One of the popular blockchain projects of China, GXChain has recently faced a crackdown as its headquarters has been raided by the Gushu Police Department. The Chinese authorities have seized sensitive documents and computers as evidence for an ongoing investigation and the location has been sealed to prevent anyone from entering the premises. Though there hasn’t been any official statement, it has been speculated that it’s related to a range of business activities.
The cryptocurrency firms located in Malta are under increased monitoring of the Malta Financial Service Authority (MFSA), as it has come up with a strategic plan to work closely with an international organization to crack the crypto-related crimes. The agency stated, “To monitor and manage the risks associated with digital asset companies, MFSA has invested and is already implementing SupTech surveillance tools.”
The Financial Industry Regulatory Authority (FINRA, a private self-regulatory organization) has given its approval to Galaxy Digital (a crypto investment bank) to underwrite registered public offerings of securities, the bank is also eyeing to facilitate STOs. Its CEO Michael Novogratz said, “It’s a really young industry, and we are a pretty young business. We are sober and patient about how fast it will grow, and we are well-capitalized.”
The De Nederlandsche Bank (the central bank of Netherlands) has announced that they will start regulating the crypto industry and related services they need to get its approval to continue operation from 10 January 2020. From its statement: “In concrete terms, firms offering services for the exchange between cryptos and regular money, and crypto wallet providers, must register with De Nederlandsche Bank.”
The Central Bank of Brazil has adopted the guidelines for cryptocurrency classification by the International Monetary Fund (IMF). This move will make the traded cryptocurrencies to be classified as non-financial products and accounted for goods on the central bank’ balance sheet. IMF chief economist Gita Gopinath commented, “If you look particularly at countries that are not reserve currency countries, would this lead to backdoor dollarization?…”
A guideline has been issued in Switzerland by the financial market regulator of the country (FINMA), which focuses on KYC/AML compliance for blockchain and cryptocurrencies. The guideline is a part of the country’s initiative to combat any malicious actors which intends to utilize cryptocurrency to conduct criminal activities and protecting the residents at the same time.
Belgium’s Financial Services Authority (FSMA) has published a new list of scam cryptocurrency companies. The FSMA has explained in the updated listings, “The principle remains the same: they offer you an investment they claim is secure, easy and very lucrative. They try to inspire confidence by assuring you that you don’t need to be an expert in cryptocurrencies to invest in them.”
The Czech Republic is aspiring to to implement more stringent policies than those of the European Union in a pursuit to ensure anti-money laundering (AML) compliance. Though the government has not revealed the timeline for the Czech government’s formalization of both AMLD5 and its additional rules, EU member states are compelled to incorporate the directive into their respective national laws by Jan 20, 2020.
The Her Majesty’s Revenue & Customs (HMRC) has sent a new request to cryptocurrency exchanges to reveal all the information regarding the exchanges’ customers, including their names, as well as transactions. The main aim of this exercise is to crack down and punish all attempts of tax evasion within the country. HMRC believes that they have the power to request this information if they believe that there is cause for suspicion of illegal activities regarding taxes.
The Thailand government has announced that it will amend it present Anti-Money Laundering Act and will enable its regulators to prevent crypto use for illicit activities. Maj Gen Preecha Charoensahayanon of the Thai Anti-Money Laundering Office (AMLO) has come out the that cryptocurrencies will be used for money laundering. He added, “We may not find any clue, but that doesn’t mean the wrongdoing does not occur.”