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Veriscope Weekly Regulatory Recap: 5th December to 11th December
Shyft Network
December 12, 2022
Welcome to another exciting edition of Veriscope Weekly Regulatory Recap. This week, we are covering Veriscope IVMS Validator launch, Hong Kong and Kazakhstan’s new crypto-focused regulations, the EU’s decision to scrutinize crypto transactions worth over 1000 Euros, and India’s Financial Intelligence Unit red-flagged almost 3,300 accounts for suspected illegal activities through virtual assets. So, let’s dive straight into it.
Shyft Veriscope has launched its open-source IVMS Validator
With cryptocurrencies entering the mainstream, more and more countries have begun enforcing the FATF Travel Rule within their jurisdictions. As a result, Virtual Asset Service Providers are being left with no choice but to comply with the Travel Rule.
However, amid an increasing number of crypto transactions, VASPs are finding themselves in a lurch, as they do not have any way to confirm if the files they are sharing are correct or not, as per the IVMS101 standards.
Realizing the growing demand for such a solution, Shyft Network has recently launched Shyft IVMS Validator, enabling VASPs to verify their files' correctness.
The IVMS101 is a globally-agreed standard meant to help with language encodings, numeric identification, pronunciations of phonetic names, and standardized codes for countries. It basically helps align the data standards between globally distributed VASPs to bring them on the same page for ease of Travel Rule compliance.
Read more here: https://www.shyft.network/newsroom/veriscope-launches-open-source-validator-to-help-vasps-verify-their-ivms-files
All Crypto Transactions Over 1000-Euro To be Monitored in the EU
Under a new EU rule, all crypto transactions over 1000 Euros will be subjected to stringent due diligence inquiries by the Virtual Asset Service Providers (VASPs).
As such, the VASPs will have to structurally incorporate risk mitigation strategies, especially when dealing with self-hosted wallets and cross-border crypto payments.
The EU has also capped maximum cash payments at 10,000 Euros. However, member countries can go below 10,000 if they wish so.
For instance, Spain has the lowest limit in the bloc, allowing citizens to pay up to only 1,000 Euros in cash. The EU believes this limit imposition would help curb cash usage for criminal purposes.
India Puts 3,300 Crypto Accounts on “Suspected Illegal Activities” List
The Financial Intelligence Unit of India (FIU) has tracked nearly 3,300 crypto accounts between April and November 2022 in the suspicion of illegal activities, such as drug trafficking, money laundering, child pornography, and wildlife smuggling.
Reportedly, the FIU has shared information about these accounts with different law enforcement agencies within the country, crypto exchanges, and FIU’s international counterparts such as Egmont Group, a global consolidation of Financial Intelligence Units of 166 countries.
The Indian FIU has also recommended the closing down of these accounts.
Hong Kong Adds Crypto to its AML/CFT Rules
As per Hong Kong legislative council’s new amendment, a new licensing regime for VASPs will come into effect from June 1st, 2023.
Virtual Asset Service Providers looking to commence their operations in Hong Kong will have to pass rigorous AML checks and investor protection mechanisms to obtain a license of operation.
According to reports, Hong Kong’s efforts to safeguard crypto investors would not remain limited to one legislation, as the country has decided to effectuate a policy on developing Virtual Assets shortly.
Kazakhstan Approves New Crypto Regulations
Majilis, the lower house of the Kazakhstan Parliament, has approved a new bill to regulate crypto assets and four other bills on crypto mining in the country.
While the first bill is called “On Digital Assets of the Republic of Kazakhstan,” the other proposed measures include the introduction of a licensing regime for digital miners, new taxes on corporate income, and value-added tax for individuals conducting crypto transactions.
However, cryptocurrency circulation and crypto exchange activities will remain prohibited within the country except for an experimental legal regime with a license from the Asthana International Financial Center.
Important Announcement: 10,000 SHFT on Offer!
After Shyft DAO approved the Veriscope VASP grant proposal, an aggregate of 10,000 SHFT has been granted for Virtual Asset Service Providers (VASPs) that integrate to the Veriscope mainnet by September 30, 2022. The fund will enable VASPs to pay the Shyft Network gas fees while using Veriscope. This offer will remain valid until December 31, 2022, or till the VASP exhausts its SHFT grant.
After Shyft DAO approved the Veriscope VASP grant proposal, an aggregate of 10,000 SHFT has been granted for Virtual Asset Service Providers (VASPs) that integrate to the Veriscope mainnet by September 30, 2022. The fund will enable VASPs to pay the Shyft Network gas fees while using Veriscope. This offer will remain valid until December 31, 2022, or till the VASP exhausts its SHFT grant.
Interesting Reads
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VASPs need a Travel Rule Solution to begin complying with the FATF Travel Rule. So, have you zeroed in on it yet? Check out Veriscope, the only frictionless crypto Travel Rule compliance solution.
Visit our website to read more: https://www.shyft.network/veriscope, and contact our team for a discussion: https://www.shyft.network/contact.