications of cryptoassets and highlights the concerns of the Global South, focusing on financial stability and regulatory approaches.
Updates and Guidance: UK
5. FCA Webpage: Expectations for UK cryptoasset businesses complying with the Travel Rule – The FCA provides clarity on the Travel Rule requirements and expectations for cryptoasset service providers.
6. HM Treasury: Updated webpage on CBDC Taskforce – The webpage provides updates on Central Bank Digital Currency (CBDC) initiatives and the UK’s approach to digital currencies.
11. JMLSG: Consultation paper on cryptoassets transfers (“Travel Rule”) – The Joint Money Laundering Steering Group seeks feedback on proposed guidance for cryptoasset transfers to ensure compliance with Anti-Money Laundering regulations.
13. FCA: Annual Report and Accounts 2022/23 – The FCA’s report highlights its objectives, accomplishments, and challenges in regulating the financial industry, including digital assets.
Updates and Guidance: Europe
15. Digital Money: Monthly report of the Deutsche Bundesbank – The report explores current developments in digital money and provides insights into the digital assets landscape.
16. MiCAR implementation: BaFin and Deutsche Bundesbank recommendations – BaFin and Deutsche Bundesbank provide guidance and recommendations regarding the implementation of the Markets in Crypto-assets Regulation (MiCAR), ensuring compliance within the industry.
Updates and Guidance: APAC
17. MAS: Stablecoin regulatory framework finalised – The Monetary Authority of Singapore (MAS) finalizes its regulatory framework for stablecoins, addressing key areas such as licensing and investor protection.
18. SFC: Warning statement on virtual asset trading platforms – The Securities and Futures Commission warns against improper practices by virtual asset trading platforms.
19. UK and Singapore Enhance Cooperation in Sustainable Finance and FinTech – The UK and Singapore strengthen their collaboration in sustainable finance and financial technology, fostering innovation and cross-border cooperation.
Updates and Guidance: Australia
20. Westpac and Commonwealth Bank: Use of digital version of AUD – The two Australian banks enable the use of a digital version of AUD for trading and real certificate of deposits, increasing accessibility and efficiency.
21. APRA: Draft Prudential Practice Guide released – The Australian Prudential Regulation Authority (APRA) provides guidance on activities associated with crypto assets, ensuring best practices and risk management.
22. National Australia Bank: Plans to block payments to high-risk cryptocurrency exchanges – The National Australia Bank announces plans to block payments to high-risk cryptocurrency exchanges, enhancing customer protection and reducing fraud risks.
Updates and Guidance: North America
23. FDIC: 2023 Risk Review – The Federal Deposit Insurance Corporation publishes a risk review, highlighting potential risks in the financial system, including those related to digital assets.
25. FDIC: Statement requiring entity to cease false representations about deposit insurance – The FDIC issues a statement mandating an entity to cease false or misleading representations about deposit insurance.
26. Digital Asset Anti-Money Laundering Act reintroduced – Legislation aimed at combating money laundering through digital assets is reintroduced, emphasizing the need for stronger anti-money laundering measures.
27. SEC: Investor Bulletin on crypto asset markets – The Securities and Exchange Commission publishes an investor bulletin providing guidance on investing in crypto asset markets and raising awareness about potential risks.
28. US Committees introduce Financial Innovation and Technology for the 21st Century Act – Congress is active in proposing digital assets legislation, with the introduction of the Financial Innovation and Technology for the 21st Century Act, which aims to foster innovation and technological advancements.
Key Takeaway:
The global digital assets landscape is continually evolving, with regulators and policymakers working to strike a balance between innovation and consumer protection. The developments and guidance discussed in this digest highlight the efforts made by various countries and international bodies to embrace digital assets responsibly.
Conclusion:
As the world becomes increasingly interconnected through digital technologies, the regulation and oversight of digital assets are vital to ensure investor protection, financial stability, and the prevention of illicit activities. The updates and guidance discussed in this digest demonstrate the growing recognition of digital assets and the need for well-defined regulatory frameworks. Stay tuned for next month’s Global Digital Assets Digest for the latest updates on this dynamic and rapidly evolving space.
