As the digital asset market changes, Virtual Asset Service Providers (VASPs) in Europe must navigate stringent legal regimes.
The Fifth Anti-Money Laundering Directive of the European Union extends anti-money laundering and counter-terrorist financing (AML/CFT) duties to firms that provide virtual asset services. In Ireland, this is enforced by the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021. VASPs must register with the Central Bank of Ireland, ensure that their AML/CFT policies are effective, and adhere to continuing responsibilities such as customer due diligence, transaction monitoring, and suspicious transaction reporting.
Tokenized bonds are a key advance in digital finance, as they use blockchain technology to digitize and fractionalize traditional bonds. This technique increases liquidity, transparency, and accessibility, allowing a broader range of investors to participate in the bond market.
Tokenized bonds include Siemens’ digital bond on the Polygon blockchain and Goldman Sachs’ Digital Asset Platform. Smart contract integration enables automated transaction compliance and trust, while also expediting ownership transfer and lowering administrative overhead.
The new AMF and ACPR report recognizes financial institutions’ progress in addressing climate challenges while emphasizing the significance of transparency and accountability in non-financial information disclosure. As regulatory frameworks such as the Sustainable Finance Disclosure Regulation (SFDR) and Corporate Sustainability Reporting Directive (CSRD) come into effect, the financial sector is encouraged to continue its efforts to manage climate risks.
Tozex uses blockchain technology to provide new tokenization solutions, maintaining regulatory compliance and promoting a more sustainable and inclusive financial ecosystem.
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