Crypto Seems to be Frowned Upon (Regulatory Digest, Nov 23–29)

Some recent selected news about Gibraltar Financial Services Commission, US Colorado, UK, New Zealand's BTC-e, Nigeria, Uganda, Malaysia, Taiwan, etc.

  • The Gibraltar Blockchain Exchange (GBX) attains a license from the Gibraltar Financial Services Commission. The GBX is said to be the first exchange to be authorized by the financial services body. It launched back in July and currently offers trading pairs with USD.
  • Colorado released cease-and-desist orders to four ICO projects. The four are Cred, CrowdShare Mining, CyberSmart Coin Invest, and Global Pay Net. Overall, the US State suppressed 18 illegal ICOs, including DavorCoin (DAV).
  • Venezuela’s Constituent National Assembly passes legislation on cryptocurrency regulation. The bill, proposed by Nicolas Maduro, legalizes the country’s cryptocurrency Petro. Petro can now be used as a unit of exchange to pay for goods and services in the country.
  • Thailand cultivates a friendlier environment for cryptocurrencies. Despite being in a military dictatorship, the country’s military junta worked to advance cryptocurrencies by approving exchanges, legalizing ICOs, and regulating the market. With the elections drawing near, it is said that cryptocurrencies will be a crucial part in Thai economics and politics.
  • New Zealand’s WEX.nz website, previously known as BTC-e, is suspended by the Domain Name Commission (DNC). The suspension comes as a result of suspicions on the authenticity of its registration details. WEX advised users to go to its site mirror wex.link.
  • Atiku Abubakar promises Nigerians he will be accepting of blockchain and cryptocurrencies if he wins the presidential elections. He plans to make Nigeria a technologically knowledgeable country by adding cryptocurrencies and distributed ledger technologies into the elementary and tertiary curriculum. Akitu served as Nigeria’s Vice President for eight years until 2007. He is at present the country’s opposition leader.
  • Germany’s Federal Ministry for Economic Affairs and Energy (BMWi) is proposing to use blockchain technology to fight tax fraud. Christian Hirte, Parliamentary State Secretary at BMWi, believes that using the technology could guarantee that taxes are trackable anytime.
  • The US SEC probe on Riot Blockchain is still ongoing. Riot Blockchain is investigated due to its nebulous registration statements presented by the company’s board. The company is also suspected of participating in a pump-and-dump scheme.
  • Uganda’s Planning and Finance Ministry completed a draft bill for a new crypto-related regulation. The East African country has seen a rise in Bitcoin Ponzi schemes and online scams with thousands of locals defrauded. The draft bill is expected to be introduced to the parliament for discussions and approval next month.
  • Taiwan strengthens regulations on AML directed at cryptocurrency exchanges. The newly approved legislation states the Financial Supervisory Commission (FSC) has the authorization to monitor exchanges and prevent suspicious transactions. The country’s Ministry of Justice (MoJ) says the government is laboring to meet international AML standards. But some speculate the new AML bill is compelled by China.
  • The Financial Conduct Authority (FCA) of the UK is preparing to restrain fraudulent cryptocurrency activities in the nation’s market. 24 firms are being investigated for operating without a license or permission. In order to curb illicit activities, the FCA will be partnering with Her Majesty’s Treasury (HMT) and the Bank of England to confront the damages and promote a beneficial innovative future.
  • In an address to Parliament, the Finance Minister of Malaysia, Lim Guan Eng, forewarns locals and businesses against issuing new cryptocurrencies. The MP recommends waiting for lawful regulation from the Central Bank, the Bank Negara Malaysia.

Don’t do it without Bank Negara’s guidelines or directive on the matter to avoid doing something wrong and against the law

Lim Guan Eng, Finance Minister of Malaysia

Related news

How Close Is India to Initiating a Full Crypto Ban?

Is the beginning of the end for crypto in India? India Again Discussing a Crypto Ban The country has been going back and forth regarding a potential crypto ban for well over a year now, but it seems we’re getting closer and closer to the reality of a crypto-less India. A government panel is now moving forward with its recommendation of a full ban on private cryptocurrencies, along with ten years in prison for all individuals who engage in crypto-based activities. It can be argued that India doesn’t quite know what it’s doing. As a country with limited means when compared with the U.S., China and most major points of Europe, India is a nation that would likely benefit greatly from cryptocurrency use. Digital currencies are largely decentralized and would give many of India’s people the opportunity to take care of themselves through currencies that are not controlled by any bank or financial institution. Users would not need to garner appropriate credit or industry recommendations. The money would be in their accounts in relatively short periods and they’d be free to use it without restraint. Nevertheless, India is allegedly not listening and once again relying on the age-old argument that crypto is responsible for illicit activity such as tax evasion and money laundering. It’s strange how so many people – even President Donald Trump – are unable to let this argument go. The panel in question has submitted a report suggesting that cryptocurrencies, as they stand, have no “underlying value.” However, it is stating that while doing away with all standard crypto is necessary, the Central Bank of India should examine the prospects of creating a national, digital rupee. Presently, the rupee is the country’s official cryptocurrency, and the panel is suggesting digitizing it to potentially lessen the chance of fraud in the future. What the panel probably doesn’t realize is that this wouldn’t protect against such problems. In addition, a nationalized cryptocurrency would hardly be crypto at all. A coin of this nature would be largely centralized or controlled by the banks that issue them. Thus, many would be prevented from getting their hands on it. They wouldn’t be able to live or survive the way they could with standard or mainstream forms of crypto like bitcoin, Litecoin and Ethereum. Interestingly, many experts agree that India would be making a huge mistake if it were to enforce a full ban of cryptocurrencies. Sathvik Vishwanath, the co-founder of Uno Coin, explained:  If the government decides to take such a drastic step, then India will stand to lose out significantly on the technology front. Many Think This Would Be a Bad Idea Nischal Shetty, CEO of Wazir X, seems to agree. He explains:  Banning cryptocurrencies is a regressive step and no country or government should ban a new technology such as this. The post How Close Is India to Initiating a Full Crypto Ban? appeared first on Live Bitcoin News.
Live Bitcoin News

UK parliamentary committee wants to look into Libra

A UK parliamentary committee wants to investigate Facebook’s Libra. The House of Commons’ Digital, Culture, Media and Sport Committee is concerned Facebook will gain too much power by launching a cryptocurrency, Financial News reports. The committee’s chair Damian Collins has also voiced doubts as to whether Facebook will be able to protect personal financial information once the cryptocurrency is launched, considering the media giant’s previous privacy issues. Collins has already investigated Facebook once as he led the investigation against the company due to the Cambridge Analytica data scandal.  Collins believes that “[Libra] suggests that Facebook’s almost trying to turn itself into its own country.” Facebook, according to Collins, is a boundaryless global community with the company's CEO Mark Zuckerberg as its sole overseer.  “If we’re going to have this payment system created by Facebook that exists within a Facebook walled garden, which no one really has access to or can question, then our concern has got to be that this system is going to be open to massive fraud,” Collins said.   According to lead cryptocurrency researcher at Cambridge University Michel Rauchs, the Libra Association is likely to become “one of the world’s largest funds” which could, in theory, give it enough power to “be able to exert tremendous influence over national governments.”
The Block Crypto

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