Page 24 - May 2018 Disruption Report Flip Book

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Switzerland – FINMA states that Bitcoin operators and virtual currency platforms are subject to the AML Act and must therefore be a member of one of the self-regulating organizations or be regulated by FINMA. Regulators also introduced a regulatory sandbox to promote FinTechs including Bitcoins.
U.S. – The U.S. Commodity Futures Trading Commission (CFTC) ruling in 2015 defines crypto assets as commodities. In 2017, the CFTC also approved the first federally regulated digital currency options exchange / clearing house for cryptocurrencies. CFTC published
a primer in Oct. 2017 on virtual currencies, explaining that the structure of the token will determine classification as security/commodity. CFTC also published a backgrounder in Jan. 2018 outlining the oversight and approach to the virtual currency futures market.
Elsewhere globally, Bitcoins are still in a grey area, with some countries like China, South Korea and Russia banning them to varying degrees; whilst others are still working on possible regulations.
Australia – The govt. has proposed a set of reforms to bring digital currency exchanges under the remit of the Australian Transaction and Reporting Analysis Centre (AUSTRAC) as a way to regulate exchanges.
China – Regulators have termed ICOs as unauthorized and halted all fundraisings. In addition, regulators are also contemplating a ban on Bitcoin and other virtual currency trading on domestic exchanges.
European Union – Issued warnings on the risk of investing in virtual currencies and indicated that AML and anti-terrorist financing rules will apply. Recently, EU finance head Valdis Dombrovskis warned that EU will regulate cryptocurrencies if the risks associated are not tackled.
India – Reserve Bank of India currently working on policy for crypto-currencies including Bitcoins and is exploring a possibility of issuing its own fiat cryptocurrency (link). In a press release in Dec. 2017, RBI has cautioned users, holders and traders of virtual currencies including Bitcoins.
South Korea – FSC banned all forms of ICOs and the practice of loaning funds to
trade cryptocurrencies (i.e. margin trading). In a recent move to curb speculation in cryptocurrencies trading, the FSC announced that it will ban virtual currencies traders from using anonymous bank accounts.
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