RegTech Intelligence

A star navigates choppy digital asset waters

Over the past three months, regulatory developments in the digital asset space have continued to create choppy waters for industry players and market participants alike.

Lawsuits have been filed, new initiatives have been launched, and guidelines are being introduced as governments attempt to keep up with the ever-evolving market. Who would have thought a pop star would stand out for her ability to calmly navigate these waters?

Join our next global virtual seminar on 29 June to hear how the leaders are deploying proven RegTech to manage their regulatory obligations.

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US Star Power

The United States (US), Securities and Exchange Commission (SEC) spearheaded with their retail investors protection mandate through class-action lawsuits against crypto-exchanges and celebrities like Kim Kardashian, among others.

Interestingly, Taylor Swift, channeling her inner ‘you belong to me’, stood out as her $100 million sponsorship deal with FTX to sell Non-Fungible Tokens (NFTs) fell through due to concerns about the registration of the promoted securities thus protecting herself from such lawsuits.

Moreover, stablecoins, a subset of cryptocurrencies, are now under scrutiny. The US Congress has drafted the first comprehensive bill specifically addressing payment stablecoins.

The US Treasury recently released a comprehensive assessment of the illicit finance risks associated with DeFi platforms, shedding light on vulnerabilities, and paving the way for necessary regulations.  

Mediterranean order

Meanwhile Europe has taken a significant leap forward and is poised to set industry technical standards.

The Markets in Crypto-assets Regulation (MiCA) has been approved  by the European Parliament, a pivotal moment which establishes the first set of rules for tracing crypto-asset transfers within the region

The European Union continues its investigation into the potential implementation of a digital euro, recently releasing a comprehensive third-phase report that brings it closer to reality.

Windy UK waters

A new UK consultation is contemplating the taxation of decentralized finance (DeFi) and considering excluding cryptocurrency used in DeFi transactions from taxable events. The focus lies on taxing non-DeFi transactions involving the disposal of cryptocurrency. 

Calming international seas

Internationally, The Bank for International Settlements (BIS) concluded Project Icebreaker and Project Meridian, the International Monetary Fund (IMF) released an CBDC Handbook addressing CBDC capacity development. 

As we move forward, we expect to witness further regulatory actions in the cryptocurrency realm in the second half of 2023. Governments and regulatory bodies worldwide are diligently working to strike a delicate balance between fostering innovation and safeguarding investor interests in this rapidly evolving industry. 

Join us 29 June 2023

At our next RegTech seminar on the 29th of June, leading SMEs will articulate the key regulatory and market reporting compliance challenges precipitated by divergent global policies.

We will be discussing how proven RegTech can be deployed now to help empower public and private sector alignment of interests.

Register for 29 June 2023 virtual pass 

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