Background

Cryptography, distributed ledger, blockchain and other new technologies have paved way for different kinds of virtual assets such as crypto currencies, coins, and tokens. The new types of virtual assets present many potential benefits. They can lead to faster, convenient, and cheaper payment methods, and in so doing, advance financial inclusion. However, they also pose many risks and dangers. For instance, they may become worthless, as they are susceptible to cyber-attacks and scams.
Furthermore, if not properly regulated, virtual assets can create problems in the financial system. They can undermine the integrity and destroy confidence in the mainstream financial system and facilitate money laundering and terrorism financing. Given this, there is a need for countries to take effective measures to strengthen their regulatory frameworks for virtual assets. This will create an environment where virtual asset providers can innovate responsibly, consumers are adequately protected, and the integrity of the financial system is safeguarded. It is against this background that MEFMI will offer a course focusing on the key legal issues to be considered when establishing an effective regulatory framework for virtual assets.

Objectives

By the end of this workshop, participants will be able to:

• Define and distinguish virtual assets and Virtual Asset Service Providers (VASPs) in accordance with international standards, including Financial Action Task Force (FATF) guidance.
• Identify key legal and regulatory challenges in supervising virtual assets, such as cross-border risks, regulatory arbitrage, and enforcement limitations.
• Evaluate legal frameworks and institutional requirements for the effective licensing, registration, and supervision of VASPs.
• Apply AML/CFT obligations to virtual asset activities, including customer due diligence, transaction monitoring, and the Travel Rule; and
• Support the development of coherent policies and legal strategies to regulate virtual assets while enabling financial innovation and mitigating risk.

Target Group

This course targets middle level and senior officials at regulatory sandboxes, fintech, legal and supervision divisions of the different financial sector regulatory and supervisory agencies in MEFMI member countries.