Liquidity Lounge#17| The Podcast Transcription
The podcast “Liquidity Lounge” hosted by Pauli from mids.capital featuring guest Vardan Khachatryan, Chief Legal Officer of FASTEX.
Key topics covered included: Financial markets and cryptocurrency regulation > Virtual Asset Service Providers (VASPs) > Regulatory frameworks in the European Union, United Arab Emirates, and the United States > Innovation in regulatory environments > FASTEX: Overview and operations > Compliance challenges in a multi-jurisdictional context > Misconceptions about cryptocurrency regulations > Future regulatory trends for businesses > Importance of compliance and consumer protection > Insights and messages for the audience from Vardan Khachatryan
Mids Capital:
Thanks for waiting. Welcome, everyone, to another enlightening episode of the Liquidity Lounge, your trusted source for deep dives into the world of financial markets and cryptocurrency regulation. I’m your host, Pauli, from Mids Capital, and today we’re navigating through the complex landscape of regulatory changes impacting the financial sector across the globe.
Mids Capital:
Joining us is Vardan Khachatryan, Chief Legal Officer of FASTEX. Vardan brings a wealth of knowledge and insights from the frontline of financial regulation. Today, we’ll delve into why FASTEX stands out in this competitive market and how it can assist in navigating the world of Web3 with its layer one chain, NFT stores, NFT marketplace, G5 products, and ATC.
Vardan Khachatryan:
Thank you, Paul. It’s my pleasure to be here. I’m doing well, thank you. It’s been a busy but productive time, especially after the recent events in Dubai and Paris.
Mids Capital:
Fantastic to hear. Let’s dive right into it. Can you give us an overview of the current key regulatory frameworks affecting virtual asset service providers (VASPs) in the European Union, United Arab Emirates, and the United States?
Vardan Khachatryan:
Certainly, Paul. Currently, the major jurisdictions like the US and EU are affecting all players in the crypto space. While there’s significant enforcement activity in the US, actual regulatory changes are lacking. In contrast, the EU has adopted the Markets in Crypto Assets Regulation (MICA), set to impact VASPs next year. The UAE, particularly Dubai, stands out with its proactive regulatory approach, providing clarity and support for VASPs.
Mids Capital:
Thank you for that insight. It’s clear that regulatory landscapes vary significantly across regions. How do the regulatory environments in the US, EU, and UAE differ when it comes to innovation?
Vardan Khachatryan:
The US lacks specific regulations for VASPs, relying on outdated securities laws. The EU’s MICA offers a comprehensive framework but may not fully align with Web3 concepts. Conversely, the UAE, notably Dubai, embraces innovation with regulations tailored to the industry, fostering growth while ensuring consumer protection.
Mids Capital:
Fascinating. With such diverse regulatory requirements, how does FASTEX navigate its multi-jurisdictional operations?
Vardan Khachatryan:
FASTEX operates across various jurisdictions, requiring meticulous compliance efforts. We maintain legal and compliance teams, collaborate with external counsel, and adapt our operations to meet regulatory standards in each region.
Mids Capital:
Indeed, compliance is paramount in such a dynamic landscape. Speaking of challenges, what specific challenges has FASTEX faced in its operations, and how does the team overcome them?
Vardan Khachatryan:
Operating in both centralized and decentralized spaces presents unique challenges, particularly in jurisdictions with evolving regulations. We address these challenges through dedicated legal and compliance teams, leveraging external expertise and continuously adapting our operations.
Mids Capital:
Thank you for sharing. It’s evident that navigating regulatory complexities requires a concerted effort. Moving on to misconceptions, what are some common misconceptions about cryptocurrency regulations, and how can we clarify them?
Vardan Khachatryan:
One common misconception is that cryptocurrencies are largely unregulated, which isn’t entirely accurate. Regulatory landscapes vary, but most jurisdictions are moving towards implementing regulations. Another misconception is that cryptocurrency transactions are tax-free or completely anonymous, which isn’t the case, as regulations increasingly focus on transparency and compliance.
Mids Capital:
Thank you for dispelling those misconceptions. As we look to the future, what regulatory trends should businesses be particularly aware of?
Vardan Khachatryan:
Businesses should anticipate increased global coordination among regulators, integration with traditional financial systems, enhanced reporting requirements, and focused regulation of stablecoins. It’s crucial to stay informed and adapt to evolving regulatory trends to ensure compliance and operational success.
Mids Capital:
Absolutely. Well, our time is nearly up for today’s episode. Vardan, thank you once again for sharing your invaluable insights. Do you have any final thoughts or messages for our audience?
Vardan Khachatryan:
Thank you for having me, Pauli. I encourage all companies to prioritize compliance and consumer protection while embracing innovation in the crypto space. By staying informed and proactive, we can navigate regulatory challenges and contribute to the industry’s growth and sustainability.
Mids Capital:
Thank you, Vardan, for those wise words. And to our listeners, thank you for tuning in to today’s episode of the Liquidity Lounge. Stay informed, stay curious, and remember to follow Mids Capital for more insightful discussions. Until next time, take care.
Vardan Khachatryan:
Goodbye, everyone. Thank you for joining us.
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