Veriscope Regulatory Recap: July 8th to July 27th

Welcome to the latest issue of the Veriscope Regulatory Recap. In this edition, we explore the significant regulatory updates in South Korea and Italy, focusing on how these changes impact the cryptocurrency landscape.

South Korea Implements Comprehensive Crypto Regulations

South Korea has recently enacted its first comprehensive set of cryptocurrency regulations, known as the Virtual Asset User Protection Act.

Triggered by substantial market disruptions in the past, this legislation is now fully in effect and imposes stringent requirements on digital asset exchanges. 

What are the Key Mandates?

Key mandates include securing the majority of customer crypto holdings in cold storage and ensuring that all customer cash deposits are managed through licensed banks.

Additionally, exchanges are required to set up advanced systems to monitor and report any suspicious trading activities, significantly boosting the security and transparency of digital transactions.

Possible Impact on the Crypto Industry

It could have both pros and cons for the industry. On one hand, these regulations could enhance market safety and transparency, which could attract more investment. However, the resulting increased compliance costs and stringent controls might inhibit operational flexibility and innovation within the sector.

Italy Prepares for MiCA Implementation

Italy is gearing up to implement the European Union’s Markets in Crypto-Assets (MiCA) regulation. This framework aims to stabilize the financial system while fostering innovation and consumer protection in the digital asset space. 

The Bank of Italy is set to release guidelines that will detail how these new rules should be applied, marking a significant step towards harmonizing crypto regulations across Europe.

Implications for the Crypto Industry

The upcoming guidelines from the Bank of Italy are set to clarify how the new rules should be applied, potentially boosting investor confidence by creating a consistent regulatory environment across Europe. While this promotes a safer investment climate, the detailed requirements could pose challenges for smaller entities, possibly restricting market diversity.

Overall, the regulatory updates in South Korea and Italy are crucial for crypto market stakeholders, as they establish clearer rules and enhance the industry’s overall security and trustworthiness.

Carret, OmniEX, and Mudrex Choose Shyft Veriscope and User Signing for FATF Travel Rule Compliance

Carret, OmniEX, and Mudrex, prominent names in India’s crypto scene, have adopted Shyft Network's Veriscope and User Signing to comply with the FATF Travel Rule. This integration facilitates direct and secure exchanges of Travel Rule data and cryptographic proof from users’ wallets, which is required for Travel Rule compliance. 

By choosing Shyft Veriscope & User Signing, the firms are reinforcing their commitment to adhering to global regulatory standards while prioritizing user experience and security.

Interesting Reads

Zero-Knowledge: The Future of More Secure and Scalable Blockchain

The Rising Focus on L2 Solutions in the Crypto Ecosystem

FATF Travel Rule Compliance Guide for Gibraltar

A Guide to FATF Travel Rule Compliance in Liechtenstein

‍About Veriscope

Veriscope, the compliance infrastructure on Shyft Network, empowers Virtual Asset Service Providers (VASPs) with the only frictionless solution for complying with the FATF Travel Rule. Enhanced by User Signing, it enables VASPs to directly request cryptographic proof from users’ non-custodial wallets, streamlining the compliance process.

For more information, visit our website and contact our team for a discussion. To keep up-to-date on all things crypto regulations, sign up for our newsletter and follow us on X (Formerly Twitter), LinkedIn, Telegram, and Medium.