Japan and South Korea want more control over crypto transactions: law decoded
The Financial Services Agency (FSA) – Japan's main financial regulator – has suggested a number of measures to protect users from “illegal transfer” to crypto exchanges, and one could significantly complicate the peer-to-peer (P2P) trading market.
“If the name of the sender is different from the account, the regulator suggests stopping the transfer to crypto-currency exchange service providers.” The FSA's current inquiry is written as advice, and does not require compliance with specific requirements, but rather refers to initiatives. It remains to be seen how the banks will respond to these recommendations and whether they will disrupt the P2P market.
South Korea's Financial Intelligence Unit (FIU) has also officially announced stricter controls on crypto. As part of its 2024 work plan, the agency will introduce a proactive transaction ban system to prevent suspicious transactions on platforms already operating in South Korea. This also stops transactions during the pre-trial phase. Moreover, FIU intends to “expand and strengthen” the crypto team in 2024, providing the necessary education and training and monitoring and analyzing “virtual asset analysis system”, details of virtual asset transactions and “complex movement paths”.
The European Union committees approve the rules of the AI law
The European Parliament's Internal Market and Civil Liberties Committees voted 71-8 to approve an interim agreement on AI legislation. The Act intends to lay down guidelines for artificial intelligence (AI) in various industries, including banking, automotive, electronics, aviation, security and law enforcement. The rules govern basic models or generative AI trained on vast data sets, such as OpenAI's ChatGPT. The AI Act aims to establish protections, including copyright protection, for inventors in response to generative AI models. Bans AI applications that threaten citizens' rights, such as biometric categorization and social scoring.
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The Philippines CBDC will launch in two years
Banco Central ng Pilipinas (BSP) Governor Eli Remolona expressed the central bank's intention to introduce a mass central bank digital currency (CBDC) in the next few years. Remolona explained the details behind the BSP's plan to organize the CBCC. According to the official, the central bank will not use blockchain technology in the project. Remolona pointed to the examples of Sweden and China, which are developing CBDCs as a digital complement to money and “rival cryptocurrencies.” He believes that the Philippines can repeat their experience. According to the official, the CBCC will “definitely happen” during the governor's term. Responding to the reporter's questions, he confirmed that it could happen in the next two years.
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Honduras has banned crypto transactions over fraud concerns.
The National Banking and Securities Commission of Honduras has issued a resolution banning the handling of crypto by the country's financial institutions. The resolution states that users of cryptocurrencies and financial services based on blockchain technology may be exposed to fraud and operational and legal risks. Due to their unregulated nature, crypto-assets can be used for fraud, money laundering and terrorist financing. Regulated institutions are also prohibited from holding derivatives based on crypto-assets.
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