Regulators around the world are navigating uncharted waters, as they attempt to exert some level of control over digital assets. While this has resulted in a growing group of service providers being banned, others are beginning to adapt.
Joint Efforts
Within the United States, there are a growing number of politicians which believe digital assets would be better regulated through the formation of a new, amalgamated working group. This was recently highlighted in a letter addressed to Chairmen Gensley of the SEC, and Acting Chairman Behnam of the CFTC.
“An open and collaborative dialogue with all relevant agencies, stakeholders, and market participants is critical. A working group on digital assets would enable both the SEC and CFTC to explore how to effectively use their current jurisdiction cooperatively…Lawmakers and regulators must work together to properly balance protecting innovation with any new regulations to ensure the digital asset marketplace flourishes in the United States.”
On a promising note, the aforementioned letter not only proposes that a joint working group be formed, but that regulators work closer with market participants. In doing so, more appropriate regulations could be formed in a clear, logical, and timely manner.
As it stands, it would appear as though there is a certain level of disconnect between the SEC and CFTC. Each body feels as though it should be in charge of regulating digital assets such as cryptocurrencies. We recently touched on this, as multiple individuals associated with the CFTC voiced their opinion that it is the only body with the actual experience and authority to regulate crypto.
Binance Compliance
While many exchanges are feeling the pressure from regulators over the past few months, Binance may be feeling it more than most. Not only has the world’s largest exchange been banned in certain jurisdictions, and streamlined its offerings in others, it has also lost high-ranking personnel.
The exchange has just announced that it is re-strengthening its ranks however, with the hiring of a new ‘Global Money Laundering Reporting Officer’ – Greg Monahan. This move was undertaken as the exchange attempts to remain compliant with its AML requirements around the world.
If Binance hopes to satisfy the expectations of global regulators, such a move is an easy decision to make. By bringing in Greg Monahan, it gains a seasoned professional with nearly 20 years of experience within the IRS’s Criminal Investigation Unit.
Greg Monahan shed light on his new role, stating, “My efforts will be focused on expanding Binance’s international anti-money laundering (AML) and investigation programs, as well as strengthening the organization’s relations with regulatory and law enforcement bodies worldwide.”
Unlicensed Entity Warning
The Australian Securities and Investments Commission (ASIC) has just released a warning letter to investors, detailing the perils of dealing with unlicensed entities – a growing problem which has seen a slew of investors lose significant amounts of capitals due to various sketchy actions.
Around the globe, citizens of any given nation are often subjected to certain restrictions when it comes to investing – such as preventing them from accessing services outside of their borders. Service providers often attempt to prevent ineligible investors from accessing their services through means such as ‘geo-blocking’. Despite these efforts, many services providers and investors alike often try to skirt around the rules. This has resulted in many warnings and enforcement actions over the years, with the most recent aforementioned example coming out of Australia.
ASIC highlights its acknowledgment of restrictive measures such as geo-blocking, stating that it, “…understands that some unlicensed overseas platforms are taking, or have already taken, steps to prevent Australian clients from accessing these financial products”. It continues, warning that only, “Dealing with licensed entities ensures that you have the benefit of specific obligations and investor protections imposed on these entities under the Corporations Act”.
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