Cryptocurrency

Macau’s Executive Council seeks to subject digital currencies to same regulations as fiat

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Macau’s Executive Council (CE) has submitted a draft comprehensive regulatory framework for the legal standardization of all currencies in the region, including digital currencies, to the Legislative Council for consideration. according to In a news release by CE on October 14th.

If approved, the bill titled “Legal Regime for Creation and Issuance of Currency” would make digital currencies legal tender and subject to regulation. No timeline for the approval process was mentioned.

The bill also pointed out that the establishment, circulation supply, types, and other characteristics of currency are within the scope of administrative regulation. The same applies to currency issuance, scope and the introduction of new forms of digital currency.

Additionally, merchants and carriers must accept digital currencies as legal tender to comply with new legislation. Any person who refuses to accept a “statutory bid” will be deemed to have made a legal offense and will be fined $1,000 to him $1,000,000 Macau Patacas (MOP). This equates to $123.7 and his $1,237 respectively.

Finally, the CE wrote, the bill would require Macau currency issuers to amend their return procedures to maintain their obligations to recover and change returned currency.

The bill seeks to update the region’s 27-year-old regulatory system and align its economic and legal agenda with Hong Kong and mainland China.

Possibility of CBDC introduction in Macau

The bill aims to combat money laundering and tax evasion in Macau, the world’s largest hub for gambling casinos, as announced by Macau’s Chief Executive Ho Iat-seng on April 12, 2021. shows the possibility of working with China’s central bank to integrate a CBDC.

Mandating the use of CBDC for gambling in Macau casinos would be a deterrent to bad actors in the gambling industry. The plan was already in motion as of December 2020, when several casino operators were invited to discuss the possibility of purchasing gambling chips with digital yuan.

This is in line with China’s efforts to integrate a common digital currency in Hong Kong, Macau and Guangdong provinces.

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