Regulators are luring crypto firms with crypto-friendly regulations, or at least, they are trying to do so. The U.K. government announced new plans to bring stablecoins withing a regulatory framework, paving their way for use in the U.K. as a recognized form of payment. In the U.S., a member of the Senate Banking committee also presented plans to create a new stablecoin regulatory framework. Dubai is also adopting tailored made regulations to attract crypto firm to the country.
Global Crypto Hubs Everywhere
According to a statement from the U.K. government’s HM Treasury, stablecoins will be accepted as a method of payment, and the country is moving on with plans to establish an international hub for crypto-asset technology and investment. Stablecoins as a payment form will be brought into the payments regulatory perimeter by the UK government, which will establish conditions for stablecoin issuers and service providers to operate and invest in the region.
Read more: Stablecoins Embraced as Valid Payment Form in UK
In the U.S., Pat Toomey (R-Pa.), a leading member of the Senate Banking Committee, presented a measure to create a new regulatory framework for stablecoins. According to reports, the measure would define a “payment stablecoin,” allow the Office of the Comptroller of the Currency (OCC) to develop a new stablecoin issuer license and allow insured depository banks to issue payment stablecoins.
However, this doesn’t mean crypto firms will have a free pass. The Securities and Exchange Commission (SEC) is considering a number of measures that could result in a more aggressive approach to cryptocurrency regulation, particularly in terms of the oversight and operation of both centralized and decentralized exchanges. SEC Chairman Gary Gensler cited the need for greater investor protections on crypto asset platforms. He stated that the commission intends to regulate both centralized and decentralized exchanges that deal in cryptocurrency trading and lending by requiring them to register with the agency.
Read also: SEC Chair Emphasizes Investor Protection in Crypto Regulation
New Regulations to Protect Investors, Consumers
The U.K. Financial Conduct Authority (FCA) unveiled a three-year strategic plan on Thursday (April 7) that will allow the regulator to prevent firms that do not match its criteria from entering U.K. markets and “improve outcomes for customers.” The strategic plan focuses on three key areas: reducing and preventing serious harm, for instance by tackling frauds and scams; creating and testing higher standards, for example by increasing anti-money laundering (AML) requirements and encouraging competition.
See: UK Financial Regulator’s Strategy Plan Includes Crypto, AML, Big Tech
In the U.S., the Consumer Financial Protection Bureau (CFPB) ended its request for comments on the buy now, pay later (BNPL) investigation it initiated in December. Individuals, consumer groups, and trade associations are among the stakeholders who have submitted public comments. However, in a letter signed by 21 attorneys general, the CFPB was urged to investigate the BNPL market and, among other things, use its regulatory authority to improve fee transparency, disclosure, credit reporting, dispute resolution methods, and the use of consumer data.
Read more: 21 Attorneys General Urged CFPB to Regulate BNPL
Big Tech Still Under Scrutiny
Google may need to rethink its app store payment strategy to appease South Korean regulators. On Thursday, the Korean Communications Commission released legal guidance stating that Google’s policies on how apps on their platforms sell subscriptions, in-game items, and other online content would violate South Korea’s app payment law by forcing apps to utilize a single payment method and making it difficult to provide alternative options.
See also: Google’s Latest App Store Payment Policy Raises Concerns in Korea
In the U.S., Amazon may have raised concerns with another regulator that is not the antitrust regulator. The SEC is looking into the way Amazon has disclosed some details of its business practices — including how it uses third-party seller data for private-label businesses. In April of 2020, a Wall Street Journal investigation found that Amazon employees had regularly used individual third-party seller data to develop products for its own brands.
Read here: SEC Investigates Amazon for Use of Third-Party Sellers’ Data
Canada on Tuesday (April 5) announced its proposed legislation that would compel platforms like Facebook and Google to negotiate with news publishers and pay them for using their content. By enacting this new legislation, Canada would join other countries, including Australia, France and Spain, that require Big Tech to negotiate with news publishers and pay for their content.
Learn more: Canada Next to Force Google, Facebook to Pay for News
Data-Sharing Law to Build Better AI
On Wednesday, the European Parliament (EP) passed the European Governance Data Act (DGA). This act aims to improve data sharing between public institutions and businesses and make it easier to reuse data stored by the government. Public sector organizations will be able to share or restrict access for the reuse of specific kinds of data under this bill, but they will have to make the criteria for such reuse publicly available to avoid exclusivity or partiality toward a single enterprise.
Read more: EU Governance Data Act to Boost AI, Data-Sharing
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