Regulators worldwide are implementing stricter rules and regulations concerning digital assets. Recent developments in South Africa, Thailand, Singapore, Belarus, Australia, Denmark, and the United States highlight the increased scrutiny on the cryptocurrency industry.
South Africa
In South Africa, the Financial Sector Conduct Authority has mandated that all crypto exchanges obtain licenses by the end of 2023. Failure to comply may result in enforcement action, including fines or closure for noncompliant firms.
Thailand
Thailand’s Securities and Exchange Commission has introduced new guidelines requiring digital asset service providers to warn customers about the risks associated with cryptocurrency trading. Additionally, these providers are prohibited from using customer funds for lending or investment purposes.
Singapore
The Monetary Authority of Singapore has announced that crypto service providers must hold customer assets in a statutory trust by the end of 2023. This measure aims to mitigate the risk of loss or misuse of customers’ assets and facilitate asset recovery in case of insolvency.
Belarus
Belarus is considering legal amendments that would prohibit peer-to-peer transactions involving cryptocurrencies like Bitcoin. The Ministry of Foreign Affairs argues that crypto P2P services are exploited by fraudsters to cash out and convert stolen funds, supporting criminal schemes.
Australia
Binance Australia faced scrutiny as the Australian Securities and Investments Commission conducted searches at its offices. This investigation is part of an ongoing probe into Binance’s now-defunct Australian derivatives business. Binance has stated its cooperation with local authorities and its commitment to meeting regulatory standards to serve users in Australia compliantly.
Denmark
In Denmark, the Danish Financial Supervisory Authority ordered Saxo Bank to dispose of its own cryptocurrency holdings. The authority emphasized that local banks cannot hold cryptocurrencies as a hedge against trading risks. Saxo Bank offers various cryptocurrency products to its customers, including crypto-linked exchange-traded funds and notes.
United States
Twitter Payments, a subsidiary of Elon Musk’s Twitter social network, has received money transmitter licenses in Michigan, New Hampshire, and Missouri. These licenses enable the company to provide transfer services or payment instruments, ensuring consumer protections for money transmission. However, the specific offerings and rollout timeline for Twitter Payments remain unclear.
These regulatory developments reflect a global trend of increased oversight and compliance requirements for the cryptocurrency industry. Governments and financial authorities are striving to strike a balance between supporting innovation and protecting consumers and markets from potential risks associated with digital assets.