What happened in the crypto world in the last week? Let’s see some interesting news together!
UK Announces Conclusive Crypto and Stablecoins Regulations
The UK government has issued its final crypto and stablecoin regulations. The government’s phased approach will commence with fiat-backed stablecoins and expand to encompass algorithmic stablecoins. Legislation concerning fiat-backed stablecoins is scheduled for an early 2024 introduction, subjecting relevant activities to the oversight of the Financial Conduct Authority (FCA).
The Treasury released a crypto consultation in February, which closed in April. Economic Secretary Andrew Griffith previously expressed the UK’s ambition to be a crypto hub. Even after FTX’s crypto exchange collapse, the country passed the Financial Services and Markets Act 2023 in June, treating crypto as a regulated activity.
Additionally, the government unveiled its plans for stablecoins potentially affecting financial stability. In May, the central bank initiated a consultation on a regulatory framework for systemic stablecoins.
Singapore, Japan, UK, and Swiss Regulators to Pilot Asset Tokenization
Regulators from Singapore, Japan, the UK, and Switzerland have announced plans for asset tokenization trials involving fixed income, foreign exchange, and asset management products.
The Monetary Authority of Singapore (MAS) has established “Project Guardian,” a collaboration between policymaker groups such as Japan’s Financial Services Agency (FSA), the UK’s Financial Conduct Authority (FCA), and Switzerland’s Financial Market Supervisory Authority (FINMA) to promote international cooperation in asset tokenization.
Project Guardian’s primary focus will be on discussing the legal and accounting treatment of digital assets, identifying potential risks and policy gaps, and developing common standards for digital asset market design and best practices across different jurisdictions.
The project also aims to facilitate industry pilot programs for digital assets within regulatory sandboxes, as outlined in MAS’s announcement.
Leong Sing Chiong, Deputy Managing Director at MAS, highlighted the strong commitment of policymakers to better understand the opportunities and risks associated with digital asset innovation through the partnership with FSA, FCA, and FINMA.
Taiwan Initiates Crypto Regulation with Digital Asset Bill Reading
Taiwan has embarked on the path of digital asset regulation with the introduction of a crypto bill for its first reading in the Legislative Yuan. The proposed Virtual Asset Management Ordinance Draft is designed to provide clear definitions for virtual assets, establish operational standards for industry operators, and prioritize the safeguarding of customer interests and industry association memberships.
Notably, the bill doesn’t mandate the use of custodians for licensed exchanges but enforces the segregation of customer assets from business funds.
Under this regulatory framework, exchange operators are required to commission regular reports from accountants regarding their operations and asset management. They must also permit regulatory bodies, including the Financial Supervisory Commission (FSC), to conduct routine inspections of their internal control and audit systems.
The digital asset industry in Taiwan has expressed its approval of this regulatory step and anticipates continued collaboration with the FSC. While a second reading of the bill is pending, the FSC is expected to provide additional input to the draft.
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