Cryptocurrency companies have been moving to improve compliance worldwide amid the bear market of 2022, with many platforms increasingly securing licenses and approvals.
As one may find it difficult to track all global regulatory milestones in crypto, Cointelegraph has picked up some of the latest compliance developments over the past couple of weeks.
Global crypto firms have recently been active in growing presence and compliance in North America, with exchanges like China-founded Huobi Tech entering Canada.
Huobi Technology Holdings announced on Aug. 23 that its subsidiary Hbit Technologies has successfully obtained a Money Services Business (MSB) license from the Financial Transactions and Reports Analysis Centre of Canada.
With the new license, Huobi Tech is officially authorized to engage in regulated activities for foreign exchange, money transferring and virtual currencies dealing in Canada. The new compliance milestone came shortly after Hbit received the MSB license in the United States in July.
Binance.US, the American partner of Binance, another China-founded crypto exchange, has also been actively improving regulatory efforts in North America recently. On Aug. 18, the exchange received a Money Transmitter License from the Nevada Department of Business and Industry, Financial Institutions Division.
Nevada became the seventh jurisdiction where Binance.US secured the license in 2022, following West Virginia, Connecticut, Wyoming, Rhode Island, Idaho and Puerto Rico. Binance.US said it operates in 46 states and Puerto Rico, offering investment and trading for more than 120 cryptocurrencies.
Clear Markets, a crypto derivatives platform tied to the Japanese financial giant SBI, has secured major approval in the U.S. as well. Backed by SBI, Clear Markets received approval from the Commodity Futures Trading Commission in mid-August for over-the-counter crypto derivatives trading for its U.S. subsidiary Clear Markets North America.
Among other compliance developments in North America, major crypto exchange Crypto.com completed the Service Organization Control (SOC) 2 Type II Compliance audit on Aug. 23. Developed by the American Institute of CPAs, the SOC 2 is an auditing procedure aiming to ensure the secure management of data and confidentiality. Previously, Crypto.com became one of 37 crypto exchanges to register with the United Kingdom’s Financial Conduct Authority.
Elsewhere in the world, Singapore-based crypto exchange Bhex.sg received the Standard Payment Institution license from the Monetary Authority of Singapore (MAS) on Aug. 19. The MAS approval requires licensees to meet a high standard of compliance to protect consumers, enabling the exchange to offer digital payment token services in Singapore.
Other recent compliance developments also include Socios, a major fan token platform working in conjunction with the fan token cryptocurrency Chiliz. On Aug. 18, Socios secured regulatory approval as a service provider of virtual currencies and digital wallets for its fan engagement and rewards platform in Italy.
The recent compliance developments in the crypto industry mark yet another milestone in the global crypto regulatory landscape but international regulators are yet to come up with clear rules for crypto companies. Earlier this week, economists from the International Monetary Fund highlighted the need to establish clear guidelines on regulated financial institutions in Asia. Some experts believe that certain regulatory clarity could be detrimental to crypto though.