Latest news with #investorprotection
Gulf Business
14-07-2025
- Business
- Gulf Business
Saudi Arabia's CMA approves key reforms to strengthen asset mgmt sector
Image: Getty Images/ For illustrative purposes Saudi Arabia's Capital Market Authority (CMA) has approved a wide-ranging package of regulatory reforms aimed at strengthening the asset management industry and aligning it with international standards. The approved amendments cover the Investment Funds Regulations , Real Estate Investment Funds Regulations , and the Glossary of Defined Terms . The reforms are intended to improve transparency, investor protection, fund governance, and operational flexibility, particularly for investment fund managers and real estate investment trusts ( CMA's key changes include Expanded distribution channels: Digital platforms and electronic money institutions licensed by the Saudi Central Bank can now distribute fund units, enabling broader access for investors. New REIT flexibility: Real estate funds traded on the parallel market (Nomu) can invest in development projects without initial asset or percentage restrictions. Risk reduction: Money market and capital protection funds must cap exposure to a single debt instrument at 10 per cent and total exposure to one entity at 25 per cent of net assets. Improved governance: Rules now require CMA approval and a 60-day transition period for changes in fund management, ensuring continuity and investor protection. Retail investor limits: Caps were introduced to limit retail investor subscriptions in private and foreign funds to 50 per cent of total contributions, preventing concentration risks. These changes follow a record year in 2024 when the Assets under management reached nearly SAR700bn, growing 25.2 per cent year-on-year. The CMA said the reforms were finalised after public consultations held in June and October 2024 and in February earlier this year.
Coin Geek
11-07-2025
- Business
- Coin Geek
Malaysia to ease 'crypto' listing; Connecticut thwarts reserve
Getting your Trinity Audio player ready... Malaysia has proposed amendments to its regulatory framework for digital asset exchanges that would ease the listing process for exchanges but tighten the custody and governance requirements. Securities Commission Malaysia (SC) recently published a consultation paper requesting public feedback on the proposed changes. 'The proposals aim to enhance competitiveness of Malaysia's regulated digital asset market, improve investor protection and strengthen the resilience and integrity of DAX operators,' the watchdog says. Under its 'same activities, same risks, same regulatory outcomes' approach, the SC proposes liberalizing the listing process for exchanges to encourage a more competitive market. While exchanges will be fully accountable for the assets they list, these assets must have undergone a public security audit and been traded for at least a year on a registered virtual asset service provider (VASP). Additionally, the regulator is weighing whether to impose extra requirements for assets with enhanced anonymity features like Monero. Some countries, like South Korea, banned the trading of privacy coins years ago. Australia followed suit, with the European Union set to enforce similar restrictions in 2027. SC is also mulling restrictions on memecoins, which have become a $60 billion market. It believes these tokens face 'a heightened risk of market volatility and market manipulation.' Stablecoins and tokens issued by exchanges to be used within their ecosystem also pose unique challenges, and the watchdog wants public feedback on whether it should impose more stringent regulations on them. SC doubles down on segregation of assets While it plans to relax listing rules, the regulator is ramping up its investor protection guidelines on asset segregation and governance. Under the proposed framework, VASPs must hold at least 90% of investor assets in cold wallets for each type of asset they hold. Assets held on hot wallets must be fully collateralized with assets held in the VASP's own offline wallet. Source: Securities Commission Malaysian VASPs that serve other jurisdictions must retain a separation between local and offshore assets, the watchdog adds. This requirement has been implemented in other countries to great success. In Japan, for instance, the segregation of local assets allowed FTX Japan to refund its users when the global parent company went down in late 2022. The regulator also wants VASPs to enhance their governance, starting with regular audits on the segregation of investor assets. The operators must also prove that they maintain direct access to the wallets, free from influence or control by external parties. They must appoint a senior executive who needs to reside in Malaysia to administer this access. These new regulations seek to protect Malaysians from 'crypto' scammers who continue to make away with billions of dollars every year. The largest scam in the country, UVKXE, blew up earlier this year, going down with RM33 million ($7 million) in local investors' funds. Globally, criminals stole $2.3 billion in digital assets according to a report by CertiK, which cited reported on-chain incidents. A separate report by Nefture Security estimated the losses at $8.3 billion in at least 519 incidents. The SC's public consultation ends on August 11. Connecticut bans state agencies from holding 'crypto' While dozens of states in the United States rush to set up digital asset reserves to align with President Donald Trump's initiative, Connecticut has bucked the trend, banning state agencies from holding digital assets. Gov. Ned Lamont signed House Bill 7082 into law after it sailed through the state's Senate and House of Representatives with 36 and 148 votes respectively, and zero votes against. The bill 'prohibits the state, and political subdivisions of the state, from accepting or requiring payment in the form of virtual currency, or purchasing, holding, investing in or establishing a reserve of virtual currency.' The Constitution State holds just under $9 billion in treasury pools across its short-term investment fund and the budget reserve fund. With a $366 billion economy, it ranks 23rd in the country. Connecticut is the first state to push back against the BTC reserve wave that has swept across the U.S. On the opposite end, New Hampshire was the pioneer, passing House Bill 302, which allows its treasurer to allocate up to 5% of the state funds in digital assets. Watch | Blockchain Policy Update: Bryan Daugherty on DC and Trump's Latest Moves title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Yahoo
11-07-2025
- Business
- Yahoo
European securities regulator warns about crypto firms misleading customers
By Elizabeth Howcroft PARIS (Reuters) -Europe's securities regulator warned crypto companies on Friday not to mislead customers about the extent to which their products are regulated - the latest sign of European authorities trying to limit crypto-related risks. The European Union's crypto regulation, MiCA, includes various measures to protect investors, such as rules around how client assets are safeguarded and requirements for handling complaints, the European Securities and Markets Authority (ESMA) said in a statement. But the practice of crypto asset service providers (CASPs) offering both regulated and unregulated products through the same platform "gives rise to investor protection risks", ESMA said, because customers might not be aware which products do not come with MiCA's protections. "Some CASPs may even use their regulated status under MiCA as a marketing argument and encourage confusion between regulated and unregulated products and services," ESMA said. ESMA said that crypto companies should not use their regulatory status as a "promotional tool" or imply that crypto products and services are regulated if they actually fall outside the scope of the EU's rules. Regulators around the world have long been concerned about the risks faced by crypto investors. The collapse of various crypto platforms, including FTX, in 2022, left millions of investors out of pocket. Under the EU's new crypto rules, companies offering crypto services must obtain a CASP licence from a national regulator, which can then be used as a passport to operate across the bloc. ESMA also on Friday issued guidelines about the level of knowledge and competence staff need to have in order to assess crypto companies. ESMA's statements come a day after it published a peer review into Malta's licence-granting process, which found that Malta's Financial Services Authority was not thorough enough in assessing the risk of one particular unnamed crypto company. The review found that while the Maltese regulator had enough expertise and resources to authorise and supervise crypto companies, its authorisation process only "partially" met expectations. The Maltese regulator said in a statement on Thursday that it was proud of its role as an "early adopter" of digital asset regulation and did not directly address ESMA's criticisms. Some regulators had raised concerns in closed-door meetings about the speed with which crypto licences were being granted by some EU member states, Reuters has previously reported.
Yahoo
11-07-2025
- Business
- Yahoo
European securities regulator warns about crypto firms misleading customers
By Elizabeth Howcroft PARIS (Reuters) -Europe's securities regulator warned crypto companies on Friday not to mislead customers about the extent to which their products are regulated - the latest sign of European authorities trying to limit crypto-related risks. The European Union's crypto regulation, MiCA, includes various measures to protect investors, such as rules around how client assets are safeguarded and requirements for handling complaints, the European Securities and Markets Authority (ESMA) said in a statement. But the practice of crypto asset service providers (CASPs) offering both regulated and unregulated products through the same platform "gives rise to investor protection risks", ESMA said, because customers might not be aware which products do not come with MiCA's protections. "Some CASPs may even use their regulated status under MiCA as a marketing argument and encourage confusion between regulated and unregulated products and services," ESMA said. ESMA said that crypto companies should not use their regulatory status as a "promotional tool" or imply that crypto products and services are regulated if they actually fall outside the scope of the EU's rules. Regulators around the world have long been concerned about the risks faced by crypto investors. The collapse of various crypto platforms, including FTX, in 2022, left millions of investors out of pocket. Under the EU's new crypto rules, companies offering crypto services must obtain a CASP licence from a national regulator, which can then be used as a passport to operate across the bloc. ESMA also on Friday issued guidelines about the level of knowledge and competence staff need to have in order to assess crypto companies. ESMA's statements come a day after it published a peer review into Malta's licence-granting process, which found that Malta's Financial Services Authority was not thorough enough in assessing the risk of one particular unnamed crypto company. The review found that while the Maltese regulator had enough expertise and resources to authorise and supervise crypto companies, its authorisation process only "partially" met expectations. The Maltese regulator said in a statement on Thursday that it was proud of its role as an "early adopter" of digital asset regulation and did not directly address ESMA's criticisms. Some regulators had raised concerns in closed-door meetings about the speed with which crypto licences were being granted by some EU member states, Reuters has previously reported. Sign in to access your portfolio
Reuters
11-07-2025
- Business
- Reuters
European securities regulator warns about crypto firms misleading customers
PARIS, July 11 (Reuters) - Europe's securities regulator warned crypto companies on Friday not to mislead customers about the extent to which their products are regulated - the latest sign of European authorities trying to limit crypto-related risks. The European Union's crypto regulation, MiCA, includes various measures to protect investors, such as rules around how client assets are safeguarded and requirements for handling complaints, the European Securities and Markets Authority (ESMA) said in a statement. But the practice of crypto asset service providers (CASPs) offering both regulated and unregulated products through the same platform "gives rise to investor protection risks", ESMA said, because customers might not be aware which products do not come with MiCA's protections. "Some CASPs may even use their regulated status under MiCA as a marketing argument and encourage confusion between regulated and unregulated products and services," ESMA said. ESMA said that crypto companies should not use their regulatory status as a "promotional tool" or imply that crypto products and services are regulated if they actually fall outside the scope of the EU's rules. Regulators around the world have long been concerned about the risks faced by crypto investors. The collapse of various crypto platforms, including FTX, in 2022, left millions of investors out of pocket. Under the EU's new crypto rules, companies offering crypto services must obtain a CASP licence from a national regulator, which can then be used as a passport to operate across the bloc. ESMA also on Friday issued guidelines about the level of knowledge and competence staff need to have in order to assess crypto companies. ESMA's statements come a day after it published a peer review into Malta's licence-granting process, which found that Malta's Financial Services Authority was not thorough enough in assessing the risk of one particular unnamed crypto company. The review found that while the Maltese regulator had enough expertise and resources to authorise and supervise crypto companies, its authorisation process only "partially" met expectations. The Maltese regulator said in a statement on Thursday that it was proud of its role as an "early adopter" of digital asset regulation and did not directly address ESMA's criticisms. Some regulators had raised concerns in closed-door meetings about the speed with which crypto licences were being granted by some EU member states, Reuters has previously reported.
