South Africa’s financial services industry regulator announced on July 2 that it had approved an additional 63 crypto asset service provider license applications. The Financial Sector Conduct Authority (FSCA) has received a total of 383 applications, with only five being declined. Notably, the approvals do not mean crypto assets are recognized as a legal form […]
Bitcoin News
Circle Awarded Europe’s First Stablecoin License Under New MiCA Crypto Rules
Cryptocurrency firm Circle has achieved a significant milestone by securing registration as an electronic money institution (EMI) in France. This move grants Circle a crucial license to operate as a compliant stablecoin issuer under the European Union’s rigorous crypto laws.
Circle Breakthrough
According to a CNBC report, the approved license positions Circle as the first global stablecoin issuer to achieve compliance with the European Union’s regulatory framework known as Markets in Crypto-Assets (MiCA).
This framework, considered a cornerstone in the EU’s approach to governing cryptocurrencies, sets out comprehensive rules and obligations for crypto companies to ensure investor protection and safeguard against market manipulation.
Circle’s acceptance into the MiCA regulatory framework means that both its USDC and Euro Coin (EURC) tokens can now be issued within the European Union while meeting the stablecoin regulatory obligations outlined by MiCA.
Additionally, Circle is opening up its Circle Mint service, enabling businesses to mint and redeem Circle stablecoins, to customers in France.
Expressing his satisfaction with the achievement, Jeremy Allaire, co-founder and CEO of Circle, emphasized the company’s longstanding commitment to building compliant and well-regulated infrastructure for stablecoins. He stated:
Our adherence to MiCA, which represents one of the most comprehensive crypto regulatory regimes in the world, is a huge milestone in bringing digital currency into mainstream scale and acceptance.
European Stablecoin Adoption
The EU’s MiCA law, which officially came into effect in May 2023, introduced the world’s first comprehensive regulatory framework for cryptocurrency operations.
Last week, provisions specifically governing stablecoins were approved, imposing stringent measures on trading volume limitations for certain stablecoins, particularly those denominated in US dollars.
As a registered EMI in France, Circle can now extend its services, including the minting and redemption of USDC through Circle Mint, not only to customers in France but also to individuals and businesses across the European Union.
This is made possible by the concept of “passporting” outlined in MiCA, which allows crypto businesses to offer services in one EU country and expand into other markets within the bloc.
While Circle’s achievement is commendable, it should be noted that additional obligations under MiCA about crypto asset service providers will become applicable by December 30, 2024. Crypto companies will then have until July 2026 to ensure full compliance with MiCA’s requirements.
Since its launch in September 2018 by Circle and crypto exchange Coinbase, USDC has gained significant traction and now holds the position of the second-largest stablecoin globally.
According to CoinGecko data, USDC’s circulation amounts to .4 billion, trailing only Tether’s USDT, which holds the title of the world’s largest stablecoin with a circulation of 2.7 billion.
Featured image from Shutterstock, chart from TradingView.com
Binance’s Local Exchange Receives Dubai License, Initiates UAE User Migration
Binance is transitioning UAE resident accounts to its new regulated local entity, Binance FZE, following a Virtual Asset Service Provider license from Dubai’s regulator. This change will allow UAE users to access various virtual asset services locally, including AED bank deposits and withdrawals. Binance’s Local Exchange in UAE Now Licensed Crypto exchange Binance announced on […]
Bitcoin News
Bybit Affiliate Withdraws Hong Kong VASP Application Months After Regulator Issued License Warning
The Singaporean crypto exchange Bybit’s affiliate Spark Fintech Limited, has abandoned its pursuit of an operating license in Hong Kong. The affiliate withdrew its virtual asset trading platform application on May 31, exactly four months after submitting it. The decision followed the Hong Kong regulator’s classification of Bybit as an unlicensed entity, accompanied by threats […]
Bitcoin News
Hong Kong’s Grace Period for Crypto Exchanges Ending — Trading Platforms Must Obtain License by June 1
The Hong Kong Securities and Futures Commission (SFC) has issued a reminder that crypto trading platforms must obtain a license to operate in Hong Kong before the grace period ends on June 1. The regulator warned that operating without a license is a criminal offense and will enforce compliance. Investors are advised to only trade […]
Bitcoin News
Nigeria’s SEC-Crypto License
In May 2022, Nigeria’s Securities and Exchange Commission introduced a robust regulatory framework for virtual asset service providers, including digital asset exchanges. The framework required compliance with various laws and regulations to foster market integrity, safeguard investors, and deter financial crimes. The rules mandated digital asset exchanges to register, adhere to anti-money laundering (AML) practices, […]
Bitcoin News
Deribit’s Dubai Unit Receives ‘Conditional’ Virtual Asset Service Provider License
Deribit FZE, an entity owned by crypto derivatives platform Deribit, has secured a conditional virtual asset service provider from the Dubai virtual assets regulator. The license, which covers spot and derivative trading, will remain non-operational until Deribit meets the regulator’s localization requirements. Meeting Dubai’s Localization Requirements Deribit FZE, a wholly owned entity of the crypto […]
Bitcoin News
Alchemy Pay Gains Approval with New Hampshire Money Transmitter License in the USA
Alchemy Pay, the leading fiat-crypto payment gateway, proudly announced another successful Money Transmitter License (MTL) acquisition in the USA, the state of New Hampshire, adding to its existing licenses in Arkansas and Iowa. Alchemy Pay is actively pursuing MTL licenses in additional U.S. jurisdictions as part of its efforts to expand its crypto payment services, […]
Bitcoin News
South African Regulator Expects to Determine Fate of 50 Crypto License Applications in ‘Coming Weeks’
The head of enforcement at South Africa’s financial industry watchdog said on Jan. 24 that he expects the organization to decide the fate of 50 crypto firms’ license applicants in the coming weeks. The watchdog stated that from the more than 100 entities that applied for a license, 20 have since withdrawn from their respective applications.
The Cost of Obtaining a License
An official with the Financial Sector Conduct Authority (FSCA), South Africa’s financial industry watchdog, announced on Jan.24 that the organization expects to determine the fate of some 50 crypto firms’ license applications in the coming weeks. Gerhard van Deventer, the head of enforcement at the FSCA, revealed that out of the 90-plus applicants, 20 have since withdrawn.
As reported by Bitcoin.com News in late 2023, the South African watchdog had received a total of 93 applicants just days before the Nov. 30 deadline. This figure, which ultimately rose to 105, consisted of both current holders of FSP licenses and fresh applicants. At the time, Diketso Mashigo, the FSCA’s compliance head, confirmed that some applicants had decided against pursuing the license. Some eventually opted to operate outside the South African market.
Deventer, who made the remarks during a podcast, said he agrees with the assertion that some of the applicants may have chosen to withdraw because they have may been spooked by the cost of obtaining the financial service provider (FSP) license.
Applicants Fail to Meet Key Requirement
The FSCA’s head of enforcement however suggested that some of the withdrawing applicants only did so after they became aware of the burden of getting the license. Deventer suggested that many of those applicants had no realistic chance of meeting one key requirement.
“Applicants got stuck on the requirement of having an appropriate key individual because such an individual will need to have a very specific and relevant experience, qualifications and skills. And there is not a lot of that around if you take into account that crypto has not been around for a long time,” the FSCA’s Head of enforcement said.
Some of the applicants who found themselves in this situation said they would only reapply when a suitable individual is found, Deventer added.
Meanwhile, when asked about the changes to regulations proposed by the FSCA, Deventer said tackling scammers who purposely choose to operate outside its regulatory ambit is what motivated it to make the amendments. According to Deventer, once the new regulations kick in it will now be impossible for such entities to avoid regulation of their activities.
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Hashkey Capital Singapore Secures Full Capital Markets Services License From Singapore
Reflecting Singapore’s progressive stance on digital assets, the Monetary Authority of Singapore (MAS) has awarded Hashkey Capital Singapore a full Capital Markets Services license, enabling the firm to enhance its fund management services and contribute significantly to the burgeoning blockchain community.
Hashkey Capital Singapore Elevates Its Market Presence with New CMS License from MAS
In yet another positive move for the digital assets sector in Singapore, Hashkey Capital Singapore, a subsidiary of Hong Kong-based digital asset group Hashkey, has been granted a full Capital Markets Services (CMS) license by the Monetary Authority of Singapore (MAS). This approval marks a crucial step for the firm in expanding its regulated fund management services within the region.
We’ve secured the Capital Markets Services (CMS) license from @MAS_sg!
As a licensed fund management company (LFMC), this empowers us to provide regulated fund management services in the realm of capital markets products.
@techinasia
https://t.co/WIQQ31T99J pic.twitter.com/oFrd0QbNxI
— HashKey Capital (@HashKey_Capital) December 19, 2023
Hashkey Capital Singapore, which applied for the license in late 2021, aims to leverage this opportunity to launch regulated funds and offer capital market products to local customers. The CMS license allows the firm to actively contribute to and foster progress within Singapore’s burgeoning blockchain community.
Mr. Deng Chao, CEO of Hashey Capital Singapore and Head of Hashkey Singapore, commented on the achievement, stating, “Securing the CMS license from the MAS marks a defining moment for Hashkey Capital and the vibrant Web3 landscape in Singapore. As a licensed fund management company, we are committed to contributing to the local blockchain community and playing our part in shaping its future.” He continued,
Singapore’s innovative spirit aligns with our mission, and we’re excited to propel blockchain-related capital markets products and investments further into the mainstream, offering new possibilities for institutional and accredited investors.
This development bookends a successful 2023, which started the year with Hashkey Capital’s 0 million funding round, a testament to the firm’s growth and influence in the crypto asset management space. The company’s operations in Singapore include a team of approximately 40 staff members, covering a range of services from venture capital investment and fund management to over-the-counter trading of digital assets.
Managing over US billion in client assets, the firm has invested in over 500 projects across infrastructure, tools, and applications within the blockchain and crypto domains. The achievement by Hashkey Capital Singapore comes on the heels of similar licenses granted to other firms in the region, such as Digift and SBI Digital Markets, signaling a growing regulatory embrace of digital assets in Singapore.
Is Singapore the most progressive country with respect to digital assets? Share your thoughts and opinions about this subject in the comments section below.