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On 29 August 2024, the Bank of Latvia extended an invitation to crypto-asset service providers (CASPs) and consulting service providers to engage in pre-licensing consultations as they prepare to comply with the forthcoming European Union (EU) Markets in Crypto-Assets Regulation (MiCA). This new regulation, set to take effect on December 30, 2024, will introduce a unified regulatory framework across the EU for the crypto-asset industry. One of the key requirements under MiCA is that all crypto-asset service providers must obtain an operating permit to conduct their business within the EU. Latvijas Banka, in preparation of the formal application process that begins in January 2025, is offering these pre-licensing consultations to help companies understand the regulatory requirements and prepare their applications. The aim of this initiative is to allow companies to gain a clear understanding of the regulatory requirements, the necessary documentation, and the compliance standards they...

On 28 August, 2024, the Hong Kong Monetary Authority (HKMA) officially launched the Project Ensemble Sandbox today, for the practical adoption of tokenisation within the financial industry. The launch ceremony introduced four key themes for the initial round of experimentation, focusing on the tokenisation of both traditional financial assets and real-world assets. The Sandbox has been specifically designed to facilitate interbank settlement using experimental tokenised money, with a focus on transactions involving tokenised assets. Participating banks from the Project Ensemble Architecture Community have connected their tokenised deposit platforms to the Sandbox, enabling them to conduct experiments in payment-versus-payment and delivery-versus-payment settlement processes. The first round of experimentation within the Sandbox will cover four main theme areas: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance....

On 28 August, 2024, the U.S. Securities and Exchange Commission (US SEC) announced new amendments to reporting requirements for certain registered investment companies, aimed at improving transparency and regulatory oversight. These changes, which affect Form N-PORT filings, are designed to provide both the SEC and investors with more timely and detailed information about the portfolio holdings of these funds. The US SEC's amendments to Form N-PORT will require registered open-end funds, registered closed-end funds, and exchange-traded funds organised as unit investment trusts to file monthly reports instead of the current quarterly filings. These reports will need to be submitted within 30 days after the end of each month. Previously, funds had a 60-day window after the end of each quarter to submit these reports. These monthly reports will be made publicly available 60 days after the end of each month, rather than only at the end of each quarter. This change is expected to...

On 23 August 2024, the Australian Securities and Investments Commission (ASIC) announced a series of regulatory interventions aimed at curbing greenwashing misconduct in the sustainable finance sector. Over a 15-month period leading up to 30 June 2024, ASIC undertook 47 actions, including the initiation of two Federal Court proceedings and the issuance of over $123,000 in infringement notice payments. These efforts are detailed in Report 791: ASIC’s Interventions on Greenwashing Misconduct: 2023–2024 (REP 791), which outlines the regulator’s ongoing commitment to addressing misleading and deceptive conduct related to sustainability claims. Over this period, ASIC made significant interventions in its fight against greenwashing. These actions includes the commencement of two civil penalty proceedings, the finalization of one civil penalty case resulting in $11.3 million in penalties, the issuance of eight infringement notices, and the achievement of 37 corrective disclosure outcomes,...

On 27 August 2024, the Swiss Financial Market Supervisory Authority (FINMA) published two new set of audit forms i.e. GB-A Regulatory audit report investment companies with variable capital (SICAV) 2024 & GB-A Regulatory audit report fund management companies 2024 to enhance oversight of Virtual Asset Service Providers (VASPs). Applicable to financial years beginning on or after 1 January 2024, these forms introduce rigorous reporting and compliance requirements for financial institutions engaged in virtual asset activities. This move is seen as a critical step in ensuring the security and transparency of Switzerland’s financial sector in the rapidly evolving digital asset landscape. The newly issued audit forms for fund management companies and investment companies with variable capital (SICAV) are designed to include comprehensive evaluations of the involvement of VASPs. These forms mandate detailed disclosures and assessments related to anti-money laundering (AML) measures,...

On 23 August 2024, the Federal Court of Australia delivered a landmark judgment against Bit Trade Pty Ltd, the operator of the Kraken cryptocurrency exchange in Australia. In the judgment, the apex court found that Bit Trade had failed to comply with critical design and distribution obligations (DDO) under the Corporations Act 2001 when offering its margin trading product, known as the "margin extension," to Australian customers. This judgment marks a significant victory for the Australian Securities and Investments Commission (ASIC) in its ongoing efforts to regulate the cryptocurrency sector and protect consumers. Bit Trade Pty Ltd, a subsidiary of the U.S.-based Payward Inc., operates the Kraken digital currency exchange in Australia. Since its acquisition by Payward in 2020, Bit Trade has provided Australian customers access to the Kraken Exchange, allowing them to trade digital assets such as Bitcoin and other cryptocurrencies. Central to the case was Bit Trade’s "margin...

On 22 August 2024, the Australian Securities and Investments Commission (ASIC) unveiled its much-anticipated Corporate Plan for 2024-25, setting the stage for a transformative approach to regulating the nation’s financial markets in the digital age. As digital currencies, blockchain technologies, and virtual assets continue to gain prominence, ASIC's plan emphasizes the critical importance of both innovation and consumer protection in this rapidly evolving landscape. The plan, which outlines ASIC’s strategic priorities over the next year, is deeply rooted in the realities of today’s financial environment. The rise of cryptocurrencies and the increasing use of blockchain technology have fundamentally altered the way financial transactions are conducted, presenting both opportunities and challenges for regulators. ASIC acknowledges these shifts and has positioned itself as a forward-looking regulator, committed to adapting its strategies to manage these new dynamics effectively. One of...

On 21 August 2024, the Securities and Futures Commission (SFC) issued warning to the public regarding a fraudulent digital platform known as "ICE Global Professional Station," which has been linked to various virtual asset-related scams and illicit activities. "ICE Global Professional Station" deceptively presents itself as a legitimate digital asset trading platform by impersonating Intercontinental Exchange, Inc. (ICE), a globally recognized and reputable financial services corporation. The fraudulent platform utilizes similar branding and nomenclature to mislead investors into believing they are engaging with a credible and authorized entity. The SFC's warning comes after numerous reports from investors who have suffered significant financial losses due to the platform's deceitful practices. Victims have reported severe difficulties in withdrawing funds after making deposits for cryptocurrency and other digital asset investments through the platform. These manipulative tactics...

On 20 August 2024, Tether, the world’s largest issuer of stablecoins, announced the launch of a new stablecoin pegged to the UAE Dirham (AED). This development marks a strategic collaboration between Tether and UAE-based companies, Phoenix Group and Green Acorn Investments, aiming to introduce a digital asset fully backed by liquid reserves within the UAE. The new Dirham-pegged stablecoin is expected to play a pivotal role in enhancing financial transactions both within the UAE and on an international scale, offering a secure and efficient means for trade, remittances, and reducing transaction costs. The introduction of this stablecoin comes as the UAE continues to assert itself as a global economic hub, particularly in the areas of blockchain and digital assets. With the implementation of the UAE Central Bank's Payment Token Services Regulation (PTRS), the Dirham-pegged stablecoin will be launched under a robust regulatory framework designed to ensure its stability and security. The...

On 21 August, 2024, the Securities and Exchange Commission (SEC) adopted a rule change affecting the venture capital industry by adjusting the dollar threshold required for a fund to qualify as a "qualifying venture capital fund" under the Investment Company Act of 1940. This adjustment is mandated by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA), which requires the SEC to update this threshold every five years to account for inflation. Crypto venture capital funds, like their traditional counterparts, benefit from being classified as "qualifying venture capital funds" under the Investment Company Act because this classification exempts them from the more stringent regulations that apply to investment companies. The SEC's proposed rule adjustment to increase the threshold for qualifying venture capital funds to $12 million is a positive development for the crypto industry. It provides more flexibility for crypto venture capital funds to raise...