Globally, less than 30% of jurisdictions have started regulating the crypto sector as of June 2023, the Financial Action Task Force (FATF) President T. Raja Kumar told CoinDesk in an interview from Singapore.
Is Binance’s $4B settlement the green light for spot Bitcoin ETFs?
One crypto executive predicted five months ago that spot Bitcoin ETFs would only be approved after Binance lost ground on its market dominance.
Crypto exchange Binance reopens exchange services in Belgium
In June, Binance was ordered to halt its services in Belgium “with immediate effect,” leading to the exchange redirecting Belgian users to its Binance Poland entity.
Crypto travel rule implementation ‘remains relatively poor,’ says FATF
The United Nations body called on all member states to implement the Travel Rule “without delay” to close “loopholes” not currently protected by regulation.
Apple and Goldman Sachs Don’t Trust Their New Banking Customers
“Security Reviews” are locking up Apple Savings accounts for weeks on end, as a blunt-force anti-money laundering system turns customers into suspects.
Japan to Enforce Tougher Crypto Anti-Money Laundering Laws Next Month: Report
Earlier this month, global financial crimes watchdog FATF urged G-7 economies like Japan to lead by example to implement its controversial “travel rule” for crypto transfers.
Japan’s crypto anti-money laundering measures to start in June: Report
The Japanese parliament has decided to roll out tougher AML procedures in line with the “travel rule.”
Sen. Warren’s Bill Signals Crypto Is Headed for a Clash With National Security Interests
The misguided Digital Asset Money Laundering Act sponsored by Senators Elizabeth Warren and Roger Marshall may be dead on arrival, but the crypto community should not ignore the conflict it represents between crypto and law enforcement, writes Chris Grieco.
Privacy Project Railgun DAO Adopts Chainway’s ‘Proof of Innocence’ Tool
Railgun DAO’s new functionality – initially developed by the developer Chainway for use on Tornado Cash – could allow users to mathematically demonstrate that coins involved in transactions did not come from blacklisted addresses. Digital Currency Group, owner of CoinDesk, is an investor in Railgun DAO.
Estonia’s Registered Crypto Firms Drop 80% as Tough New Checks Reveal ‘Suspicious’ Behavior
Regulators in the tech-friendly nation say they’ll return to business-as-usual monitoring after money laundering fears led it to take a tough line.
From Bat-Signal to Bitcoin: Projecting ‘Orange Pill’ on banks as EU drives crypto regulation
The Bitcoin logo lights up on the European Central Bank building in Frankfurt as Bitcoiners urge bankers to ‘study Bitcoin.’
Aussie crypto exchange hints interest in Hong Kong base, but it’ll depend
The CEO of Independent Reserve says Hong Kong’s “friendly” licensing regime makes it a worthy destination to set up shop, but there are other factors to consider.
ShapeShift responds to Sen. Warren’s comments to ‘set the record straight’
Switzerland-based crypto platform claimed Warren made “mistakes” in comments at a recent senate hearing, and encouraged her to “constructively engage” with its community.
UK’s FCA hints at why its given only 15% of crypto firms the regulatory nod
The UK financial watchdog has received 300 crypto firm registration applications but has approved only 41 applicants.
Countries ignoring crypto AML rules risk placement on FATF’s ‘grey list’ — Report
Reports suggest the Financial Action Task Force will conduct annual checks to ensure countries are enforcing anti-money laundering rules for crypto providers.
The Young Turks Embarrass Themselves Trying To Discuss Crypto Regulation
Why do these Young Turks ladies dare to speak about a subject as complex as cryptocurrencies without doing ANY research? In the following video, both Ana Kasparian and Francesca Fiorentini read a New York Times article interpreting it as fact, while giving the most inane commentary you could imagine. To make things worse, they try to be sarcastic and humorous and fail completely at that too.
Related Reading | Crypto Needs Regulation If It’s Going To Survive, Says SEC Boss
Their main thesis is that crypto lobbyists are influencing bills and legislation while at the same time trying to keep the industry deregulated. Is that what’s happening? Doesn’t that thesis contradicts itself? Let’s go through the Young Turks ladies’ points one by one to see if we can understand them better. But first, the video:
What Do The Young Turks Think They’re Saying?
To express coherent ideas while recording live is hard. So, to cut the Young Turks ladies some slack, let’s start with the text. The YouTube information box starts as follows:
“Crypto lobbies and lobbyists are gaining ground in their fight to profit from bills drafted with state legislators to keep the cryptocurrency market free of regulation, leading to an increase in profits for crypto executives and lobbyists.”
If a bill passes, that’s regulation. Isn’t that what those lobbyists are pushing? Regulation? Also, isn’t everyone in the United States looking to increase profits? It seems like the Young Turks are protesting about the lobbyists dictating what regulation looks like, but that framing wouldn’t drive the outrage clicks.
Later on, the info box says:
“Florida is the most recent state to adopt crypto-friendly legislation as the state recently signed a law that would make it much easier to trade and hold cryptocurrencies in the state in an attempt to draw investment into the industry in Florida.”
What’s the problem here, exactly? Regions all over the world are executing this geographical arbitrage play. Is it illegal? NO.
The info box closes with:
“Across the nation, crypto executives and lobbyists are helping to draft bills to benefit the fast-growing industry, then pushing lawmakers to adopt these made-to-order laws, before moving rapidly to profit from the legislative victories.”
Yeah, that’s what lobbyists do. Every industry under the sun is trying to influence regulation in its favor. Is it right? Maybe not, but it’s as common as bread. Crypto people didn’t create lobbying.
What Do Ana And Francesca Think They’re Saying?
The Young Turks’ bosses did these women dirty by putting them in this position. It seems like they ordered a hit piece about one of the most complex subjects around without providing any training whatsoever. Do The Young Turks’ bosses have training themselves? Because it seems like they’re as confused as the ladies.
The video starts with Ana stating the confusing thesis, crypto lobbyists are drafting laws to make sure that the industry remains deregulated? If they’re drafting laws, they’re looking for regulation, but ok. Then, she criticizes Joe Biden’s now-famous Executive Order by saying it’s just the commission of studies. Well, it’s a complex subject, and the Young Turks could benefit from commissioning studies themselves.
Then, Ana says that the laws are being left up to each State. Isn’t the United States a constitutional federal republic? Federal means that the States are sovereign. After that comes the terrible “Tales From The Crypt-o” title card, in which they use a tweet from an NFT owner who got hacked as some kind of proof that the crypto space is spooky and treacherous.
Then, the New York Times articulates what the Young Turks couldn’t. According to it, a law presented in Florida eliminates “a threat from a law intended to curb money laundering.” So, what they’re actually against is that the crypto industry is getting rid of AML laws? They’re not being too successful, then, because, as far as we can tell, every exchange in the US has AML procedures in place.
ETH price chart on FTX | Source: ETH/USD on TradingView.com
The Young Turks Think That Cryptocurrencies Are Good For Criminals
It’s Francesca’s turn, and, with the eloquence of a first-time podcaster, she says that cryptocurrencies are a new way to “do corruption,” to “steal money that is not yours,” and for “paying 17-year-olds for sex.” A ten-minute read on cryptocurrencies would’ve told the Young Turks that the blockchain is an immutable ledger. There’s not a worse medium to finance the crimes that Francesca describes.
Then, Ana insists that financial institutions need to be regulated. That’s exactly what the lobbyist are trying to accomplish, but ok. Then, she says “You should want protection. You should want to ensure that cryptocurrencies aren’t used for money laundering.” Perfect, but the people should also want banks not to be used for money laundering, and they’re not getting that either. The only way to stop money laundering is for the financial authorities to do their job and stop it. Common citizens shouldn’t suffer.
Related Reading | Dubai World Trade Centre To Become A Crypto Hub For Regulation
Near the end, Francesca qualifies the whole industry as a slow-moving con or scam. As a contrasting opinion, we might qualify the industry as the most exciting development in finance in decades. And as a job-generating juggernaut that’s saving lives worldwide. Then, Francesca predicts that, in a few years, we’re going to be inundated with documentaries about the different cases in which people lost their savings and whatnot. She might be right about that. There’s too much money involved and the average citizen is as uninformed as the Young Turks.
Do your own research and commission your own studies so that you won’t become a victim. As in the traditional financial markets, laws aren’t going to protect you from scams. Information and due diligence will.
Featured Image: Ana and Francesca, screenshot from the video | Charts by TradingView
AML compliance mandatory for foreign crypto exchanges, says Korean regulator
South Korea’s strict crypto regulatory oversight is now extending to overseas exchanges that offer cryptocurrency trading services denominated in the country’s currency.
EU eyes new money laundering regulator and stricter crypto reporting requirements
The new Anti-Money Laundering Authority would comprise the “centerpiece” of a new supervisory system that would include national regulators.
UK regulator warns against 111 unregistered crypto companies… and FOMO
The Financial Conduct Authority has warned U.K. consumers of dealing with 111 unregistered crypto firms, calling it “a very real risk.”
Russia’s money laundering watchdog monitoring crypto to ruble transactions
Rosfinmonitoring has informed the Russian parliament that it is paying close attention to transactions involving the conversion of crypto to rubles.