In 2019, the digital currency market performed well, and mainstream currencies showed signs of continued recovery. On June 17, Bitcoin stood at the $9000 mark and hit a 13-month high. Facebook's release of the Libra white paper to launch digital currency has become the direct driver of this round of gains.
Therefore, we have selected the countries with representative industries in the world, and compiled the latest regulatory policies for 2018-2019, the requirements for the issuance of digital currency exchange licenses by major countries or major economies in the world, and sorted out the digital currency for readers. Development data and trend reference.
After the burst of the blockchain bubble in 2018, the industry is also rebuilding and warming up. Since December 17, 2018, it hit a low of $3,155. In 2019, Bitcoin broke through $4,000 in six months, all the way to the key position of $9,000, hitting a high of $9,200 yesterday, establishing a bull market. Bitcoin also gained more than 180% and became one of the best performing assets in the global market during the year.
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Bitcoin price trend in 2019
Recently, with the recovery of the currency market, the attention received by digital currency has been continuously improved. The digital currency market led by Bitcoin has once again become active. Among the top 50 mainstream digital assets in the market capitalization, there are 14 currencies. The increase is over Bitcoin. Among them, the biggest increase reached 440%, which is 3.4 times the increase of Bitcoin.
Since the advent of bitcoin and blockchain technology, and the emergence of various blockchain projects in recent years, most countries in the world have promoted the supervision work in this field to varying degrees, including the establishment of research groups, the introduction of regulations, the establishment of industry. Specifications and standards, etc. On the whole, the attitudes of countries around the world to digital currencies are different, and the policies introduced are also different. But the same is true, the global regulation of digital currency has become increasingly standardized and clear.
According to the strictness of the regulatory attitude towards cryptocurrencies and the application level of blockchain technology, the regulation of digital currencies in various countries and regions around the world is divided into the following five categories.
First, actively promote and standardize supervision
· In March 2019, the Japan Virtual Money Business Association issued a "Proposal on New ICO Regulations." Japan's Virtual Money Business Association (JCBA) said that in order to promote the sound growth of the Japanese blockchain business, and based on the "Virtual Money Exchange Industry Research Report" published by the Japan Financial Services Agency, the part on the response to ICO is proposed. "ICO's new regulatory recommendations". It is mainly divided into the following three points: (1) The issue of dealing with the expansion of virtual currency in Japanese domestic exchanges, including the stabilization of coins. (2) The relevant provisions on tokens and settlements in the restricted object of the Financial Commodity Exchange Act, including the control of token differentiation and the adjustment of the restriction level. (3) Restrictions on safe tokens, including the clarification of safe tokens as securities. (4) With regard to the restrictions on practical tokens, certain restrictions on commercial regulations need to be excluded, excessive obligations imposed on virtual currency exchanges are not appropriate, and accounting standards are clarified.
· In May 2019, Japan passed the amendments to the "Financial Closing Algorithm" and the "Gold Merchants Law": the "virtual currency" was renamed as "encrypted assets" and the revised "funding algorithm" and "revised financial instruments and trading laws" ", including measures to strengthen virtual currency exchange and trading rules, was approved and passed at the House of Lords plenary meeting on the morning of May 31." The revised content creates virtual currency trading rules without explicit restrictions and prohibits market manipulation and popularization. The amendment is expected to be implemented in April 2020. The virtual currency was renamed to "encrypted assets" to prevent misidentification using legal currencies such as the yen and the dollar. By adding virtual currency to the provisions of the Financial Commodity Exchange Act, speculative trading will be restricted.
· In November 2018, the three blockchain laws of the Maltese government came into effect, namely the MDIA (Malta Digital Innovation Bureau) Bill; the TAS (Technical Service Providers Act) Bill; and the VC (Virtual Currency) Bill. Established the first regulatory framework for blockchain, digital currency and DLT technology, making the market in this sector a market that protects investors, integrity and financial stability.
· In April 2019, the Malta Financial Services Authority (MFSA) approved the previous 14 cryptographic asset agents' license applications. The regulator said its representatives will now assist these cryptographic service providers under the Virtual Financial Assets Act.
· In February 2018, Venezuela officially issued the cryptocurrency "petroleum". Venezuelan President Maduro announced that the oil coin will serve as the country’s international accounting unit in the future. In November of the same year, the oil coins were officially sold in public and will be traded and circulated in six mainstream international virtual currency exchanges. The Venezuelan Parliament passed a Encrypted Assets Supervision Act that gives the legal effect of the oil currency, allowing it to be used for all domestic commercial transactions, including the sale of goods and services.
· In January 2019, according to Venezuelan local news media, Venezuela will open the first bitcoin ATM. Cryptobuyer's CEO, Jorge Farias, said that the first bitcoin ATM has arrived in Venezuela, making it easier for people to use cryptocurrencies.
4) Marshall Islands
· In March 2019, the Marshall Islands passed a key bill on the creation of sovereign digital currencies, and the Marshall Islands became the first country to accept cryptocurrencies as the legal currency of the country. This week passed a key bill on the creation of sovereign digital currency (SOV). The President of the Marshall Islands stated that as part of the plan, 2.4 million SOVs will be issued to the Marshallese.
Second, into the current securities supervision
1) United States
In May 2018, regulators in the United States and Canada jointly conducted about 70 investigations into the initial public offering of fraud and fraud in digital currency, which was also called the “Digital Money Purification Action”.
· In July 2018, the US Taxation Office (IRS) announced that it has established international working groups with Australia, Canada, the Netherlands and the United Kingdom to deal with digital currency-related crimes.
· In August 2018, Kenneth Blanco, director of the Financial Crimes Enforcement Agency (FinCEN) of the US Treasury Department, pointed out that regardless of whether the currency transfer institution of the convertible digital currency is located in the United States or abroad, even if the foreign entity does not have an entity in the United States, as long as its business In whole or in part, the United States should follow the requirements of the Bank Secrecy Act (BSA).
· In April 2018, the Australian Government announced plans to implement new rules for virtual currency trading through the Australian Transaction Reporting and Analysis Center (AUSTRAC). The main point of the statement is that the virtual currency trading platform in Australia must now be registered in Australia, in line with the government's anti-money laundering (AML)/anti-terrorist financing (CTF) compliance and reporting obligations. Virtual currency exchanges must fulfill new obligations, including: registering with the agency, adopting and maintaining AML/CTF procedures, identifying and verifying users, and reporting suspicious behaviors and transactions involving AU$10,000 and above, and must be kept for 7 years. Transaction record . AUSTRAC stated in the report that if the exchange provides trading services without registration, it will face criminal charges and penalties. These measures show that the Australian government is from the anonymity and global perspective of virtual currency, and hopes to prevent criminals from using money to wash money or financing terrorists through virtual currency.
· In 2017, the Swiss Financial Market Supervisory Authority (FINMA) issued a statement saying that the Swiss Federal Ministry of International Financial Affairs (SIF), the Federal Bureau of Justice, and the Swiss Financial Market Regulatory Authority (FINMA) have joined forces to form a blockchain/ The ICO Working Group specifically investigates how to properly monitor blockchain technology and ICO to determine whether it violates regulatory requirements. FINMA pointed out that if the ICO procedure is found to be in violation of regulations or legal marginal ball during the investigation, the law enforcement procedure will be initiated. The price of the token involved in the ICO is difficult to rule out due to fluctuations.
· In March 2019, according to Cointelegraph, the Swiss government’s legislature, the Federal Parliament, has approved a motion to instruct the Federal Council to amend existing regulations on judicial and administrative authorities so that these provisions also apply to encryption. currency. The bill aims to determine how to contain the risks associated with cryptocurrencies and whether entities operating encrypted trading platforms should be equated with financial intermediaries to accept financial market regulation.
Third, more relaxed, using the regulatory sandbox model
1) United Kingdom
· In May 2018, the Financial Action Agency (FCA) said it was investigating 24 unlicensed companies involved in the cryptocurrency business to determine whether they might be conducting regulated operations requiring FCA authorization. FCA does not regulate digital currencies, but regulates derivatives of digital currencies, and says it will monitor the case of ICO structure on a case-by-case basis. This year alone, the FCA has launched seven reports on digital currency related reports.
· In June 2018, the Financial Action Agency (FCA) announced a letter to its supervising bank CEO warning about the risks that could be dealt with in the encrypted digital currency business. If it involves activities that are considered “encrypted assets” by the FCA, it is necessary to increase the review of customer activities. Some measures to reduce the risk of financial crimes should be taken, such as conducting due diligence on key individuals to ensure that the existing financial crime framework is adequate. Reflects cryptocurrency related activities.
· In November 2016, the Singapore Monetary Authority (MAS) proposed a “regulatory sandbox” for financial technology products, making Singapore the second country in the world to launch a regulatory sandbox after the UK.
· In May 2018, the Singapore Monetary Authority will introduce two major decrees to include non-securities and securities tokens in the regulatory framework. For cryptocurrencies, the Singapore Monetary Authority is planning new regulatory documents. The “recognized market operator” in the revision is being drafted, and the regulatory framework will incorporate the securities cryptocurrency trading platform into its regulatory framework to cater to the emergence of the new trading platform business model. The preparation of the "Payment Service Act" will include other non-securities cryptocurrency trading platforms in its scope of supervision, requiring the platform to do KYC and AML, CFT precautions.
· In May 2018, the emergence of emerging trading markets based on blockchain technology and peer-to-peer technology, the Monetary Authority of Singapore proposed to adopt a three-level structure to supervise the entry barrier and began a one-month public consultation. In the same month, the Monetary Authority of Singapore issued the “Simplify the Rules to Enhance the Business Flexibility of Market Operators” announcement, which aims to protect the interests of investors while identifying emerging business models to promote innovation in financial services.
3) Hong Kong, China
· In November 2018, the China Securities Regulatory Commission issued a statement on the regulatory framework for management companies, fund distributors and trading platform operators for virtual asset portfolios. The content includes funds that require more than 10% of zichan guimo (ALJM) to be virtual assets, and can only be sold to professional investors. Any fund or broker that invests in virtual assets must register with the Securities and Futures Commission.
· In March 2019, according to the Hong Kong Economic Times, the Hong Kong Monetary Authority will issue the first batch of virtual banking licenses as early as this week. The Hong Kong Monetary Authority screened 8 companies for final due diligence in about 20 applications and plans to issue 5-6 licenses. Alibaba's Ant Financial and Tencent's Tenpay are either on the final list.
4) South Korea
· In July 2018, the financial regulator plans to relax the regulations based on cryptographic assets in accordance with the “unified supervision” policy formulated by the G20 countries, and guide the Financial Services Commission (FCS) of the Financial Supervisory Authority (FSS) to revise all activities of cryptocurrency dealers. Relevant guidelines.
· In September 2018, the Korean government banned initial coin issuance (ICO), arguing that the practice of raising funds through the issuance of crypto tokens is no different from “gambling”. This month, the South Korean government said it would not revoke the ban because the country's Financial Services Commission has found that some ICO companies from overseas jurisdictions are still tricking South Koreans into raising funds.
·In January 2019, the Ministry of Science, Technology, Information and Communication and the Ministry of Industry, Trade and Industry of Korea began to implement the sandbox system for information and communication technology industry supervision. The Information and Communication Integration Law and the Industrial Integration Promotion Law also came into force to help enterprises launch as soon as possible. New technologies and new services. Enterprises can obtain “exclusive exceptions” and “temporary licenses”. In the field of ICT integration, the government has accepted applications for licenses such as “blockchain-based overseas remittance services”.
Fourth, cautious supervision, partially open
· In March 2018, the Malaysian National Bank’s new anti-money laundering and counter-terrorism financing policy for digital currency came into effect, requiring Malaysia’s digital currency exchange to join customer surveys.
· In January 2019, Malaysian Finance Minister said in a statement on Monday that Malaysia would regulate ICO and cryptocurrency transactions. The finance minister said that according to the regulations of the Malaysian Securities Commission, an order to treat digital currency and digital tokens as securities will be implemented on January 15. It is expected that the Commission will introduce a framework at the end of the first quarter to provide for “Regulations on the issuance of ICOs and the trading of digital assets in digital asset exchanges in Malaysia”.
· On March 11, 2018, Russia completed the first draft of the federal bill of On Digital Financial Assets, which stipulates the relationship between the creation, distribution, storage and circulation of digital financial assets, as well as intelligence. The obligations of the parties under the contract that need to be fulfilled. At the same time, cryptocurrency, digital tokens and mining were clearly defined, and mining behavior was legalized.
· On March 20, 2018, the Russian federal government introduced Putin's federal bill on virtual currency and ICO regulation, involving digital financial assets and alternative means of raising funds. The Act defines cryptocurrencies and tokens as digital financial assets, not fiat money, and cannot be used to pay for Russian goods and services. It is only allowed to be traded through an authorized cryptocurrency exchange operator. And establish the Know-Your-Customer (KYC) rule for ICO.
• In April 2019, according to the proposed regulatory requirements of the Russian government, the government wanted to limit Russian traders to local encryption exchanges, allowing only “qualified” investors to trade Bitcoin and other cryptocurrencies. If the government is empowered to limit its external traffic, it seems that the ability to enforce such regulations will be significantly enhanced.
· In May 2018, the Thai government issued a law on the electronic assets law, which was also interpreted by industry insiders as the Thai government's positive attitude towards virtual currency. The Thai Digital Assets Act provides a top-level design for legally engaged in virtual currency trading in Thailand.
· In January 2019, according to a statement from the Securities and Exchange Commission of Thailand, the Thai Ministry of Finance approved the operating licenses for four digital asset businesses and refused to approve two companies seeking to become authorized exchanges. Among them, Bitcoin, Bitkub Online Ltd. and Satang Corporation Co. Ltd. were approved as authorized digital asset exchanges, and Coins TH Co Ltd was approved as a cryptocurrency chartered broker and trader. Cash2Coins Co Ltd and Southeast Asia Digital Trading Limited were rejected.
· In March 2019, the Thai Stock Exchange (SET) plans to launch its digital asset platform in 2020. The Thai Stock Exchange said in a statement that the Thai capital market will undergo a transition to the digital age in two areas. The first area will be the full digitization of capital market infrastructure to provide paperless operations. The second direction will be to create a new ecosystem of digital assets to create new opportunities and change the investment landscape.
· In March 2019, the Securities and Exchange Commission of Thailand (SEC) approved the country's first ICO portal. It is reported that the website is operated by a foreign company and will provide customers with ICO screening, background checks, smart contract source code confirmation, KYC and other services.
· In April 2018, the Central Bank of Samoa launched an investigation into a certificate project called ONE COIN. In the same month, the country’s central bank also issued a warning that the digital currency investment plan has a general risk.
· In September 2018, the Central Bank of Samoa informed that individuals who promote cryptocurrencies in the country will receive the same treatment as financial institutions. According to a statement issued by the Reserve Bank of Samoa, the promoters of cryptocurrencies will have to comply with the current state money laundering legislation. Therefore, these cryptocurrency promoters will be required to obtain the necessary licenses and comply with the requirements as all other financial institutions.
5. Strict supervision, expressly prohibited
· In June 2018, at the joint meeting of the Department of Disposal of Illegal Fundraising, the central bank said that it would severely crack down on the “virtual currency” related activities suspected of illegal fundraising, targeting ICO and Bitcoin, which are suspected of illegal fund-raising, illegal securities activities. On the currency exchange, the central bank will issue announcements with relevant departments in a timely manner to clarify attitudes, alert risks, and deploy local areas for rectification.
·In August 2018, the China Insurance Regulatory Commission, the Central Network Information Office, the Ministry of Public Security, the People's Bank of China, and the General Administration of Market Supervision issued the “Risk Tips on Preventing Illegal Fund Raising in the Name of “Virtual Currency” and “Blockchain”, emphasizing the words “ The banner of financial innovation “blockchain”, through the issuance of so-called “virtual currency”, “virtual assets” and “digital assets”, the activity of absorbing funds is actually “financial innovation”, and it is “borrowing new and old”. The scam, the operation of funds is difficult to maintain for a long time.
· In April 2018, the Central Bank of India (BRI) announced that it would ban Indian banks from selling or buying virtual currency, and give banks a three-month buffer period to deal with existing virtual currency business, which is a high wave of Asian regulators. The latest example of the implementation of speculation in sexual currency. After the ban is implemented, individuals in India will not be able to transfer money to the cryptocurrency trading wallet through a bank account.
· In June 2018, Subhash Chandra Garg, Minister of Economic Affairs of the Ministry of Finance of India, revealed that the Indian cryptocurrency regulation will be announced in July and the draft framework has been formulated. Garg said the Indian government will not treat digital currency as currency, will not allow digital currency to enter the country's payment system, and executives will take steps to end the illegal use of digital assets.
· In January 2019, the Indian government has provided the latest developments in the country's cryptocurrency regulatory framework. The government has provided the latest position in areas such as national cryptocurrency and cryptocurrency licensing. According to reports, the country is pursuing cryptocurrency regulations “with due care”.
· In April 2018, the Vietnamese Prime Minister signed an "instruction to strengthen the legal framework for the management of Bitcoin and other digital currencies." The framework includes that the National Bank SBV should instruct credit institutions and intermediary payment service agencies not to conduct illegal transactions in digital currencies; SBV will cooperate with the Ministry of Public Security to deal with the use of digital currency as a means of payment; the Ministry of Finance will guide listed companies, securities companies, Fund management companies and securities investment funds do not engage in illegal issuance, trading and brokerage activities involving digital currencies; hardware imports for mining virtual currency should be restricted; public security, industry and trade, information, communications, and judicial departments should increase Investigation, prevention and treatment of marketing fraud activities related to digital currency.
· In August 2018, the National Bank of Vietnam (SBV) warned the public that digital currency is not a legal currency in Vietnam and that the issuance, use and supply of digital currency are prohibited. Those who violate this rule will not be fined 1.5-200 million rupees (about 6500-11000 US dollars). According to the new Vietnamese criminal law, the provision and use of illegal payment methods may also be a criminal offence.
We have sorted out the research status of central banks on digital currency. Among the 25 central banks, there are 7 central banks planning to launch CBDC, 9 of which are explored, and 6 have been issued, and 3 are not considered. At present, most of the developed countries are considering the issue of avoiding the monopoly of private payment companies. The developing countries and African countries are mostly due to financial inclusiveness and breakthrough sanctions.
Central Bank of the World issues legal digital currency information
At present, the countries that have issued relevant licenses for the digital asset trading industry mainly include Japan, the United States, Switzerland, Thailand, and Samoa. These countries have different attitudes toward digital currencies or ICOs, and the standards for enacting relevant regulations are different, but they are incorporated into regulation through the issuance of licenses, in general to protect markets and investors, and to promote the legal framework of digital assets in the country. Within the scope of compliance. The following is a detailed introduction to past initiatives in these major countries:
Singapore has again demonstrated its clear regulatory position on the digital currency business through the Payment Services Act. Digital currency exchanges and digital wallets are included in electronic payment services and payment-type digital currency services. They can apply for licenses for “standard payment institutions” or “large payment institutions” in accordance with the company's business amount standards.
·Basic requirements: Three types of licenses will be issued under the “license system”: 1. The “money exchange” license application is difficult: limited to the currency exchange service, the scope of supervision is small; 2. “standard payment institution” license application is difficult: supervision For the above 7 types of services, the payment or transfer amount shall not exceed S$3 million/month in a year, or the electronic payment flow involved in one year shall not exceed S$5 million/day; 3. “Large payment institution” license The application is difficult: the above seven types of services are supervised, and the payment or transfer amount exceeds the above-mentioned “standard” license.
·Representative platform: fire coins, bibox
· Basic requirements: The Australian financial sector regulator is the Australian Securities and Investments Commission. The main license is a financial services provider license. The licensee can conduct brokerage business and trade through its own account. There must be a physical office location. At least one Australian is the company manager. Investment services can only be provided to Australians within Australia.
In the final phase of the application, capital requirements must be frozen. After the company obtains the license, the required capital will have to be the paid-up capital that has been issued, and 50% of the capital required funds must be current assets. Client funds must be stored in isolation. Investment companies must fulfill their reporting obligations on capital adequacy and large-value risks. They must also perform internal audit reports, compliance reports, risk management reports, anti-money laundering reports, audited financial reports and audit reports, compliance plans, and training registrations. And reporting obligations for product review policies. The licensee must be a member of the Investor Compensation Fund. Licensees must also participate in professional liability insurance and director and executive liability insurance.
· Application fee: The capital requirement is A$1.1 million and the annual fee is between A$3500 and A$50,000, depending on the transaction volume.
·Representative platform: CMG
· Basic requirements: A physical office must be established and employees must be Hong Kong residents. The application for a licence must be submitted by a Hong Kong company or a registered Hong Kong company. A license application company must have at least two senior executives responsible for company management and appoint one of them as an executive director. The applicant company and its officers, employees and shareholders must meet the appropriate candidates for the Hong Kong Securities and Futures Commission. The Hong Kong Securities and Futures Commission will assess the applicant's solvency and financial status, education and other qualifications, relevant experience in conducting business, the ability to conduct regulated business activities in an upright and fair manner, the company's reputation and financial soundness.
• Regulatory requirements: Licensed companies must maintain paid-up capital and liquidity capital at least equal to minimum capital requirements. Licensees holding client funds must open an account with a bank in Hong Kong. Client funds must be stored in isolation. All licensees must maintain records of financial solvency and financial status, financial education overview, internal compliance and internal control.
All licensees must reasonably retain financial records in accordance with internationally recognized accounting standards and submit monthly, quarterly and annual reports. All companies must disclose earnings to the public.
· Representative platform: Welab Digital Limited, SCDigital Solutions Limited, LiviVB Limited
· Basic requirements: Unlike many other fully regulated areas, Russia has no physical office requirements. The Russian regulator is the Russian central bank. The Bank of Russia’s first license (Finam Forex) is currently reviewing five license applications. The approval time of the Russian central bank is set at 60 days. The license is called a foreign exchange dealer and the licensee can only conduct business as a foreign exchange dealer. As part of the appropriate candidate assessment, executives, directors, and shareholders must submit academic qualifications and professional qualifications, industry-related empirical evidence, and evidence of no criminal record. The company must submit a business plan.
· Application fee: All licensees must deposit $255,000 (2 million rubles) of funds, which will be transferred to the investor compensation fund. The minimum capital requirement is $1.2 million (100 million rubles).
·Representative platform: BQEX
The Philippine Securities and Exchange Commission (SEC) said that the SEC and BSP are jointly exploring the use of digital currency as a financial instrument for financing. The SEC is also considering classifying certain tokens used in crowdfunding as securities, and banks will conduct registration through channels. Trading to meet regulatory requirements while providing digital currency trading services under the supervision of BSP. There are two types of VC licenses issued by the Philippines, one is the license issued by the Philippine Central Bank, and the other is the offshore license issued by CEZA in the Philippines, which can conduct legal currency transactions in the Philippines.
· Basic requirements: Licensed exchanges must invest at least $1 million over two years, and eligible ICO projects can receive funding support.
·Representative platform: GMQ Coin Ex
· The US MSB license is a type of financial license supervised and issued by Fincen (the Financial Crime Enforcement Bureau under the US Treasury). The main target of the supervision is money service related businesses and companies, including digital currency and virtual currency transactions. ICO issuance, as well as foreign exchange, international remittances, etc. Companies engaged in the above related related businesses in the United States must apply for an MSB license in order to operate legally.
·Basic requirements: A company incorporated in the United States with a US legal address and a bank account in the United States. Total Transaction Amount: Lists the total transaction amount of financial products or services issued by MSB for more than $100,000 for each individual month in the previous 12 months.
· Representative platform: Coinbase, Bittrex, OKcion, Fire Coin
· Canada is one of the most transparent countries in the world for digital currency trading legislation, and the definition of digital currency is relatively clear, and the figure does not have currency attributes. Bank of Canada Governor Stephen Poloz said that cryptocurrency is technically a security. In September 2017, the British Columbia Securities Commission (BCSC) issued the first bitcoin fund license to First Block Capital, which specializes in cryptocurrency investments. The company was granted registration as an investment fund manager and a duty-free market dealer to operate Bitcoin investment fund.
·Representative platform: ONEROOT
· Currently, a total of 16 companies in Japan have obtained permission to operate digital currency transactions. However, since the end of January this year, this time the exchange has been inspected. During this period, the Financial Services Agency of Japan has successively issued the suspension and rectification orders of various major platforms and other various punitive measures to further strengthen the supervision of digital currency. It is reported that the Japan Digital Currency Exchange Association has recently launched a new independent regulatory policy. The policy requires the trading institution to set a maximum amount of customer transactions in order to prevent the loss of customer assets.
·Basic requirements: The transaction needs to be authorized by the Ministry of Finance and the Financial Services Agency (FSA) to obtain a license to operate. Otherwise, it cannot be used as a virtual currency trading platform to provide related services to users. Japan's regulations for Bitcoin exchanges include: reserve requirements for bitcoin transactions, separation of customer accounts, adoption of anti-money laundering and KYC (know-your-customer) processes.
·Representative platform: COINBASE, BTCBOX, BITTRADE
· Malta's foreign exchange and binary options provider regulator is the Malta Financial Services Authority. The most important license is the second type of license, which allows the company to carry out all investment services and can hold client funds (only three types of license holders can trade in their own accounts). There are also two types of licenses (A and B) where holders can carry out brokerage business but cannot hold client funds.
· Basic requirements: There must be a physical office. There must be at least two executive management companies that can only provide investment services within Malta.
• Regulatory requirements: Original equity, director and management changes must be approved by the Malta Financial Services Authority. Client funds must be kept in a separate bank account. The licensee must fulfill reporting obligations in terms of capital adequacy and the large risks of the company's position. Other reporting obligations include internal audit reports, compliance reports, risk management reports, anti-money laundering reports, audited financial reports and audit reports. The licensee must join the investor compensation fund.
· Application fee: 17,000 Euros, with an average approval time of 6-8 months. The capital requirement for the second type of license is 125,000 euros and the third category is 730,000 euros. The annual fee for licenses ranges from 3,000 euros to 10,000 euros, depending on the company's actual income.
·Representative platform: coin security
· In May 2018, the Thai SEC officially announced that all companies engaged in cryptocurrency-related businesses in the locality need to obtain a license to operate, and require existing companies in the market to submit license applications to the SEC within 90 days, that is, before August 14. . These companies are still able to conduct business normally during the SEC's application process.
· Basic requirements: registered in Thailand; registered capital is not less than 50 million baht (about 1.57 million US dollars); the actual assets of shareholders are not less than 50% of the registered capital. The platform regularly reviews to ensure user asset security and transaction security; price fairness; transaction to cryptocurrency that can be Thai baht or SEC certified; compliance with AML/CTF laws, due diligence on users and retention of transaction records.
· The relevant fees include: 1. License fee: 25 million baht (about 780,000 US dollars); 2. Annual audit fee: 0.002% of the transaction amount, the minimum charge is 500,000 baht (about 14,000 US dollars), and the maximum charge is 20 million baht ( $630,000)
· Representative platform: Bitcoin Exchange Co. Ltd., Bitkub Online Co. Ltd., Satang Corporation (Satang Pro).
• The Seychelles regulatory authority is the Financial Services Authority, and the relevant types of licenses are securities dealers. Licensees can provide a variety of financial instruments (including stocks, bonds, swaps, option futures and CFDs).
·Basic requirements: Resident employees are required at the office. The licensee must employ at least 2 natural persons as directors and at least one licensed securities advisor or one licensed investment adviser. All licensees must purchase professional liability insurance. Every manager of the company must meet the requirements of appropriateness.
• Regulatory requirements: There are no minimum activity requests (including cash or other types of assets), however the company's minimum capital must remain above $50,000. If the company makes substantial changes (such as appointing or dismissing directors or management personnel), and is subject to any disciplinary action, any change that causes the licensee to suspend operations, the licensee must notify the Financial Services Authority.
After the customer deposits, the company must deposit the client's funds in a separate bank account. The licensee must keep all the deposit and withdrawal records from the customer's bank account. Accounting and auditing requirements require that all licensees retain appropriate accounting records in accordance with IFRS. All licensees must appoint an auditor within 30 days of obtaining the license. Foreign auditors must be authorized by the Financial Services Authority.
· Application fee: The capital requirement for the license is $50,000 and the annual fee is $2,500.
·Representative platform: BitMEX, Firecoin Pro, JEX, K-Net, Digifinex, BitMEX
· The Pacific Island State Bank of Samoa said that individuals who promote cryptocurrency projects in the local area must comply with the same regulations as financial institutions. The Central Bank of Samoa said in a statement that anyone wishing to promote or promote cryptocurrency and digital currency will be treated as a financial institution in accordance with the provisions of the Money Laundering Prevention Act Amendment of 2018. A valid business license issued by Samoa must be obtained and must comply with the central bank’s reporting requirements for financial institutions.
· Basic requirements: The registered capital requirement for the license is 5 million US dollars, and there are any banks on the island.
·Representative platform: ZB.com
· In April 2019, the Bahamas Securities Commission (SCB) issued a draft legislation regulating the issuance or sale of digital tokens in and outside the Bahamas, as well as sellers and intermediary service providers. SCB, the English full name of the Securities Commission of The Bahamas (Bahamas Securities and Exchange Commission), is an important financial regulator in the Bahamas. In recent years, its regulatory authority has been highly recognized by the global market and investors, and has attracted much attention from the industry. Its important function is to supervise the behavior of financial services companies such as funds and securities, and to be responsible for formulating relevant industry laws and regulations to ensure that the market operates in a fair, healthy and orderly environment.
• Basic requirements: own physical office; at least one local company principal; employees include local CEO and compliance officer; actual business planning and appropriate compliance standards.
·Representative platform: INFINOX Bahamas, BHP
· Estonia is one of the EU member states and is the first country to introduce applicable cryptocurrency regulation. Estonia is known for its innovative approach and high level of regulation in promoting DLTs and cryptocurrency regulation. Since the beginning of 2012, Estonia has started using blockchain technology in its Health, Judicial, Security and Business Regulations Registration Center. The license holder operator is permitted to operate as the following entities: 1. The provider of the virtual currency and legal currency exchange services; 2. The provider of the virtual currency wallet service.
·Basic requirements: 1. If the turnover is more than 40,000 Euros, you need to apply for VAT2. If the company's directors are all members of the EU, you need to appoint a full-time staff such as a notary office/law firm to serve as the company's liaison. 3. Work permit: After 5 months of actual operation of the Estonian company, the company director can apply for a work visa. If it is a special talent, it is necessary to provide a special talent certificate; the director's salary income shall not be less than three times the local average salary.
·Representative platform: IronX, OKCoin, Yihe, CIF
· In April 2018, The Bermuda Monetary Authority (BMA) issued the Virtual Currency Business Act (2018), which clearly states that the opening of virtual currency electronic exchanges is a business "virtual" "Virtual Currency Business", and the business needs to apply for a license to BMA.
·Basic requirements: The licenses are divided into F and M categories. The holders of both licenses can engage in some or all of the aforementioned virtual currency business. Although the applicant can choose the type of license to apply for, the final license will be decided by BMA.
·Representative platform: VLHL
Labuan is one of the most well-known offshore financial centers in the global market and the first offshore financial center in Malaysia. Labuan is also one of the channels for foreign investors to enter ASEAN countries. In 2010, Labuan offshore company was officially allowed to conduct commercial transactions with Malaysian local limited company. According to this regulation, Labuan became a Zhong An Island and reached a two-tax system.
·Basic requirements: Currently, there are virtual currency trading licenses in other regions, which can have at least 2 years of experience without shareholder directors and operation teams; paid funds of 120,000 US dollars, shareholders need to submit 150,000 US dollars of funds when submitting applications; Need to set up an office in Labuan; a detailed business plan and plans for the next three years, KYC Handbook and Anti-Money Laundering Manual
·Representative platform: Fusang Group