Compliance Digest—June 2024
Learn about all the latest compliance updates from the past month.
Every month, Sumsub’s compliance team prepares a digest with all the latest updates in the world of AML and beyond. We cover multiple industries from AI to crypto.
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iGaming
Australia 🇦🇺
Australia online wagering no longer accepts credit cards
What happened? Responsible Wagering Australia (RWA) and its members have been steadfast advocates of this initiative, collaborating with the Commonwealth Government and the financial services sector since 2021 to implement a ban on credit card gambling, which is effective starting from June 11, 2024.
Who’s affected? Wagering service providers operating in Australia
Deadline: June 11, 2024
Read more: Credit Card Ban for Online Wagering Begins Today
Suggested read: Gambling and Betting in Australia —A Complete Guide 2024
Brazil 🇧🇷
Brazil is working on regulations on casinos and bingo
What happened? A bill regulating casinos, bingo, and horse wagering is moving to the Senate Plenary for a further vote, having already been approved by Brazil’s Chamber of Deputies on June 19.
Who’s affected? Brazil gambling service providers
Deadline: Voting starts July 18 and ends on July 31
Read more: Projeto de Lei n° 2234, de 2022
Crypto
The EU 🇪🇺
The European Banking Authority (EBA) and European Securities and Markets Authority (ESMA) have jointly released guidelines related to the Markets in Crypto Assets regulation (MiCA)
What happened? The EBA and ESMA have jointly released guidelines regarding the qualifications of management board members and the evaluation of shareholders and qualifying holders for asset reference tokens (ARTs) and crypto-asset service providers (CASPs) under the Markets in Crypto Assets regulation (MiCA).
Who’s affected? EU-based CASPs
Deadline: –
Suggested read: Crypto Regulations in the European Union—Markets in Crypto-Assets (MiCA)
Turkey 🇹🇷
Turkey is about to pass the ‘Crypto Bill’
What happened? In mid June, the Turkish parliament agreed on the project of the regulatory framework for crypto service providers. Currently, the document is awaiting presidential approval. VASPs must obtain a license from the Turkish Capital Markets Board (CMB) before operating in the country. The CMB will have the authority to conduct supervisory visits to ensure VASPs comply with key requirements related to anti-money laundering and countering the financing of terrorism (AML/CFT), market conduct, consumer protection, and other regulations.
Who’s affected? Crypto service providers operating in Turkey
Deadline: –
Read more: TÜRKİYE BUYUK MİLLET MECLİSİ BAŞKANLIĞINA
Hong Kong 🇭🇰
The Hong Kong SFC issued regulatory expectations for virtual asset trading platforms
What happened? Starting from June 1, 2024, all virtual asset trading platforms (VATPs) operating in Hong Kong must be either licensed by the Securities and Futures Commission (SFC) or “deemed-to-be-licensed” VATP applicants under the AMLO.
Who’s affected? Virtual asset trading platforms operating in Hong Kong
Deadline: Not specified
Read more: SFC briefs virtual asset trading platform applicants on regulatory expectations after transition period ends
Cyprus 🇨🇾
CySEC is releasing a consultation paper on EU MiCA regulation
What happened? The Cyprus Securities and Exchange Commission (CySEC) released a consultation paper (CP-01-2024) inviting stakeholders to provide feedback on proposed fees and information requirements for entities falling under Regulation (EU) 2023/1114, also known as MiCA. The further supervision of the regulated entities under MiCA is supposed to be assigned to CySEC.
Who’s affected? Market stakeholders
Deadline: Consultation ends July 17, 2024
Read more: CySEC consults market on fees payable and information to be reported under MiCAR
Fintech
The UAE 🇦🇪
CBUAE is inviting fintech projects into its Regulatory Sandbox
What happened?
The Central Bank of the UAE (CBUAE) has issued the Sandbox Conditions Regulation, which aims to attract start-ups and global fintech businesses by creating an attractive environment that supports creativity and innovation within a regulatory and supervisory framework.
Who’s affected? Fintech businesses seeking sandbox opportunities in the UAE
Deadline: –
Read more: The CBUAE issues Sandbox Conditions Regulation to foster innovation in financial services sector
Suggested read: Regulatory Sandboxes—a Bridge Between Regulators and Business Innovation
AI
Canada 🇨🇦
The Government of Canada launches public consultation on artificial intelligence computing infrastructure
What happened? The Government of Canada is supporting the responsible development and adoption of AI across the Canadian economy through a suite of measures—including the Artificial Intelligence and Data Act (Bill C-27) and the Voluntary Code of Conduct on the Responsible Development and Management of Advanced Generative AI Systems, thus starting a consultation on the smooth adoption of AI technologies.
Who’s affected?-
Deadline: The consultation will be open until September 6, 2024 for all organizations.
Suggested read: What Are Deepfakes?
Potential projects
Italy 🇮🇹
Italy may increase surveillance of the crypto market with fines as high as 5M euros
Italy is reportedly planning to introduce stricter crypto surveillance measures due to the risks associated with digital assets.
A draft Italian decree outlines plans for enhanced oversight of virtual assets, including imposing fines ranging from 5,000 to €5 million ($5,400—$5.4 million) for offenses such as market manipulation. However, no official statements or documents have been released yet.
Who’s affected? VASPs
Deadline: Not clear
Read more: Italy Set to Increase Crypto Surveillance and Introduce Tougher Sanctions
Suggested read: What is the FATF Travel Rule? The Ultimate Guide to Compliance (2024)
The UAE 🇦🇪
The UAE central bank reportedly approves licensing system for stablecoins
The board of directors of the Central Bank of the United Arab Emirates (CBUAE) has reportedly approved a new system to oversee and license stablecoins. Payment tokens must be backed by UAE dirhams and cannot be linked to other currencies, digital assets, or algorithms. Merchants and service providers will be required to accept only dirham-backed tokens and no other virtual assets. However, no official statements or regulations have been announced yet.
Who’s affected: VASPs
Deadline: Not clear
Read more: Chaired by Mansour bin Zayed, CBUAE board reviews implementation progress of FIT programme projects
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