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Stablecoins have been featured as another controversial topic throughout 2020, and it looks like the G20 will keep the debate hot in 2021.
This week, G20 finance ministers issued a statement that included remarks on stablecoins. The statement states that technological innovation is critical in light of the COVID-19 crisis, but emphasizes that the G20 will remain alert to the risks of new financial technologies and singles out stablecoins.
According to the G20: “No so-called ‘global stable currency’ should be operational until all relevant legal, regulatory and supervisory requirements are adequately addressed through appropriate design and adherence to applicable standards.”
While not necessarily a new G20 position, it underscores concerns financial policymakers have about innovations such as Facebook’s Diem, formerly known as Libra, which news reports say could launch as early as January. As the Financial Action Task Force (FATF) also highlighted in this year’s report, financial watchdogs are concerned that the international financial system could face new risks of systemic financial crime if stablecoins are rapidly launched globally. The G20 statement also coincided with the release of a Bank for International Settlements report examining the risks of stablecoins and potential policy responses.
At Elliptic, we believe that financial crime risks from stablecoins are ultimately manageable and do not require a difficult response. Our blockchain analytics solutions enable crypto-asset businesses to monitor stablecoin transactions, ensuring regulatory compliance and financial crime risk management.
Contact us today to learn more about how we can help your businesses issue or handle stablecoins in a secure and compliant manner.
Crypto.com gets the green light from regulators in Malta
Don’t worry, it’s not all controversy! This week also saw some positive “firsts” for the crypto industry.
Hong Kong-based Crypto.com has become the first crypto-asset business to receive conditional approval for a license in Malta. In 2018, the European island nation launched a legal framework for cryptocurrencies that many claimed would make it a sought-after destination for crypto businesses from around the world. In fact, progress in implementing the regime has been slow. The Malta Financial Services Authority has taken its time in rolling out the licensing process – prompting some crypto companies to leave the island rather than wait for a license to be approved.
The MFSA’s conditional approval of Crypto.com is a sign that things may be changing. Importantly, the licenses they need to obtain may allow Crypto.com to be included in the Markets in Crypto Assets (MiCA) framework proposed by the European Commission, which would significantly expand the regulatory requirements for European crypto companies in the future.
Hopefully news of Crypto.com’s progress in Malta is a sign of good things to come there. If your crypto business is looking to gain regulatory approval in Malta, contact us to learn more about how Elliptic’s blockchain analytics solutions can help you gain the trust of regulators.
The deadline for crypto registration in France is looming
In France this week, regulators issued an important warning to crypto-asset businesses: Get your registration applications in or else!
The Autorite des Marches Financiers (AMF) and the Authority for Prudential Supervision and Resolution (ACPR) issued a statement this week reminding cryptoasset exchanges and custodians that they have until December 18 to register with the regulator if they already operate in France. For those who do not register within the deadline, they face a sentence of two years in prison and a fine.
The statement shows that the AMF and ACPR are seriously considering implementing the cryptoasset framework first proposed by France in spring 2019, which was formally introduced in December 2019. At the time, cryptoasset exchanges and custodians already operating were given one year to register. at the AMF. – and that deadline is fast approaching.
To date, the AMF has approved the registration of five cryptoasset exchanges. Any cryptoasset exchange or custodian operating in France must have a strong compliance program if it wants the AMF to approve its registration. This includes having a robust blockchain analytics solution that will allow you to detect high-risk wallets and transactions.
Contact us to learn more about how we can help your crypto asset business meet AMF requirements.
Regulation Stablecoins Financial Services
