Weekly Crypto Policy Roundup November 19, 2021

Every week we bring you the latest cryptocurrency policy developments from around the world.

Ripple Releases Framework for Cryptocurrency and Digital Asset Regulation

Earlier this week, Ripple released a framework entitled “A Real Approach to Cryptocurrency Regulation“, which sets out the company’s vision for the future of crypto and digital asset regulation.

In summary, Ripple suggests that the best policy outcomes for crypto regulation can be achieved through public-private collaboration, adapting existing regulations, and facilitating the use of regulatory sandboxes.

CEO of Ripple Brad Garlinghouse stated that “Cryptocurrency and blockchain technology need clear regulatory and licensing frameworks designed to address and remedy the specific challenges to our industry. All of the proposed measures discussed in this framework aim to provide legal clarity to industry, markets, and consumers in a way that a regulation-by-enforcement approach simply cannot”.

Global Blockchain Business Council Update Standards

The Global Blockchain Business Council (GBBC) have updated their Global Standards Mapping Initiative.

The initiative is an industry-led effort, which aims to create standards and shape policy in respect of the following areas:

• legislation and regulatory guidance
• technical standards
• industry standards and recommendations
• university courses and degree programs
• industry consortia.

The Global Standards Mapping Initiative received input from 138 organizations, including Accenture, ConsenSys, Filecoin Foundation, JP Morgan, MIT, London Stock Exchange Group, Meta (Facebook), OpenID Foundation, World Bank, WEF, and the World Trade Organization.

FATF Update Guidance on Virtual Assets and Virtual Asset Service Providers (VASPs)

The Financial Action Task Force (FATF) recently updated their guidelines regarding virtual assets and VASPs. Countries are required to have frameworks in place which manage and mitigate risks associated with virtual asset services, as well as have a registration or licencing regime in place for VASPs.

See Also

UAE Plans to Launch CBDC as Part of Drive Toward Cashless Society

The updated FATF guidelines focus on a number of key areas including:

• Clarifying the definition of VASP
• Addressing how the FATF rules apply to stablecoins
• guidance on the licensing and registration of VASPs
• guidance on the appropriate implementation of the so-called “travel rule”

You can read the updated guidance here.