The volatility of cryptos — and the emergence of any number of blockchain and tokenization projects through the last year — has invited fresh regulatory scrutiny of digital currencies.
In Ireland, reported CryptoGlobe, the Irish cabinet has approved legislation that will bring more regulation to the sector. The site noted that the new rules still await passage by the country’s legislative body.
The bill, tied to cryptos, is part of the Fifth Anti-Money Laundering (AML) Directive, which is part of a pan-European mandate to, among other things, combat terrorist financing through Know Your Customer (KYC) and other measures.
With the new directive, cryptos fall under that mandate. In addition, the legislation is focused on crypto exchanges and wallet providers, with Ireland’s legislation — known as the Criminal Justice Amendment Bill of 2019 — also letting the Criminal Assets Bureau and Garda access bank records amid money laundering investigations, as reported by TheCryptoUpdates.
Separately, in India, the action toward crypto regulation seems to be … inaction. The new year dawned with the government’s statement that there is an “absence of a globally acceptable solution, and the need to devise a technically feasible solution” … and it all warrants “further study.”
The statement comes as cryptocurrencies are still not being recognized as legal tender. Against that backdrop, there are, at present, no plans for the nation to issue a state-backed cryptocurrency, as the government has pointed toward continuing concerns over money laundering and cyber risks.
One caveat, as noted in this space last week, is that India is among several nations that make up the Financial Stability Board (FSB), which has 20 nations on its roster. The FSB said it has reviewed the rapid growth of crypto and has found that “crypto assets do not pose risks to global financial stability currently.” That may open the door to revisiting the issue, as the U.S. Securities and Exchange Commission (SEC) may have its own set of regulations forthcoming in 2019, where those regulations can serve as a de facto template for crypto adoption in other nations moving forward.