Regulatory Alerts2024-01-01
Circular No. 4 of 2024: Prohibition on Certain Words Under the VASP Act
The Financial Services Authority issued this circular to enforce Section 40(2) of the Virtual Asset Services Providers Act, prohibiting unlicensed and unregistered entities from using designated blockchain and cryptocurrency-related terms in their business or trade names. The restricted terminology explicitly covers blockchain, cryptocurrency, currency, DeFI, digital wallet, exchange, ICO, NFT, virtual coin, Web 3, and hot or cold wallets. Effective September 1, 2024, non-compliant entities commit a statutory offence that may result in fines, imprisonment, or mandatory name corrections ordered by the Authority.
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