“The framework is designed to address the full range of risks associated with crypto asset activities, including risks relating to money laundering and financial crime, consumer protection, technology governance, custody and exchange operations,” – announced the Financial Services Regulatory Authority. The main focus of the new set of regulations is to reduce the effects of fraudulent projects and crime. ICOs, which are a cryptocurrency based way to fund projects, have been infamous for defrauding investors. Many of them do not really have a feasible project plant and only operate to raise the initial investment. While some countries have banned ICOs completely, many are wary of taking this drastic measures. There are many interesting projects that are offering coins to raise funds, that will be truly productive for the development of various aspects of the society. Blockchain’s innovative power needs to be harnessed one way or another, and completely prohibiting entrepreneurs from using this new technology will only be counter-productive and competitively disadvantageous.
From now on, companies dealing with cryptocurrency exchanges will have to pay certain fees. Firstly, there is an initial required payment of $125,000 to be able to provide the services. Afterward, there is a yearly fee of $60,000. For wallets, which offer places to store the cryptocurrencies, fees are lower. There is an initial payment of $20,000 and $15,000 more each year. These fees have been introduced to root out the fraudulent startups and rookies who might not have qualifications or might be ill-intentioned with their plans. In addition to these fixed fees, there is also a levy, which is based on a percentage of total daily trading volume. Depending on how large the trading volume is, the levy varies from 0.0015% to 0.0009%. Although these numbers might seem small, when millions of dollars are concerned they add up to over $20,000 each month.