Navigating global crypto compliance amid regulatory shifts
Web Shield Marketing
November 21, 2023
As the UK tightens its regulatory grip on cryptocurrencies, sparking a surge in demand for compliance advisers, it serves as a telling precursor to the evolving global landscape of crypto compliance. The recent measures imposed by the Financial Conduct Authority, notably the ban on unauthorised crypto marketing to UK customers, reflect a broader international crackdown on non-compliant practices in the crypto industry.
UK's regulatory stringency sets a global precedent
Recent weeks have witnessed major crypto service providers, including exchanges like Binance and Huobi, facing repercussions from the UK's heightened standards. These measures, designed to bolster consumer protections following last year's crypto market crash, have led to over 150 alerts issued by the Financial Conduct Authority on unauthorised crypto promotions. Non-compliance with rules applicable globally can result in fines or even imprisonment. High-profile cases such as OneCoin’s Irina Dilkinska’s recent trial demonstrate how the long arm of the law is never far away.
The emergence of a global compliance advisory market
The stringent stance in the UK has given rise to a nascent market, with only three companies currently authorised to approve the marketing materials of numerous crypto groups. This includes everything from social media posts to business websites, reflecting a growing need for compliance advisory services on a global scale.
Fostering entrepreneurial freedom through compliance
While the regulatory landscape tightens, it is crucial to recognise that the clampdown not only enhances industry integrity but also provides an environment conducive to entrepreneurial innovation. Stricter compliance measures foster a foundation where startups and individual merchants can thrive within the bounds of regulatory frameworks.
Finding strength in compliance
Amidst evolving regulatory landscapes, embracing compliance becomes not just a necessity but an opportunity. Although navigating these requirements may seem challenging, it should be viewed as a chance to fortify the legitimacy of the individual crypto business as well as the industry as a whole. Proving adherence to regulations not only ensures legal standing but also enhances the resilience and credibility of the entire crypto ecosystem.
CompliancePass offers a streamlined solution for cryptocurrency merchants seeking to demonstrate compliance with local laws and industry regulations. The platform connects you with a team of international legal experts and compliance analysts, ensuring you receive a comprehensive legal opinion, detailing adherence to laws in targeted jurisdictions and industry standards, including card scheme requirements.
Continuous monitoring and adaptation
CompliancePass extends beyond a one-time legal analysis, offering monthly re-validation and constant monitoring of the regulatory landscape. Any detected changes prompt immediate notification, with the team working collaboratively to maintain compliance in all areas.
Web Shield, a trusted merchant due diligence partner of globally operating acquiring banks and payment service providers, collaborates with the Wołoszański & Partners Law Firm. The latter, Poland's only law firm member of the Alliott Global Alliance, contributes extensive expertise in cryptocurrencies and access to a network of law firms all over the globe. This prestigious alliance has been ranked in the highest band (Band 1) of Law Firm Networks in Chambers and Partners’ ranking of Global Market Leaders for 2023.
Versatile compliance solutions
CompliancePass is designed to be versatile, addressing specific compliance needs through a modular legal analysis framework and a network of partners. This customisable solution covers areas such as card scheme compliance, acquirer compliance, and app marketplace compliance.
How acquirers can profit
The current version of CompliancePass is built for crypto merchants, but a new version, tailored to acquirers, is set to launch in the coming year, further expanding the scope of CompliancePass to meet the evolving needs of the industry.
For a Free Consultation
Businesses can reach out to firstname.lastname@example.org for a free consultation, exploring how CompliancePass aids in achieving business goals while ensuring ongoing compliance.
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