Working Paper 38: Cryptocurrencies in Asia and beyond: law, regulation and enforcement

Authors

  • Federico Paesano Basel Institute on Governance; University of Basel
  • Dorothy Siron Zhong Lun Law Firm LLP
https://doi.org/10.12685/bigwp.2022.38.1-69

Keywords:

cryptocurrencies, virtual assets, regulation, policy, virtual assets-based money laundering, AML/CFT regulation

Abstract

The crypto industry has exploded in recent years, and authorities in different countries have been reacting in very different ways. Some have banned cryptocurrencies, while others are embracing them to varying degrees. Some are working hard to align their anti-money laundering regulations with FATF standards, while others are turning a blind eye. A few countries have confiscated huge quantities of crypto assets linked to crime and money laundering. Others are at square one in terms of enforcement, risking becoming a hub for crypto crime and money laundering and posing a serious vulnerability in the world’s financial system.

This Working Paper draws on a detailed analysis of how selected countries are addressing legal, regulatory and enforcement issues around cryptocurrencies and other virtual assets. The analysis is focused on Asia, but set in the context of global trends in crypto law, regulation and enforcement. It explores critical questions that will shape policies around virtual assets at the corporate, national and international levels:

  • What is working in terms of crypto regulation and enforcement?
  • What are the implications of different policy choices on crypto assets – for the industry, for the countries themselves and for global financial integrity as a whole?
  • What would the crypto wave possibly bring next?

The Paper also highlights broader developments needed to bring light and clarity to laws, policies and practices around the crypto industry, such as collaboration between both market players and governments.

Jurisdictions touched upon in this Working Paper alphabetically include Bhutan, Central African Republic, El Salvador, Hong Kong SAR, India, Indonesia, Japan, Kazakhstan, Malaysia, Myanmar, Russia, Singapore, South Korea, the Philippines, the People’s Republic of China, Thailand, Ukraine and Vietnam.

A list of key terms and abbreviations have been prepared in the Annex to this Working Paper for the readers’ easy reference.

About this Working Paper

This Working Paper is a collaboration between Dorothy Siron, Co-Managing Partner, Zhong Lun Law Firm LLP and Federico Paesano, Senior Financial Investigation Specialist, Basel Institute on Governance.

Dorothy Siron provided the bulk of the analysis and discussion, while Federico Paesano provided a selection of case studies and was co-author of the seven recommendations contained in section 4. The collaboration was facilitated by the International Academy of Financial Crime Litigators, an independent, non-partisan global centre that shapes and advances financial crime litigation practices for the future.

Author Biographies

Federico Paesano, Basel Institute on Governance; University of Basel

Federico joined the Basel Institute’s International Centre for Asset Recovery as Senior Financial Investigations Specialist in 2010. In this role, he delivers technical training programmes on financial investigations and asset recovery in South America, Africa, Asia and Europe. 

Federico graduated from the Military Academy of the Guardia di Finanza in L’Aquila, Italy, and holds a Master of Business Administration degree from the Università degli studi del Molise, Italy. For fourteen years, he worked for the Italian Financial Police, ending his career as Chief Investigator, focusing on economic crimes such as corruption and money laundering. 

As part of Federico’s work within ICAR, he has developed specific training courses on cryptocurrencies, money laundering and financial investigation involving virtual assets. He was a driving force behind the creation of the Working Group on Criminal Finances and Cryptocurrencies, a collaboration between the Basel Institute, Europol and INTERPOL. The group co-organises an annual Conference on Criminal Finances and Cryptocurrencies, focused on the emerging threats posed by virtual assets-based money laundering and other crypto-enabled crimes. 

Dorothy Siron, Zhong Lun Law Firm LLP

Dorothy Siron, the Co-Managing partner of Zhong Lun Law Firm’s Hong Kong office, is a widely respected litigator who specialises in cases involving cyber fraud and other financial and white-collar crimes in Hong Kong and internationally. 

Dorothy heads the Litigation/Arbitration and Dispute Resolution practice, with a focus on cross-border casework. She obtains high rates of return for her clients who are victims of significant financial crimes, often obtaining Mareva Injunctions and Bankers’ Records Orders to trace assets to pursue recovery. 

Dorothy is a Director and Executive Committee Member of TerraLex and Co-Chair of its Women’s Global Connections Committee, a past Committee Member of the International Committee of the National Asian Pacific American Bar Association (NAPABA) and an associate member of the Chartered Institute of Arbitrators, UK. She is also a fellow of the prestigious International Academy of Financial Crime Litigators and the International Association of Defense Counsel (IADC), membership of which is by invitation only. 

Cover page of Working Paper 38

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Published

2022-05-17

How to Cite

Paesano, F. and Siron, D. (2022) “Working Paper 38: Cryptocurrencies in Asia and beyond: law, regulation and enforcement”, Basel Institute on Governance Working Papers, (38), pp. 1–69. doi: 10.12685/bigwp.2022.38.1-69.

Issue

Working Paper 38: Cryptocurrencies in Asia and beyond: law, regulation and enforcement

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Artikel

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