Regulation

The Premier of Bermuda on the state of cryptocurrency regulation in the country | video

Published

6 months ago

29 May, 2024

The Spot E ETF and the Fit 21 Act Progress. We continue to watch as other governments are approaching cryptocurrencies by joining us. Now let’s talk about Bermuda, Premier David Burt, Premier, welcome to the show. Melissa. It’s nice to see you again, to see you again. You’re back to consensus in 2024. I have to ask you what you’re looking forward to, given what’s going on in the market. It’s a little different feeling than last year. Well, I guess so. I mean, my first consensus was in 2018. So I’m a little old hat on this one, I guess you’d say. Uh but from the perspective of what we’re doing in Bermuda, we’re just here to see the companies. We know we have great companies being offered in Bermuda. We know that people have been able to do things in Bermuda that are struggling to do another jurisdiction around the world and that we have provided regulatory clarity since 2018 with names like Coinbase and Circle and others that are on the inside and those that they are coming on board. We’re just happy with the progress and we’re here, our regulator is here, the head of our regulatory agency is here. Our other regulators are service providers and we are only here to ensure that those who wish to do business internationally know they have a home in Bermuda. So, Bermuda usually announces a partnership with a company called Guia. Tell us just a little bit about what it means, what it looks like and what it will mean for Bermuda in the future. Well, I think that was a really big announcement: we are a subsidiary of Bank Colombia. They are um and they launched a stablecoin, a Colombian rap uh RT Peso in Bermuda out um under our regulatory regime. And this is just an example of the type of regulation that we have in place where a company out of Colombia thought that the best place to launch a stablecoin for the Colombian peso would be in Bermuda, that it would be regulated and that they could use it and expand. . And so from that perspective, those are the kinds of important elements of the work that’s also been done through Alpha, which has been working with Bermuda for quite some time. And so, from that perspective, it just demonstrates the things that we’re able to do under our regulatory regime, which frankly can’t be done in many other places in the world. Tell me how it works, right? Guia is a Colombian subsidiary of Bank Colombia but regulated in Bermuda. How does it work? How does it work? How does it work, how does it work? How, why does it exist and why is this Colombian subsidiary regulated in Bermuda? What type of protection do the citizens of Bermuda and Colombia have and who will use the product? Well, I think that’s a great question and we need to remember Bermuda’s history. Bermuda is one of the most respected international financial centers on the planet and this is why global banks and others feel comfortable coming to Bermuda under our regulatory regime. Look, we have some of the largest insurers in the world. We have asset managers in Bermuda and now we have large digital asset companies that are realizing how they can do things in digital finance to serve global markets. So you have to be a Bermuda company to be regulated on the Bermuda Monetary. They set up a branch and are able to do something there because they looked at all the other jurisdictions in the world, all the other places. And they said this is the right place where we can actually issue stable coins. So they are not the only stablecoin. I mean, Mountain Mountain Protocol is there doing other things there, you know, so we’ve done things in Bermuda and pushed it, I guess I’d say the edge of innovation. So one thing that’s really interesting to me, many jurisdictions, uh I mean many, there are some countries that would panic at the idea of a stablecoin pegging to another nation’s currency. Uh, we’ve seen, you know, these things have been banned in some countries. Um, you know, what gives you comfort in that. So, you know, how are you so flexible that this is a product that you’re totally on board with. So our regulator is really good at focusing on the risks inherent in any technology rather than trying to pigeonhole something. So let’s see what the risks are. Our regulator identifies those risks and makes sure that those risks are managed to ensure that the people who hold these assets are protected, to ensure that, you know, the security risks are addressed to ensure the AM L address. Here’s what we have Done. Um, and we were successful. It’s important to know Nick as you might understand. We’ve been doing this since 2018. So it’s not like we’re just trying to figure out how to do it. We’ve been doing this for a long time. We’re kind of, you know, I guess you could call us the og’s when it comes to regulation and cryptocurrency. But from this point of view, we are proud of what we have achieved and companies are taking notice. Now, I asked Robert earlier, how closely are you looking at other regions that are courting, uh web three hubs. They’re really focusing on regulation. They’re really focusing on starting crypto companies maybe from other places where there isn’t as clear regulation on their jurisdictions. How closely are you looking at them and what is giving Bermuda a competitive advantage there. So from that standpoint, we’re not necessarily trying to compete with, um, you know, in 2018, we were at our first consensus that it was more of a strategy from a company, uh from a national perspective. But we realized that because of the high standards that we have, that we can’t be all things to all people in all companies, we want the big, established names to know what they need to do to make sure they can stand up to the competition. control of our regulator. You have to remember that when it comes to AM L, for example, let’s start with this, there were no Fat F rules, we had to come up with our own. And when Fat F released their rules, our rules were actually higher than theirs. So we had to relax our rules to basically align them, we know how to do that in the rulebook. The same goes for other jurisdictions, but when you look at companies like Coinbase, who will look around to see all the things, or like Wea who will look around our bank Columbia to see all the various jurisdictions, they will choose quality. We are not trying to target low levels, we want the best companies because long-term digital finance will be the future. What you see here at the consensus is the innovation of the future economy. And Bermuda has always been a home of innovation and we will continue to attract those companies that want to be truly credible to their shareholders, credible to the investors who raise that money. And having a regulatory stamp of approval from Bermuda is the best ticket to go ahead and do it. So, looking into the future, you know, one of the conversations I always have with people is that every time you think you have your mind set on cryptocurrencies, they come and build some other brand new novel, you know, weird thing. Um, how do you look into the future, you know, continuing to adapt and update, you know, any regulatory framework to address, you know, new leveraged products or uh tokenizing, you know, what not? Well, that’s a great question. Um, when we talk about leveraged products, we have regulated yield products for the last three years. And so we’ve had people issuing items that have produced products from Bermuda for a while. But when we talk about what will happen in the future, our next step will definitely be about digital identity. And we look at it from the perspective of a regulatory issue and a technology issue where we will be licensing digital identity service providers and people who have those particular credentials will be able to you, but we will be able to, you know, have more access easy access via AM L controls, etc. This will help our companies in the space manage compliance costs because compliance costs are a challenge for all industries that deal with regulation. Um, I would say regulated markets, but our perspective is looking there. So if you look at our history, we started with the basics, then we added clarity for derivatives, then we added clarity for staking and lending. Now we will get into digital identity. We can’t wait to see how we will handle PS and these types of objects. So for us it’s continuous evolution. But the important thing to remember is that this is nothing new. We have been doing this since 2018 on the topic of digital identity. I want to take this a little bit out of left field here. I know that there are some Latin American countries that are actually implementing digital identity protocols within their government services. And now that you’re looking at digital identity from a regulatory perspective, would the government consider implementing digital identities, uh, so that people can have better access to some of the government documents that are so difficult to get . I don’t know if you’ve ever tried to get a birth certificate or a marriage certificate. That’s nice, it’s a pretty laborious process from a government-based credentialing perspective. Uh, we’re doing that within our healthcare sector where we’re issuing, things and other issues may advance. But I think it’s important to note that both in the approach that we take towards CBD CS and stable coins where we don’t want to issue one, and in the approach that we leave it to the private sector and everything that is regulated is accepted by the governor of the Utah or whether or not we look at how we proceed in the digital identity space where whoever has the regulatory authority to issue it, will be accepted in Bermuda. We think it’s a better way of working. We think it’s better for the market to move forward and bring these solutions rather than the government to do it. And this is Bermuda’s unique proposition because, as you know, we are a very small country, 20 square miles, 65,000 people. But we’re the ideal testing ground for companies to say, let’s go ahead and do this so we can grow globally. People will not make much money trading the Bermuda market. But if they can hone in on the Bermuda market, they will be able to raise capital and scale these issues globally. And that’s where we intend to go well, Premier, as you know, we’re at the 2024 consensus, we’re having lively conversations here all day before we let you go. What are you looking forward to doing? It doesn’t have to be anything official. Also, there are a lot of events happening outside of what’s going on here. Uh, I think there’s going to be a karate fight tomorrow. What are you looking forward to doing? Um, yes. Uh, there’s a karate fight tomorrow. I mean, as far as I’m concerned, I’m here, as I said, with the delegation, we have a delegation of 20 people who came here from Bermuda with our regulator, our law firms, our service providers, the people from the our concierge service and we will meet with companies in the industry that are looking to advance. I mean, consent is something I’ve been doing for a while. I enjoy it, meeting friends like Robert and others. So I’m looking forward to it and then, um, unfortunately I’m not here on Friday because I have to leave bright and early to go back to parliament in Bermuda on Friday. So I can’t have, I guess, all, all the experience, but I’m happy to be here with the premier of my team. It was a pleasure to have a conversation with you again here at Consensus. Thanks for joining us. It’s nice to see you again. That was Bermuda Prime Minister David Bart.

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Regulation

Cryptocurrency Regulation in Slovenia 2024

Published

4 months ago

1 August, 2024

Chain Feed Staff

Cryptocurrency Regulation in Slovenia 2024

Slovenia, a small but highly developed European country with a population of 2.1 million, boasts a rich industrial history that has contributed significantly to its robust economy. As the most economically developed Slavic nation, Slovenia has grown steadily since adopting the euro in 2007. Its openness to innovation has been a key factor in its success in the industrial sector, making it a favorite destination for cryptocurrency enthusiasts. Many believe that Slovenia is poised to become a powerful fintech hub in Europe. But does its current cryptocurrency regulatory framework support such aspirations?

Let’s explore Slovenia’s cryptocurrency regulations and see if they can push the country to the forefront of the cryptocurrency scene. My expectations are positive. What are yours? Before we answer, let’s dig deeper.

1. Cryptocurrency Regulation in Slovenia: An Overview

Slovenia is known for its pro-innovation stance, providing a supportive environment for emerging technologies such as blockchain and cryptocurrencies. Under the Payment Services and Systems Act, cryptocurrencies are classified as virtual assets rather than financial or monetary instruments.

Regulation of the cryptocurrency sector in Slovenia is decentralized. Different authorities manage different aspects of the ecosystem. For example, the Bank of Slovenia and the Securities Market Agency supervise cryptocurrency transactions to ensure compliance with financial laws, including anti-money laundering (AML) and counter-terrorist financing regulations. The Slovenian Act on the Prevention of Money Laundering and Terrorist Financing (ZPPDFT-2) incorporates the EU’s Fifth Anti-Money Laundering Directive (5MLD) and aligns with the latest FATF recommendations. All virtual currency service providers must register with the Office of the Republic of Slovenia.

2. Cryptocurrency regulation in Slovenia: what’s new?

This year, there have been several noteworthy developments in the cryptocurrency sector in Slovenia:

July 25, 2024: Slovenia has issued a €30 million on-chain sovereign digital bond, the first of its kind in the EU, with a yield of 3.65%, maturing on 25 November 2024.

May 14, 2024: NiceHash has announced the first Slovenian Bitcoin-focused conference, NiceHashX, scheduled for November 8-9 in Maribor.

3. Explanation of the legal framework for cryptocurrency taxation in Slovenia

Slovenia’s cryptocurrency tax framework provides clear guidelines for both individuals and businesses. According to the Slovenian Tax Administration, tax treatment depends on the status of the trader and the nature of the transaction.

Individuals: Income earned from cryptocurrencies through employment or ongoing business activities is subject to personal income tax. However, capital gains from trading or market fluctuations are exempt from taxation.
Society: Capital gains from cryptocurrency activities are subject to a corporate income tax of 19%. Value added tax (VAT) generally applies at a rate of 22%, although cryptocurrency transactions considered as means of payment are exempt from VAT. Companies are not allowed to limit payment methods to cryptocurrencies only. Tokens issued during ICOs must comply with standard accounting rules and the Corporate Tax Act.

4. Cryptocurrency Mining in Slovenia: What You Should Know

Cryptocurrency mining is not restricted in Slovenia, but the income from mining is considered business income and is therefore taxable. This includes rewards from validating transactions and any additional income from mining operations. Both natural persons and legal entities must comply with Slovenian tax regulations.

5. Timeline of the evolution of cryptocurrency regulations in Slovenia

Here is a timeline highlighting the evolution of cryptocurrency regulations in Slovenia:

2013:The Slovenian Tax Administration has issued guidelines according to which income from cryptocurrency transactions should be taxed.
2017:The Slovenian Tax Administration has provided more detailed guidelines on cryptocurrency taxation, based on factors such as the trader’s status and the type of transaction.
2023The EU has adopted the Markets in Cryptocurrencies Regulation (MiCA), which establishes a uniform regulatory framework for cryptocurrencies, their issuers and service providers across the EU.

Final note

Slovenia’s approach to the cryptocurrency industry is commendable, reflecting its optimistic view of the future of cryptocurrency. The country’s balanced regulatory framework supports cryptocurrency innovation while protecting user rights and preventing illegal activities. Recent developments demonstrate Slovenia’s commitment to continuously improving its regulatory environment. Slovenia’s cryptocurrency regulatory framework sets a positive example for other nations navigating the evolving cryptocurrency landscape.

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Regulation

A Blank Slate for Cryptocurrencies: Kamala Harris’ Regulatory Opportunity

Published

4 months ago

1 August, 2024

Chain Feed Staff

A Blank Slate for Cryptocurrencies: Kamala Harris' Regulatory Opportunity

Photo by The Dhage of Shubham ON Disinfect

As the cryptocurrency landscape continues to evolve, the need for clear regulation has never been greater.

Vice President Kamala Harris is now leading the charge on digital asset regulation in the United States, presenting a unique opportunity for a clean slate. This fresh start can foster innovation and protect consumers. It can also pave the way for widespread adoption across industries, including real estate agencies, healthcare providers, and online gambling platforms like these online casinos in the uk. According to experts at SafestCasinoSites, these platforms have advantages such as bonus offers, a wide selection of games, and various payment methods. Ultimately, all this increased adoption could push the cryptocurrency market forward.

With that in mind, let’s take a look at the current state of cryptocurrency regulation in the United States, which is a complex and confusing landscape. Multiple agencies, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Financial Crimes Enforcement Network (FinCEN), have overlapping jurisdictions, creating a fragmented regulatory environment. This lack of clarity has hindered innovation, as companies are reluctant to invest in the United States, fearing regulatory repercussions. A cohesive and clear regulatory framework is urgently needed to unlock the full potential of cryptocurrencies in the United States.

While the US struggles to find its footing, other countries, such as Singapore and the UK, are actively embracing the cryptocurrency industry with clear and supportive regulatory frameworks. This has led to a brain drain, with companies opting to set up in more hospitable environments.

Vice President Kamala Harris has a unique opportunity to change this narrative and clean up the future. cryptocurrency regulation. By taking a comprehensive and inclusive approach, it can help create a framework that balances consumer protection with innovation and growth. The time has come for clear and effective regulation of cryptocurrencies in the United States.

Effective regulation of digital assets is essential to fostering a safe and innovative environment. Key principles guiding this regulation include clarity, innovation, global cooperation, consumer protection, and flexibility. Clear definitions and guidelines eliminate ambiguity, while encouraging experimentation and development to ensure progress. Collaboration with international partners establishes consistent standards, preventing regulatory arbitrage. Strong safeguards protect consumers from fraud and market abuse, and adaptability allows for evolution in response to emerging trends and technologies, striking a balance between innovation and protection.

The benefits of effective cryptocurrency regulation are many and far-reaching. By establishing clear guidelines, governments can attract investors and traditional users, spurring growth and adoption. This, in turn, can position countries like the United States as global leaders in financial technology and innovation. Strong protections will also increase consumer confidence in digital assets and related products, boosting economic activity.

A thriving cryptocurrency industry can significantly contribute to GDP and job creation, which has a positive impact on the overall economy. Furthermore, effective regulation has paved the way for the growth of many companies such as tech startups, online casinos, and pharmaceutical companies, proving that clear guidelines can unlock new opportunities without stifling innovation. This is a great example of how regulation can alleviate fears of regressive policies, even if Kamala Harris does not repeal the current progressive approach. By adopting effective regulation, governments can create fertile ground for the cryptocurrency industry to thrive, driving progress and prosperity.

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Regulation

Think You Own Your Crypto? New UK Law Would Ensure It – DL News

Published

4 months ago

1 August, 2024

Chain Feed Staff

Think You Own Your Crypto? New UK Law Would Ensure It – DL News

The UK Law Commission has developed a bill that will address a situation of legal uncertainty.
The commission’s goal is to ensure that cryptocurrencies are legally treated as personal property.

UK law is not entirely clear whether cryptocurrencies can be considered personal property.

This is according to the UK Law Commission, which argues that while most investors assume that when they buy cryptocurrencies, they are “acquiring property rights in the same way as buying, say, a watch or a laptop.”

“As the law currently stands, this is not necessarily the case,” the respected legal body said in a new report on Tuesday.

The report was accompanied by a solution: a new bill to consolidate the legal status of digital assets as personal property.

This could be huge for the estimated 4.7 million Britons valued hold cryptocurrencies.

“This will allow the courts to determine a range of issues,” the report says.

If passed, the law would help clarify how cryptocurrencies are treated in cases of bankruptcy, estate planning or theft.

Flexible law

The commission is an independent body responsible for reviewing UK law. It began investigating whether English and Welsh property laws apply to digital assets in 2020.

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At the time, then-Chancellor of the Exchequer Rishi Sunak expressed ambitions to transform the UK into a cryptocurrency hub as Britons invested more.

In 2023, the commission decided that, in most cases, the legislation of England and Wales is sufficiently flexible to regulate cryptocurrencies.

This means that any asset, from Bitcoin to non-fungible tokens and some types of digital contracts, can be considered personal property, without Parliament having to write extensive new laws.

There was one small area of uncertainty, however: it was unclear whether cryptocurrencies fell within the two categories of personal property recognised under UK law.

These two categories are made up of tangible assets (cars, laptops, bags) and intangible assets (contracts, stocks, and debt).

The bill that will now go to Parliament to be converted into law aims to remedy this situation.

Without that clarification, courts may try to lump cryptocurrencies together with intangible assets, said Adam Sanitt, head of litigation, knowledge, innovation and corporate support EMEA at law firm Norton Rose Fulbright. DL News in March.

This is problematic because intangible assets are creations of the legal system, while cryptocurrencies are not.

“How the law treats digital assets, what rights you have over them, how you own them, how you transfer them to other people—that treatment is different, because digital assets don’t exist by virtue of the legal system, but independently of it,” Sanitt said.

The money in your bank account, for example, is a legal creation. The government could pass a law to cancel it.

However, if the UK passed a law banning Bitcoin, Bitcoin would not cease to exist.

Sanitt said: “That’s why digital assets are so important: neither the government nor the legal system can take them away from you.”

Contact the author at joanna@dlnews.com.

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Regulation

The Solution the Cryptocurrency Industry Needs

Published

4 months ago

1 August, 2024

Chain Feed Staff

The Solution the Cryptocurrency Industry Needs

The cryptocurrency industry has performed remarkably well since its inception, but now faces a critical hurdle that requires careful consideration and regulatory expertise to overcome. Despite the industry’s rapid growth and rate of global adoption, the gap between the industry and global regulation is only widening as new innovations break through into the public domain.

Although efforts are being made on both sides, regulators’ lack of familiarity with cryptocurrencies and the industry’s lack of regulatory expertise are hindering innovation in the sector. To address this issue, traditional financial institutions (TradFi) such as MultiBank Group have started venturing into the cryptocurrency sector.

The regulatory gap

Over the past decade, the cryptocurrency industry has grown dramatically as tech entrepreneurs and forward-thinking thinkers have founded a plethora of crypto platforms and protocols to push the boundaries of the space. The problem faced by these newcomers, who are often unfamiliar with the hurdles posed by financial regulators, can quickly overwhelm and stall operations.

On the other hand, regulators more attuned to TradFi systems may be equally stifled by the complexities of decentralization and blockchain technology. The unfamiliarity experienced by both innovators and regulators creates a stark regulatory divide between both sides, leading to misunderstandings and potential conflicts.

To overcome this lack of communication, a bridge must be built to bridge the gap, ensuring future stability for the cryptocurrency industry and clearer legislation from regulators.

Efforts to bridge the gap between industry

The gap between the cryptocurrency industry and regulators is slowly narrowing as efforts to regulate cryptocurrencies and Web3 space activities are gaining momentum. Specific regulatory actions are taking place in many countries, aimed at providing greater oversight of cryptocurrency transactions, cryptocurrency exchanges, and initial coin offerings (ICOs).

Despite being a positive step in the right direction, these new regulations can differ significantly between jurisdictions around the world. This fragmentation results in a regulatory environment filled with obstacles, bottlenecks, and varying requirements and prohibitions. As cryptocurrency companies and TradFi institutions attempt to navigate the minefield, the regulatory maze becomes increasingly convoluted.

TradFi institutions like MultiBank Group are working to solve this problem, as one of the largest financial derivatives institutions in the world with over 12 licenses across all continents. Founded in 2005, the Group has an impeccable and trustworthy reputation globally, extensive expertise in financial regulation and has now ventured into the cryptocurrency space via MultiBank.io.

MultiBank.io: TradFi Excellence in the Crypto Space

Expanding into the cryptocurrency space via MultiBank.io has enabled MultiBank Group to provide regulatory clarity and trust to the digital asset industry. With a substantial daily trading volume of $12.1 billion, the timely decision to enter the cryptocurrency space has the potential to set regulatory precedents and standards for years to come.

By helping to develop sensible and well-considered regulations, MultiBank.io’s established reputation allows the company to communicate effectively and clearly with regulators. Unlike others in the industry without regulatory expertise, MultiBank.io facilitates the Group’s commitment to rigorous regulatory standards, the scope of oversight and establishes the necessary transparency.

The company’s approach ensures that regulatory licenses are pre-acquired, compliance is met globally without jurisdictional barriers, and transactions remain secure at all times. By helping to create robust regulations that are both clear and innovation-friendly, MultiBank Group looks forward to standardizing the entire cryptocurrency industry for other potential innovators.

One of the biggest challenges in establishing a clearly constructed bridge between regulators and the cryptocurrency industry is effective communication. By leveraging its institutional background TradFi and acting as an intermediary with regulators, MultiBank Group is able to translate the needs of the industry to those who shape it.

This quality of mediation is essential to ensure that regulation helps develop essential technological advances rather than hinders their establishment and growth. Through the lens of TradFi when looking at the complexity of the cryptocurrency industry, MultiBank Group is able to deconstruct unfamiliar crypto arguments for regulation and create a safer and more secure space.

Where TradFi and Crypto Meet

Regulations are crucial for traders, investors, and everyday users of crypto platforms and their safety when participating in crypto markets. While strict regulations are necessary for stable market integrity, innovation should still be considered, something MultiBank Group considers a priority.

Where TradFi and cryptocurrencies converge, the Group is there to provide a balanced approach to ensure promotion for both the cryptocurrency industry and regulators seeking to protect both retail and institutional investors. This balance is critical to maintaining a thriving space where cryptocurrency innovation can thrive without compromising the security of user funds or data.

As more TradFi institutions like MultiBank Group enter the cryptocurrency space with ever-expanding expertise in regulatory understanding, the future of the industry is increasingly encouraged. The financial freedoms of the cryptocurrency space coupled with regulatory oversight for financial security will be the guiding lights for the future success of the entire cryptocurrency industry.

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