Decentralized finance (DeFi) has emerged in 2021 as one of the fastest-growing trends in the crypto sector and as the unique features of DeFi begin to work their way into traditional finance, executives from crypto and conventional business circles warn that regulation could be on the way if the protocols don't take steps to self-regulate. On June 23, Mike Novogratz, CEO of Galaxy Digital, warned that DeFi protocols will soon need to decide if they want to incorporate know-your-customer and anti-money-laundering procedures to gain acceptance from regulators or “pay the piper later.” Starting to think that major DEFI protocols are …

Mode Global Holdings, a London Stock Exchange-listed fintech group, has secured major regulatory approvals for cryptocurrency and fintech operations in the United Kingdom. The company announced Thursday that Mode has secured its Electronic Money Institution license and AMLD5 registration from the U.K. Financial Conduct Authority. The AMLD5 registration has been granted to Mode’s crypto arm Fibermode Limited, establishing it as an official crypto asset firm in the United Kingdom, pursuant to the amended regulations on money laundering, terrorist financing and transfer of funds. The AMLD5 registration is a requirement for crypto-related businesses in the country that fall within the scope …

Smart contracts are an important element of the blockchain revolution, although they predate blockchain. According to most sources, it was Nick Szabo who coined the term “smart contract” in the 1990s. The mechanism of a vending machine has since been frequently given as an example of a basic smart contract based on if-then logic. The payment into a vending machine triggers an irrevocable automated action from when money is retained to when an item is supplied. The emergence of blockchain technology enabled the implementation of such if-then logic on decentralized networks to facilitate autonomous self-executing, self-performing smart contracts, also called …

Paolo Savona, the chairman of the Commissione Nazionale per le Società e la Borsa (Consob) — Italy’s securities regulator — has raised alarms over crypto’s growing popularity in the absence of firm regulatory standards. According to Reuters, Savona made this position known while delivering Consob’s annual report on Monday stating that the lack of clear-cut regulations creates an opportunity for criminals to utilize crypto for illegal activities. According to Savona: “Without proper oversight, there could be a worsening in market transparency, the basis of legality and rational choice for (market) operators.” Despite several research studies indicating that crypto criminality only …

Cryptocurrency is becoming increasingly mainstream. Between the entrance en masse of traditional financial institutions — from investment funds, to banks, to insurance companies — to the multitrillion-dollar market capitalization, crypto is truly unignorable. As such, it is also increasingly on the radar of regulators around the world, particularly in the United States. How can this industry balance stability and investor protection on the one hand with the promotion and support of innovation on the other? There are three paths to regulating crypto. The first is to not regulate it as much, but given the incredible growth and increasing overlap with …

The well-known Indian crypto exchange WazirX, which Binance acquired in 2019, is under investigation for alleged violations of India’s Foreign Exchange Act (FEMA). The probe was publicly announced in an official tweet today from India’s Enforcement Directorate (ED): ED has issued Show Cause Notice to WazirX Crypto-currency Exchange for contravention of FEMA, 1999 for transactions involving crypto-currencies worth Rs. 2790.74 Crore. — ED (@dir_ed) June 11, 2021 In the Indian numbering system, one crore denotes 10 million. The 2,790 crore rupees in cryptocurrency transactions under investigation, then, are worth roughly $389 million. According to a report from the Times of …

Strict Anti-Money Laundering laws in the United Kingdom appear to be constituting a major operational hurdle for crypto firms in the country. According to the U.K. Financial Conduct Authority (FCA), several crypto businesses in the country might be preparing for an exit. In a release issued on Thursday, the regulatory agency revealed: “A significantly high number of businesses are not meeting the required standards under the Money Laundering Regulations. This has resulted in an unprecedented number of businesses withdrawing their applications.” According to a report by The Guardian, 51 companies have so far failed to meet the FCA’s AML standards …

Cryptocurrency businesses in the United Kingdom have been struggling to meet Anti-Money Laundering standards set by the Financial Conduct Authority, according to a senior official. John Glen, a member of U.K. Parliament and the economic secretary to the Treasury, pointed out major difficulties in the process of registering crypto firms under the FCA’s AML regulations in official comments on Friday. According to the official, only five crypto businesses have received registration from the FCA as of May 24 after the authority became the official AML supervisor of the crypto industry in the U.K. in January 2020. “Of the firms assessed …

Over the past year or so, the crypto community in South Korea has had to adapt to a suite of new regulations and government frameworks tailored to the growing industry. With the regulatory landscape for digital assets thus undergoing a marked shift, there has nonetheless been some confusion as to which Korean government agency or regulatory authority is tasked with overseeing various aspects of crypto-related activities. According to a local report, a joint statement released on Friday aims to clarify these questions for a society of undeniable crypto enthusiasts. The statement outlines that the Financial Services Commission, or FSC, will …

The U.S. Office of Foreign Assets Control has requested another subscription to Chainalysis analytics software in order to step up its blockchain transaction surveillance efforts. In a public notice sent out on May 26, the agency confirmed its intention to subscribe to Chainalysis’s Rumker Training and Support Packages for what it deems as “mission-critical research”, further expanding its arsenal of surveillance tools. This week’s public notice marks the second such request that the agency has made this month, having made a prior request for Chainalysis blockchain surveillance tools on May 4. The latest notice stated the Department of Treasury’s Office …

On a day in which Bitcoin crashed briefly to $30,000 in a rampant bear market, the leading cryptocurrency never got anywhere close to that on Korean exchanges. The so-called “kimchi premium” saw to that, keeping the price of Bitcoin as much as $5,000 above its level on leading U.S. exchanges. The major reason for this kimchi premium is that Korea’s exchanges are fairly isolated by a combination of the country’s strict capital control laws preventing funds from leaving the country, and the tax code and anti-money laundering (AML) regulations that make it difficult for foreigners to use Korean exchanges — …

Uganda’s Financial Intelligence Authority wants the government to come up with clear-cut crypto regulations. According to a report by Ugandan media outlet Daily Monitor on Monday, the FIA has asked the country’s finance ministry to develop a legal framework for cryptocurrency regulations in Uganda. Sydney Asubo, executive director of the FIA, made the call during a meeting with stakeholders over the weekend. According to Asubo, the need for crypto regulations in Uganda has become of paramount importance given the noncompliance of industry participants to the agency’s licensing requirements. Indeed, the FIA amended the country’s Anti-Money Laundering laws to include crypto …