#PaymentsCompliance Notebook

Kick-start your week by catching up on six of the stories from the #paymentsindustry, across the world, that our Vixio analysts covered last week:

New Bill To Define Crypto As Personal Property In UK

A new draft law?introduced in the UK parliament aims to offer clearer legal status and protection for #digitalassets, including #bitcoin and #nonfungibletokens (#NFTs).?

The Property (Digital Assets etc) Bill represents a historic shift, as it classifies #cryptocurrencies and other digital holdings as personal property under English and Welsh law.?

The landmark legislation, unveiled by the Ministry of Justice, addresses the legal grey area that previously surrounded digital assets.?

By recognising these assets officially, the UK seeks to maintain its leading position in the global technology industry, providing better protection for owners and companies against fraud, and aiding judges in complex disputes involving digital holdings.

“Our world-leading legal services form a vital part of our economy, helping to drive forward growth and keep Britain at the heart of the international legal industry,” said justice minister Heidi Alexander.?

“It is essential that the law keeps pace with evolving technologies and this legislation will mean that the sector can maintain its position as a global leader in #cryptoassets and bring clarity to complex property cases.”

eToro Settles With SEC, Will Halt Trading In Most Crypto-Assets

eToro has?reached? a $1.5m settlement with the Securities and Exchange Commission (SEC) over charges that it operated as an unregistered broker and clearing agency for its #cryptotradingplatform.?

The SEC found that eToro facilitated the trading of crypto-assets classified as securities without proper registration since at least 2020.

Under the settlement, eToro will cease trading most crypto-assets and restrict its platform to Bitcoin Inc. , Bitcoin Cash and Ether.?

The firm will also allow US customers to sell other #cryptoassets for the next 180 days and must liquidate any remaining assets within 187 days, returning the proceeds to customers.

“By removing tokens offered as investment contracts from its platform, eToro has chosen to come into compliance and operate within our established #regulatoryframework. This resolution not only enhances investor protection, but also offers a pathway for other #crypto intermediaries,” said Gurbir S. Grewal, the SEC’s enforcement director.?

Former Swedbank CEO Convicted Of Gross Fraud Over Money Laundering Claims

A Swedish appeals court has found former Swedbank CEO Birgitte Bonnesen guilty of gross #fraud related to her handling of #antimoneylaundering protocols in Estonia.?

Bonnesen has now been sentenced to 15 months in prison for providing misleading statements during interviews with Swedish media in October 2018, downplaying the #moneylaundering situation at Swedbank’s Estonia branch.

The Svea Court of Appeal overturned parts of a 2023 lower court ruling that had acquitted Bonnesen of all charges.?

Although convicted of one count, she was acquitted of six others related to fraud and market manipulation. Bonnesen, who served as Swedbank’s CEO from 2016 to 2019, denied the charges and plans to appeal the verdict.

Prosecutors argued that Bonnesen's misleading statements harmed public and shareholder trust, affecting Swedbank's financial standing.

Polish DPA Fines mBank PLN4m For GDPR Violations

The Polish Personal Data Protection Office (UODO) has?issued a fine of PLN4m (￡800,000) to mBank for violating the General Data Protection Regulation (GDPR).?

The penalty was imposed due to the bank's failure to notify affected individuals about a #databreach, as required under Article 34(1) of the GDPR.

The breach occurred on June 30, 2022, when personal data of a group of mBank customers was mistakenly transferred to an unauthorised party.?

Despite recommendations from UODO, mBank failed to inform its customers about the potential #risk, resulting in the substantial fine.?

The UODO president stressed that timely notification is critical in safeguarding individuals’ rights and freedoms when their data is at risk.

UK Regulator Charges First Individual For Running Illegal Crypto ATM Network

In a landmark case, the Financial Conduct Authority (FCA) has?charged ?45-year-old Olumide Osunkoya, from London, for operating multiple #cryptoATMs without proper registration.?

These machines, which convert cash into #cryptocurrency, allegedly processed ￡2.6m in transactions between December 2021 and September 2023.

This marks the first criminal prosecution related to #unregisteredcrypto activity under UK regulations and the first case involving #illegalcrypto ATMs.

"If you're illegally operating a crypto ATM, we will stop you. If you're using a crypto ATM, you are handing your money directly to criminals,” Therese Chambers, joint executive director of enforcement at the FCA, warned.

Osunkoya is set to appear at Westminster Magistrates' Court on September 30, 2024.?

Lithuania Proposes Consumer-Friendly Amendments To Payment Services Law

The Lietuvos bankas | Bank of Lithuania has?proposed changes to the country’s Law on Payments to give consumers more control over additional services offered by #paymentserviceproviders.?

The amendments aim to prevent providers adding non-payment services such as insurance to service bundles without the user’s consent, increasing costs.

Gediminas ?imkus, chair of the board of the Bank of Lithuania, said that “with the proposed changes, we aim to provide more freedom of choice and clarity to consumers, so that they can choose exactly the services or service baskets they need".

Under the proposed amendments, users will have the right to select #paymentservices individually and be fully informed about service rates, whether purchased separately or as part of a bundle.?

Providers, meanwhile, will no longer be allowed to impose unwanted services without the user’s approval.

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