Crypto Chronicles: BitOK's Weekly Recap of Top Regulatory News

Hong Kong's Securities and Futures Commission aims to help the public identify unregulated virtual asset trading platforms (VATPs) in Hong Kong by listing licensed, deemed licensed, closing down, and application-pending VATPs. They will also maintain a dedicated list of "suspicious VATPs" on their website. The move follows the JPEX crypto exchange scandal, which involved financial fraud and resulted in significant financial losses, prompting the SFC to emphasize the importance of proper regulation to maintain market confidence and collaborate with local police to investigate and take action against wrongdoers.

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This move comes as Coinbase expands its presence in Europe. Spain ranks crypto as the second-favorite payment method, and nearly 29% of Spanish adults view digital assets positively. Coinbase has been focusing on global regulatory compliance, securing registrations in several countries. Crypto.com also recently received regulatory approval in Spain.

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Starting October 1, Bybit will stop accepting new account applications from UK users, followed by halting new deposits, new contracts, and position changes on October 8. The move aligns with the FCA's new rules aimed at ensuring transparent and compliant marketing by crypto businesses. Bybit plans to focus on meeting UK regulatory requirements in the future. This action mirrors Bybit's previous suspension of services in Canada due to regulatory developments while concurrently expanding into new markets like Kazakhstan.

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The European Parliamentary Research Service (EPRS) emphasizes the need for a tighter regulatory framework in non-EU jurisdictions to ensure greater stability and development, particularly as the Markets in Crypto-Assets Regulation (MiCA) Act approaches implementation by December 2024. The report highlights concerns about financial stability, reduced market appeal, and the mainstream adoption of stablecoins. It also mentions challenges posed by the fragmented regulatory landscape in the United States and potential divergence between the UK and EU in how they identify crypto-assets. Malta has initiated a public consultation to align its crypto regulations with MiCA.

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The approval of a Crypto Asset Service Provider (CASP) registration from the Cyprus Securities and Exchange Commission (CySEC) allows eToro to offer regulated crypto services throughout the European Union under the entity "eToro Europe Digital Assets" once the EU's Markets in Crypto-Assets Regulation (MiCA) takes effect in December 2024. eToro considers Europe a crucial market due to the majority of its user base residing in the region. Other crypto firms, like Bybit, are also expanding in the EU through CySEC registration, while Binance sought to deregister in Cyprus to focus on larger markets. eToro previously secured regulatory milestones in Spain and France.

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