# 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](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

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853302740/eab959b1-3353-41d3-af59-95c678bd1dfa.png align="center")

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?

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853415148/611915f2-8e95-4b8d-8363-4cf3ae8c89e4.png align="center")

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**
    

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853540561/0c5cc776-3777-4424-8eae-7834a5a5821f.png align="center")

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
    

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853560727/e4862b05-77e2-48ad-847e-0370b63e125d.png align="center")

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**
    

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853574176/9f6c4fea-349b-48ef-9329-00e8e80003e6.png align="center")

follow the judging rules, Kraken is running a securities?

It seems to be.

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853593110/528801c9-a062-44a0-baf9-5793c44696d9.png align="center")

SEC and Thor

they should register in SEC and governance by them.

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853606393/2f73d6c4-a6eb-4149-8fee-d7f903479852.png align="center")

Repeat.

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853617336/10a86d4a-e4c5-408d-b80e-ef00f2cb7d94.png align="center")

Airdrop by Tomahawk.

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853637584/32ac6dc8-a445-4858-bf51-9703e10ec573.png align="center")

Tron and airdrop.

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853645931/55c244bf-5352-4e4a-bc9e-805a084787fb.png align="center")

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

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853653143/b5e850bd-1762-4e8d-a706-d8259f47be7d.png align="center")

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.

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853661201/0dfa99a0-d571-4713-bc00-bfaca049451a.png align="center")

Utility token is also in the MiCA scope.

But what is ALL OTHER?…

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853667195/3ffe9d30-e292-4a1c-bc3d-d9d7d4658ced.png align="center")

例外情况，excepptions list

NFT，haha

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853681700/dc1d7ee1-ad6c-446d-98bb-9a0a458e16b5.png align="center")

## `Important!!`

Follow this first!

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853701920/19fb8481-ae49-4ecb-aeb4-2497efc1be87.png align="center")

Yeah, good place fro crypto:

1. fewer licenses
    
2. But more rules
    

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853710627/b09e73af-3b01-49f1-879c-9c1ecc42b93d.png align="center")

need more practice experince.

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853717362/a00b1019-ecc7-4b14-be37-3eb34bde8bdd.png align="center")

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853726009/20f7df2d-bc0d-4c94-9df6-31684721992d.png align="center")

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

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853733727/79bf0cbe-638e-430f-8dc2-03a44bc5a74b.png align="center")

Two special zone in Dubai

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853752665/5fbb7e54-6c61-412e-83da-ecab2490413b.png align="center")

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

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853759432/9bdbdb5a-a13a-4c07-82ce-bd83c29d6832.png align="center")

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

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853774620/329830a6-a0e0-4eb9-87b6-600f895ab702.png align="center")

![](https://cdn.hashnode.com/res/hashnode/image/upload/v1732853197081/c9069ba6-8a6a-47b8-806c-2f30c1264b73.png align="center")

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:

```plaintext

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.
```