Global crypto regulatory round up Aug 27 to Sept 11

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UK’s financial regulator expands AML regulations to all cryptocurrency firms

United Kingdom is exploring new regulations to bring transparency to the cryptocurrency businesses. Cryptocurrency firms must comply with the new Anti-Money Laundering (AML) reporting regulations.

This initiative will allow financial regulators to evaluate how cryptocurrency businesses deal with scam. According to the consultation paper published by the UK’s financial regulator, cryptocurrency firms need to submit an annual report on their problem dealing method. The consultation paper reveals the plan to broaden the annual crime reporting requirements that involves cryptocurrency exchanges and other custodian wallet service providers, reported a crypto news site.

EU

EU set to introduce new legislation for safe #Cryptocurrency exchange

According to a report by the Cyprus Mail, a new cryptocurrency legislation for safe cryptocurrency exchange could be introduced in the EU countries. By this new legislation, under the new guidelines, Bitcoin and other digital currencies will be named monetary instruments all through Europe. This means legal cryptocurrency exchange will be more transparent than ever. Moreover, it is said that this new legislation will encourage the innovation associated to crypto and blockchains sector, writes Graham Paul.

Leaked: EU to work on new financial watchdog for digital currencies

The European Union (EU) is the first regional block all set to pioneer digital currency use. According to a leak posted online, the region will soon set up a college of national and European authorities to oversee the use of significant digital currencies. If successful, it is obvious that the EU will be the first major jurisdiction to pass regulation related to digital currencies

Cryptocurrencies need regulation because, while they are regarded as futuristic, they are also susceptible to misuse and attacks by money launderers and scammers. Authorities are also concerned about ‘stablecoins’, which are digital tokens backed by sovereign currencies or assets.

Other News

Crypto Exchange Kraken Makes Japan Return After Two-year Absence

According to reports, major American crypto exchange operator Kraken is set to return to Japan after an absence of over two years – under the umbrella of its Tokyo-based Payward Asia subsidiary.

The San Francisco-based firm was forced to exit Japan back in April 2018, citing rising business maintenance costs. However, even while it was preparing its exit, the exchange giant claimed it was open to a return at some unspecified point in the future.

Japanese Crypto Exchange Bitgate Partners with BitGo to Offer Custodial Services

Japan-based regulated crypto trading platform Bitgate partners with financial assets services provider BitGo to offer cold storage services to its customers. On Wednesday, September 1, BitGo announced that it will provide the “Self-Managed Custody” service to the exchange.

Besides, BitGo will offer these custodial services meeting the newly introduced regulations by the Japanese Financial Services Agency (JFSA). As on May 1, 2020, the FSA introduced a major regulatory change in the way it sees the operations of overseas crypto companies doing business in Japan, reported a crypto news site.

South Korean Bitcoin Exchange Bithumb Reportedly Raided by Police

According to a report by a local news outlet, the Intelligent Crime Investigation Unit of the Seoul Police authorities raided South Korea’s largest cryptocurrency exchange Bithumb. The authorities raided the company’s headquarters on Wednesday (September 2, 2020), under allegations of fraud.

Bithumb earlier conducted a presale of its native BXA tokens to investors worth 30 billion won ($25.2million), which was supposed to be listed on the exchange. However, the company reportedly failed to list the token, costing a massive loss to investors.

Korea’s largest job search platform uses blockchain to verify applicants’ credentials

Korea’s leading blockchain company, and SaraminHR (www.saramin.co.kr), Korea’s largest job search platform, have announced the first full implementation of blockchain technology in the recruitment and staffing industry in South Korea. Earlier this year, the two companies signed an agreement to build and promote a blockchain-based decentralized identity (DID) ecosystem and related services.

South Korean government agency to use blockchain-based employee ID system

According to reports, the Korea Internet & Security Agency, or KISA, is the first public entity of South Korea to implement a blockchain-powered employee ID system through a smartphone app starting October.

According to Yonhap, the agency will also issue tokens called “KISA Coin” to reward KISA’s best employees, enabling them to purchase snacks, beverages, and even office supplies. It is currently being pilot tested, with the expectation to make it available for the entire workforce.

This South Korean film festival will be powered by blockchain technology

An upcoming film festival, hosted by the Gyeonggi Film School, will be held from September 25 to October 4. Recently, the festival announced its partnership with MovieBloc, a Blockchain-based media distribution platform.

According to reports, the festival’s audience will be able to rate each film in real time in exchange for various tokens. Attendees will be able contribute in other ways as well, such as by providing foreign-language subtitles for various films, in return for additional token-based rewards.

Bitcoin adverts displayed exterior banks in Hong Kong, in effort to unfold BTC consciousness

Bitcoin Affiliation of Hong Kong, which incorporates over 5,000 Bitcoin-focused members, at this time introduced that it could use donations to purchase promoting areas to submit Bitcoin adverts that will educate locals in regards to the deserves and dangers of the premier cryptocurrency.

In response to the discharge, these Bitcoin adverts can be displayed on three Bitcoin-themed doubledecker trams. In addition to the trams, the Affiliation can even show Bitcoin logos and informative messages throughout 20 billboards within the metropolis, all all through September till eight October, reported a crypto news site.

Why Crypto Investments Are Less Vulnerable to US-China Tensions

With U.S.-China tensions continuing to burn, some investors are feeling the heat. The Trump administration recently sanctioned Chinese officials because of Hong Kong’s new security law. Separately, the U.S. warned the global community against using Chinese technology and tried to force Chinese companies to sell parts of their business. Other western countries are beginning to follow suit. China has kicked out major American media outlets and closed the U.S. Consulate in Chengdu, reported a crypto news site.

Crypto-Friendly Banking Platform Cashaa Expanding in India, US, Africa

London-based crypto-friendly banking platform Cashaa has unveiled its expansion plans, having raised $5 million from Dubai-based blockchain investment and advisory firm O1ex. “As a part of its expansion plans, Cashaa is set to launch its global banking services,” the company announced.

Cashaa CEO Kumar Gaurav said: “At the onset, we are looking at fast-maturing markets such as India, which has tremendous potential in terms of not only having a sturdy economic base but a healthy banking and financial ecosystem backed by technology. A market that has the potential of adding 100 million users within the next 2 years”, reported a crypto news website.

EU heavyweights seek strict rules for digital currencies

Finance ministers from five of Europe”s biggest economies called for the European Union to produce strict rules for new, private digital currencies such as Facebook-backed Libra and ban those that don”t comply.The ministers from Germany, France, Italy, Spain and the Netherlands said in a joint statement that new regulations being drawn up by the EU”s executive Commission — and expected this fall — should seek to “preserve our monetary sovereignty and address the risks to monetary policy, and on the other hand protect EU consumers.”

The five countries say that if it isn”t clear that a digital currency is firmly linked to an existing currency, and if there is a danger to the stability of financial markets, “what has got off the ground must be banned,” German Finance Minister Olaf Scholz said on the sidelines of a meeting with his eurozone counterparts in Berlin, reported a crypto news outlet.

US researchers find crypto bugs in 306 popular Android apps

According to reports, a team of US researchers has developed a tool that can find cryptocurrency bugs in Android apps. Using the tool, they discovered crypto bugs in 306 popular Android applications. Named ‘CRYLOGGER’, the custom tool was used to test 1,780 Android apps across 33 different Google Play Store categories, ZDNet.

The research team from Columbia University found crypto bugs in 306 popular Android apps and none was patched.

CoinDCX launches educational courses despite unclear regulations

The threat of possible anti-crypto legislation in the near future has not prevented cryptocurrency firms in India from rolling out educational programs and professional training for people interested in the industry.

On September 2, the crypto exchange CoinDCX announced it would be integrating online training and blockchain certification courses that are provided by an organisation called the Blockchain Council. The new partnership will offer two specialised courses in cryptocurrency training. This new initiative is an extension of CoinDCX’s existing educational platform, the DCXLearn, and will allow trainees to participate in practice sessions with the exchange’s interface. This is an opportunity for hobbyists to try an immersive simulated training experience, reported a crypto news outlet.

Think Your Cryptocurrency Transactions Are Anonymous? U.S. Government May Be Able to Track Monero

One of cryptocurrency’s biggest selling points is that it is mostly beyond the reach of world governments, providing a universal option through which to avoid banks and fiat currencies entirely. This is not entirely true for all forms of crypto, however, and one of the most privacy-focused may have just been opened up to prying eyes. The intelligence firm CipherTrace is claiming that it has developed a tool that can trace Monero cryptocurrency transactions, and that it will be provided exclusively to the U.S. Department of Homeland Security, reported a crypto news site.

The US lawmakers want OCC to clarify crypto regulations – a report by Sahil Kohli.

According to reports, The US Senate’s Banking Committee has sought clarity from the Office of the Comptroller of the Currency (OCC) regarding its proposed crypto payments rulemaking process. In a recent letter, the Committee’s chairman urged the OCC to formulate enabling regulations as cryptocurrencies are ‘inevitable and beneficial. The letter by Senator Mike Crapo called on Acting Comptroller Brian Brooks to update the Advanced Notice of Proposed Rulemaking (ANPR). The OCC had issued the ANPR on June 4, inviting public feedback on a current policy governing the banking and finance industry.

US Lawmakers Advocate for Blockchain Use in COVID-19 Relief Efforts

According to reports, members of Congress are urging the federal government to use blockchain solutions to boost COVID-19 relief efforts.

In a letter addressed to the U.S. President Donald Trump and federal officials, lawmakers said blockchain technology can help identify and authenticate individuals set to receive government benefits, streamline supply chains and create a registry of medical professionals. This is the latest development in a trend of U.S. lawmakers actively advocating for blockchain applications and virtual currencies, with representatives re-introducing bipartisan legislation in January that would reduce the tax burden on small crypto transactions, and Massachusetts Representative Stephen Lynch (D-Mass.) proposing a bill in April to record national stockpiles on a blockchain.

Is Cryptocurrency Taxed In US? IRS Confirms Crypto Earned Through Microtasks Are Taxable

The Internal Revenue Service (IRS) confirms that cryptocurrencies earned from microtasks are taxable. The IRS said in a new memorandum that these types of tasks provide individuals with rewards (cryptocurrency) that are subject to the same regulations as the U.S. dollar.

A memo was issued in response to a question from Carolyn A. Schenck from the Small Business/Self Employed Division of the IRS regarding whether or not convertible virtual currency received by an individual performing a microtask through a crowdsourcing or similar platform is a taxable income, reported a crypto news site.

US crypto adoption rate lags behind Russia and China, says Chainalysis

According to reports, the latest data released by Chainalysis, the US crypto adoption rate is far behind Russia and China. The Global Crypto Adoption Index 2020 released by Chainalysis lists nations according to their crypto adoption policies and regulations. Surprisingly, Ukraine has secured top rank on the index and Russia occupies a sweet second spot.

The pace of US crypto adoption significantly lags behind Russia and China. Chainalysis uses various factors to calculate ranking in its report. It features the cumulative value of on-chain transfers as per the relative PPP. Then it features the complete on-chain retail transfers again with PPP weightage. The last metric includes every crypto deposit on-chain.

Chainalysis also uses the P2P trades with P2P weighted ratio. These statistics are extensive and give a complete picture of how a nation uses cryptocurrencies.

Bank of England Says That Cryptocurrencies are Unsuitable for Payment

According to reports, the Bank of England has updated its stance regarding cryptocurrency regulation. A virtual meeting was arranged by Brooking Institute where the governor of the Bank of England, Andrew Bailey and many others elaborated their views on stablecoin regulation. Bailey says that stablecoins require immediate global response as their popularity keeps on increasing. He had clarified that crypto assets like Bitcoin are not suitable to be used as payments for buying or selling things. It seems like BTC has failed to convince him that it can be a great investment option. This is because their value can fluctuate very quickly and to a very big extent. New innovations bring new regulatory challenges for high risk firms, which compromise their ability of providing a safe regulatory framework.

Bank of France: stablecoins could impact EU financial sovereignty ‘for decades’

According to reports, the governor of the Bank of France has warned that Europe cannot afford to lose momentum in tackling the challenges posed by private sector global digital assets.

His warning came as five EU governments — Germany, France, Italy, Spain and the Netherlands — all backed the European Commission’s intent to draft regulation for asset-backed crypto assets, notably stablecoins.

Germany’s BaFin Mandates Licensing for Crypto ATMs

Germany’s Federal Financial Supervisory Authority, popularly known as BaFin, has mandated its permission over the installation of any new cryptocurrency automated teller machines (ATMs). The provisions were made under the German Banking Act.

“Proprietary trading is a financial service and financial commission business is a banking business, for which prior approval from BaFin is required,” a translated version of the announcement reported.

 

 

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