"News Updates June 01, 2023"

1. EU Formally Signs New Crypto Licensing, Money Laundering Rules Into Law<\/p>\n

The MiCA law is set to make the bloc the first major jurisdiction with tailored crypto regulations.<\/p>\n

The European Union formally signed its landmark Markets in Crypto Assets (MiCA) regulation into law on Wednesday, taking the bloc closer to becoming the first major jurisdiction in the world with tailored rules for the sector.<\/p>\n

The law was signed by the European Parliament President Roberta Metsola and Swedish Rural Affairs Minister Peter Kullgren, alongside a separate anti-money laundering law that requires crypto providers to verify their customers' identity when they transfer funds.<\/p>\n

The news was announced on Twitter by the Swedish government, which is chairing legislative talks as it holds the EU presidency. A parliament spokesperson confirmed to CoinDesk that the laws in question include MiCA and the transfer of funds rules as well as two unrelated regulations on trade with Ukraine.<\/p>\n

MiCA will enter into force in a few weeks after being published in the EU’s official journal, which is likely in June. Its provisions – offering crypto exchanges and wallet providers a license to operate across the 27-nation bloc, and requiring stablecoin issuers to hold appropriate reserves – will take effect between 12 and 18 months later.<\/p>\n

MiCA was first proposed by the European Commission in 2020, and drew controversy when lawmakers came close to inserting environmentally minded provisions that could have amounted to a ban on the proof-of-work technology used by Bitcoin.<\/p>\n

While the provisions were broadly welcomed by the industry, attention has also turned to the next stage of EU crypto regulation, with future laws potentially covering topics such as staking, non-fungible tokens and decentralized finance.<\/p>\n

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2. Hong Kong and UAE central banks collab on crypto rules, fintech development<\/p>\n

The two central banks are aiming to align their financial service sectors and said both share “many complementary strengths.”<\/p>\n

Hong Kong and the United Arab Emirates’ (UAE) central banks are looking to collaborate on cryptocurrency regulations and financial technology development.<\/p>\n

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On May 30, the Hong Kong Monetary Authority (HKMA) said it met with its counterparts at the Central Bank of the United Arab Emirates (CBUAE), with the two agreeing to “strengthen cooperation” on “virtual asset regulations and developments.”<\/p>\n

The two central banks also pledged to facilitate discussions on “joint fintech development initiatives and knowledge-sharing efforts” with each region’s respective innovation hubs.<\/p>\n

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Financial infrastructure and financial market connectivity between the two jurisdictions were also noted as key points discussed.<\/p>\n

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CBUAE governor H.E. Khaled Mohamed Balama said he anticipates the relationship with the HKMA will be ongoing and long-term.<\/p>\n

HKMA chief executive Eddie Yue said the relationship will benefit both jurisdictions economically as they share “many complementary strengths and mutual interests.”<\/p>\n

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Following the meeting, the two central banks held a seminar for senior executives from banks in Hong Kong and the UAE.<\/p>\n

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It covered various topics, including how cross-border trade settlement can be improved and exploring how UAE corporations can leverage Hong Kong’s financial infrastructure platforms in order to gain access to Asian and mainland markets.<\/p>\n

The collaboration comes as Hong Kong’s Securities and Futures Commission (SFC) is allowing virtual asset service providers (VASPs) to cater to retail investors in Hong Kong starting June 1. <\/p>\n

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Crypto is ‘going to stay’: HKMA treasury chief<\/p>\n

Meanwhile, Hong Kong’s treasury chief Christopher Hui told French news agency Agence France-Presse on May 30 that the city has allowed retail investors to trade crypto under its new regulatory regime because “virtual assets are going to stay.”<\/p>\n

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Hui claimed the benefits of utilizing cryptocurrencies outweighed the risks.<\/p>"