Every third Thursday of the month, we publish the 10 most important legal news and top 10 tokenization news, in our opinion. Here they are:
TOP LEGAL NEWS OF NOVEMEBER 2018
Hong Kong’s securities regulator issued a statement setting out guidelines for funds dealing with cryptocurrency Thursday, Nov. 1, saying it could move to formally regulate exchanges.
In what it called “guidance on regulatory standards,” the autonomous Chinese territory’s Securities and Futures Commission (SFC) set in motion a series of steps that chief Ashley Alder hinted would culminate in a formal regulatory environment.
Taiwan’s legislature has passed amendments to existing anti-money laundering (AML) and counter terrorism financing (CFT) laws to place new requirements on crypto exchanges. The development was reported by FocusTaiwan, the English language news website of Taiwan’s national news agency, on Nov. 2. Under the new changes to Taiwan’s Money Laundering Control Act and Terrorism Financing Prevention Act, the Legislative Yuan — the Taiwan-based unicameral legislature of the Republic of China — has given Taiwan’s Financial Supervisory Commission (FSC) the authority to bar anonymous crypto transactions.
The Department of Federal Revenue of Brazil (RFB), which administers tax collection in the country, is seeking to receive monthly reports on crypto assets operations, according to a document released by the RFB Tuesday, Oct. 30. In the paper, the RFB has announced that Brazil-based crypto exchanges are now obliged to send them detailed reports on all crypto-related operations on monthly basis. For instance, the companies have to reveal the amounts of transactions and the identity of the customers.
China’s central bank, the People’s Bank of China (PBoC), has widened its scrutiny to include token airdrops, which it characterized as “disguised” Initial Coin Offerings (ICOs) in its 2018 financial stability report, published Nov. 2. Using by now familiar rhetoric, the report reiterates the bank’s stringently anti-ICO and crypto trading stance, defining the former as “illegal” fundraising, and pointing to the widespread risks of financial fraud and pyramid schemes.
5. MAURITIUS FINANCIAL COMMISSION RELEASES DRAFT REGULATION FOR CRYPTO CUSTODIAN SERVICES (MAURITIUS)
The Financial Services Commission (FSC) of the Republic of Mauritius has released a draft regulatory framework for crypto custodian services, according to an official document posted on Nov. 5. According to the announcement, the island country aims to establish regulation for custodian services for digital assets in order to enable users of crypto custodian services to have a due level of safety.
Singapore Exchange Limited (SGX), along with the Monetary Authority of Singapore (MAS), have successfully tested the use of blockchain technology for tokenized assets settlement, according to a SGX release issued Sunday, Nov. 11. The report reveals the data on the trial that began in August, shortly after MAS and SGX had partnered with U.S. stock market Nasdaq, “big four” consulting company Deloitte, and Singaporean tech company Anquan. As per the release, the partners have developed a blockchain-driven solution for Delivery versus Payment (DvP) capabilities — a settlement procedure where the buyer’s payment for securities is due at the time of delivery.
7. STATE OF REGULATION IN SOUTH KOREA: BANKS REQUIRED TO PROVIDE FAIR SERVICES TO CRYPTO EXCHANGES (SOUTH KOREA)
On October 30, South Korea’s main financial authority officially cleared banks to work with crypto exchanges for the first time in history, establishing a major milestone for the local cryptocurrency sector.
At the state affairs audit, held by both government parties of South Korea to evaluate and track the progress of every government branch and agency under the administration of President Moon Jae-in, Financial Services Commission (FSC) commissioner, Choi Jong-ku, stated that the FSC has cleared banks to work with cryptocurrency exchanges by providing virtual bank accounts.
This statement highlights several recent Commission enforcement actions involving the intersection of long-standing applications of our federal securities laws and new technologies.
This paper provides general guidance on the application of the securities laws administered by MAS in relation to offers or issues of digital tokens in Singapore.
10. CANADIAN HOUSE FINANCE COMMITTEE RECOMMENDS CRYPTO REGULATION TO PREVENT MONEY LAUNDERING (CANADA)
The Canadian House Finance Committee has recommended that the government start regulating cryptocurrencies to prevent money laundering, Canadian digital newspaper iPolitics reports Nov. 14.
According to iPolitics, the Canadian House Finance Committee suggested that cryptocurrencies should be regulated during its review of the Proceeds of Crime Money Laundering and Terrorist Financing Act (PCMLTFA), which occurs once every five year.
TOP TOKENIZATION NEWS OF NOVEMEBER 2018
1. SPACEFUND LAUNCHES THE WORLD’S FIRST SPACE SECURITY TOKEN TO FUND THE OPENING OF THE HIGH FRONTIER (USA)
The world’s first space security token was announced today at the Crypto Summit, by SpaceFund Inc., a Texas based venture capital firm focused on using new blockchain technology to fund ‘frontier enabling’ space technology startups.
CarbonUSD, the stable coin pegged to the US dollar that was launched two months ago on the Ethereum blockchain, has now been transferred and made official as the first stable coin on the EOS blockchain.
3. SWISS CRYPTO FIRM GETS ISLAMIC FINANCE CERTIFICATION FOR SHARIA-COMPLIANT STABLECOIN (SWITZERLAND)
Switzerland-based fintech firm X8 AG has received a certification from the Shariyah Review Bureau (SRB) for its Ethereum-based stablecoin, Reuters U.K. reports Nov. 12. SRB is a leading Sharia consultancy and audit firm licensed by the central bank of Bahrain. It reportedly has a presence in twelve countries, and holds the market share of over 13 percent of Saudi Investment Companies licensed by the country’s Capital Markets Authority (CMA), and over 21 percent of the Cooperative Insurance Firms Listed on the Saudi stock-exchange market.
Iranian authorities have completed the development of a national cryptocurrency, provided by the local rial. Now a new asset is being approved by the central bank of the country. About this in an interview with the local news agency Ibena, said the general director of the corporation Informatics Services (ISC) Seyed Abotaleb Najafi.
Blockchain-based art investment platform Maecenas has teamed up with crypto exchange Ethershift.co and computer security expert John McAfee to conduct the first “perpetual” digitalization and tokenization of a Picasso work of fine art.
Platform to host an offering of tokenized equity that addresses the general public. With our set of protocols already live on Ethereum Mainnet, the Equity Token Offering is set to start on November 27th.
Fintech startup CapBridge said that the Monetary Authority of Singapore approved its blockchain-based exchange platform focused on private companies.
London Block Exchange, the first multi-cryptocurrency exchange dedicated to the UK market, just announced the first ever digital pound sterling. The stablecoin called GBP-Peg was created through a partnership with leading global blockchain technology company AlphaPoint, which is focused on enabling institutions to issue digital assets and to operate digital asset exchanges.
Bitstraq becomes one of the first crypto exchanges licensed under Malta’s new VFA law. The company hopes to operate a security token trading platform soon.
LXDX, the high-speed cryptocurrency exchange founded by a former SpaceX engineer, has announced that it will issue stock through a security token offering (STO).