Global Crypto Exchange Rules
Crypto Exchange Rules
As cryptocurrency usage grows around the world, the need for regulations has also increased. Yet keeping up with the many changes in cryptocurrency regulations is not always straightforward. This guide can help you navigate through the confusing and frequently changing regulations that are popping up around the world. It explains how different nations have interpreted the laws regarding cryptocurrency and what their specific rules are. You’ll also learn about upcoming legislation and what countries will do next in regards to coin regulation.
One of the most common questions users have when registering with a global crypto exchange is about registration. First of all, it’s important to register as a broker-dealer or an ATS. While most cryptocurrency exchanges do not sell securities directly, they do most likely handle transactions in them. Broker-dealer and ATS registration can expose an exchange to liability exposure if they perform any activities that involve securities. Fortunately, these regulations cover centralized and decentralized crypto exchanges alike.
Moreover, global regulations have the added benefit of being transparent. The CFTC and the SEC work in coordination with regulators to enforce the law. According to the International Organization of Securities Commissions, a global crypto regulatory body could be established within a year. Moreover, the MAS has cited Terra’s collapse when discussing stablecoin regulation, and this will likely come up when regulators try to convince the government to enact a global crypto regulatory body.
Global Crypto Exchange Rules
Australia, meanwhile, is among the countries with the highest regulatory climate for cryptocurrencies, and has introduced a new licensing framework for crypto exchanges. The proposed regulatory framework would allow safe crypto asset transactions and position Australia at the forefront of technology companies’ control over the world. However, MAS has been cautious in its approach to cryptocurrency regulation, and has recently issued licenses to high-profile crypto service providers. This has given the country the best chance to stay ahead of the competition in implementing cryptocurrency regulations.
FINCEN and the EU have also recently revised their regulations for cryptocurrency exchanges. These new rules, which will take effect in May 2020, place cryptocurrencies in the same category as traditional money-transfer businesses. In addition, they require crypto exchanges to register with the Financial Conduct Authority and comply with AML/CFT reporting requirements. The latest version of the Travel Rule also includes requirements for money services businesses and financial institutions to maintain records of cross-border cryptocurrency transactions.
The Canadian Securities Administrators recently released guidance for cryptocurrency issuers in 2021. This guidance lays out the regulatory expectations for crypto issuers and provides guidance to cryptocurrency issuers. It’s worth noting that a new guidance will likely be released before then. In the meantime, the Financial Action Task Force (FATF) and the Canadian Securities Administrators have published guidelines on virtual assets and virtual asset service providers. The actions of these bodies range from general principles on crypto assets to rules on setting up information exchange networks.