Month: July 2023

“The European Banking Authority is urging an early adaptation of guidelines for managing stablecoins, ahead of mandatory regulations due next year. This includes understanding and implementing the EU-approved MiCAR framework’s measures for good governance and consumer protection. These preemptive actions are designed to reduce potential risks and facilitate effective consumer protection in the rapidly evolving stablecoin market.”

US Senators Cynthia Lummis and Kirsten Gillibrand are to propose a new legislation known as the ‘Responsible Financial Innovation Act’, aimed at regulating cryptocurrencies and digital assets. The bill plans to classify most cryptocurrencies as commodities and enforce crypto exchanges to store consumer assets in third-party trusts, enhancing security. Critics argue it may also create unintended consequences.

Paradigm, a crypto investment firm, opposes the SEC’s case against crypto exchanges like Bittrex, claiming the SEC is wrongfully trying to govern crypto secondary markets. It suggests the SEC should work alongside Congress to produce crypto legislation promoting innovation and ensuring investor safety.

Google faces a lawsuit for allegedly misusing data, including copyrighted items, for AI training without necessary consent, sparking a debate about internet ownership. A court order could demand explicit user permission for data collection or potentially fine Google up to $5 billion.

“The race for global digital currency dominance has stablecoins and Central Bank Digital Currencies (CBDCs) in the lead. However, Rabi Sankar, Deputy Governor of the Reserve Bank of India, warns that stablecoins could pose significant policy sovereignty risks for certain nations.”

“The UK’s Financial Conduct Authority (FCA) is imposing stringent regulations on crypto ATM machines as part of a crackdown on the illicit cryptocurrency sector. With 26 ATMs suspected of unlawful operation recently disrupted, the FCA is pushing for strong regulatory frameworks around cryptocurrency transactions, safeguarding consumers from potential fraud, despite possible hindrance to blockchain adoption and innovation.”

ARK Invest recently sold approximately 135,152 Coinbase shares, at an estimated value of around $12 million. This coincides with Coinbase’s robust stock performance but also increased regulatory scrutiny from the SEC regarding possible securities breaches in cryptocurrency listings.

The U.S. Senate Committee on Finance is working to resolve regulatory complexities in the digital asset industry, incorporating the crypto community’s help. This initiative aims to create comprehensive tax laws around cryptocurrency activities, enhancing compliance within the expanding U.S. crypto sector. However, these rules may impact the decentralized essence that embodies cryptocurrency’s ideology.

Russia’s parliament voted in favor of the “digital rouble” bill, moving towards a digitized financial infrastructure. While retail businesses expect profit, concerns about potential bank losses over the rapid transition to digital money have emerged. A country-wide rollout is planned for 2025-27, marking a significant point in Russia’s financial growth.

Crypto lending platform, Celsius, is aiming to recover about $150M in tokens from StakeHound. The controversy started when StakeHound argued their non-obligation to exchange native ETH tokens for stTokens, allegedly breaching their contract with Celsius. This highlights the importance of risk regulation and transparency in blockchain technology, especially during token exchanges.

“South Korea firms issuing or owning cryptocurrency must disclose their holdings in financial statements by 2024, including quantity, characteristics, and related business models. This aims to enhance accounting transparency, recognizing crypto sales as profits once obligations to its cryptocurrency holders are fulfilled.”

The recent ruling by Judge Paul Barbadoro in the SEC vs LBRY case has potentially impacted the course of future crypto sales proceedings. The decision highlights the ambiguity surrounding secondary market sales of cryptocurrencies, with the Judge not taking a clear stance on whether registration requirements apply. This event underscores the uncertainty of the regulatory landscape for cryptocurrencies, emphasizing the need for enhanced understanding and caution among users and investors.

Celsius, a bankrupt crypto lender, is suing StakeHound for allegedly failing to return tokens valued over $150 million. StakeHound argues they have “no obligation” to exchange proprietary stTokens or return lost Celsius ETH keys. This dispute highlights how navigating regulatory frameworks like the U.S. Bankruptcy Code can be complex in the crypto world.