If you checked out our Regulations Roundup in August, welcome back. Time flies when you’re having fun and as the finance sector continues to be governed by a host of unforgiving rules, we’re back to provide you with all the latest updates for September.
As an expert content marketing agency working with world-leading financial services brands, we know how important it is to stay in-the-know. So, grab yourself a drink (coffee if you need it, we won’t judge) and take a look at what’s going on!
Financial Regulations that will affect the sector this month
Bitcoin ETFs Remain in Limbo as the SEC Reviews Refusals
Last month, the US Securities and Exchange Commission (SEC) rejected nine Bitcoin exchange-traded funds (ETFs) which caused great volatility in the markets. The SEC has since agreed to review the reasons why they made the refusals. If the products are eventually approved, Bitcoin could potentially see a considerable price increase which is why traders are currently watching the SEC’s actions closely. What plays out during the rest of the month could prove interesting.
Actionable Top Tip: Watch this one closely. Daily announcements, decision changes and trading sentiment can all have a significant impact on the markets.
EU To Discuss New Rules for the Crypto Sector
Crypto regulations have long been a cause for concern with no one being able to decide exactly how to keep control of and oversee digital transactions. That said; the Finance Ministers of 28 European countries will meet on the 7th September in Vienna to discuss new rules for the crypto sector.
While the gathering will be ‘informal’ the discussion will touch on current policy issues relevant to financial and economic affairs. Topics that will be addressed are set to include crypto’s potential association with drug trafficking, tax evasion, terrorist financing and money laundering.
That said; the EU is showing considerable optimism towards Bitcoin and the underlying blockchain technology associated with digital currencies. They are keen to lead the way and become forerunners of distributed public ledger technologies.
Meanwhile in the US, a Crypto Community Watch programme has been launched to empower whistleblowers and clean up the crypto space. The initiative, set up by Ecoinmerce – the world’s first decentralised and tokenised E-commerce marketplace – is designed to launch investigations into scammers and hackers while rewarding those who stand up for what’s right!
Actionable Top Tip: Follow the all-important steps to a more regulated crypto world, as in the not so distant future, there is likely to be changes to compliance laws.
China’s Crypto Crackdown Continues
China banned domestic ICOs, crypto trading and crypto mining back in2017, but the country’s crackdown on digital currencies continues as China’s three largest tech companies – Baidu, Alibaba, and Tencent (BAT) – ban crypto activities from their platforms. That’s right, leading internet services provider Baidu has banned at least two cryptocurrency chat rooms with Alibaba and Tencent cracking down on crypto transactions on their mobile payment services.
At the end of August, WeChat – Tencent’s hugely popular social media, messenger service and mobile payments app – banned a series of crypto media outlets for spreading hype which violated China’s strict digital currency laws. All crypto-trading activity will also be banned from WeChat.
Authorities too will block access in China to 124 websites operated by crypto exchanges offshore which provide crypto trading services to Chinese citizens on the mainland.
Actionable Top Tip: Stay updated. If you find it hard to keep on top of the news try a tailored RSS to your Twitter or check out the Pocket app for news reading during your daily commute. While world news may seem somewhat irrelevant to your little business bubble, crypto regulations are changing so fast that it’s essential to know what’s going on in case you’re directly affected.
Digital Currencies Illegal in Saudi Arabia
China is not the only country to have taken a firm stand against cryptocurrencies. The Saudi Arabian Monetary Authority (SAMA) recently announced that “unauthorised virtual currencies are illegal inside the Kingdom of Saudi Arabia” with specific reference to Bitcoin being utterly forbidden from the Kingdom. Saudi Arabia joins other countries such as Vietnam and Bolivia in their efforts to snub Bitcoin and make it difficult to trade in other digital currencies which are also deemed unwelcome.
Actionable Top Tip: If you’re a global enterprise, understand where your marketing efforts are wanted and where they could be deemed totally inappropriate and unacceptable. Know your target audience and tailor campaigns specifically for those likely to increase ROI.
The First Sharia-Compliant Islamic Crypto Exchange Revealed
Not all Islamic countries are putting a stop to crypto transactions – far from it. In fact, just a few days ago, Adab Solutions – a UAE-based start-up – announced the launch of the First Islamic Crypto Exchange (FICE) designed to be perfectly compliant with Sharia Law. The very purpose of the project is to: “ensure an enhanced quality of assets on exchange, as well as enhanced inclusion of Islamic cryptocurrency enthusiasts and traders.”
So everything runs smoothly, an in-house Sharia Advisory Board will be put in place to ensure Sharia Law is enforced at all times with absolutely no exceptions to give Islamic traders ultimate peace of mind. Adab tokens bought in the ICO will be used as utility keys to access the exchange platform’s services in a move that’s somewhat revolutionary for the sector.
Actionable Top Tip: Again this is all about being aware of the news. An uptake in Sharia-compliant trading could open up new windows for businesses.
Regulations change fast, but at Contentworks, our goal is to keep you updated on a month-by-month basis. What’s more, if you’re looking for financial services marketing, speak to the Contentworks team today. We understand financial regulations; keep our finger on the pulse and work with the world’s leading finance and tech brands to provide winning content marketing solutions.
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