Search Results for: Applied Digital

“The director of the Consumer Financial Protection Bureau, Rohit Chopra, recently shared that the bureau is contemplating applying the Electronic Fund Transfer Act (EFTA) to digital assets. This approach could minimize high losses often experienced from unauthorized crypto transactions and aim to establish safer environment for investors.”

Sygnum Singapore, a subsidiary of the Swiss-based crypto bank, has secured its Major Payment Institution License from the Monetary Authority of Singapore. The license enables Sygnum to provide regulated digital payment token brokerage services, breaking previous transaction limits, and paving the way for potential expansion into Asia-Pacific markets.

“Russia’s Central Bank Digital Currency (CBDC) – the digital ruble – can play a significant role in curbing black market dollar trading, says former government official, Sergei Kalashnikov. It could minimize the chance of official currency entering the black market, adjust ruble’s value and impact dollar’s growth against it.”

“The advent of Bitcoin and other cryptocurrencies challenges the traditional concept of money, prompting a reevaluation of its definition and function in the digital world. Long resistant institutions are questioning the essence of money as blockchain-driven innovation requires an evolution in thought.”

Deutsche Bank, Germany’s largest banking institution, has applied for a digital asset custody license with BaFin, aiming to expand its digital asset custody services, including cryptocurrencies. This marks a shift from the bank’s previous critical stance toward the volatile and unpredictable crypto market.

Hong Kong’s new regulatory framework for cryptocurrencies prioritizes investor protection and aims to establish the city as a leading digital-asset hub. However, the crypto industry expresses caution over the costs and complexities of adhering to strict rules, and future challenges are anticipated.

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The introduction of a digital pound in the U.K. requires new legislation defining its characteristics and amendments to current data, privacy, and anti-money laundering regulations. The Treasury and Bank of England are currently seeking public feedback on its design while developing its policy and technology aspects. The legal framework should address ownership, security, and ensure privacy while protecting citizens from fraud.

At a recent Financial Times Cryptocurrency and Digital Assets Summit, Tom Mutton, the Bank of England’s head of fintech, discussed the UK’s plans for a central bank digital currency (CBDC) focusing on privacy and anonymity. While emphasizing privacy, Mutton stated that anonymity would not be intended for the digital pound and it would not be interoperable with cryptocurrencies. The Bank of England’s approach raises questions on the role of anonymity, privacy, and interoperability in the financial ecosystem.

Kenya’s Finance Bill 2023 proposes a 3% tax on digital assets, including cryptocurrencies and NFTs, and a 15% tax on online content monetization. While some view this as official recognition of digital assets in Kenya, others argue it amounts to targeted harassment, with advocacy group Cryptocurrency Kenya calling for universal application of digital taxes.

“DoJ asserts that absence of specific US crypto regulation does not invalidate criminal charges against Sam Bankman-Fried, former FTX CEO. Existing laws against misappropriation of customer assets still apply. This situation highlights imbalances in current crypto regulations, where extant laws can yield harsh punitive consequences in new situations.”

Hong Kong’s Securities and Futures Commission (SFC) plans to publish a list of cryptocurrency trading companies that have applied for operational licenses, bringing transparency to the industry. Nevertheless, this doesn’t guarantee rule conformity. This follows a major financial scam involving unlicensed cryptocurrency exchange JPEX which reportedly caused significant losses for investors. The SFC emphasizes strict governance measures including asset safety and market manipulation prevention to ensure investor protection.

“Former FCA chairman Charles Randell discusses alleged political influence on UK regulatory bodies to adopt cryptocurrency companies. While some see these pressures as compromising, they may catalyze the safe adoption of emerging technologies like cryptocurrency within custom-built frameworks for the digital asset sector.”

“Hong Kong Monetary Authority (HKMA) warned crypto companies against implying they fall under its regulation by misusing the term ‘bank.’ HKMA clarified, only licensed entities can offer banking services under the Banking Ordinance. The warning coincides with critique towards crypto platform JPEX from the Hong Kong Securities and Futures Commission for similar misrepresentations.”

A U.S. federal judge delayed a sentencing hearing for radio host Ian Freeman, who allegedly created an illegal Bitcoin exchange used by scammers. Meanwhile, the DeFi Education Fund contests a patent claim by tech company True Return Systems. Also, DigiFT’s dETH0924 provides up to 4% APR, boosting Ethereum’s PoS mechanism, while crypto infrastructure provider Qredo integrated Circle’s USDC stablecoin into its wallet.

The MiCA guidelines in the EU propose stricter regulations for crypto service providers and clampdown on market manipulation. However, they lack consideration for decentralized finance and central bank digital currencies. Moreover, they enforce a low reporting threshold eroding privacy rights, and require official approval for launching tokens, potentially inhibiting the development of new projects.

Grayscale, a Digital Asset Management firm, recently won a significant case against the Securities and Exchange Commission (SEC), paving the way for regulatory clarity within the crypto industry. This case highlighted the ongoing battle between innovation and regulation in the crypto market space.

“Cryptocurrencies could potentially elevate financial risks in less developed economies, warns a study by the Bank for International Settlements (BIS). Emerging economies could face prohibitive legislation, pushing crypto activities into obscurity and bringing potential market risks.”