Japan’s primary financial regulator, the Financial Services Agency (FSA), has proposed measures to protect users from unlawful transfers to cryptocurrency exchanges, which could have a significant impact on the peer-to-peer (P2P) transactions market. The FSA recommends halting transfers to crypto-asset exchange service providers if the sender’s name differs from the account name. While the FSA’s request is not a strict requirement, it remains to be seen how banks will respond and whether it will disrupt the P2P market.
In South Korea, the Financial Intelligence Unit (FIU) has announced increased scrutiny over cryptocurrencies. As part of its 2024 work plan, the FIU plans to implement a preemptive trading suspension system for suspicious transactions on platforms operating in South Korea. This system would freeze transactions even during the pre-investigation phase. Additionally, the FIU aims to strengthen its crypto team, offering education and training and launching a virtual asset analysis system to track and analyze virtual asset transactions.
In the European Union (EU), the Internal Market and Civil Liberties Committees of the European Parliament have voted to endorse the provisional agreement on the AI Act. This act aims to establish guidelines for artificial intelligence (AI) across various industries, including banking, automotive, electronics, aviation, security, and law enforcement. The regulations will govern foundational models or generative AI trained on extensive data sets, such as OpenAI’s ChatGPT. The AI Act seeks to establish safeguards, including copyright protection for creators, and prohibits AI applications that threaten citizens’ rights, such as biometric categorization and social scoring.
The Philippines is planning to launch a wholesale central bank digital currency (CBDC) within the next few years, according to the Governor of Bangko Sentral ng Pilipinas (BSP), Eli Remolona. The BSP does not plan to utilize blockchain technology for the CBDC, taking inspiration from Sweden and China, which are developing CBDCs as digital alternatives to cash and rival cryptocurrencies. Remolona believes the Philippines can replicate their experience, and he expects the CBDC to be launched within his term as governor, potentially within the next two years.
Meanwhile, the National Banking and Securities Commission of Honduras has issued a resolution banning the country’s financial institutions from handling cryptocurrencies. The resolution cites the potential risks of fraud, operational issues, and legal concerns associated with cryptocurrencies and blockchain-based financial services. It also highlights the unregulated nature of crypto assets, making them susceptible to fraud, money laundering, and terrorist financing. Additionally, supervised institutions are prohibited from holding derivative instruments based on crypto assets.