Investor Protection is the Major Goal for Every Cryptocurrency Regulatory FrameworkFebruary 7, 2019
Raul Lambino, CEZA administrator, and CEO reinstated the importance of regulations by stating, “It is our goal to provide for a clear set of rules and guidelines which will foster innovation ensuring proper compliance by actors in the ecosystem.” He further added, “It is our hope that these sets of regulatory innovations will take the digital asset sector a step closer to adoption and acceptance by institutions and the traditional financial system.”
Cagayan Economic Zone Authority (CEZA) along with Asia Blockchain and Crypto Association (ABACA) is the first regulatory organization that will be enforcing the regulations for the cryptocurrency industry. This is the first step to provide for a sound cryptocurrency and blockchain framework in the Philippines.
Lim Guan Eng, the Malaysian finance minister, reportedly said in the recent past, the Malaysian cryptocurrency regulation has classified tokens and digital assets as securities via the “The Capital Markets and the Services Order 2019.”
A famous news outlet in Malaysia implied that “The Ministry of Finance viewed digital assets, as well as the underlying blockchain technologies, as having the potential to bring innovation in both the old and new industries.” Further opined that Digital Assets provide for alternative fundraising methods, a new asset class for investors.
It is expected that Malaysia is set to enact regulations for ICOs and cryptocurrency in the first quarter of the year 2019.
There has been no official declaration from the Government of India about any kind of legislation for the cryptocurrency; however, the response given to an RTI (Right to Information) that was filed by Coin Crunch India, by the Ministry of Finance states that the “Ministry of Finance views digital assets and the underlying blockchain technology, as having the potential to bring about innovation in both old and new industries.”
The supervisory memorandum of the Texas Department of banking was published in the past month. This supervisory memorandum discussed the application of the “Money Transmitter Law” to the “Digital Assets.”
Since the Stable coins are backed by fiat currency and are issued with the right of redemption the right to convert a stable coin to a fiat currency is a “Money or Monetary Value” per the Texas Finance Code. Thus, it is subject to the money transmitter licensure requirement of the state. This is the first time that a state regulator explicitly addressed the issue of stable coins.
With that said about the regulatory activities in different parts of the world, Bitcoin was trading at 3376.83 at the time of reporting the news and ETH was trading at $105.79.