Macao SAR plans to adopt cryptoassets to modernize financial sector
Distributed Ledger (DLT) technologies emerged in 2008 with the goal of disrupting the global financial system. Fast forward to 2021, and the global economy faces a similar scenario, affected by travel restrictions and social distancing measures, and where consumer and business habits appear to favor digital over digital. analog as the potential of DLTs – including its crypto-assets – are being discovered. Such social changes have not gone unnoticed.
On September 24, 2020, a proposal to regulate crypto-assets was released by the European Commission – via the Crypto-Asset Markets Regulation (MiCA) – specifically targeting digital representations of value or rights that can be transferred and stored electronically. Such regulation, as part of a comprehensive digital finance package and aimed at increasing digital resilience in the European financial sector, could eventually have the potential to set global standards for the supervision and regulation of assets based on the DLT.
In a different approach, China has recognized the potential of DLTs and has deployed its own system of “ electronic payment in digital currency ”, in which the digital renminbiis considered to be legal tender issued by the People’s Bank of China (to be tested in Shenzhen, Suzhou, Chengdu and Xiong’an). This should allow consumers and businesses to reap the benefits of electronic payments without resorting to electronic payment service providers.
Likewise, reports released by the Macao Monetary Authority found that electronic payments are also increasingly popular in the city. However, although digital currency and crypto-assets are not currently regulated or accepted in Macao SAR, it seems the time is approaching as Macao SAR’s integration into the Grand Bay region deepens. .
Following the launch of the real-time gross settlement systems for the renminbi and the Hong Kong dollar, the government of Macao SAR has announced that ongoing plans for the modernization of the local financial sector will result in the revision of the law. on Macau’s financial system. Lawmakers are likely to be faced with the question of whether to accept and regulate cryptoassets as part of the local financial system, thereby allowing better alignment with the more modern financial systems of China and the SAR. from Hong Kong.
João Nuno Riquito
Managing Partner, Riquito Advogados
Daniel from Senna Fernandes
Internal consultant, Riquito Advogados
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