A Nigerian court has issued an interim order requiring cryptocurrency exchange Binance to provide comprehensive information on all Nigerian traders using its platform to Nigeria’s Economic and Financial Crimes Commission (EFCC). The order comes after Nigeria initially requested information about Binance’s top 100 users in the country and their transaction history over the past six months. Justice Emeka Nwite from the Abuja Division of the Federal High Court granted the motion filed by EFCC, seeking information on any Nigerian involved in trading on Binance. The court ordered Binance to provide the EFCC with the requested data.
This move by Nigerian authorities is part of their efforts to regulate the cryptocurrency industry, which they accuse of facilitating illegal capital outflows. They claim that these outflows have contributed to the weakening of the Nigerian currency ‘naira’ against the dollar. Binance, in particular, has come under scrutiny, with Nigerian authorities demanding $10 billion in penalties for enabling around $26 billion of untraceable funds.
To further address concerns, Nigerian authorities have detained two senior executives from Binance after inviting them to the country for discussions on the matter. A court hearing for the detained executives is scheduled for Wednesday. In addition, Nigerian authorities have proposed a 400% increase in registration fees for crypto firms operating in the country.
Turkey’s competition authority has enacted a provisional restriction on Meta, limiting data exchange between Instagram and Threads during an ongoing market abuse investigation. The interim measure now will be maintained until a definitive ruling is made.
The regulator had initiated the probe into Meta back in December due to potential competition law breaches and significant market damage from the data merging of Instagram and Threads. The regulator stated that the company’s data sharing communication across Facebook, Instagram, and WhatsApp lacked clarity and sufficient information. Additionally, the user prompts for data sharing approval were seen as inadequate for addressing competition issues.
Previously, on a separate matter, the Turkish authority had also imposed a daily fine of $148,000 on Meta for its data sharing notification practices.
The Payments Japan Association plans to create a new system this year, aiming to integrate JPQR, Japan’s standardized QR code payment system, with international providers, enabling international cashless transactions. JPQR enables transactions via different providers using one unified QR code, facilitating in-store purchases simply through smartphone scans. The Japanese Ministry of Economy, Trade, and Industry has already initiated talks with Southeast Asian governments and central banks and this initiative is set to begin by 2025.
Certain Southeast Asian nations, including Thailand and Indonesia, have standardized QR code payment systems managed by their central banks and adhered to by payment service providers. Moreover, in 2022, Singapore, Indonesia, Thailand, Malaysia, and the Philippines (ASEAN countries) signed an MOU to consolidate their QR payment systems, with some countries already using the service.
Japan’s pursuit of QR code payment systems interoperability seeks to fortify regional economic security and data usage, aiming to amplify its economic sway in Southeast Asia, while counterbalancing China’s intent to broaden its domestic digital payment platforms.
The European Banking Authority (EBA) has released the final draft of the Regulatory Technical Standards (RTS) for handling complaints received by issuers of asset reference tokens (ARTs) under the Markets in Crypto-Assets (MiCA) regulation. The EBA collaborated closely with the European Securities and Markets Authority (ESMA) in developing the requirements, templates, and procedures necessary for effectively managing complaints related to stablecoins.
The draft RTS cover a range of aspects regarding complaints handling. They include guidelines for the complaints management policy and function, the provision of information to stablecoin holders and other interested parties, templates and recordings, languages, procedures for investigating complaints, and communication of the investigation outcomes to complainants. Specific provisions are outlined for complaints handling involving third-party entities. These comprehensive guidelines aim to establish a fair and transparent process for dealing with complaints in relation to stablecoin issuers.
During the public consultation period the proposed approach by the EBA received overall support from respondents who considered it to be appropriately balanced. However, some respondents suggested a more uniform approach to complaints handling between the EBA’s RTS and the equivalent RTS by ESMA for the crypto asset service provider sector.
Taking into account the responses received, the EBA has made targeted amendments to the draft RTS in order to add clarity and align more closely with ESMA’s RTS. The amendments primarily focus on requirements related to languages, data protection, and the procedure for submitting an electronic complaint. These changes aim to address the suggestions put forward during the public consultation period and ensure consistency between the two authorities.
Although stakeholders raised concerns about trademark misappropriation and infringement on NFT platforms, the study found that most stakeholders believe the existing laws and registration practices are sufficient. Therefore, the study concluded that no changes to intellectual property laws or registration practices are necessary at this time.
Some stakeholders expressed concerns about enacting NFT-specific legislation too prematurely, as it could impede the ongoing development and evolution of NFT technology. The study supports the viewpoint that enacting specific legislation for NFTs would be premature and could hinder the industry’s growth.
The US Securities and Exchange Commission (SEC) deemed the NFT offerings sold by Impact Theory to be securities because the company promised investors would profit from them. As a result, Impact Theory agreed to reimburse investors and pay a fine of $6.1 million. It is important to note that this case does not imply that all NFTs are considered securities by regulators.
The study also identifies the lack of controlling judicial precedent regarding the enforcement of trademark registrations for physical goods against the use of the same mark on similar digital goods tied to blockchains and NFTs.
The Hong Kong Monetary Authority (HKMA) has announced the launch of a new stablecoin issuer sandbox arrangement. This initiative is part of the HKMA’s plan to regulate stablecoin issuers in Hong Kong. It aims to provide a platform to communicate supervisory expectations to parties interested in issuing fiat-referenced stablecoins in Hong Kong, and to gather feedback on proposed regulatory requirements.
Applicants who wish to participate in the sandbox arrangement must have a genuine interest in developing a stablecoin issuance business in Hong Kong, supported by a reasonable business plan. Under this arrangement, their proposed operations will be conducted within a limited scope and in a risk-controlled manner. Detailed information about the sandbox arrangement can be found in the Annex.
To ensure transparency, the HKMA will maintain an up-to-date list of the participants on its website, which will be regularly updated. This will allow interested parties to stay informed and up-to-date with the latest developments.
Mr Eddie Yue, Chief Executive of the HKMA, emphasized the importance of the sandbox arrangement as a platform for the HKMA and the industry to exchange views on the proposed regulatory regime. He noted that the arrangement will aid in formulating fit-for-purpose and risk-based regulatory requirements, which are crucial for promoting the sustainable and responsible development of the stablecoin issuance business.
The London Stock Exchange has detailed the process for admitting Crypto Exchange Traded Notes (ETNs) to its trading platform. ETNs are debt securities that provide exposure to an underlying asset, and in this case, Crypto ETNs track the performance of cryptoassets like Bitcoin or Ethereum.
For the admission of Crypto ETNs, the London stock exchange has established specific criteria to protect the reputation and integrity of its markets. Firstly, the proposed Crypto ETN must be physically backed and not leveraged. Secondly, it must have a reliable and publicly available market price or value measure for the underlying asset. Lastly, the underlying cryptoassets must be Bitcoin or Ethereum.
Regarding the custody of the cryptoassets, they must be held in “cold storage,” meaning offline depositary wallets. If alternative arrangements are used instead of cold storage, the issuer must obtain an audit report from a qualified third party. The custodians holding the cryptoassets must also comply with Anti-Money Laundering (AML) regulations in the United Kingdom, European Union, Jersey, Switzerland, or the United States.
To facilitate a smooth admission process for Crypto ETNs, the London stock exchange encourages early engagement from prospective issuers. Issuers can admit up to three different currency lines for each Crypto ETN. These lines can be applied for simultaneously with the main currency line or at a later stage. The required documentation for multi-currency lines is similar to that of the standard line, except for the prospectus/pricing supplements.
The Financial Conduct Authority (FCA) has announced that it will allow Recognised Investment Exchanges (RIEs) to create a UK listed market segment for cryptoasset-backed Exchange Traded Notes (cETNs). This segment would be exclusively available to professional investors, such as investment firms and credit institutions authorized or regulated to operate in financial markets.
With a longer trading history and increased data, the FCA believes that exchanges and professional investors will be better equipped to assess the risk associated with cETNs. The FCA will consider applications from RIEs on a case-by-case basis for listing cETNs.
Exchanges must have appropriate safeguards in place to ensure that the market segment is only accessible to professional investors and must fully understand the risks associated with admitting crypto-linked instruments to trading.
The FCA reminds individuals that cryptoassets are high-risk and largely unregulated, and advises them to be prepared for potential losses. The FCA is actively collaborating with the government, international partners, and industry to develop the UK’s cryptoasset regulatory framework and lead international standards in this domain.
On 1 March, during the extra day of negotiations, WTO Members gathered in Abu Dhabi for the 13th Ministerial Conference agreed to extend the current Moratorium on Customs Duties on Electronic Transmissions until the next ministerial meeting, or until 31 March 2026, whichever is earlier. In spite of that, this could be the beginning of the end of the Moratorium: this is likely to be the last renewal.
The negotiating positions on the Moratorium ranged from, on the one hand, OECD countries, some developing countries, and China, aiming to make the Moratorium permanent and, on the other hand, some developing countries led by India, Indonesia, South Africa and Indonesia requesting the end of the Moratorium.
In 2022, an extension was granted until MC13, but fears of another postponement of the Ministerial led Members to call for an explicit renewal by Ministers or by the WTO General Council if the Ministerial got delayed beyond 31 March 2024. This would prevent the Moratorium from sliding into permanence, revealing that the idea of non-renewal was by that time strongly held by some members.
The BRICS group of countries (Brazil, Russia, India, China, and South Africa) is collaborating on the creation of an independent payment system using blockchain and digital technologies, according to a report by Russian news agency TASS. The objective is to develop a secure, efficient, and blockchain based payment system that is convenient for governments, ordinary people, and businesses. It should also be cost-effective and free from political influence. This initiative is part of the BRICS group’s efforts to enhance its role in the international monetary system and reduce reliance on the US dollar.
Kremlin aide Yury Ushakov stated in an interview with TASS that an independent payment system is an important future goal. By developing their own payment system, BRICS countries aim to enhance their financial sovereignty and reduce vulnerabilities associated with relying on existing global payment systems.
The report also highlighted the BRICS group’s ongoing efforts to reduce reliance on the US dollar, a concept known as de-dollarization. The development of the Contingent Reserve Arrangement will play a crucial role in this aspect as it will enable the use of currencies other than the US dollar. This diversification aims to provide BRICS countries with more stability and flexibility in their financial transactions and reduce exposure to potential economic risks associated with a single dominant currency.
The endorsement of crypto assets, tokenization, and AI underscores the importance of embracing technological advancements in the future of finance.
