In a recent announcement, the European Union (EU) has formally signed into law new rules surrounding crypto licensing and money laundering. This development, which has been closely watched by stakeholders in the global financial and digital currency sectors, represents a significant step towards the regulation and legitimization of cryptocurrencies.
European Union Officially Incorporates Crypto Assets Into Its Legal Framework
On Wednesday, the European Union made a significant stride by officially enacting the landmark Markets in Crypto Assets (MiCA) regulation. This move edges the bloc closer to being the world’s first major jurisdiction with custom-made rules for the crypto sector.
The law was endorsed by Roberta Metsola, the European Parliament President, and Peter Kullgren, the Swedish Minister for Rural Affairs. They also signed a distinct law aimed at combating money laundering, which mandates crypto providers to authenticate their customers’ identities during fund transfers.
The announcement of this milestone was made on Twitter by the Swedish government, which is currently leading the legislative discussions in its capacity as the EU presidency holder. A representative from the parliament confirmed that the newly enacted laws include the MiCA, fund transfer rules, and two unrelated trade regulations with Ukraine.
MiCA To Come Into Effect In June
The Markets in Crypto Assets (MiCA) regulation, recently signed into law by the European Union, is set to come into effect a few weeks after its publication in the EU’s official journal, expected in June. This regulation will provide a comprehensive framework for crypto exchanges and wallet providers, offering them a license to operate across the 27-member bloc. Additionally, it will mandate stablecoin issuers to maintain adequate reserves. These provisions are slated to be implemented between 12 and 18 months later.
First proposed by the European Commission in 2020, MiCA sparked controversy when lawmakers nearly incorporated environmentally conscious provisions that could have led to a ban on the proof-of-work technology, a fundamental component of Bitcoin.
While the industry has generally welcomed these provisions, the focus is now shifting towards the next phase of EU crypto regulation. Future laws are expected to address emerging areas in the crypto space, such as staking, non-fungible tokens, and decentralized finance.
In tandem with the MiCA, the EU has also enacted a separate anti-money laundering (AML) law. This law, requiring crypto providers to verify their customers’ identities during fund transfers, underscores the EU’s commitment to ensuring the integrity of its financial system. The simultaneous enactment of the MiCA and the AML law illustrates the EU’s balanced approach to crypto regulation, fostering innovation while mitigating risks.
Hong Kong Moving Forward With Crypto Licensing. HedgeUp (HDUP) Prepares Ahead of Rivals RenQ (RENQ) and Shiba Inu (SHIB)
Hong Kong is moving forward with its highly anticipated licensing regime as it looks to become a crypto hub in Asia. The regime, which was proposed in February 2023, is expected to launch next month.
With increased regulatory activities around the world, the project HedgeUp (HDUP) has quickly gone on to become a top crypto token ahead of rivals RenQ (RENQ) and Shiba Inu (Shiba Inu). It is preparing to launch in compliance with whatever regulation will be prevailing at the time.
Hong Kong’s licensing regime is around the corner
This month, Hong Kong is set to release the final guidelines for crypto exchanges looking to launch there. The new rules will bring a lot of changes to the crypto scene in Hong Kong. The most notable of these is allowing retail investors to trade major cryptocurrencies, like Ethereum (ETH) and Bitcoin (BTC).
This is crucial because while crypto exchanges are permitted to operate in the region, existing regulation places certain restrictions on investors with portfolios under HK$8 million (approximately a million dollars).
The rules also put it upon licensed operators to perform due diligence on crypto tokens and monitor them. Under the proposed measures, operators are only allowed to offer tokens that satisfy the Securities and Futures Commission (SFC) criteria. There are also proposed regular checks on the operator’s liquidity.
The licensing regime was first proposed in the middle of February this year. The SFC published the proposed rules on February 20 and invited public comments all the way through the end of March.
Speaking at a Bloomberg event on Thursday last week, the CEO of the SFC, Julia Leung, said the proposed regulatory framework for crypto exchanges received lots of responses during its public consultation process. The new framework is part of Hong Kong’s efforts to adopt a more friendly approach to cryptocurrencies.
HedgeUp (HDUP) prepares ahead of rivals RenQ (RENQ) and Shiba Inu (SHIB)
As regulation efforts ramp up around the world, HedgeUp (HDUP) is gearing up to launch in a regulated environment. The Web3 project has been building a platform for users to invest in alternative asset classes like precious metals, valuable jewellery, rare artwork, and more using NFTs.
HedgeUp (HDUP) is also running a presale as a way of raising funding to build this platform. The presale, which is in stage 3, has been a success so far. It has sold 110 million tokens while raising more than $1.4 million.
Being a new project, HedgeUp (HDUP) is better placed to comply with regulatory frameworks than its rivals RenQ (RENQ) and Shiba Inu (SHIB) which have been around for longer.
RenQ (RENQ) was launched last year. It is currently in the final stage of the presale. Shiba Inu (SHIB), on the other hand, was launched in 2020. Unlike RENQ and HDUP, it is a meme coin with no real utility. It’s currently trading at $0.000008645.
For more information about HedgeUp (HDUP) presale use the links down below:
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Despite other regions taking a more cautious approach, The Fintech Association Of Hong Kong(FTAHK) asserts that Hong Kong remains enthusiastic about enabling its residents to engage in Crypto trading due to its crypto-friendly nature.
FTAHK chair Neil Tan said Hong Kong is stepping forward in allowing crypto retail trading, despite Singapore and the United Nations stepping back. A licensing system for cryptocurrency exchanges will go into force on June 1. It’s anticipated that the licensing standards will be made public in May.
After a lawmaker proposed harmonizing the country’s legislation with incoming EU regulation, France may compel crypto companies to obtain a full license to operate in the country.
As of now, the regulations permit cryptocurrency businesses to function there until 2026 without a formal license. According to the current proposal, companies would have to apply for a full license from the financial authority beginning in October. In doing so, it would be brought into compliance with the EU’s Markets in Crypto Assets (MiCA) regulation, which the European Parliament will likely vote on in 2023.
The reason for this is the recent bankruptcy of FTX, which has emphasized the risks inherent in any investment in crypto assets, especially when the company works outside of any regulation.
Bank of France Regulator Urges Tougher Regulatory Requirements
Francois Villeroy de Galhau, Governor of the Bank of France, has suggested stronger regulatory standards for crypto businesses, which could be a blow for an industry seeking a greater footing in Europe. Villeroy said that given the recent volatility in the market, France should impose licensing requirements on Digital Asset Service Providers (DASPs) without waiting for European regulations to take effect.
Villeroy said Thursday in a speech to the financial sector in Paris that, “All the disorder in 2022 feeds a simple belief: it is desirable for France to move to an obligatory licensing of DASP as soon as possible, rather than just registration.”
Full Digital Asset Service Provider (DASP) licensing is currently optional in France, and no French companies have secured a full license. Roughly 60 organizations have secured a less extensive “registration” from the country’s Financial Markets Authority (AMF).
One of those companies is Binance, which was granted authorization to operate in France in May.
Binance in Europe
Binance, a cryptocurrency exchange, operates throughout Europe from its headquarters in Paris, France. In May of last year, it received regulatory authority to function in France as a Digital Asset Service Provider.
Since then, “CZ,” the CEO of Binance, has stepped up his operations at the country’s crypto exchanges and met with authorities to pledge compliance with rules and anti-money laundering laws. He even referred to France as Europe’s centre for cryptocurrency.
However, with increasingly stringent rules in place, Binance and other similar companies will be obliged to comply, and this may have an impact on its operations.
France not the first to introduce regulations
However, apart from France, many other nations have enacted laws governing cryptocurrencies that are considerably stricter. While several other nations, including Russia, China, and Turkey, have outright prohibited it, Bitcoin trading is not permitted in Egypt without a Central bank license.
Introducing laws can have benefits such as increasing legitimacy and customer protection, but it can also have drawbacks such as stifling innovation and limiting freedom since it was designed as a decentralized form of currency.
California Assembly Passed Crypto Licensing Bill, Now Awaits Governor’s Signature – Coinpedia – Fintech & Cryptocurreny News Media
The California assembly has passed a crypto regulating bill that now requires cryptocurrency-related businesses to gain a special license to offer services to users in California. The crypto bill is now in the final process of becoming law in California.
California Is Aiming For Crypto Regulation
On Monday, California Assembly member Timothy Grayson produced the bill, AB 2269, with support from the Consumer Federation of California with a 71-0 majority. The crypto bill will establish the Digital Financial Assets Law in California.
The Digital Financial Assets Law is known as California’s “BitLicense.” A simple pen stroke is left to create a full-fledged law in California. The bill now requires Governor Gavin Newsom, who has until 30 September to sign or veto the bill. California will become one of the first states to require crypto platforms to obtain a special license to offer services in the state.
What Does This Crypto Bill Say?
The crypto law will tighten crypto regulations and bring more transparency to the crypto industry in California. If the governor signs the bill, it will take effect from 1 January 2025. Companies of digital-asset exchanges will get license approval from the state’s Department of Financial Protection and Innovation.
The Department will also be allowed to enforce drastic actions against those who are unlicensed. A non-licensed corporation engaging in digital financial asset business activity will be charged a civil penalty of up to $100,000 daily. Furthermore, if a licensee breaks the rule, they will have to pay a fine of $200,000 for each day of violation.
Stablecoin issuers holding securities as a reserve must have a total amount of stablecoins not less than the amount of all outstanding stablecoins sold or issued in the United States.
Tim Grayson stated, “While the newness of cryptocurrency is part of what makes investing exciting, it also makes it riskier for consumers because cryptocurrency businesses are not adequately regulated and do not have to follow many of the same rules that apply to everyone else.”
Regulators and governments are framing crypto space. Crypto bill provides the user with more closure looks of the crypto space. However, The California BitLicense now completely depends on the governor whether to sign it or not.