Jul 20, 2019

Friday 19-7: EXCHANGE PLATFORM WEEKLY SUMMARY

Week 11, 19.07.2019

IT DEVELOPMENT

*Ongoing work for creating an additional mechanism, based on the One Ecosystem concept which establishes the coin price stability and also facilitates the Exchange demand

*Ongoing work for the application of Exchange limits based on the liquidity (no limits applicable from wallet to wallet as it is an internal transfer)

CDD platform to be built separately from the Exchange (not compulsory to be done right from the start, but mandatory to happen in two months after the start) - now under development and will become ready and fully operational by mid-September after the full payment has been settled.

Full Demo access and video for the Exchange platform required to be provided to the CB prior to the side visit - ongoing work

LICENSING AND IT AUDIT

*Training completed and certificates issued, and, after that the originals were sent to the CB for registration; the CB will then send these to the Compliance committee (CB) for it to add them to the Exchange company files.

NBI is the National Investigation Bureau where the team has spent almost a whole day. The NBI has issued a clearance report, considering their profiles, to be presented to the CB in one week; they took their signatures on a commitment document as well (by that stating that they commit to fighting Money Laundering and Terrorism Financing).

The next step is, as expected, the Side Visit. The CB has already informed the Exchange company about what this side visit covers and further information with IT service provider was shared (demo access and video), so that they can prepare. Currently waiting for the exact date of the visit to be communicated by the CB. Once the Side Visit is completed and, if all the small details are cleared out, then The Exchange company will receive a temporary permission, allowing it to open a bank account and allowing it to start the setup and operation as well.

The Exchange company initiates a follow-up with the CB every now and then as it is expecting the final comments or approval on the following documents that were submitted a relatively long time ago:

a) scope of work,
b) business continuity plan and disaster recovery plan,
c) operating methodology,
d) list of cryptocurrencies allowed to be traded on the platform.

*Exchange limits – There is an ongoing discussion regarding the limits. Limits between coin accounts are not applicable as it is an internal transfer and it will ease the parties in co-ownership.

*Ongoing discussion for the priorities in the Exchange and how they will be executed

COMPLIANCE

*Countries: A follow-up regarding the countries is done on a regular basis, 2 answers have been received lately - about Germany and South Africa:

- Germany: A license from a foreign supervisor about a cross-border business is only valid according to MIFID notifications. This means that a foreign license may only be notified from a EU state member.

- South Africa:

1. In terms of the South African Reserve Bank Position Paper on Virtual Currencies (now referred to as crypto assets), 2014, Crypto Assets (CAs) are not recognized as a legal tender in RSA and any merchant or beneficiary may refuse CAs as a means of payment. Therefore, no legal protection or recourse is afforded to users, traders or intermediaries of CAs and such activities are performed at the end-users sole and independent risk. It follows therefore that CAs are currently unregulated and that no licensing regime is in place.

2. However, it should be noted that, although CAs are currently not regulated in the Republic of South Africa (RSA), all cross-border flows of value are regulated in terms of the Exchange Control Regulations, 1961.

Exchange Control Regulation 10(1)(c) states that: “No person shall, except with permission granted by the Treasury and in accordance with such conditions as the Treasury may impose - enter into any transaction whereby capital or any right to capital is directly or indirectly exported from the Republic.” Therefore, if an individual or legal entity purchases CAs in RSA which is used to externalize ‘any right to capital’, such individual will be in contravention of Exchange Control Regulation 10(1)(c).

Inquiry for a further clarification regarding Germany and South Africa has been sent, waiting for an update.

Initiating follow-up about other countries as well.

*European license:

- 2 applications for licenses have already been submitted and are currently being processed;
- bank account opening was agreed with one bank and is currently being processed;
- a police report sent to Estonian authorities for AML and CFT;
- awaiting an exact date for an interview with authorities;
- waiting to get an approval on SOW (scope of work);
- waiting to get an approval over and list of currencies to trade.

If the specific coin doesn't have the permission to be exchanged, traded or offered -it is ILLEGA

If there is no permission granted for a certain coin to be traded in an exchange, that exchange can only trade conventional cryptocurrencies.

Therefore, once again we would like to remind you all that you should be extremely cautious in case you are contacted by ambitious entrepreneurs that have recently appeared on the market, offering fancy crypto products.



Post date 20 July 2019
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Download DOCX file:
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Vietnamese Translation:
http://www.tuvanonecoin.net/2019/07/19-7-cap-nhat-san-giao-dich-one.html

1 comment:

  1. If there is no permission granted for a certain coin to be traded in an exchange, that exchange can only trade conventional cryptocurrencies.

    Therefore, once again we would like to remind you all that you should be extremely cautious in case you are contacted by ambitious entrepreneurs that have recently appeared on the market, offering fancy crypto products.

    ReplyDelete