Seychelles examine the advantages and disadvantages of licensing crypto trading platforms- regulation Bitcoin News
Seychelles examine the advantages and disadvantages of licensing crypto trading platforms- regulation Bitcoin News
The Financial Services Authority (FSA) of the Seychelles reports on a guideline to either ban or licensed crypto trading platforms as registered international companies.
increase in international studies on cryptoplate forms
according to A test report , the step of the FSA takes place against the background of an increasing number of international studies on fraudulent crypto trading platforms that have been attributed to the island state. As recently from Bitcoin.com news was registered OneCoin-Bitcoin fraud the latest foreign crypto company that was the goal of such an investigation. This is submitted after an investigation into the country's law enforcement authorities.
In the meantime, Randolf Samson, who heads the FSA's department for money laundering and terrorist financing, is quoted in the same report, which explains the reasons for the step of the regulatory authority. Samson detailed:There are many stock corporations that make this activity easier. The reason why they use the Seychelles is that we have no framework that would otherwise discourage them. The cryptocurrency has developed pretty quickly, but the laws of many countries are not up to date with this type of activity.
Nevertheless, Samson insists that "a risk assessment must be carried out to check the advantages and disadvantages" before a final decision is made. So if the result of the so -called risk assessment indicates potential advantages for the Seychelles, such trading companies are licensed, said Samson.
on the other hand, if the integration or licensing of cryptocurrency trading platforms "brings too many risks and a bad reputation, we will simply prohibit the activity.
The growing popularity of crypto
Nevertheless, Samson admits that a decision that leads to the ban on the crypto cland on the Seychelles could prove unpopular. Simson said:
"The problem with cryptocurrency, the course of things, you have to take an attitude because it is popular with a growing number of people and other countries take options to regulate this activity."
If, however, the guideline for licensing crypto trade companies is adopted, the Seychelles will be forced to take responsibility for ensuring that individuals and companies are not involved in illegal activities. In any case, such a policy will "also bring the Seychelles into harmony with the recent changes to the Financial Action Task Force (FATF) from June 2020," the report says.
Should the Seychelles licensing crypto trading platforms that are not based on the island? Tell us your opinion in the comment area below.
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