Crypto Regulation slides notes

Background

Yeah, we don’t like regulation. Actually we want “What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.“（bitcoin white paper：https://bitcoin.org/bitcoin.pdf). We don’t trust the authorities, regulation from centralization.

But, we must obey some rules, it is a real world.

Thanks for the beauty lawyer provide a speech to us.

Let me share my notes with you.

Government and crypto

Yeah, SEC want to control all the world, so they use Howey test to decide whether you should be managed by them.

Also CFTC.

If don’t pass, yeah, pay tax and more?

1. You give money to someone

2. someone is a company

3. You have a expectation to get more money return(in the future)

4. The profits come from the efforts of others

Here are some tricky things in reasonably expectation. haha.

For a decentralized community, we should:

1. be responsible for the development

2. provide a open market

3. continuing management

1. Share the incomes from your company

2. can trade to get FIAT money

3. open to purchase

4. has raised funds

5. potentially profitable

follow the judging rules, Kraken is running a securities?

It seems to be.

SEC and Thor

they should register in SEC and governance by them.

Repeat.

Airdrop by Tomahawk.

Tron and airdrop.

Crypto.com agains the SEC: you extend the boundary of SEC.

About MiCA:

MiCA (Markets in Crypto-Assets) is a comprehensive regulatory framework for the crypto-asset market that was passed by the European Parliament in June 2022. The key elements of MiCA include:

1. Defining different types of crypto-assets and establishing tailored regulatory measures for each category.

2. Requiring issuers and crypto-asset service providers (CASPs) to register or obtain authorization, and comply with transparency, investor protection, and other requirements.

3. Introducing stricter regulations for specific crypto-assets like stablecoins, including minimum reserve requirements and whitepaper disclosure obligations.

4. Prohibiting the issuance and provision of crypto-asset services without proper authorization, with penalties for non-compliance.

5. Establishing a unified regulatory mechanism across the EU, strengthening supervisory coordination and information sharing.

In essence, the MiCA regulation aims to protect investors, mitigate systemic risks, and promote the orderly and healthy development of the crypto-asset market through a clear regulatory framework. This represents a significant milestone in crypto-asset regulation in Europe.

Utility token is also in the MiCA scope.

But what is ALL OTHER?…

例外情况，excepptions list

NFT，haha

Important!!

Follow this first!

Yeah, good place fro crypto:

1. fewer licenses

2. But more rules

need more practice experince.

DUBAI, VARA, 2022 only apply in Dubai. not in UAE (United Arab Emirates)

For different service type, register difference license and pay fees.

100,000 AED = 27220 USD

Two special zone in Dubai

A big zone in Abu Dhabi, more free rules. free tax after 50 years.

25000U, can build a DAO with legal personality by DLT

Who concern you

what you should be compliance

KYC

TAX

more

Some questions:

How to get easy alignment with the mainly regulation for poor startups without budget of regulation?

KYC/AML is a best choice for you(if your company sell tokens to customers)

I think it is a way to avoid money laundry.

tips:

KYC (Know Your Customer):

KYC refers to the process by which financial institutions identify and verify the identity of their customers.
This includes collecting personal information, occupation, financial status, and other details to confirm the 
customer's identity and the legitimacy of their transactions.
KYC helps prevent financial crimes such as money laundering and terrorist financing.
AML (Anti-Money Laundering):

AML refers to the set of measures and procedures implemented by financial institutions to identify, monitor, and report 
suspicious financial transactions.
AML aims to prevent money laundering and other financial crimes, thereby protecting the integrity of 
the financial system.
AML includes customer due diligence, transaction monitoring, and reporting of suspicious activities.
In summary, KYC and AML are important compliance measures taken by financial institutions to comply with relevant 
laws and regulations, and to mitigate the risk of financial crimes. These practices help enhance the safety and 
transparency of the financial system.