The 11th issue of our legal round-up.
We continue with a series of weekly round-ups prepared by Mercuryo Legal Counsel Adam Berker to keep you updated on crypto regulations.
Digital Asset Policy Proposal
On October 14, Coinbase published its Digital Asset Policy Proposal, a document that contains suggestions on possible regulatory amendments in the US laws regarding digital currencies and digital currency service providers.
The main proposals include digital assets regulation under a separate framework, designating one regulator for digital asset markets and establishing a self-regulatory organization. It also suggests enhancing the transparency of customers and their transactions through appropriate disclosure requirements, protecting them against fraud and market manipulation. The proposal promotes efficiency, interoperability, and fair competition, as well as encourages strengthening market resiliency.
This list is undoubtedly incomplete, according to the statement, because current innovations and their underlying elements are still in development. Nevertheless, these changes may ensure a competitive and vibrant digital asset market that secures financial innovations.
Estonian Regulator Wants to Revoke All Crypto Exchange Licenses
Matis Mäeker, head of the Estonian Financial Intelligence Unit, has urged the state to “turn the regulation to zero and start licensing all over again”. Mäeker proposed to increase share capital requirements from 12,000 to 350,000 euros and to set up more secure IT systems.
This proposal shows a continuing crackdown of the regulator on the industry as the FIU has already revoked more than 1,000 crypto licenses. For this reason, most crypto startups have started searching for more favorable jurisdictions.
Ukrainian Parliament to Revise Virtual Asset Bill
Volodymyr Zelensky, president of Ukraine, has delayed signing a bill to establish the nation’s regulatory framework around digital assets.
The delay may be caused by provisions that propose establishing a specific regulatory body that would control the crypto industry together with the Central Bank and National Commission on Securities and Stock Market. Also, some concerns may be related to a possible inclusion into the EU’s blacklist of non-cooperative jurisdictions for tax purposes.
Russia Aims to Limit Crypto Purchases by Non-Accredited Investors
Anatoly Aksakov, chairman of the Russian State Duma Committee on Financial Markets, proposed limiting crypto purchases by non-accredited investors. According to Aksakov, the main reason for his proposal lies in an obligation of the state to protect retail investors from the potential losses of investing in crypto.
Still, it is possible that this amendment in law will open a new market for financial intermediaries and force ordinary customers to use their services for buying crypto.
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