Regtech Digest (16 November 2020)
By: Merkle Science Marketing
Tags: Hacking, Cryptocrime, Regulation, Cryptocurrency, Compliance

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Our Top 5 Articles From the Week

The Financial Action Task Force (FATF), the G7-founded intergovernmental organization that fights money laundering, has fired a warning shot at peer-to-peer (P2P) crypto exchange operators — stating that it is “now looking closely at P2P transactions that involve a Virtual Asset Service Provider (VASP).” Thus far, P2P exchanges have stayed largely under the regulatory radar in many jurisdictions due to the fact that they allow traders and vendors to deal directly with buyers — rather than trade on a more conventional exchange. However, the FATF has hinted that all that could be set to change, with new regulations already in the pipelines. [Crypto News]

Canada’s tax authority has asked a federal judge in the country to order cryptocurrency exchange, Coinsquare to “hand over information and certain documents about all its clients” starting from the year 2013. Specifically, the National Post reported on Friday that “the Canada Revenue Agency (CRA) wants to know the identity of every client of a major Canadian cryptocurrency trading platform as part of its effort to fight tax fraud and the underground economy.” A dedicated crypto unit was originally formed by the CRA in the year 2018 for the specific purpose of conducting crypto-related audits. [National Post Canada]

South Korea is to ban crypto exchanges from handling digital assets it considers “dark coins.” Financial Services Commission (FSC) is specifically targeting privacy coins such as dash, monero, and zcash. South Korean platforms such as Okex have since been forced to delist several privacy coins The ban is in effect from March 2021. In an update to crypto regulations under the Special Payments Act, the FSC accuses privacy coins of facilitating money laundering activities. [Bitcoin News]

Cryptocurrency regulation in Hong Kong is undergoing changes. The Securities and Futures Commission (SFC) is reportedly introducing a new licensing system to regulate all crypto exchanges operating in Hong Kong. The CEO of the SFC, Ashley Alder, talked about implementing a new cryptocurrency regulatory framework at Hong Kong Fintech Week on Tuesday. All cryptocurrency trading platforms operating in Hong Kong or targeting local investors will be required to apply for a license with the SFC, Radio Television Hong Kong (RTHK) reported. “Later today, the government will propose a new licensing regime under the Anti-Money Laundering Ordinance for platforms which trade any type of crypto asset even if not classified as securities,” Alder was quoted as saying. [Bitcoin News]

Venezuela says it will incorporate bitcoin and litecoin wallets to its Patria’s Cryptocurrency Remittance Platform. In an update, authorities in the country say this move will enable Venezuelan citizens to formally receive remittances in cryptocurrency form. Many citizens of hyperinflation hit Venezuela already use bitcoin as a store of value as well as for cross border payments. The formal incorporation of bitcoin into the national remittances system will likely boost the use of cryptos by Venezuelans. The country already ranks third on the list of countries with the highest cryptocurrency usage in the world. [Bitcoin News]