Global Crypto Regulations Under Scrutiny: Developments in U.S., Europe, Argentina, and Singapore
Summary:
Hester Peirce, U.S. Securities and Exchange Commission (SEC) Commissioner, criticizes the SEC for its stance on crypto custody. The SEC responds by explaining its consistent application of rules and inviting public commentary on proposed rule changes for Ether-based exchange-traded funds. Meanwhile, Europe contemplates a potential ban on non-decentralized protocols, Argentina implements a requirement for crypto companies to register under new legislation, and Singapore broadens its regulation of digital payment tokens under amendments to the Payment Services Act.
Hester Peirce, a Commissioner for the U.S. Securities and Exchange Commission (SEC), recently criticized her own agency for its view on cryptocurrency custody. Addressing the annual SEC Speaks conference, she named the Staff Accounting Bulletin 121 (SAB 121) as an unwarranted intrusion into the SEC's work, as it stops banks from holding cryptocurrencies for their clients. At the same event, Gurbir Grewal, director of the Division of Enforcement at the SEC, disputed allegations that the regulator was forming cryptocurrency rules on the fly. He stated that the SEC's approach to identifying securities through the Howey test has been consistently applied.
The SEC is now inviting the public to voice their thoughts on proposed amendments that would facilitate the listing and trading of three Ether-based exchange-traded funds (ETFs). After the proposed changes are published in the Federal Register, the public will have 21 days to provide feedback. Fidelity, Bitwise, and Grayscale, the asset managers behind the proposed Ether ETFs, anticipate final approval in May.
In the European Union, non-decentralized protocols could potentially face a ban based on the Markets in Crypto-Assets Regulation (MiCA), a provisioning framework for digital assets. The European Commission will assess the situation in a report due by December 30, examining how to regulate decentralized systems, among other things.
In Argentina, the National Securities Commission mandates cryptocurrency companies to register under new anti-money laundering and counter-terrorism financing legislation. Any unregistered virtual asset service providers will not be permitted to operate in the country.
Meanwhile, in Singapore, officials have announced amendments to the Payment Services Act, bulking up the law's overseer capabilities with regards to digital payment token (DPT) services. Aspects such as custodial services for DPTs, facilitating token transfers, and enabling cross-border money transfers will now come under the act, even if the service provider doesn't handle any funds or the transaction isn't accepted or received in Singapore. The Monetary Authority of Singapore also stated that it now possessed the power to impose additional requirements on DPT service providers.
Published At
4/8/2024 10:05:00 PM
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