Regulations Round-Up – August 2021

Global markets were relatively calm in July as companies started publishing their quarterly results. In the US, the main indices like the Dow Jones and Nasdaq soared to an all-time high. Similarly, cryptocurrency volatility returned after hints emerged that Amazon was considering getting into the industry. At the same time, Robinhood, a popular platform among crypto traders went public in New York amid controversy over its valuation. As an agency specialising in financial marketing, our team has rounded up the top regulation changes in July, and now we’re looking at what’s coming up in August 2021.

China crackdown on tech

Chinese regulators, not renowned for being liberal, caused headlines in July as they intensified their crackdown on technology and for-profit tutoring companies. The pressure mounted after DiDi went public in the United States. Disappointed with the move, Chinese regulators barred the firm from accepting new customers and removed its apps from app stores. This pushed the stock significantly lower such that the firm is considering going private again.

Meanwhile, China announced new regulations for companies like Meituan, that provide food delivery services. The firms were asked to classify their riders as employees. At the same time, the $100 billion private tutoring business was barred from making profits and receiving foreign investments. In all, the Chinese crackdown on tech has erased value worth hundreds of billions of dollars in the past few months.

Japan crypto regulations

The Japanese Financial Services Agency (JSA) is reportedly working on cryptocurrency regulations. According to Reuters, the agency has added the number of employees working on these regulations. The Ministry of Finance also considered adding more workers in the department.

The goal is to create an agency that will regulate both cryptocurrencies like Bitcoin and Ethereum and stablecoins like USD Coin and Tether. Stablecoins are tied to fiat currencies like the US dollar and the euro. At the same time, the Bank of Japan is working on a Central Bank Digital Currency (CBDC).

France calls for EU-wide regulations

In July, France called on EU member states to give pan-European agencies like the European Securities and Markets Authority (ESMA) the responsibility to come up with crypto regulations. The country argued that such an agency will ensure uniformity among member states about the new crypto assets. In a statement, the French regulator said:

“Granting Esma the power of direct supervision of public offers of crypto assets in the EU and of crypto asset service providers would create obvious economies of scale for all national supervisors and concentrate expertise in an efficient way, for the common European benefit,”

In addition to crypto regulations, France called on governments to transfer supervision of clearing houses, non-financial data and ratings agencies, and bourse operators to ESMA.

ASIC proposes new crypto regulations

In July, the Australia Securities and Investment Commission (ASIC) proposed new measures to regulate the growing crypto industry more. The agency made its cade in Consultation Paper 343. In it, the agency called for submissions on its proposals to regulate exchange traded products (ETPs) that invest in or provide exposure to crypto-assets. The submissions came at a time when cryptocurrencies have become immensely popular in Australia despite the significant uncertainty about their regulations. ASIC has stepped up its monitoring of Australian finance firms on social media, blogs, forums and Adwords. Talk to our team for ASIC friendly content marketing. 

Bafin gets new head

Bafin, the German regulator, is gearing up for significant changes as it gets a new leader. Mark Branson will start his new job on August 1. He will lead an embattled agency that has been criticized for several scandals such as the Wirecard collapse. Branson previously worked for UBS and Swiss Financial Supervisory Authority (Finma). He is expected to toughen rules on both private and publicly-traded companies.

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