On January 4, the federal banking regulator in the US published an interpretive letter addressing whether national banks and federal savings associations could participate in independent node verification networks (otherwise known as blockchain networks) or use stable coins. The letter said these financial institutions can participate as nodes on a blockchain and store or validate payments.
Banks may now issue and exchange stablecoins. They may also validate, store and record them using distributed ledgers or another independent node verification network that is, an electronic database where information is stored not on one computer but several.
The UK’s new, standalone sanctions regime, which applies throughout the UK and includes Northern Ireland has officially come into force as of 11 p.m. on December 31.
To provide financial institutions with guidance and ensure compliance, the UK’s Foreign, Commonwealth and Development Office has made two versions of its sanctions.
Their primary goal is to require UK Bitcoin exchanges to conduct due diligence in relation to customers and include cryptocurrency platforms in anti-money laundering and counter-terrorism financing policies.
Nevertheless, there is significant overlap between the EU’s regulations and those issued by the UK.
There will likely be several developments in the coming months.