Image Image Image Image Image Image Image Image Image Image Image Image

| January 22, 2019

Scroll to top

Top

regulator Archives -

Japanese Regulator Clarifies Stance on Bitcoin ETFs and Derivatives

January 13, 2019 |

Japanese Regulator Clarifies Stance on Bitcoin ETFs and Derivatives

Japan’s top financial regulator has clarified to news.Bitcoin.com its stance on bitcoin exchange-traded funds (ETFs), cryptocurrency derivatives, and upcoming regulatory changes. This follows reports that the agency may be considering approving an ETF that tracks cryptocurrencies.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Bitcoin ETFs and Derivatives

Following recent reports claiming that Japan’s Financial Services Agency (FSA) may be considering approving one or more bitcoin ETFs, news.Bitcoin.com asked the country’s top financial regulator to confirm its plan regarding this type of investment instrument.

Japanese Regulator Clarifies Stance on Bitcoin ETFs and Derivatives

A spokesperson for the agency clarified on Friday:

There is no such fact that we are considering approving ETFs which track crypto-assets at present … we are not currently considering approving them.

The FSA also confirmed its position on cryptocurrency derivatives. Regarding “the listing of bitcoin futures on the financial instruments market,” the regulator said, “We are not considering that at present.”

The agency explained its reasoning to news.Bitcoin.com, stating that based on findings of the Study Group on the Virtual Currency Exchange Services:

Taken it into consideration that it is difficult for us to find constructive and social significance of trading crypto-assets derivatives at present, we think that there is no need for trading crypto-assets derivatives at financial instruments exchanges where many market participants are able to trade.

New Regulatory Direction

The FSA has recently published newly-proposed rules for crypto operators based on discussions and conclusions from 11 study group meetings. Self-regulation will play a major part in the ecosystem. In October, the agency approved the Japan Virtual Currency Exchange Association (Jvcea) as a self-regulatory organization (SRO).

The association is expected to “perform self-regulatory functions in a flexible manner, considering issues we have identified so far,” the agency told news.Bitcoin.com.

The FSA proceeded to outline the issues it expects the SRO to focus on. They are “insufficient risk assessment of crypto assets to be handled, inappropriate sales of crypto assets issued by providers themselves, excessive advertisement, over-emphasis on profit generation, no check and balance by directors and auditors, no internal audit, insufficient internal management control, insufficient AML/CFT measures and segregation of customer asset, and reluctance to disclose corporate information.”

Japanese Regulator Clarifies Stance on Bitcoin ETFs and Derivatives

ICO Regulation Coming Soon

When Japan legalized cryptocurrencies as a means of payment in April 2017, initial coin offerings (ICOs) and their tokens were not included. However, with the growing interest in token sales as a fundraising method, the FSA has turned its attention to the matter. The agency recently published a document outlining key areas which will be addressed in upcoming regulations.

The FSA will focus on “investment-type ICOs” and will “clarify that soliciting investments by funding virtual currency is subject to financial regulations,” the document reads.

Japanese Regulator Clarifies Stance on Bitcoin ETFs and Derivatives Specifically, “When soliciting 50 or more investors,” the agency plans to “require the issuer to provide public disclosure initially and subsequently.”

Brokers and dealers of investment-type ICOs will be regulated “on the same level as securities firms.” They will be required to “examine the business and financial conditions of the issuer.” Furthermore, both the current “unfair trading regulations” and rules to prevent insider trading will apply. There will also be restrictions on “solicitation to retail investors in the same manner as the restriction on unlisted stocks.” For other types of ICOs, the FSA plans to require crypto exchanges that deal with them “to provide information including the feasibility of the project.”

What do you think of Japan’s approach to cryptocurrency regulation? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post Japanese Regulator Clarifies Stance on Bitcoin ETFs and Derivatives appeared first on Bitcoin News.

Bitcoin News

67 Cryptocurrency Companies Probed by UK Regulator

December 31, 2018 |

67 Cryptocurrency Companies Probed by UK Regulator

The U.K.’s Financial Conduct Authority (FCA) has reportedly provided an update of its investigations of crypto companies. A total of 67 inquiries were launched, 49 of which have been closed, leaving 18 businesses currently under investigation. The UK government has reportedly said it is ready to give power to the FCA to regulate the crypto industry.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

More Crypto Companies Under Investigation

67 Cryptocurrency Companies Probed by UK RegulatorThe U.K.’s FCA has released new information regarding its investigations into crypto businesses to The Telegraph in response to a Freedom of Information (FOI) request. The publication reported on Saturday that the FCA revealed that “as of Nov. 12 it had opened inquiries into 67 firms involved in cryptocurrency businesses.” The Financial Times elaborated:

The Financial Conduct Authority on Sunday confirmed it was investigating 18 businesses involved in the sale of cryptocurrencies such as bitcoin. The regulator has also issued alerts and warnings about dozens of companies suspected of cryptocurrency investment scams.

67 Cryptocurrency Companies Probed by UK RegulatorOut of 67 inquiries, 49 have been closed. The FCA issued consumer alerts for 39 firms. “Alerts are issued by the regulator when it is concerned a company is operating without authorisation, and is a suspected scam,” the publication described. The other 10 inquiries were closed because the companies involved were either warned that they may need authorization to continue their activities or there was not enough evidence to proceed with the investigation. The regulator declined to name the companies under investigation.

In May, the FCA investigated 24 crypto firms. In November, The Telegraph reported that the number of unauthorized crypto companies the regulator suspected of operating in the financial services industry jumped to 50, citing information from a different FOI request. In addition, the regulator has received seven whistle-blowing reports from employees of crypto businesses this year, whereas it did not receive any in the previous three years.

Regulating the UK Crypto Industry

While cryptocurrency transactions are currently not regulated in the U.K., companies that sell regulated investments with cryptocurrencies as their underlying assets may need approval from the FCA. However, “it is currently unclear in some instances whether certain assets fall within the scope,” the news outlet noted.

67 Cryptocurrency Companies Probed by UK RegulatorFollowing a report by the Treasury Committee published in September stating that “‘Wild West’ crypto-assets should be regulated,” the government earlier this month said that it is ready to give the FCA power to oversee the cryptocurrency industry. The authority will launch a consultation early next year to determine how the crypto market should be regulated.

John Glen, Economic Secretary to the Treasury, explained that the government will discuss whether crypto assets that “have comparable features to specified investments but that fall outside the current perimeter” should be regulated, the news outlet quoted him as saying. Glen further detailed:

Subject to the outcome of this consultation, the government stands ready to legislate to expand the regulatory perimeter to ensure that FCA regulation can be applied to all cryptoassets that have comparable features to security tokens, regardless of the way they are structured.

Furthermore, the FCA said in October that it is considering banning the sale of crypto derivatives. In November, news.Bitcoin.com reported that the regulator indicated that a “comprehensive response” to the illicit adoption of crypto assets is being planned.

What do you think of the U.K.’s FCA investigating all these crypto companies? Let us know in the comments section below.


Images courtesy of Shutterstock and the U.K.’s FCA.


Need to calculate your bitcoin holdings? Check our tools section.

The post 67 Cryptocurrency Companies Probed by UK Regulator appeared first on Bitcoin News.

Bitcoin News

Japanese Regulator Publishes Proposed Rules for Crypto Service Providers

December 29, 2018 |

Japanese Regulator Publishes Proposed Rules for Cryptocurrency Service Providers

Japan’s top financial regulator has published the final report outlining proposed rules for cryptocurrency service providers to follow. The rules address areas such as hacking incidents, coin listings, financial and price disclosures, margin trading, and crypto custodial services.

Also read: Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations

Final Report of Proposed Rules

Japanese Regulator Publishes Proposed Rules for Cryptocurrency Service ProvidersJapan’s Financial Services Agency (FSA) has published the final report from last week’s study group meeting on crypto exchanges detailing requirements “as a precondition of the proper principle of self-responsibility.” The agency expects crypto service providers to follow these rules either by themselves or under the guidance of a self-regulatory organization (SRO). Currently, only one SRO — the Japan Virtual Currency Exchange Association — has been approved by the FSA.

An FSA spokesperson told news.Bitcoin.com on Wednesday:

Based on the discussion of developing systematic approaches towards various issues on crypto-assets … Taking the perspectives indicated by the final report, FSA has been currently conducting comprehensive consideration on the future approaches, including for revising acts.

The requirements cover areas such as risks relating to thefts of customers’ cryptocurrencies when hacking incidents occur, price fluctuations and speculation. The lack of internal control systems amid rapid business expansion of service providers was discussed, along with measures for crypto transaction types such as margin trading that are not covered by existing regulations.

Rules on Crypto Exchange Operations

The report specifies nine areas that need to be addressed relating to the operations of crypto exchanges and service providers. The first proposed rule reads:

Where private keys of customers’ deposited virtual currency are managed online … service providers [are required] to maintain net assets and funds for reimbursement of the same or greater amount. The funds must consist of the same types as the deposited virtual currency.

Secondly, they must “Develop [a] framework to entitle customers to [a] statutory lien that secures their claim to deposited virtual currency.” They must also disclose their financial statements.

Japanese Regulator Publishes Proposed Rules for Cryptocurrency Service ProvidersIn order to ensure proper business operations, crypto service providers need to disclose information relating to trading prices, the report explains. They are also prohibited from advertising, promoting or encouraging speculative trading. Additionally, they must follow the rules set forth by an SRO. The agency noted that registration of non-SRO members that have not established internal rules equivalent to the SRO’s rules can be refused or canceled.

Furthermore, crypto service providers are prohibited “from dealing in virtual currencies that could impede user protection or proper and reliable business operations,” the report reads. The last requirement under this category is for them to notify the FSA “each change of a line of virtual currencies in advance.”

Rules on Margin Trading

Japanese Regulator Publishes Proposed Rules for Cryptocurrency Service ProvidersThe first proposed condition under this category states that a registration requirement for “foreign exchange margin trading (forex trading)” will be imposed on crypto service providers offering margin trading. The same code of conduct “such as the prohibition of unrequested solicitation” will also apply.

Secondly, a limit will be imposed on each cryptocurrency’s leverage ratio “based on [the] actual virtual currency price fluctuations.”

Service providers will also be required to explain the risks specific to cryptocurrencies and set minimum margin amounts. Lastly, crypto credit will follow similar rules as margin trading since they have similar functions and risks, the report details.

Additional Rules

Japanese Regulator Publishes Proposed Rules for Cryptocurrency Service ProvidersThe report also outlines rules for crypto custodial services and “unfair acts” in crypto spot trading. All persons and entities are prohibited “from improper conduct, spreading rumors and price manipulation.”

Cryptocurrency custodial services will be regulated going forward. Specifically, the same regulations that currently apply to crypto exchanges will apply to the custody of customers’ cryptocurrencies. Furthermore, the report notes:

Virtual currency exchange service providers [are] to monitor transactions and prohibit transactions aimed at profiting based on nonpublic information.

What do you think of these proposed rules? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post Japanese Regulator Publishes Proposed Rules for Crypto Service Providers appeared first on Bitcoin News.

Bitcoin News

Singapore Financial Regulator Updates Guide to Digital Token Offerings

December 5, 2018 |

Singapore Financial Regulator Updates Guide to Digital Token Offerings

The Monetary Authority of Singapore (MAS) has published new guidelines pertaining to digital token offerings. The document provides additional clarity on the regulatory requirements for intermediaries that facilitate them, while highlighting the reporting obligations of entities offering capital markets products that are not classified as securities.

Also Read: P2P Markets Report: Dumping Drives Record Volume Across Latin America and Asia

MAS Publishes New ICO Guidelines

Singapore Financial Regulator Updates Guide to Digital Token OfferingsThe guidelines state that offerings of digital tokens are categorized as “capital markets products” under the Securities and Futures Act (SFA). The document also states that MAS will determine compliance with Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) requirements for offerings of capital markets products.

Capital markets products are described as “any securities, units in a collective investment scheme, derivatives contracts and spot foreign exchange contracts for purposes of leveraged foreign exchange trading.” Any entity that offers capital markets products will be required to submit a prospectus in accordance with SFA requirements.

Exemptions From Prospectus Requirements

Singapore Financial Regulator Updates Guide to Digital Token OfferingsHowever, the new guidelines state that an offering may be exempt from prospectus requirements under certain circumstances. Subject to conditions, MAS states that an offering may not require a prospectus if it is a “small personal offer” that does not exceed the equivalent of 5 million Singapore dollars ($ 3.66 million) within any 12-month period. Exemptions will also be made for any “private placement offer” to up to 50 people within a 12-month period, as well as for offers solely targeted at institutional or accredited investors. However, MAS states that any exemptions for small personal offers, private placements or offers to accredited investors will still be subject to advertising restrictions.

Rules for Intermediaries Offering Tokens

Singapore Financial Regulator Updates Guide to Digital Token OfferingsMAS states that it has observed several types of intermediaries that “facilitate offers or issues of digital tokens.” Such intermediaries include platforms on which one or more entities “make primary offers or issues of digital tokens,” as well as any individual who operates “a platform at which digital tokens are traded.” People who operate said platforms could be deemed to be engaged in regulated activities and will be required to hold a capital markets services license.

The guidelines also state that any person who “provides financial advice in respect of any digital tokens” as an intermediary must secure a financial adviser’s license. The same expectations will apply to any person who “provides any financial advice in Singapore in respect of any digital token that is an investment product.” In addition, the regulator says that anyone based in a foreign jurisdiction who engages in activities designed to influence citizens of Singapore through financial advisory services will be “deemed to be acting as a financial adviser” in the city-state.

Do you think that other nations will adopt similar guidelines for digital token offerings to Singapore? Share your thoughts in the comments section below.


Images courtesy of Shutterstock


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post Singapore Financial Regulator Updates Guide to Digital Token Offerings appeared first on Bitcoin News.

Bitcoin News

Australia’s Financial Regulator Grants License to Bitcoin Exchange Coinzoom

December 3, 2018 |

Coinzoom Australia said Dec. 3 that it has been officially registered as a digital currency exchange with financial watchdog Austrac. The registration allows the exchange to operate legally according to Australian law. It will also function as a fiat-to-crypto exchange, with support for a variety of digital assets, including the buying and selling of BTC, BCH and XRP.

Also read: Report: Bitcoin Mining Doesn’t Fuel Climate Change, it Benefits the Global Economy

Complying With KYC/AML Requirements

“Being fully registered … is an important step in our goal to provide globally compliant digital currency trading for both institutional and retail traders,” Todd Crosland, chief executive officer of Coinzoom, said in an online statement.

Australia’s Financial Regulator Grants License to Bitcoin Exchange Coinzoom

Austrac, as the Australian Transaction Reports and Analysis Centre is commonly known, is a state-run financial intelligence agency that monitors financial transactions for evidence of money laundering, organized crime, tax evasion, fraud and terrorism. At press time, the regulator had not responded to a request for comment.

When Coinzoom Australia launches in the first quarter of 2019, traders will be expected to “fully” comply with the know-your-customer and anti-money laundering requirements of both the Australian and U.S. financial regulators, said Crosland.

The unit of U.S.-based Coinzoom Inc. claims that the platform, which caters to local and international investors, “will provide a simple and easy one-stop user experience to link their credit card, bank account and cryptocurrency wallets.” It adds that Coinzoom “also offers customers a pattern recognition system, rewards debit card, and social trading capabilities.”

Australia’s Financial Regulator Grants License to Bitcoin Exchange Coinzoom
Todd Crosland

Coinzoom Inc. describes itself as “an institutional grade digital currency-trading platform” that supports the trade of virtual currencies such as bitcoin, bitcoin cash, ripple and ether. The company claims it is registered as a money services business in all 50 U.S. states. It says it is also in the process of acquiring remittances licenses in states where they are required and has already secured them in states such as Florida, Iowa and Maryland. The remittances licenses allow Coinzoom to transfer funds or offer crypto-based payment services.

Cryptocurrency Hub

Australia aims to become a cryptocurrency leader. In September, Travelbybit, a Brisbane-based startup, revealed that it had received state funding to enable it to transform the city into a cryptocurrency hub. The company says it will use the funds to develop technologies that allow visitors to Brisbane to pay for their travel expenses in virtual currencies such as bitcoin or bitcoin cash.

Australia’s Financial Regulator Grants License to Bitcoin Exchange Coinzoom

In June, Agnes Water — a coastal town in the Australian state of Queensland — claimed it had become the country’s “first digital currency town,” where transactions and payments are denominated in crypto. And a recent survey by Hiveex and Ivypay indicated that about 2.58 million Australians now own cryptocurrencies of some form, with more than 2,500 bills paid in virtual currencies in the country every month.

“Coinzoom’s vision is to provide global cryptocurrency traders with innovative trading technology, and world-class digital asset security, all while following the U.S. and global regulatory requirements,” said Crosland.

What do you think about KYC/AML requirements as a precondition for cryptocurrency trading? Let us know in the comments section below.


Images courtesy of Shutterstock and Coinzoom.


Express yourself freely at Bitcoin.com’s user forums. We don’t censor on political grounds. Check forum.Bitcoin.com.

The post Australia’s Financial Regulator Grants License to Bitcoin Exchange Coinzoom appeared first on Bitcoin News.

Bitcoin News

Colorado Regulator Issued Orders Against 18 ICOs, With More on the Way

November 22, 2018 |

The U.S. authorities appear to have greatly increased their focus on initial coin offerings (ICOs). In addition to the big federal bodies that are going after them on a national level, projects are also being targeted by regulators in states such as Colorado, where another another four were put on notice on Tuesday.

Also Read: Survey Finds McAfee Is the Most Influential Crypto Trading Figure

Number of Orders Is a ‘Red Flag’

Colorado Regulator Issued Orders Against 18 ICOs, With More on the WayThe Colorado Securities Commissioner has now taken action against 18 ICOs, up from just about a dozen earlier this month. Additionally, the Colorado Department of Regulatory Agencies announced there are at least two more orders pending, which will soon bring the total to 20. The orders are said to be the result of investigations by an “ICO Task Force” created in May. They demand that each venture immediately stop offering unregistered securities in the state.

“The sheer number of orders entered against ICOs should be a red flag to all investors that there is a real risk that the ICO you are considering is a fraud,” said Commissioner Gerald Rome. “Our investigations show that there are fraudsters who will simply create a fake ICO to steal investors’ money, or spoof a legitimate ICO to trick investors into wrongfully paying them.”

Fake Bios, Fake Phone, Fake Address

Colorado Regulator Issued Orders Against 18 ICOs, With More on the WayThe first of the four ICOs the state regulator targeted this week is Global Pay Net, which is marketing “GLPN Coins” for a financial platform based on blockchain technology. The regulators have found that at least two of the professionals listed on its website deny being involved with the project. And Global Pay Net’s claim that it has filed documents with the U.S. Securities and Exchange Commission could not be verified because its listed phone number is disconnected. The regulators have also claimed that the business is not registered in the state of Washington, where the company is supposedly located.

The second company that has been targeted is Credits, LLC, which has pursued an ICO with “Cred (CX)” tokens and allegedly promotes “crypto with a mobile mining app that supports green energy.” The third project is Crowd Share Mining (CSM), which allegedly promises that investors will earn 50 percent of the profit generated by mining operations that use renewable energy sources.

Finally, Cyber Smart Coin (CBST) allegedly claims to use robots to trade on Bitmex and other crypto exchanges. It promises investors dividends of 20 percent to 35 percent per month. The regulators noted that while the company’s website states that investors may not participate in the ICO if they are residents of a jurisdiction in which it would be considered unlawful, the site is still accessible for Colorado residents.

Do ICOs have a future in the U.S. market? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi’s Pulse, another original and free service from Bitcoin.com.

The post Colorado Regulator Issued Orders Against 18 ICOs, With More on the Way appeared first on Bitcoin News.

Bitcoin News

Italian Securities Regulator Warns Against Three Unlicensed Cryptocurrency Companies

November 22, 2018 |

Italy's Securities Regulator Warns Against Three Unlicensed Cryptocurrency Companies

Italy’s financial regulator, the National Commission for Companies and the Stock Exchange (CONSOB), has warned against three cryptocurrency companies engaged in schemes to promote cryptocurrency mining and investments. CONSOB said the companies were neither licensed nor authorized to provide the services they promised.

Also read: North Korea to Hold Crypto Conference in April

Cease and Desist Notice for Unlicensed Firms

Italy's Securities Regulator Warns Against Three Unlicensed Cryptocurrency Companies

On Nov. 20, the Italian regulator issued a cease and desist notice against foreign currency broker Richmond Investing, alleging it did not hold a valid license and was providing “unauthorised investment services and activities to the Italian public.” Richmond Investing promises investors high returns within a short period of time while claiming to provide integrated investment services for several assets, said CONSOB.

The unlicensed Crypton Ltd was suspended from offering its digital currency, called “crypton,” to the public for 90 days. The company claims to “provide passive income in the form of Proof-of-Stake mining that is available to all holders of the crypton coin.”

CONSOB also stopped Alessandro Brizzi from promoting the crypton token on his Facebook page, while Eagle Bit Trade was blacklisted, specifically for encouraging investors to use its “so-called trading packages” to transact in cryptocurrencies.

Eagle Bit Trade is a bitcoin trading platform that pays a bonus to “package holders” if they recruit a new member, with residual commissions earned as the pool or team members in this binary compensation setup grow. The platform claims to offer free registration to new users, “however, you must purchase a package before you can start earning money.”

Italy's Securities Regulator Warns Against Three Unlicensed Cryptocurrency Companies

Italy’s financial watchdog “started gathering information about these platforms after receiving complaints about them,” Finance Magnates reported. In June, Consob, an autonomous statutory body set up to help regulate Italy’s securities ‎‎and futures market, warned against four foreign currency brokers. It said the companies, Fah Investment Ltd, CFX Point Ltd, AJN Trade Ltd and Light Media Ltd, were not authorized to provide investment services in the country.

Europe Moves to Regulate Crypto

CONSOB follows in the footsteps of other European regulators that have announced a series of measures targeted both at taxing and regulating cryptocurrencies.

Italy's Securities Regulator Warns Against Three Unlicensed Cryptocurrency Companies

The U.K’s Financial Conduct Authority said in October that it will begin consultations on whether to ban the sale of derivatives based on digital coins like BTC as well as to restrict crypto-based contracts of difference to the public. Virtual currency futures and options will also be looked into, in discussions slated for the first quarter of 2019.

In Spain, a proposed law will seek to tax cryptocurrencies while authorities closely monitor the activities of 15,000 crypto investors.

What do you think about the warning from CONSOB? Let us know in the comments section below.


Images courtesy of Shutterstock, Korea-DPR.info.


Express yourself freely at Bitcoin.com’s user forums. We don’t censor on political grounds. Checkforum.Bitcoin.com.

The post Italian Securities Regulator Warns Against Three Unlicensed Cryptocurrency Companies appeared first on Bitcoin News.

Bitcoin News

PG&E stock soars most since 2001 after regulator eases fears related to California fires

November 18, 2018 |

PG&E Corp. stock soared the most in 17 years after the head of California’s Public Utilities Commission said he can’t imagine allowing the utility to go bankrupt as it faces billions of dollars in potential liability from deadly wildfires.

PG&E was up about 35% at $ 23.92 a share around 9:15 a.m….


L.A. Times – Business

Japanese Regulator Unveils Plan to Regulate Cryptocurrency Wallet Services

November 16, 2018 |

Japanese Regulator Unveils Plan to Regulate Cryptocurrency Wallet Services

Japan’s top financial regulator, the Financial Services Agency, has unveiled a plan to regulate cryptocurrency wallet services. The regulator has put forward a number of regulatory measures as well as proposing how to implement them.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

The Plan

Japanese Regulator Unveils Plan to Regulate Cryptocurrency Wallet ServicesThe Financial Services Agency (FSA) held its ninth cryptocurrency study group meeting on Monday. According to the agency’s published meeting materials, one of the main topics on the agenda was a plan to regulate crypto wallet services and their providers.

Currently, Japan’s fund settlement law requires businesses conducting cryptocurrency-related activities in the country, such as buying and selling, to register as crypto exchanges with the FSA.

“Wallets are like bank accounts that store virtual currencies,” Itmedia publication elaborated. While wallet service providers “handle large amounts of virtual currencies like exchange companies,” the publication noted that “they are not targeted by laws and regulations.”

The FSA explained that the current law does not apply to wallet service providers since they do not buy or sell cryptocurrencies — they merely manage and transfer them for customers. However, since they manage payments, the agency believes that financial regulation is necessary.

Japanese Regulator Unveils Plan to Regulate Cryptocurrency Wallet ServicesThe plan unveiled at the meeting focuses on service providers — not software wallet developers or hardware wallet manufacturers. Many wallets exist only as code and are without identified leadership or companies behind them.

The regulations for wallet services will be in line with the international standards for preventing money laundering and terrorism financing set by the Financial Action Task Force (FATF), the FSA detailed. The agency wrote that the “revised FATF standards” must be imposed, including their recommendations relating to crypto exchanges, wallet service providers, and initial coin offering issuers.

The Implementation

The group proceeded to discuss the risks associated with wallet services, such as stolen funds during cyber attacks, wallet failures, money laundering, and other risks shared by crypto exchanges.

Japanese Regulator Unveils Plan to Regulate Cryptocurrency Wallet ServicesPossible regulatory measures include the maintenance of internal control systems, separate management of cryptocurrencies belonging to the service providers and customers, audits of financial statements, publication of policies in the event of stolen funds in a hack and retaining funds to repay customers.

The transition period for introducing wallet regulations was also discussed. During this time, service providers would not be able to add new businesses, customers, or coins supported. In addition, they must post notices on their websites regarding their registration status. Those refusing to register must declare on their websites and “indicate that the business will be abolished,” according to the meeting document.

What do you think of Japan planning to regulate crypto wallet services? Let us know in the comments section below.


Images courtesy of Shutterstock.


Need to calculate your bitcoin holdings? Check our tools section.

The post Japanese Regulator Unveils Plan to Regulate Cryptocurrency Wallet Services appeared first on Bitcoin News.

Bitcoin News

French Financial Markets Regulator Estimates ICOs Have Raised $21.9B Globally Since 2014

November 15, 2018 |

French Financial Regulator Publishes Report on “Marginal” ICO Sector

France’s financial markets regulator, the Autorité des marchés financiers (AMF), has published a report examining trends relating to initial coin offerings. The AMF describes ICOs as a “marginal” method of financing, estimating that the global ICO industry has raised €19.4 billion ($ 21.9 billion) since 2014.

Also Read: Russian Developers to Help Iran Build Its Crypto-Economy

Significant Centralization of Capital

French Financial Markets Regulator Estimates ICOs Have Raised $  21.9B Globally Since 2014The AMF report notes an “acceleration” in ICOs over the last two years. It estimates that €5.6 billion ($ 6.3 million) was raised via ICOs in 2017, equating to 1.6 percent of global equity financing for that year. Throughout 2018, the regulator estimates that ICOs have raised €13.4 billion ($ 15.1 billion) so far, accounting for 69 percent of the total raised by all ICOs since 2014.

The AMF report also points to a significant centralization of capital within the ICO sector. It estimates that just 17 ICOs have raised approximately 40 percent of the total sum generated by the industry thus far.

French ICOs Grab ‘Modest Share’ of Global Sector

French Financial Markets Regulator Estimates ICOs Have Raised $  21.9B Globally Since 2014The AMF describes French ICOs as “accounting for a modest share of this new type of financing.” The report estimates that a total of 15 ICOs have collectively raised €89 million ($ 100.5 million), meaning that French token sales have represented just 0.46 percent of the total sum raised by the global ICO industry.

While the majority of ICOs have focused on “blockchain or trading applications,” the AMF believes that projects are now increasingly “diversifying into other sectors.” It also notes that “most of the upcoming ICO projects” have previously raised financing through “traditional funding channels.” In addition, the AMF reports that the majority of ICOs thus far have taken place in the United States.

AMF Advocates International Regulatory Cooperation

French Financial Markets Regulator Estimates ICOs Have Raised $  21.9B Globally Since 2014The AMF argues that the key “success factors of an ICO” include the need for robust and transparent anti-money laundering procedures. The report also emphasizes the need for “appropriate regulation” to guide the ICO industry. The AMF claims that “given the cross-border nature of these projects, the diversity of regulatory approaches at the international level is a point of vigilance.” It adds that “in this context, international and European cooperation is essential” in the identification of fraud and the development of coherent regulatory frameworks.

Do you think that ICOs have reached their peak this year? Or is more growth in sight? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Wikipedia


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post French Financial Markets Regulator Estimates ICOs Have Raised $ 21.9B Globally Since 2014 appeared first on Bitcoin News.

Bitcoin News