Brian Armstrong, Coinbase CEO, says the United Arab Emirates deserves "a lot of credit" for its commitment to crypto regulation.
The European Union's Markets in Crypto Assets (MiCA) regulation is progressing towards completion fast, and by all indications will become law in the 27 countries that make up the European Union, possibly before the end of the year.
The response from the crypto industry as well as critics has been generally positive, with many believing the law has found the right balance between protecting consumers from scammers and other criminal conduct, empowering enforcers to go after those criminals, all while acknowledging the future potential of the technology and the importance of allowing legitimate use to proceed with as little interference as possible.
The EU clearly plans to take the lead when it comes to setting the world regulatory standards of the cryptocurrency ecosystem. In online crypto communities some European traders are now suggesting that "the US should just follow our lead".
This new determination to be the standard-setters seems to have ignited when the Biden administration shared their "first comprehensive framework for the responsible development of digital assets" - which basically asked government agencies to submit answers to their completely open ended question of what they believe they need to properly regulate the industry, this warned the rest of the world that current US leadership appears to be unqualified to regulate crypto (and probably all tech) as senior citizens fill many of the vital roles.
Both Biden and officials appointed by him seem to have taken media clickbait articles as fact, and often remarks focus on addressing only the negative aspects in the crypto world.
But law isn't just about stopping the bad guys, it's also about protecting the good ones. Which is why lawmakers shouldn't be looking at anything but hard data and reality to form their opinions.
In reality, about 2.1% of crypto is being used for illegal purposes like money laundering or purchases of items found on the darkweb, according to the firm that works with the FBI analyzing blockchain data for illegal activity, Chainalysis.
According to the UN, as much as 5% of ALL global currency is being used to facilitate something illegal, meaning Fiat currency, specifically paper cash, remains the preferred format of currency in the criminal underworld.
By dividing a user's deposit into a random number of parts and distributing those pieces to other users, a cryptocurrency "mixer" essentially muddles up the transactions of individuals who make deposits to them. In exchange, you receive the same amount back (less fees) from other anonymous users.
Tracking stolen cryptocurrency becomes difficult since it may rapidly change hands from one person to dozens when 'mixed'.
The US Treasury estimates that since Tornado's inception in 2019, more than $7 billion in virtual currency has been laundered on the platform.
However, it's the $455 million from the "Lazarus Gang," a hacker group supported by the North Korean government, is what officials find most upsetting.
The sanctions also covered 44 wallets, making it prohibited to receive or send money to any those addresses.
In attempts to comply with the US government but still function for it's users, Tornado Cash implemented improvements like a screening tool to stop money from travelling between it and bitcoin wallets that officials say are tied to illegal activity.
Despite that, the Lazarus Group and other hackers were still able to transmit money to Tornado Cash for money laundering, according to a law enforcement investigation of open cryptocurrency transactions, the official added.
“Despite public assurances otherwise, Tornado Cash has repeatedly failed to impose effective controls designed to stop it from laundering funds for malicious cyber actors on a regular basis and without basic measures to address its risks,” Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson said in a statement. “Treasury will continue to aggressively pursue actions against mixers that launder virtual currency for criminals and those who assist them.”
Treasury officials added that they hope this motivates the private sector and partner nations to help in regulating illegal use of crypto.
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Author: Mark Pippen
London News Desk
Breaking Crypto News
Cryptocurrency has had an underwhelming start to 2022, with 2021's bull market taking a turn that sent Bitcoin down to $38,500 in January. Despite a couple wild swings, it keeps returning to approximately that same price - now 3 months in to the year and it's $38,450 at the time of publishing.
While 2022 on a micro scale has been a battle of fear and confidence between crypto bulls and bears, the macro investor will be happy with the headlines emerging throughout February. Every day, there appears to be a more positive attitude toward cryptocurrency among big companies, institutions, and countries.
Within every country, there are development conversations and plans being drawn on how to integrate, adopt, make use of, and ultimately benefit from the coming adoption and demand of Bitcoin by the public. In comparison to other successful developing technologies, Bitcoin’s positivity and acceptance is snowballing at a rapid pace. Countries that already embrace crypto are moving fast to stay ahead of the curve, while countries that still have a legal grey area over crypto are starting to have their heads turned, making some cautious moves in attempt to keep a hand in the game.
I could spend all day listing new daily headlines, that show a major swing in momentum towards cryptocurrency by countries, states, institutions, companies, and key people/investors. However, let's take examples from the big guns in 2022 so far;
- Russia recently warned of a crypto ban but looked to have pulled a U-turn, making new policy to integrate and benefit from crypto.
- India has strongly opposed crypto and still has bans in place. They have now announced a bill to tax crypto gains, allowing a huge population to use the blockchain legally.
- Turkey’s crypto bans seems to be nearing an end as they see such a high demand for blockchain use amid an inflation crisis. They too are exploring ways to tax, legalise, and make use of crypto themselves.
Current countries that have a ban, tight regulation, or heavy legal restrictions on crypto are:
COUNTRY | POPULATION:
China - 1.4Billion
India - 1.3Billion
Indonesia - 273m
Russia - 145m
Egypt - 100m
Vietnam - 97m
Turkey - 84m
Iran - 83m
Columbia - 50m
Algeria - 43m
Iraq - 40m
Nepal - 29m
Bolivia - 11m
Macedonia - 2m
Kosovo - 1.8m
Total 3,658,000,000
Combined, we discover 45% of the world's population has heavily restricted or no access to cryptocurrency markets...
Even in countries where crypto has been embraced so far, political pressures are guiding people toward crypto as a store of value and wealth preservation.
More and more people are beginning to recognize the value of hedging some of their wealth in ironically safer assets such as cryptocurrency in the face of uncertainty in places such as Ukraine and certain areas of Canada.
Citizens are pressuring politicians and forcing them to get educated on crypto - warning that if bans are imposed, they can expect to lose the next election.
Just last week in the European Parliament it initially appeared that a bill that would have banned mining of some cryptocurrencies known for using high amounts of electricity was going to pass. Until members offices and inboxes began being flooded by voters advising they re-think their position.
Will 2022 pan out to be the year of Adoption?
Regardless of price in the next day, week, or month, this snowballing momentum will continue to grow in favor of cryptocurrencies as the abovementioned organizations continue the race to get ahead of the game. What happens when the above 45% have crypto assets readily available?
I believe we will see the above list continue to have their heads turned in fear of falling behind of blockchain tech, and for this reason, 2022 will be the year to kickstart mass adoption of crypto.
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Written By Guest Author
Contact: @ Twitter
Disclaimer: Not Financial Advice
Since the first in 2013, SEC actions against cryptocurrency companies and startups had been on the rise. But according to recent statistics from economic research firm Cornerstone Research, 2021 marked the first year these actions decreased.
The obvious question is - why? Perhaps simply Covid and a generally backed-up legal system, meaning while prosecutions may have been delayed, they had not deceased.
Others say the difference is Gary Gensler, who was appointed director in 2021 and his experience prior to joining the SEC - as a professor of bitcoin and blockchain at MIT...
Lawmakers and politicians with misconceptions about cryptocurrency, and often a general ignorance of technology in general remain the biggest threat. But with the appointment of Gensler many of crypto's supporters are feeling a bit less worried, as it at least appears the SEC is now led by someone with a full understanding of what they're tasked with regulating.
Since 2013, the SEC has taken action in 123 cases that focused on cryptocurrency...
From otherwise legitimate projects that lacked the proper licenses to operate, to full blown Ponzi-scheme style scams.
Since their first crypto based case in 2013 - the amount of actions taken by the SEC each year has only grown, with the amount of cases peaking in 2020 with a total of 35. Last year, 2021, was the first decline in total cases with a total of 24.
Pressure on US Regulators and lawmakers continues to grow, as the industry increases political influence...
Particularly over the past 3 years the crypto industry has put a major focus on making sure their voices are heard by those who will eventually decide how their businesses will need to operate.
Getting to a position where they can be heard involves playing the game - political donations, charities, resources, speaking engagements. Cryptocurrency company founders and executives are being spotted in every corner of Washington DC these days.
Inside the crypto industry, as they go inside Washington DC...
The US crypto industry has accepted that new regulations are eventually coming - so the sooner they know what they will be, the better. Over the years we've heard multiple large investors and investment firms say regulatory uncertainty is their main reason for still sitting on the sidelines.
While acknowledging the urgency for clarity, they cannot push so hard that politicians feel pressure to just 'do something' - sacrificing the time needed to draft reasonable, productive, and positive guidelines.
"The end goal everyone wants is a stronger, more stable industry, with better protected and informed investors and traders - and we're positive this can be achieved" says a contact from one of the major US crypto companies involved in lobbying Washington DC, who asked to remain unnamed, and that we note they are speaking as an individual and not a spokesperson for any organization.
But they also believe that completing their current goal must come before anything goes up for a vote, which my contact describes as 'educating lawmakers, because if there was a vote today I think about 10% of them would understand the impact of what they're voting on".
Which isn't as simple as addressing Congress and the Senate with a '1 size fits all' speech, my contact explains "There's a huge range of experience among lawmakers when it comes to finance and tech. That's why it's about asking for just a few minutes to speak to them 1 on 1 - and then we don't just lecture them on crypto but also make them feel comfortable to ask questions and raise concerns".
So, while the industry wants a resolution soon, a plan that aims for informed people making smart decisions comes with a speed limit.
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Author: Justin Derbek
New York News Desk
Global Crypto Press Association / Breaking Crypto News
