The Financial Services Agency (FSA), Japan’s main financial regulator, has proposed a series of measures to protect users against illegal transfers to cryptocurrency exchanges, one of which could have a significant impact on the peer-to-peer (P2P) transactions market.
The FSA recommends that transfers to crypto-asset exchange service providers be halted if the sender’s name differs from the account name. While the current request from the FSA is presented as a recommendation rather than a specific requirement, it remains to be seen how banks will respond and whether this will disrupt the P2P market.
Meanwhile, South Korea’s Financial Intelligence Unit (FIU) has announced increased scrutiny of cryptocurrencies. As part of its work plan for 2024, the agency plans to implement a preemptive trading suspension system for suspicious transactions on platforms operating in South Korea. This system will freeze transactions even during the pre-investigation phase. Additionally, the FIU aims to enhance its crypto team in 2024, providing education and training, and launching a virtual asset analysis system to track and analyze virtual asset transaction details.
In the European Union, the Internal Market and Civil Liberties Committees of the European Parliament have voted in favor of a provisional agreement on the AI Act. This act aims to establish guidelines for artificial intelligence (AI) in various industries, including banking, automotive, electronics, aviation, security, and law enforcement. The regulations will oversee foundational models or generative AI that have been trained on extensive data sets. The AI Act also includes safeguards, such as copyright protection for creators, and prohibits AI applications that threaten citizens’ rights, such as biometric categorization and social scoring.
In the Philippines, the Governor of Bangko Sentral ng Pilipinas (BSP) has announced plans to introduce a wholesale central bank digital currency (CBDC) in the coming years. The BSP does not intend to use blockchain technology for the CBDC, taking inspiration from Sweden and China, which are developing CBDCs as digital alternatives to cash and rival cryptocurrencies. The Governor believes that the Philippines can replicate their experiences, and the CBDC is expected to be launched within his term, possibly within the next two years.
On the other hand, the National Banking and Securities Commission of Honduras has issued a resolution prohibiting financial institutions in the country from handling cryptocurrencies. The resolution cites the risk of fraud, operational issues, and legal risks associated with cryptocurrencies and blockchain-based financial services. It also highlights the unregulated nature of crypto assets, which makes them susceptible to fraud, money laundering, and financing terrorism. The resolution also prohibits supervised institutions from holding derivative instruments based on crypto assets.