Regulations Roundup – April 2019

Working in the finance sector requires vigilance and awareness of global rules and regulations. This is particularly true considering new guidelines are introduced on a regular basis. And with regulatory bodies struggling to govern the crypto industry, it’s essential to stay in-the-know. March was a busy month with CySEC making their voice heard in the digital currency space. Read our regulations roundup – April 2019

Pakistan Puts Crypto Regulations in Place

Pakistan is cracking down on Electronic Money Institutions (EMIs) following recommendations from the Financial Action Task Force (FATF). While the new framework is not yet official, draft regulations from the central bank published in October 2018 suggest that EMIs would need to meet strict new requirements in order to receive a license from the country’s government. Those who do not comply will face suspension or license cancellation.

According to the draft rules, companies will have to:

  • Meet capital requirements
  • Undergo scrutiny of executives
  • Protect users’ funds
  • Carry out customer due diligence such as storing personal details

The updated rules come as the FATF warns that crypto poses a risk for money laundering and terrorist financing. The global money-laundering watchdog is expected to publish rules for international cryptocurrency regulation by June.

Call to action: Stay up-to-date with global crypto policies as they may influence your correspondence and interaction with businesses and clients across the world.

Upcoming FATF Guidelines

While the France-based intergovernmental body FATF is not expected to publish new rules until the summer, companies should already be bracing themselves for news. The FATF released a statement at the end of 2018 which explained that:

“As part of a staged approach, the FATF will prepare updated guidance on a risk-based approach to regulating virtual asset service providers, including their supervision and monitoring; and guidance for operational and law enforcement authorities on identifying and investigating illicit activity involving virtual assets.”

Call to action: Crypto exchanges and possibly digital wallet providers will be affected by the pending news as will companies offering financial services for initial coin offerings. Therefore, you must keep abreast of all the latest information from the FATF in order to remain compliant. Remember, the finance sector doesn’t mess around and often issues high fines (or worse) to anyone breaking the rules.

Russian Parliament Extends Crypto Regulation Bill

The Duma was supposed to review crypto regulations in March. This has now been postponed until April. The Russian Parliament is further delaying a process that’s designed to implement control over digital financial assets. A renewed date has not yet been confirmed.

The draft bill has not been readily accepted and has instead become a rather controversial topic. Several words have been removed altogether during the editing process including ‘cryptocurrency,’ ‘token’ and ‘smart contract.’ The bill will need to be approved by President Vladimir Putin before it becomes law.

Call to action: News from the Russian government is imminent and therefore you should be on the lookout for updates throughout April – if all goes to plan and another delay is not enforced.

Top Blockchain Events for April

9-10th April – Crypto Invest Summit – Los Angeles

12th April – NEXT BLOCK Conference – Sophia, Bulgaria

13-19th April – Paris Blockchain Week – France

18-19th April – Block Live Asia – Singapore

23-24th April – Blockchain Life – Singapore

29-30th April – Global Blockchain Summit – Slovenia

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