Compliance Digest—September 2024

Learn about all the latest compliance updates from the past month.

Arina Rumyanceva

Legal Counsel at Sumsub

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 crypto to gambling.

If you want to get the latest news every month in one place, subscribe to our newsletter.

Crypto

UK 🇬🇧

New bill introduced in UK Parliament to clarify crypto’s legal status

What happened? Bitcoin and other digital assets may be considered personal property under a new draft law introduced in the UK Parliament on September 11. If approved, digital holdings, including cryptocurrency, non-fungible tokens (such as digital art), and carbon credits, will be classified as personal property under the law and receive corresponding legal protection.

Who’s affected? Market stakeholders

Deadline: —

UAE 🇦🇪

Dubai SCA and VARA set regulatory framework for the UAE’s virtual assets sector

What happened? The Securities and Commodities Authority (SCA) signed a cooperation agreement with Dubai’s Virtual Assets Regulatory Authority (VARA) to strengthen the UAE’s position as a leading global hub for virtual assets. The two parties agreed that VASPs operating in or from Dubai, or wishing to service the emirate, are required to obtain a license from VARA and can be registered by default with the SCA to serve the wider UAE. VASPs wishing to operate from any other emirate must be licensed by the SCA.

Who’s affected? VASPs operating in or wishing to operate in Dubai

Deadline: In force

Hong Kong 🇭🇰

Hong Kong considers new licensing regime for over-the-counter crypto trading

What happened? On September 26, the Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) jointly published a conclusions paper following a consultation on enhancements to the over-the-counter (OTC) derivatives reporting regime in Hong Kong. The consultation addressed the classification of digital asset and crypto derivatives.

Who’s affected? Financial institutions, industry bodies, exchange and clearing house groups, standard-setting organizations, and a trade repository.

Deadline: September, 2025

Suggested read: Crypto Regulations in Hong Kong

Fintech

Australia 🇦🇺

The Australian Securities and Investments Commission has reissued Regulatory Guide for financial services business in Australia

What happened? The Australian Securities and Investments Commission (ASIC) has reissued Regulatory Guide 121 (RG 121) to provide updated guidance for individuals and companies outside Australia wishing to conduct financial services business within the country. This new version replaces the guidance issued in June 2013. The reissue includes the removal of references to expired or repealed Australian Financial Services (AFS) licensing relief, particularly class relief granted to foreign financial services providers (FFSPs) and foreign collective investment schemes. It also amends descriptions of AFS licensing exemptions and relief to align with those currently available. Additionally, RG 121 updates the courts’ interpretation of “carrying on a business in Australia,” detailing general indicators and relevant factors that may determine whether a one-off transaction constitutes carrying on a business. Furthermore, it revises descriptions and references related to financial products and services, obligations of AFS licensees, and the legal framework overseen by ASIC, ensuring that all information reflects the current regulatory landscape.

Who’s affected? Financial services operating in Australia

Deadline: In force

Germany 🇩🇪

German investment firms can apply for the status of designated publishing entity

What happened? German investment firms can apply for Designated Publishing Entity (DPE) status under the updated Markets in Financial Instruments Regulation (MiFIR). This status allows them to take responsibility for making transactions public through an Approved Publication Arrangement (APA) without needing to be classified as a Systematic Internaliser (SI).

Who’s affected? Investment firms

Deadline: Transitional phase until February 3, 2025

Gambling

Brazil 🇧🇷

Brazil’s ministry of finance announced enforcement action against unlicensed operators will begin from 1 October

What happened? Brazilian betting operators are warned to apply for a new license by October 1. Operators that had not applied for a license by midnight on September 30 must cease operations from October 1 until they have applied and received their permits. Any that continue to operate will be subject to having their websites blocked and fines of up to R$2 billion (US$354 million).

Who’s affected? Betting operators in Brazil

Deadline: October 1

Read more: Normative Ordinance No 1,475

Australia 🇦🇺

Mandatory minimum classifications for gambling-like content in video games in Australia

What happened? Starting September 22, 2024, new mandatory minimum classifications for gambling-like content in video games will take effect. These changes will apply to games on computers, gaming consoles, phones, and tablets. Video games containing simulated gambling, such as casino games, will be legally restricted to adults, with a minimum classification of R 18+ (Restricted—legally restricted to adults aged 18 years or older).

Who’s affected? Gaming operators in Australia

Deadline: In force

Denmark 🇩🇰

The Danish Gambling Authority updates the certification programme for betting and online casinos

What happened? The Danish Gambling Authority (DGA) has updated the certification program for betting and online casinos due to the introduction of supplier licenses starting January 1, 2025. One of the major updates relates to requirements for vulnerability scanning.

Who’s affected? Danish gambling operators

Deadline: October 2024, pending parliamentary approval
Read more: The Danish Gambling Authority’s certification programme for betting and online casinos

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