Policy and Regulation
Elizabeth Warren is drafting legislation to check Russian activity in crypto
There are bipartisan concerns on the role of crypto in enabling Russia to skirt economic sanctions Warren’s proposed bill would require crypto exchanges to track and submit records on transactions to private crypto wallets As the sanctions against Russia become stringent and more companies including Visa and MasterCard join the list of those suspending operations in the country, the United States political class wants to go a step further to ensure that “crypto isn’t used by Putin and his cronies to undermine our economic sanctions,” as Democratic senator Elizabeth Warren put it. According to a report first published by NBC News on Tuesday, the senior senator from Massachusetts is crafting a piece of legislation to crack down on crypto and prevent its use by Ru...
Treasury Secretary Yellen ‘mistakenly’ publishes response to Biden’s executive order
The Biden administration will support responsible innovation around digital assets The executive order will also look to establish consumer and investor protection measures International partners will be involved in defining standards for digital assets The office of the United States Secretary of the Treasury Janet Yellen yesterday released a statement, dated March 9 (today), that indicated that President Biden’s executive order would support responsible innovation via a coordinated approach to establishing digital asset policy. Strange, and maybe accidental Meant to be a response to the yet-unreleased directive by the White House, the statement by the Treasury secretary has since been deleted but was captured by a web archive. Yellen explained that this approach benefits the nation...
Here’s why the UK’s FCA is not impressed with EQONEX’s agreement with Bifinity
The FCA says the agreement granted Bifinity certain contractual rights over Eqonex The UK financial markets regulator insists it retains powers to suspend an unfit firm’s crypoasset registration The UK’s Financial Conduct Authority yesterday sent out a note indicating that it is still keeping a close eye on Binance. The message came on the heels of Binance’s subsidiary pay tech firm Bifinity completing a strategic agreement with FCA-regulated EQONEX Limited. Binance launched payment tech company Bifinity yesterday, noting that EQONEX, the first publicly listed digital asset firm in the US, would receive a $36 million convertible loan as part of the agreement. Further, the cooperation would also give Bifinity the right to appoint the CEO, CFO, and Chief Legal Officer of EQ...
Crypto bank Sygnum expands its scope of regulated ventures in Singapore
Swiss crypto bank Sygnum has gotten a nod to expand digital asset activities in Singapore The approval is a boost in the company’s efforts to offer tokenisation of assets Swiss crypto bank Sygnum today announced that its Sygnum Singapore subsidiary has received approval to venture further into offering regulated products in the country. Sygnum Singapore now holds in-principle approval from the Monetary Authority of Singapore (MAS) to provide additional services under the capital markets services (CMS) licence it gained in 2019. The three new regulated activities include providing custodial services, corporate advisory on finance, and access to tokenised products, including digital assets. Sygnum is a first of its kind – digital asset bank – and provides banking services around digita...
Report: President Biden set to sign a crypto executive order this week
The executive order will put focus on possible legal and economic impacts of digital assets The White House’s approach has come under keen scrutiny in recent days, with concerns that Russia could use crypto to evade economic sanctions US President Joe Biden will reportedly sign an executive order on crypto this week, potentially leading towards a framework for the regulation of digital assets. Talks of market-wide crypto regulation have been around since last October, as the government resolved to fight the then surging threat of cybercrime and ransomware. Now, according to a report published yesterday, Bloomberg says the order could be signed as soon as tomorrow. Citing an individual familiar with the matter who preferred to remain unidentified, the news outlet explained that t...
Coinbase acts to ensure compliance with sanctions against Russia
Crypto exchange Coinbase says it has blocked over 25k Russian addresses linked to illicit dealings The exchange has submitted the idea of using crypto tech over traditional fiat to ensure sanctions compliance In an official blog post published today, the largest crypto exchange in the US, Coinbase, has voiced its support for the range of sanctions placed against Russia. The exchange insisted that sanctions play a critical role in national security and dissuading unlawful aggression. In the post, the exchange’s chief legal officer Paul Grewal acknowledged that while Coinbase’s compliance program might not be perfect, it is doing its bit in helping ensure compliance to imposed financial and economic penalties. He explained that via its multi-layered, global sanctions program, Coinbase is abl...
US SEC is probing possible violations in NFT offerings
The SEC is particularly interested in fractional NFTs The regulator has, over the last few months, reportedly demanded information on the matter from certain entities Enjoying a breakout onto the scene in 2021, the NFT sector grew to become a $40 billion market. However, the US Securities and Exchange Commission, SEC, has taken note of the digital collectables and is now exploring whether they have been used in ways that violate securities laws. According to a recently published report by Bloomberg, the Commission has initiated a probe into whether NFT offerings are securities in the last few months. The news outlet said that the SEC has been sending subpoenas to creators behind some NFTs and crypto exchanges to provide information on the said product offerings. Bloomberg, citing people fa...
UK’s ASA says banned Floki Inu ad abused consumers’ ‘inexperience or credulity’
The UK’s advertisements regulator has banned an “irresponsible” Floki Inu ad campaign The regulator says Floki Inu trivialised the risks of crypto investments The UK’s Advertising Standards Authority (ASA) has outlawed an ad campaign for Floki Inu, the meme coin named after a dog owned by Tesla’s CEO Elon Musk, for being in violation of advertising standards. Reports of the meme coin’s advertisement go back to October last year. The Financial Times reported at the time that Floki Inu had launched a full-fledged marketing assault with an ad explosion in trains, buses, and London’s metro network. “MISSED DOGE? GET FLOKI,” the ad read, alongside a picture of a cartoon dog brandishing a Viking helmet. The Floki Inu ad. Source: The Guar...
Top Ukraine government official wants Russians’ crypto assets frozen
Ukraine’s Vice Prime Minister has asked crypto exchanges worldwide to freeze assets held by Russian users Mykhailo Fedorov pointed at NFT platform DMarket that had already initiated such restrictions None of the major crypto exchanges has so far withheld ordinary user assets in Russia In an occurrence that sparked contrasting emotion, Ukraine’s Vice Prime Minister, Mykhailo Fedorov, yesterday asked all global crypto exchanges to block addresses linked to users in Russia. Fedorov particularly insisted on ensuring that freeze actions had to also impact everyday users in addition to political leaders. “I’m asking all major crypto exchanges to block addresses of Russian users. It’s crucial to freeze not only the addresses linked to Russian and Belarusian politicia...
China’s Supreme Court rules public funding via crypto as illegal
The People’s Bank of China previously outlawed crypto trading across the country The new judicial interpretation from the Supreme Court has spelt out punishment for those that transact in cryptocurrencies China’s initial ban of cryptocurrency activities in September led to a global market-wide crash. The authorities, at the time, cited threat to financial stability as well as breeding of criminal activities like money laundering, gambling, and fraud as the reason for the take. However, the decision did not come with penalties or judicial prosecution for those that went against it. That is set to change from 1st March following a Thursday ruling from the country’s Supreme Court that has amended its Criminal Law in regards to raising public money through virtual assets. The...
Brazil tables crypto bill moving a step closer to regulating the sector
Yesterday, the Brazilian Senate’s Economic Affairs Committee (CAE) approved a crypto regulation bill The legislation would regulate the everyday use of crypto, define a virtual asset, and the provisions for a VASP Brazil has set itself on a path towards regulating cryptocurrencies in the country. According to an official statement sent out on Tuesday, the Senate’s Economic Affairs Committee (CAE) unanimously approved a piece of legislation to regulate cryptocurrencies in the Latin American country. The bill, tagged PL 3825/19, was jointly created by the Federal Tax Authority (RFB) and the Brazilian Securities and Exchange Commission (CVM). It now heads for a vote in the Senate, then into the lower house. If approved at these stages, it shall be presented before President Jair B...
Here’s why UK and Israel authorities have expressed concerns over Binance
The UK’s FCA says Binance’s partnership with Paysafe is beyond its controlling hand The financial watchdog still holds reservations, with insistence on the ‘significant risk’ warnings it issued against the exchange last year Israel’s Capital Market Authority has suspended Binance operations in the country until the pending licensing issue has been clarified Binance made headlines this week – both for good and bad reasons. The crypto exchange announced the rebrand of some of its assets earlier this week. It was also reported to be under the spotlight of financial authorities in the UK. Not long after, Israel’s market regulator raised the alarm over the exchange regarding the services it offers. Worth noting, the US arm of the exchange, Binance.US, is bein...
