In the past week, a lot has happened around the globe in terms of regulation. In the series “Regulation in the Week in Review” we look back at the end of the week and summarize what was said, thought or decided where, when and by whom.
Taiwan: Bitcoin Miner shot down
According to a report in the Taiwanese news source Liberty Times, a Bitcoin miner was shot down by two other parties on Saturday evening. They had wanted to meet the Miner to make a significant investment with him. Both business partners had previously made 10 million Chinese yuan (about 1.7 million US dollars) available to the miner. Due to the tightened Chinese rules, however, he could not exchange the profits back into fiat currencies – the dispute escalated.
Vietnam: Crypto ban in online trade
The Ministry of Industry and Commerce in Hanoi has banned the use of Bitcoin and other crypto currencies in online commerce in the city. A document issued on April 13 states that “the issuance, delivery, use of Bitcoin and similar virtual currencies is prohibited in Vietnam”. Violations are subject to a fine of up to 200 million Vietnamese Dong (8,810 US dollars) for individuals and organizations.
Hong Kong: Securities and Futures Commission (SFC) on ICOs
Julia Leung, Deputy Head of the Hong Kong Securities and Futures Commission (SFC), warned the public in a speech about fundraising activities related to blockchain technology. “While we recognize that innovative technologies like blockchain have the potential to improve efficiency and financial inclusion, this does not entitle anyone to fundraise in violation of securities laws,” Leung said.
Malta: When do tokens become securities?
The island state of Malta is about to introduce a test to determine whether assets resulting from ICOs are securities. The test involves a three-step process that would first examine whether a crypto asset falls into the category of utility tokens or whether it can be traded on the secondary market and thus falls under MiFID supervision.
Japan: No national crypto currency planned
The Bank of Japan (BoJ) currently has no plans to issue a digital central bank currency. At a conference with the International Monetary Fund and Japan’s Financial Services Agency, BoJ Deputy Governor Masayoshi Amamiya said that issuing a digital currency could undermine the existing two-tier system. However, BOJ has already begun to address the underlying blockchain technology. However, it is currently only intended for business applications.