Webinar on Cryptocurrency Developments in H1 2024
Fintelekt Advisory Services and the Asian Bankers Association presented a webinar on Cryptocurrency Developments in H1 2024 on July 31, 2024.
In the webinar, Shirish Pathak, Managing Director, Fintelekt conversed with Calvin Koo, Crypto Expert and Cross-Border Disputes and Investigations Lawyer, Kobre & Kim LLP about the major developments and regulatory changes in the world of cryptocurrency during the first half of 2024, including high-profile enforcement actions and penalties on large crypto exchanges.
At the outset, Calvin presented a quick recap of the themes from his last update in December 2023. Over the last six months, he believes the crypto industry has continued to mature such that governments institutions and to some extent the public have absorbed crypto related developments. There tends to be less alarm on both sides of the issue of the crypto debate.
Calvin then went on to present the regulatory developments in 2024 in some key geographies, which are currently driving growth in the crypto market.
In particular, he discussed:
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Hong Kong’s proactive stance on crypto and recent steps towards stablecoin regulations, involving public consultations and regulatory sandboxes.
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Dubai’s comprehensive regulatory framework for digital assets and proactive approach with the Virtual Assets Regulatory Authority (VARA).
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UAE Central bank’s regulations for Dirham-based stablecoin licensing.
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Singapore balancing its crypto hub status with consumer protection, implementing rigorous stablecoin regulations and custodial service requirements.
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Comparison of regulatory advancements in Hong Kong, Dubai, and Singapore with a focus on stability, investor protection, and market growth.
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Institutional adoption of crypto in the US and continued maturation of the industry.
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The Financial Action Task Force (FATF) emphasizes the need for more comprehensive AML-CFT measures, including the travel rule. Global implementation of FATF’s virtual asset regulations is lagging, with 75% of jurisdictions only partially compliant.
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Slow progress in regulating virtual assets raises concerns, as they are used for illicit activities. FATF highlights stablecoins’ increased use and the importance of incorporating AML-CFT measures in regulations.
Looking forward, Calvin maintains that although regulatory gaps remain, a multi-front approach may mitigate illicit activity in the long run.
The focus will continue on developments in government legislation and regulation around the world, largely driven by institutional demand for rules and regulations. A continued move towards putting up guardrails around stablecoins can be expected. Likely future developments include stablecoin regulations, tokenization, custody rules, and increased regulatory clarity in major markets like the U.S.
A recording of the webinar is available on Youtube: