Nov 02, 2023
5 min read

Sumsub Compliance Digest—October 2023

Learn about the latest AML compliance news from the past month

Sumsub continues to publish monthly digests about the latest AML regulations worldwide which concern a wide range of industries from crypto to iGaming. If you want to stay up-to-date, subscribe to our newsletter.


Peru 🇵🇪 

Peru released iGaming regulations

What happened? 

On October 13, 2023, the Peruvian government released regulations pertaining to the implementation and control of online gambling. 

Supreme Decree No. 005-2023 (the ‘Decree’) aims to regulate the operation of remote gaming and sports betting, ensuring integrity, transparency, and equal treatment. It also aims to protect vulnerable populations by implementing access controls for minors and promoting responsible gaming policies to prevent addiction. Additionally, it aims to prevent the use of remote gaming and sports betting for money laundering, financing terrorism, fraud, computer crimes, or any other illegal activities.

In addition, the Decree encompasses regulations that grant the Ministry of Foreign Trade and Tourism (MINCETUR) the authority to both license and regulate online gaming and sports betting. These regulations also authorize MINCETUR to establish and maintain a registry of licensees. 

Who’s affected? Gambling business operating in Peru 

Deadline: In effect starting from January 2024; March 9, 2024 is the deadline for  unregulated operators to obtain a license


Sweden 🇸🇪

Sweden tightens rules for granting credit and introduces the Swedish debt register

What happened? 

In Sweden, a stricter regulatory framework is proposed with a ban on third parties “promoting the granting” of credit for gambling. One of the primary aims of this ban is to protect individuals who may be susceptible to problem gambling or have a gambling addiction.

In addition, Sweden proposes enabling a special debt register so that gambling operators would be able to check players’ affordability to gamble. 

Who’s affected: Gambling operators in Sweden 

Deadline: –

Read more: Press Release: BOS welcomes tightened rules for granting credit and introduction of Swedish debt register


Australia 🇦🇺

Australian Treasury published a consultation paper on the regulatory framework for digital asset platforms

What happened? 

The Australian Government is working to introduce a regulatory framework for entities providing services for accessing or holding digital assets. In a consultation paper issued in October, 2023, the Australian government proposes to incorporate digital asset platforms and other intermediaries within the existing financial services framework. This will involve introducing a new type of financial product called a ‘digital asset facility’. 

Interested parties can make submissions on the proposed framework electronically or by post until December 1, 2023. 

Who’s affected? Digital asset service providers

Deadline: Closing date for submissions is December 1, 2023

Read more: Regulating digital assets. Proposal paper

European Union 🇪🇺

The European Banking Authority’s (EBA) consultations on risk management of Asset Referenced Tokens (ARTs) under the Market in Crypto-Assets Regulation (MiCAR)

What happened?

On October 20, The European Banking Authority (EBA) announced the commencement of a public consultation on its updated guidelines pertaining to internal governance arrangements for issuers of Asset Referenced Tokens (ARTs) under the Market in Crypto-Assets Regulation (MiCAR). These guidelines outline the specific governance requirements that these issuers must adhere to, taking into consideration the principle of proportionality. The main objective of this governance framework is to ensure risk management across all areas, encompassing operational risks (such as fraud, cyber threats, and compliance risks). 

Furthermore, the provisions seek to provide adequate consumer and investor protection. As a means of adhering to the principle of proportionality and recognizing the unique characteristics of ART issuers, this consultation paper elaborates on several governance provisions outlined in MiCAR. It includes clarifications on the tasks and responsibilities of the management body, as well as the overall organizational structure. 

Interested parties have until January 22, 2024 to participate in the consultation

Who’s affected? Issuers of asset reference tokens (ARTs) operating in the EU

Deadline: Consultation closes on January 22, 2024 

Read more: Consultation on draft Guidelines on internal governance arrangements for issuers of ARTs under MiCAR (EBA/CP/2023/23)

Hong Kong 🇭🇰

The Hong Kong Securities and Futures Commission (SFC) revised its policy on virtual assets, stating that complex virtual asset products should only be offered to professional investors

What happened?

The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA)  have recently reviewed their existing policy regarding intermediaries wanting to engage in virtual asset-related activities (VA-related activities). The objective is to enhance retail access through intermediaries and enable investors to conveniently deposit and withdraw virtual assets directly from intermediaries, while ensuring appropriate safeguards are in place. Therefore, the SFC and the HKMA believe it is necessary to implement the following additional measures to protect investors when distributing VA-related products:

1. Selling restrictions. With the exception of a limited range of products, VA-related products that are considered complex should only be offered to professional investors. For instance, an overseas VA non-derivative ETF would likely be deemed as a complex product and should only be available to professional investors.

2. Virtual asset-knowledge test. Unless clients are institutional professional investors or qualified corporate professional investors, intermediaries should assess whether clients possess knowledge of investing in virtual assets or VA-related products before conducting transactions on their behalf. If a client lacks this knowledge, the intermediary can proceed only if adequate training has been provided to the client regarding the nature and risks associated with virtual assets.

Who’s affected?: Virtual asset providers operating in Hong Kong 

Deadline: January 2024

Read more: Joint circular on intermediaries’ virtual asset-related activities

United Kingdom 🇬🇧

FCA warned crypto asset providers about marketing rules 

What happened?

Starting from October 8, 2023, companies interested in advertising crypto assets in the UK are required to be authorized or registered by the FCA, or have their marketing materials approved by an authorized firm, in accordance with FCA regulations. Moreover, these promotions must be transparent, equitable, and free from any misleading information. Additionally, explicit risk warnings must be prominently displayed, and any attempts to improperly entice individuals to invest are strictly prohibited. 

Recently, the FCA published a warning to firms promoting crypto assets in the UK to ensure compliance with applicable marketing rules and regulations.

Who’s affected?: Crypto providers operating in the UK

Deadline: In force

Read more: FCA warns about common issues with crypto marketing


European Union 🇪🇺

ESMA published a report on DeFi, emphasizing vulnerabilities and risks

What happened? 

On October 11, the European Securities and Markets Authority (ESMA) published a report on DeFi, analyzing the current market situation and emphasizing potential vulnerabilities. 

According to the report, although current overall risks remain small, DeFi poses significant risks to investor protection and has the potential to create negative externalities for the traditional financial system. DeFi’s innovative features are also enabling new forms of market abuse, and industry will need to address this issue to ever achieve sustainable growth. In the EU, MiCA establishes a new comprehensive regulatory framework for previously unregulated crypto assets, but it does not directly address DeFi. 

Starting from 2025, ESMA will report annually on the development of the crypto asset market. The first report, coinciding with full implementation, will in particular assess the development of DeFi and whether it merits additional regulatory action. Generally, ESMA will continue to actively monitor DeFi developments as the sector’s activities and mechanisms continue to evolve rapidly and present unique challenges and risks.

Who’s affected: Market participants


Read more: Decentralised Finance in the EU: Developments and risks


Singapore 🇸🇬

The Monetary Authority of Singapore (MAS) published a consultation paper on proposed enhancements to the E-Payments User Protection Guidelines

What happened?:

The Monetary Authority of Singapore (MAS) proposed updates to mandatory anti-scam measures conducted by payment providers, such as measures prior to performing high-risk activities, cooling off periods for high-risk securities, 24/7 support channels to report unauthorized transactions, and other enhancements.

The MAS is inviting feedback from industry stakeholders and the public on proposed updates to the E-Payments User Protection Guidelines. This proposal is in response to the increasing number of digitally-enabled scams and aims to improve anti-scam measures in the financial sector, encouraging consumer awareness and responsibility.

Who’s affected?: E-Payments providers operating in Singapore

Deadline: Closing date of the consultation is December 20, 2023

Read more: Consultation Paper on Proposed Enhancements to the E-Payments User Protection Guidelines

AustraliaCryptoGamblingHong KongPeruSingapore