Regulation news-Page 20
Hong Kong securities regulator adds crypto personnel for industry supervision
Regulators in Hong Kong are stepping up their game when it comes to monitoring the activities of the crypto industry. According to a Securities and Futures Commission (SFC) report filed on Feb. 6, it plans to hire four additional staff to “better supervise” the activities of local virtual asset (VA) providers. Moreover, the extra oversight will help “better assess the compliance and risk” in allowing retail investors the opportunity to trade virtual assets on regulated platforms. The commission wrote: “This is in response to an increasing number of operators who have expressed interest in carrying on VA activities such as …
Adoption / Feb. 6, 2023
Interpol wants to police Metaverse crimes, reveals secretary general
The International Criminal Police Organization (ICPO), a.k.a, Interpol, is investigating how it could police crimes in the metaverse. However, a top Interpol executive believes there are issues with defining a metaverse crime. Interpol’s intent to oversee criminal activities on the metaverse was revealed by secretary general Jurgen Stock, according to BBC. Stock highlighted the ability of “sophisticated and professional” criminals to adapt to new technological tools for committing crimes. The move for policing metaverse comes nearly four months after the international organization launched its own metaverse in October 2022, at the 90th Interpol General Assembly in New Delhi, India. During …
Adoption / Feb. 6, 2023
South Korean regulator provides guidance on security tokens
South Korea established guidance that specifies which types of digital assets will be considered and regulated as securities in the country. In a press release, the Financial Services Commission (FSC) highlighted that digital assets that fit the characteristics laid out in the country’s Capital Markets Act will be treated as securities. This law considers securities as financial investments where investors are not required to make additional payments after their original investments. In addition, the FSC also provided examples of which digital assets will most likely be classified as securities. According to the FSC, this may include tokens that provide a …
Regulation / Feb. 6, 2023
Binance Tax launched to prepare crypto users for the tax season
For many countries, the tax season is right around the corner, which means companies in the crypto industry will need to be ready to help their users comply with local regulations. On Feb. 6, crypto exchange Binance announced it is launching a tax reporting tool to help users stay on track of their crypto transactions for tax reporting purposes. According to the announcement, Binance Tax lets its users download a tax summary report which includes any gains or losses which have occurred throughout the year in their Binance account. This includes spot trades, crypto donations and blockchain-based fork rewards. The …
Regulation / Feb. 6, 2023
What is the global financial crisis and its impact on the global economy
When the financial system or the economy as a whole undergoes a rapid and large decline, it is said to be in a financial crisis. Financial assets like stocks, bonds, and real estate often see a sharp and significant decline in value during financial crises. They can also be identified by a decline in credit availability and a loss of faith in financial institutions like banks. Related: DeFi vs. CeFi: Comparing decentralized to centralized finance Financial crises can be caused by a variety of factors, including: Overleveraging: When people, businesses, and governments take on excessive debt, they put themselves at …
Adoption / Feb. 5, 2023
Google invests $300M in AI firm previously funded by Sam Bankman-Fried
Google Cloud has reportedly invested $300 million into artificial intelligence (AI) startup firm Anthropic, which also happened to receive over $500 million in funds from former FTX CEO Sam Bankman-Fried about six months before FTX catastrophically collapsed. While the $300 million figure was reported by Financial Times on Feb. 4, Anthropic confirmed the investment partnership with Google Cloud on the same day despite not disclosing any figures: We're excited to use Google Cloud to train our AI systems, including Claude! https://t.co/IaqQ5lpJrP https://t.co/vOn5Cj4sPt — Anthropic (@AnthropicAI) February 3, 2023 In the same announcement, Anthropic also confirmed that they previously raised capital …
Adoption / Feb. 5, 2023
New Jersey enforces cease and desist orders against three ‘pig butcher’ scammers
The New Jersey Bureau of Securities has ordered three website operators to stop luring romance-seeking victims into their fraudulent cryptocurrency investment schemes. The three firms hit with the cease and desist orders were Meta Capitals Limited, Cresttrademining Limited and Forex Market Trade, according to a Feb. 3 press release from New Jersey’s Attorney General Matthew Platkin. All three firms claimed to be cryptocurrency trading platforms, where they would allegedly entice victims into copying the trades of their “expert traders” so that they can make big returns. But to get them into the scheme, these companies often resort to romance seekers …
Regulation / Feb. 5, 2023
UK is 'likely' to need digital currency, says BoE and Treasury: Report
The Bank of England (BoE) and Treasury believes the United Kingdom is likely to need to create a central bank digital currency (CBDC) by 2030, according to a Telegraph report on Feb. 4. The "digital pound" roadmap is set to be introduced next week, a government source told the newspaper. Deputy Governor Jon Cunliffe is scheduled to give an update on the BoE's work on the CDBC on Feb. 7 "On the basis of our work to date, the Bank of England and HM Treasury judge that it is likely a digital pound will be needed in the future," noted …
Adoption / Feb. 4, 2023
The world must take a 'collective action' approach to regulations – suggests India’s Finance Minister
India’s Finance Minister, Nirmala Sitharaman, stated that regulation “cannot be done” by a single country, it requires “collective action,” in a recent television interview. Speaking to Rahul Joshi on CNBC-TV18 in India on Feb. 3, Sitharaman noted that while the central bank is the “authority for issuing cryptocurrency,” the rest of the digital assets created outside are “using very useful financial technologies.” Sitharaman said that India is looking at a "global" standard operating procedure (SOP) to be “agreed upon” for regulating crypto assets, ahead of India hosting the G20 Finance Ministers and Central Bank Governors meeting in Bengaluru later this …
Blockchain / Feb. 4, 2023
FBI seizes $100K in NFTs and 86.5 ETH from scammer following ZachXBT investigation
The Federal Bureau of Investigation (FBI) has seized two non-fungible tokens (NFTs) worth more than $100,000 and 86.5 Ether (ETH) from a reported phishing scammer. The alleged scammer in question, Chase Senecal — known as Horror (HZ) online — was initially exposed via a lengthy investigation by independent blockchain sleuth ZachXBT posted back in September. In the FBI’s official notification posted on Feb. 3, it outlined that Seneca’s property — which also included an Audemars Piguet (AP) Royal Oak Watch worth $41,000 — was “seized for federal forfeiture for violation of federal law.” The FBI’s notification did not detail much …
Blockchain / Feb. 4, 2023
Overstock-funded tZERO Crypto exchange will shut down March 6
The tZERO Crypto exchange, whose majority owner is Overstock, will shut down on March 6, the company announced via Twitter on Feb. 3. The company says that it will continue to focus on its regulated securities products after the shutdown, as the United States Securities and Exchange Commission (SEC) and other regulators clarify the legal status of crypto assets. Today, tZERO Crypto informed its customers that it will be ceasing operations on March 6, following an orderly withdrawal of assets by the customers, which continue to be held by the custodian. 1/7 — tZERO (@tZERO) February 3, 2023 tZERO is …
Regulation / Feb. 3, 2023
CFTC head looks to new Congress for action on crypto regulation
Rostin Behnam, chair of the United States Commodity Futures Trading Commission, or CFTC, has said he will be continuing efforts for the agency to regulate non-security tokens. In remarks released for a Feb. 3 American Bar Association event, Behnam pointed to “bankruptcies, failures, and runs” as part of the justification for Congress to give the CFTC the authority to address regulation for cryptocurrencies. According to the CFTC chair, the commission was "well positioned" to address any regulatory gaps but deferred to U.S. lawmakers to pull the trigger on legislation. “Regulation is necessary to protect customers and to prevent failures which …
Regulation / Feb. 3, 2023