Showing posts with label regulations. Show all posts
Showing posts with label regulations. Show all posts

European Union TAKES THE LEAD from USA - 27 Nation Alliance Proposes Regulatory Standards for Cryptocurrency...

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. 

Europe Takes The Lead After Biden Administration Fails to Show Ability to Understand Crypto Market...

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. 

White House seems "only focused on the risks and not the opportunities" that the cryptocurrency sector has to offer....

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.

The European Union recently just slipped in harsh new rules regarding Dollar-pegged stablecoins...

The current draft version of the bill aims to reduce the market cap, and limit the number of transactions using dollar-pegged stablecoins like USDT, USDC, BUSD, etc.

The current version of Europe's proposed regulations would limit USD pegged stablecoin transactions to no more than $200 million in total value each day, or a total of 1 million transactions of any amount.  

These limits are ALREADY exceeded on most days, so what are traders expected to do at this point? Well, to be clear, these limits are only on stablecoins pegged to the dollar - stablecoins\pegged to the Euro will be free from any limits on their usage.

Currently 75% of all transactions in crypto involve a US dollar pegged stablecoin...

With this, the US loses an opportunity they could have sized that potentially could help maintain the strength of the Dollar for decades to come, at least according to some opinions.

If Europe implements what is currently proposed the US loses an opportunity they could have sized that potentially could help maintain the strength of the Dollar for decades to come, at least according to some opinions. A government made up of more tech-savy leaders would know to pass regulations requiring companies issuing stablecoins to actually hold a US dollar for each coin issued.

The US may learn the hard way - either take the lead and "set the standard" yourself, or expect when other nations do it they will make sure their own interests are served first...

How the US could still be first to implement comprehensive crypto regulations...

It may look like the US is too far behind now to catch up, but it would be even more unrealistic to believe the EU has nothing but smooth sailing ahead.

Even slower than US officials, is the European Union trying to agree on new laws. Hardly surprising when you consider how long it can take for differences to be resolved between parties within the same nation - imagine trying to get consensus from 27 governments.

There are some major flaws in the he most current version of the EU's 'Markets in Crypto Assets' regulatory proposal...

The best example of a 'major flaw' contained within the EU's propose regulations is how it would start requiring wallet providers to KYC (Know Your Customer) and obtain the legal ID of anyone using their software, even though wallet providers are never in possession of, or can even access your crypto. 

The best analogy is expecting manufactures of real wallets used for paper money and credit cards to ID buyers because 'you never know - they could use it to hold a credit card they just stole one day'. In both cases even if the allegations were 100% confirmed - the wallet-makers have no way of accessing what is inside of it.

Author: Ross Davis
Silicon Valley Newsroom
GCP // Breaking Crypto News

Kim Kardashian Reaches $1.26 Million Settlement with SEC...


It looks like Kim's lawyers delivered a pretty good deal for the reality TV star - she's worth $1.8 billion, and has reached an agreement to settle the matter for $1.26 million.

She also does not have to admit any wrongdoing.


Her 'endorsement' was pretty cringeworthy, but I'm probably not in her target demographic. The post said: "ARE YOU INTO CRYPTO??? THIS IS NOT FINANCIAL ADVICE BUT SHARING WHAT MY FRIENDS JUST TOLD ME ABOUT THE ETHEREUM MAX TOKEN.”

While the settled-on amount is too low to impact a billionaire, the SEC's newest statement on the matter was surprisingly positive, saying in part; "She wanted to get this matter behind her to avoid a protracted dispute. The agreement she reached with the SEC allows her to do that so that she can move forward with her many different business pursuits".

“This case is a reminder that, when celebrities or influencers endorse investment opportunities, including crypto asset securities, it doesn’t mean that those investment products are right for all investors” Said SEC Chair Gary Gensler.


There's been some emphasis by the SEC on Kim assisting them 'on "other cases'" - but this is the only time she has ever promoted a cryptocurrency.

Explained in the SEC's own words "(Kim) cooperated with the SEC from the very beginning and she remains willing to do whatever she can to assist the SEC in this matter." - this seems to clash with previous statements of this being a deal to allow her to "put this all behind her".

The most likely scenario is Kim sharing information on other projects that approached her, allowing the SEC to take note of which projects intended to spend a sizeable budget on celebrity endorsements.  Once they have this, they can begin to see what those companies ended up doing, and if any celebs that were eventually hired properly disclosed their status as paid endorsers. 

Author: Oliver Redding
Seattle Newsdesk  / Breaking Crypto News


Two Crypto 'Mixing' Sites Sanctioned - Now ILLEGAL For US Citizens to Access after They Allegedly Laundered Millions for North Korean Hackers...

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'.

Tornado.Cash joins on the list of mixer websites that are now forbidden for US citizens to access after being sanctioned by the US Treasury today.

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.

Tornado Cash made an effort to abide by the rules, but ultimately failed.

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.

Author: Mark Pippen
London News Desk 
Breaking Crypto News

SEC Chair Says the Public Will Benefit From Crypto Regulation...

U.S. Securities and Exchange Commission Chair Gary Gensler on crypto regulation and basic protections for the public.

Last week, investor Kevin O'Leary (best known as one of the Sharks on Shark Tank TV show) says he believes TRILLIONS of instructional investment funds are sitting on the sidelines, simply waiting regulations they need to see in place before investing. 

Video Courtesy of Yahoo Finance

World-Wide Look At Regulations Reveal SHOCKING Total People with Restricted, or No Access To Cryptocurrency Markets...

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:

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.

Written By Guest Author 
Contact: 614Crypto @ Twitter
Disclaimer: Not Financial Advice

White House Executive Order On Crypto TODAY - But It's This LEAKED STATEMENT That Has Investors Putting $15 BILLION Back In Crypto Markets...

Biden cryptocurrency executive order regarding crypto

Markets have come back to life after a sluggish week following an accidental leak thanks to Treasury secretary Janet Yellen's web team, which accidently posted her statement too early.

For a brief period her site referenced what's planned for later today as already happening, and shared her reaction:

 "President Biden’s historic executive order calls for a coordinated and comprehensive approach to digital asset policy. This approach will support responsible innovation that could result in substantial benefits for the nation, consumers, and businesses."

The page now says "Access denied—You are not authorized to access this page."

Markets reacted to the positive tone and investors quickly added another $15 Billion to the total crypto marketcap following the leak.

That was enough to end fears that a crypto crackdown was coming...

We now know Biden's executive order simply instructs federal agencies to investigate the need for crypto-related regulatory changes, along with any national security and economic issues relating to bitcoin and other cryptocurrencies.

While not based anywhere in reality - crypto is seen by most of the public as 'unregulated'...

Which many say is holding crypto back more than we realize.

For years now, many of Wall Street's biggest investors have pointed to a supposed 'lack of regulations' over crypto as their reason for not investing - which is why it has drawn so many people who generally like the idea of the government staying out until truly appropriate.

Ironically, you can make an argument that everything we need the government to do is already a law - it's illegal to lie to investors, it's illegal to hack, it's illegal to steal - that covers pretty much everything.

Notice how no arrests of scammers have ended with their court cases dismissed after they pointed out 'but we used crypto'? Because the laws already cover any theft or misleading of someone in a way that causes them to lose assets that have a monetary value, is a crime. 

Big Finance Weighs In...

The traditional finance world wants laws that cover crypto specifically - and it looks like their wish will be granted..

Some of the leading companies in the financial sector have made predictions on what could come following reasonable regulations that could give skeptical investors the confidence they need to finally dive in - with JPMorgan predicting $146,000 in Bitcoin's future and Bloomberg predicting it could hit $400,000.

Where This Leaves Us...

It's still important to remember that this is the beginning of a process -  Biden has requested Federal agencies to submit their analysis of what is needed for cryptocurrencies to function within our legal framework - and we have no idea what their answers will be.

Let's hope today is an indication of the tone this process will continue to have moving forward. 

Author: Ross Davis

Silicon Valley Newsroom

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Biden Plans To Sign Executive Order on Crypto Sometime THIS WEEK...

According to a report by Reuters on Monday, President Joe Biden is planning to issue an executive order on cryptocurrency policy this week, citing a source familiar with the situation.

The article claims, the order, which could aim to appoint a person with regulatory authority to oversee the crypto market, could come as early as Wednesday.

Regulators keen to close the gap on what they regard as trading activity occurring outside their remit continue to debate jurisdiction over digital asset market monitoring.

In this video, William Luther, a professor of economics at Florida Atlantic University and a fellow with the Bitcoin Policy Institute, argues Ukraine is 'essentially crowdfunding its military efforts' using crypto.

Video Courtesy Of Fox Business


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A More 'Crypto Friendly' SEC? PLUS: Exclusive Details on Industry and Politicians Private Washington DC Talks..

 US SEC Offices and Sign Logo

The Securities and Exchange Commission (SEC) of the United States appears to be moving towards a more 'crypto friendly' approach when it comes to regulations. 

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. 

Author: Justin Derbek
New York News Desk
Global Crypto Press Association / Breaking Crypto News