The Financial Stability Board (FSB) details how its member states regulate cryptographic assets, regulatory agencies, and regulatory coverage. Most countries have more than one government agency to oversee and manage the encryption market. Among the Asian members of the Commission, India is the only country that does not have a legal mandate to directly regulate cryptographic assets.
There are three regulators in India, the Reserve Bank of India (RBI), the Securities and Exchange Commission of India (SEBI) and the Ministry of Finance, which regularly participate in the Financial Stability Board (FSB) meeting and the G20 summit. The FSB is an international body that oversees the global financial system and makes recommendations. It only lists the country’s central bank, the RBI, as the regulator of the Indian encryption market, clarifying in a report released on Friday:
RBI does not have a legal mandate to directly regulate cryptographic assets. RBI’s current mandate is to allow it to assess the financial institution’s regulation of cryptographic assets and monitor its operations.
The FSB specifies that, within its mandate, the central bank prohibits financial institutions from dealing with “or providing services to facilitate the processing or trading of cryptocurrencies by any individual or entity. The three regulators are members of the group led by Subhash Chandra Garg, Secretary of the Ministry of Economic Affairs, who is responsible for drafting the country’s encryption regulatory policy. According to the government, the team is in the final stages of its deliberations. India’s encryption regulatory policy has been submitted to the country’s Supreme Court, but the court has ordered the matter to be dealt with on July 23, the court’s summer vacation.
At the other end of the scope of crypto-regulation, Japan has legalized the cryptocurrency as a means of payment under the revised Payment Services Act.
The main regulator is the Financial Services Agency (FSA), which oversees and manages cryptographic transaction service providers. Encrypted transactions need to be registered with an agency. There are currently 19 registered exchanges, and more than 140 companies are interested in entering the encryption market. The FSA also works with self-regulatory organizations to strengthen oversight. In addition, the agency is involved in international policy discussions on cryptographic assets and is currently discussing policies regarding initial token products.
In addition to the FSA, there are two other government agencies involved in the regulation of the Japanese encryption industry: the Central Bank and the Ministry of Finance.
In 2016, the Bank of Japan established a financial technology center in its payment and settlement system department. The center conducts research on new technologies such as cryptocurrencies and how to transform existing financial services and structures. The Ministry of Finance is responsible for supervising and enacting the trade of crypto assets in accordance with the Foreign Exchange and Foreign Trade Law, including the planning and execution of taxation related to encrypted assets.
There are three encryption activity regulators in Korea, and the main regulator is the Financial Services Commission (FSC). FSB description:
The FSC promotes information exchange and cooperation with international organizations, especially in the area of virtual currency, which is responsible for analysing trends and policies in the digital currency market, as well as policies and major programs for integrating and coordinating anti-money laundering systems related to virtual currency.
At the same time, the Financial Supervisory Authority (FSS) is responsible for regulating market integrity, general anti-fraud behavior and consumer protection.
FSS and FSC worked together to develop the country’s cryptocurrency measures by the end of 2017 and set out other guidelines in January last year. However, they have not taken any follow-up measures. At the same time, ICO is banned from being released in the country. The FSC said that at least six bills have been submitted to the National Assembly, but no one has made progress.
The two regulators implemented a real-name system in January last year to convert all anonymous encrypted accounts into real-name verified accounts. In addition, the Korea Financial Intelligence Unit has issued a bank reporting guide to prevent money laundering through encrypted transactions. The country is also working to tax crypto assets.
The last regulatory body listed by the FSB for South Korea is the Central Bank. The Bank of Korea oversees and studies the development of cryptographic assets and their impact on economic and financial stability, including the use of cryptocurrencies as a payment instrument.
Singapore’s only encryption regulator is the Singapore Monetary Authority (MAS), which performs many regulatory functions.
First, it monitors the prudential risks of crypto assets by banks, insurance companies and asset management companies. FSB says it also “regulates activities involving crypto assets (if these are capital market products) under the Securities and Futures Act). And institutions.” In addition, in addition to monitoring the “financial stability risks of crypto assets”, the central bank “extends its monitoring and market intelligence collection to cryptographic assets”.
As part of the regulation of payment systems, value-added facilities, remittance services and money changers, MAS also regulates cryptographic services. The FSB explained that the forthcoming “Payment Services Act” will expand the scope of “MAS” regulation to cover other payment activities, including digital payment pass services. It will also develop “anti-money laundering/terrorist financing regulations to mitigate the risks posed by entities engaged in encryption-related activities.”
Another member of the FSB, China became a hotbed of early bitcoin encryption activities, but then began strict supervision of the encryption industry, completely banned encryption transactions in 2017. In addition to the People’s Bank of China (PBOC), there are five government agencies in China that oversee encryption-related activities.
The Central Cyber Security and Informatization Committee Office monitors online encryption-related activities and corrects any problems found. The FSB stated that the Ministry of Industry and Information Technology prohibits and closes illegal encryption-related websites. Another regulator is the Ministry of Public Security, which prohibits encryption activities for “illegal criminal activities, including illegal fundraising, fraud and pyramid schemes”.
At the same time, the Bank of China Insurance Supervision and Management Committee “closely pay attention to the development of China’s encryption assets and its potential risks to the banking and insurance system.” Finally, the China Securities Regulatory Commission, which cracks down on illegally issuing securities, “is strengthening research on securities related to encryption assets.”
Source: Youyou Finance