In the past week, a lot has happened around the globe in terms of regulation. In the series “Regulation in the Week in Review” we look back at the end of the week and summarize what was said, thought or decided, when, where and by whom.

Is that consumer protection?

Consumer center considers advertising prohibition for crypto currencies. The consumer center Federal association demands an advertising as well as a sales prohibition for crypto currencies. It is questionable, however, whether these prohibitions really fulfil their purpose. Rather we see need in clearing-up, ordered processes and a meaningful regulation of ICOs.

Chinese central bank: no signs of easing
In its recently published agenda for 2018, the Chinese central bank has made little positive comments about crypto currencies. China not only fears the potential for criminal use, but also believes that crypto currencies could jeopardize financial market stability.

Ultimatum in Japan: Five crypto exchanges close
After the Financial Services Agency (FSA) of Japan has called for improved data security, five crypto exchanges have to cease operations. Several other crypto exchanges are now facing the end of their operations because they cannot meet the admission requirements for a license from the FSA.

Regulation Special: What are crypto currencies?

In March, BaFin published a letter of advice on the legal classification of crypto currencies. Accordingly the following possibilities come into consideration: Classification as financial instrument, security, investment fund or as asset investment. The core element, however, is the recurring “individual case examination” to which BaFin refers. Two things can be derived from this: Crypto currencies cannot be regulated on a blanket basis, nor can the fact that coins must be valued individually by BaFin. This results in greater security for all parties involved.

Japan cannot leave it at that: Legal action against Binance
According to media reports, Binance has so far not been willing to apply for a license from the FSA. Now the FSA wants to use a lawsuit to put pressure on the online marketplace. Binance is responding with a move to crypto-island Malta in order to avoid this and other legal disputes.

Bank of Montreal blocks crypto currencies
An internal BoM memo showed that from now on BoM would no longer allow crypto transactions for its customers. This is particularly contradictory to the bank’s recent blockchain activities. Otherwise, Canada is proving to be a crypto-friendly country.

Malta allows crypto currencies for games of chance
The Malta Gaming Authority (MGA) has recently published a report on the regulation of crypto currencies. The authority wants to test crypto currencies and their optimal handling in a preliminary test environment. Gambling licenses from Malta will then be supplemented accordingly.

Russia publishes ICO guidelines
The Russian Ministry of Communications published first drafts of ICO guidelines. These are part of a larger package of laws regulating crypto currencies. The fact that ICOs in Russia can only be carried out with the help of the national currency “ruble” is a cause for concern.

AUSTRAC against money laundering – no black money for Australia
Australia also meets crypto exchanges with regulation. From now on, they have to register and, among other things, reconcile the identities of their customers in order to avoid money laundering.

Indian central bank breaks with crypto service providers
The Indian central bank “Reserve Bank of India” will no longer offer support for persons or companies dealing with crypto currencies. At the same time, however, it is planning its own digital currency.