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Veriscope Regulatory Recap - 25th December to 31st December
Welcome to the first 2023 edition of our Veriscope Regulatory Recap!
Shyft Network
January 02, 2023
Veriscope Regulatory Recap - 25th December to 31st December
Welcome to the first 2023 edition of our Veriscope Regulatory Recap! The last week of the gone year was busy with new guidelines and advisories in the US, India, the Philippines, and some other countries, and more heated discussions on their impact on the users’ crypto experience.
Shyft Network ended 2022 with an impressive 6-week social media campaign on Shyft Veriscope and two end-of-the-year edutainment contests, which proved to be a hit among our community. If you’ve missed the recap of all our 2022 achievements, you can find it here.
It’s time to dive into this week’s recap now.
US SEC Issues Guidelines to Keep Crypto Risks in Check
On December 8th, 2022, the U.S. Security and Exchange Commission's (SEC) staff published guidance titled "Sample Letter to Companies Regarding Recent Developments in Crypto Assets Market" - a significant development coming at the heels of the much-publicized bankruptcy of FTX.
The guidelines apply to all SEC-registered companies that issue securities. The letter asks for usual disclosures on the crypto activities from the SEC-licensed firms to understand and assess their impact on the respective business.
The guidelines' goal, as per the letter, is to judge whether the company is subject to high bankruptcy risk or deals with counterparties exposed to such risks.
It will also assess whether the company has taken adequate measures to safeguard customers' assets from those risks.
The Philippines SEC Hardens its Stance Against VASPs
The Philippines Securities and Exchange Commission has insisted that any entity willing to do business within the country must register with it first.
The agency has reiterated that the requirement is at par with the country's law and draws further legitimacy from the SEC's experience supervising more than 600,000 active corporations and evaluating their financial statements.
According to the government agency, this step would be a countermeasure against exchanges that unlawfully onboard Filipino customers.
A similar warning came from the country's central bank in August 2022 when it squeezed users’ choice options, asking citizens to use only locally registered VASPs.
India's Central Bank Concerned about the Growing Crypto Ecosystem
India's central bank, the Reserve Bank of India, has published a report that takes a skeptical view of the country's expanding crypto-ecosystem.
The report raises concerns about the crypto assets' volatility, high correlation with equities, insufficiency as a hedge against inflation, and leverage issues.
The report has also made some recommendations to make the system stable, including the possibility of parts of the crypto-ecosystem being banned.
Argentina Considering Crypto Ad Regulations
Introduced by Senator Eduardo Andrada and others, the Argentine Senate has started thinking about establishing crypto advertisement laws.
The focus of the regulations would be on disseminating proper information and educating potential users of crypto assets about their specificities.
The senate believes such efforts would invariably protect investors from fraudulent schemes.
Countries already started with such efforts include Spain, the United Kingdom, and some others.
Interesting Reads
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