The pressure surrounding crypto regulations is increasing as more and more countries agree that set guidelines is the only way to prevent malpractices such as money laundering. We’ve been following the latest regulation updates in the finance and crypto space, so let’s check what’s going on in our Regulations Roundup – May 2019!
Finland Imposes New Crypto Regulations
In Finland, the Act on Virtual Currency Providers came into place on 1st May. This is designed to regulate cryptocurrency service providers including exchanges who are now required to register with Finland’s Financial Supervisory Authority (Fin-FSA) and meet all statutory requirements.
The Fin-FSA stated: ‘The Act on Virtual Currency Providers enters into force on 1 May. In accordance with the act, the Financial Supervisory Authority (Fin-FSA) will act as the registration authority and supervisory authority for virtual currency providers.’
A briefing will be held on May 15th at the Bank of Finland to explain the new rules.
Actionable top tip: As crypto regulations are becoming a top priority across the globe, it’s really important to stay on top of the news. International businesses should always know the rules of each country they deal with in order to avoid regulation violations.
Russia to Experiment with Cryptos in Four Regions
Crypto regulations have been in the spotlight in Russia for months. The current pending regulation bill requires approval from President Vladimir Putin before it can be actioned. While this bubbles away, Russia is also set to experiment with cryptocurrencies in four different regions. Companies, firms and projects will be able to operate in specific areas of Russia without breaking any federal law.
Kirill Kabanov, an advisor for the Russian President, said: “… for many years cryptocurrencies are actively circulating around the world, but in fact, most countries, including Russia, do not regulate their use. Regulatory sandboxes will be effective if they are used as test grounds for norms that can later be applied to adapt the legal environment to the new technological structure.”
Actionable top tip: The crypto movements occurring in Russia are fairly significant and need to be paid attention to. It appears the legal status will be adapted according to how crypto use pans out in the test areas and therefore many regulation issues are still far from being set in stone.
France Implements New Crypto Bill
France has been ahead of the game regarding crypto regulations introducing laws covering ICOs and token sales in 2018. The country has also recently enacted the first regulatory framework governing crypto-asset intermediaries. According to Reuters, the French Parliament passed a bill that allows cryptos to be recognised in the country, while simultaneously making sure that the authorities can tax profits generated by the operators and investors in the sector. Guidelines state that cryptocurrency exchanges as well as custodian providers must undergo a mandatory AMF registration and obtain a certification to be granted by the French watchdog. Hefty fines are on the cards for anyone who fails to comply.
The country is also pushing to expand such regulations across the EU. French politician Bruno Le Maire said at a blockchain event in Paris: “I will propose to my European partners that we set up a single regulatory framework on crypto-assets inspired by the French experience.” He added “our model is the right one,” explaining how France would give other countries a lesson on what makes for a good set of crypto regulations.
Actionable top tip: A uniform set of European crypto regulations may not be too far off. Staying abreast of the news is a good way to remain well-informed. Keeping an eye on essential Twitter channels such as @French_Gov is also advisable.
Top Finance Events for May
Reflect Festival will take place in Limassol from the 9th-10th May 2019. It’s all about innovation and putting ground-breaking ideas to good use to shape our future. There will be exciting exhibitions and demonstrations entertaining a crowd of 1000 plus curious people. Gathering under one roof will be CEOs, entrepreneurs, professionals, tech enthusiasts and an incredible panel of speakers including Sophia the Robot – the world’s first android citizen. We’re media partners for the event, so come along and say hi.
This year’s iFX EXPO will take place in Limassol, Cyprus from the 21st-23rd May 2019. There will be significant focus on the fintech retail industry with the summit set to welcome leading crypto, technology and blockchain experts. As official media sponsors, Contentworks will be attending this significant annual event which offers a great chance to mingle with industry thought leaders.
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