ChainCatcher news, according to Hong Kong media Sing Tao Daily, regarding the recent $500 million cryptocurrency trust fraud case, the chairman of the Hong Kong Legislative Council's Web3 and Virtual Assets Development Subcommittee, Wu Jietzhuang, stated, "Hong Kong is actively attracting foreign investment, including mainland funds, but in fact, many outsiders have a very superficial understanding of Hong Kong's system, and there are even many misunderstandings. I believe this is a problem that needs to be addressed. The FDT incident has international implications, and the authorities must quickly re-examine different regulatory systems to respond to society.Due to the lack of a custodial regulatory system, many times Web3 companies rely on trust companies to help third parties custody assets. If this is done properly, there is no problem, but those with ulterior motives may exploit this loophole to engage in illegal activities. I am concerned that external confidence in Hong Kong may weaken, and I suggest that the authorities should increase public education and examine whether there is room for optimization."Legislative Council financial sector member Chan Chan-ying pointed out that if assets are entrusted to a trust company in the form of a company, a regulatory vacuum may arise. He advised investors to carefully investigate the company's background and called for consideration of including "trusts" within the scope of legal regulation.

ChainCatcher news, according to the announcement from the Beijing Third Intermediate People's Court, recently, the Beijing Third Intermediate Court and Renmin University of China jointly held a project demonstration meeting for the Supreme People's Court's major judicial research topic for 2024, "Research on the Disposal of Involved Virtual Currencies." Representatives from the Supreme Court, the Supreme People's Procuratorate, the Ministry of Public Security, and experts from academia and enterprises attended the seminar.The meeting discussed the disposal paths for involved virtual currencies and the construction of future regulatory systems, emphasizing that research results should be combined with judicial practice to assist national financial security. Zhai Chao, Deputy Chief Judge of the Third Criminal Division of the Supreme Court, suggested that the research should highlight characteristics and meet practical needs. In the future, the research team will deepen investigations and collaborate with judicial and financial regulatory authorities to promote the regulation of virtual currencies and the improvement of judicial adjudication rules.

ChainCatcher news, according to Yahoo Finance, the Secretary for Financial Services and the Treasury, Christopher Hui, stated that he is continuously reviewing and improving Hong Kong's regulatory framework to cultivate a more complete virtual asset ecosystem, including the development of a comprehensive framework that encompasses virtual asset exchanges, stablecoin issuers, custodians, and over-the-counter trading activities.Christopher Hui mentioned that Hong Kong is building a bridge between traditional finance and the rapidly developing digital economy. The regulatory framework has established a solid foundation for this transformative trend. For example, the Securities and Futures Commission has announced regulatory expectations for intermediaries engaging in tokenized securities-related activities, providing clarity for market participants and fostering a trustworthy innovation environment. He emphasized that the trends of tokenization and the transformation brought by artificial intelligence can only reach their full potential within a reliable and adaptable regulatory system, which will protect the market with fairness, consistency, and the highest standards.

ChainCatcher news, according to CoinDesk, the UK's Financial Conduct Authority (FCA) released a document on Monday revealing plans to ban public offerings of cryptocurrencies. The government will prohibit unregistered cryptocurrency companies from engaging with UK customers through new legislation, unless they are trading platforms or products that meet exemption criteria.The document also seeks industry feedback on aspects such as market access, information disclosure, and market abuse regulation, as part of preparations for a comprehensive cryptocurrency regulatory framework. The FCA has been closely monitoring the crypto industry since 2020 and assessing its anti-money laundering compliance. A draft of the new regulatory regime is expected to be published next year, with plans for implementation in 2026.The FCA aims to ensure that consumers have sufficient information to make informed decisions by collecting industry feedback and to reduce fraud through market abuse regulation.

ChainCatcher News, a report released by the American agency "Regulatory Research Center" in 2020 shows that between 2000 and 2010, the growth rate of federal government regulatory spending and staffing in the United States was faster than in the previous two decades (overall spending increased by 66.5%, and staffing grew by 54.0%).According to the budget estimates for fiscal year 2021, regulatory spending in 2020 was 22.8% higher than the level in 2010, with an average annual growth rate of 2.1% over the decade. From 2010 to 2020, staffing increased by 5.8%, with an average annual growth of 0.6%.Elon Musk shared an image from the report on X, stating: "There are too many regulators, just like in a sports game where the number of referees exceeds the number of players on the field!" Previously, Musk was appointed as an advisor to the Trump administration, leading the "Office of Government Efficiency" (金十).

ChainCatcher news, Hong Kong Securities and Futures Commission CEO Ashley Alder stated in a recent interview that 11 platforms are being treated as applicants for licenses and have undergone the first phase of on-site inspections. They have been asked to make corrections, with the goal of making new progress by the end of the year, including issuing licenses in batches. Applicants who do not meet the requirements will lose their eligibility for licensing, while those who do meet the requirements will be conditionally granted licenses.Regarding cryptocurrency over-the-counter (OTC) services, Alder pointed out that the Hong Kong Securities and Futures Commission has solicited industry opinions on a new licensing system for cryptocurrency OTC services and cryptocurrency custody services. It will also promote the development of regulatory systems for virtual asset trading platforms, support the tokenization of traditional products, utilize blockchain and Web 3 foundational technologies, and facilitate the establishment of a responsible and secure fintech ecosystem. The completion of the entire framework is expected to be at least by next year.

ChainCatcher news, according to Cointelegraph, South Africa is rapidly becoming the digital asset hub of Africa. Ben Caselin, Chief Marketing Officer of the Johannesburg-based cryptocurrency exchange VALR, stated that South Africa is becoming the gateway to the African market due to its strong rule of law and independent judicial system.In April of this year, the South African Financial Sector Conduct Authority (FSCA) granted VALR a license as a Crypto Asset Service Provider (CASP). According to Statista, the revenue of South Africa's cryptocurrency market is expected to reach $332.9 million by 2028, with a compound annual growth rate of 7.86%. Caselin believes that South Africa's regulatory framework is one of the best in the world, even better than those of Hong Kong, Singapore, and the United States.

ChainCatcher news, according to CoinDesk, under Hong Kong's new regulatory framework, cryptocurrency exchanges may need to pay up to $20 million in licensing fees. This new licensing system for virtual asset trading platforms came into effect in June this year, requiring exchanges operating in Hong Kong to apply for new approvals within a year or exit the market.Currently, the trading platforms OSL and HashKey, which previously opted into a voluntary licensing system, have been approved under the new regulatory framework to serve retail investors. However, three informed sources revealed that obtaining the new license could cost between $12 million and $20 million. These costs include operational expenses incurred before obtaining the license, as well as necessary vendor fees required for the application itself, including consultants, lawyers, and insurance providers.

According to ChainCatcher news, as reported by Coinpost, the National Tax Agency of Japan has issued a notification regarding the legal interpretation of partial amendments to corporate tax rules. The notification explains that self-issued crypto assets by enterprises can be excluded from market value valuation under certain conditions, making it easier for cryptocurrency-related companies to operate in Japan. This revision has been incorporated into the ruling party's tax reform charter for the fiscal year 5 of Reiwa.According to previous legal provisions, if a company holds virtual currency, its unrealized gains will be taxed at the end of the period. This regulation has long been criticized for "burdening companies and hindering innovation in virtual currencies and blockchain." Due to this law, some companies have chosen to operate overseas. (Source link)

ChainCatcher news, federal policy expert Dorothy DeWitt recently stated at an event, "It takes a long time to make rules." She cited the Dodd-Frank Act, which was released in 2010, with its final rules not being passed by the CFTC until 2021. She said, "It's really hard to get consensus among those who are uninterested, have limited understanding, and are intimidated by very complex issues."It is reported that Dorothy DeWitt was the chief financial legal advisor to the Senate and also served as the director of the CFTC regulatory division. (source link)