The proposed crypto task force will examine the impact of crypto and digital currencies across the Commonwealth of Pennsylvania.
BlockFI ordered to stop onboarding New Jersey-based customers
BlockFi CEO Zack Prince rejects the New Jersey securities regulator’s claim that his firm has been offering unlicensed securities to the public.
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.
Crypto exchanges in India still struggling to secure banking partners
India’s crypto exchanges continue to cope with the burden of limited access to banking services.
Blockchain Caucus Co-Chair: Government Needs The Ability To Reverse Transactions
As blockchain technology becomes more applicable to business and its uses continue to grow, investors are curious as to how the US will regulate crypto. Influential figures at the highest levels of the United States government are finally beginning to discuss cryptocurrencies, blockchain tech, digital assets, and how to regulate and tax those assets.
On Tuesday in a “Cryptocurrency Goes Mainstream” virtual event from Axios focused on the future of cryptocurrency policy and regulation, Democratic Representative Bill Foster from Illinois, and co-chair of the blockchain caucus stated,
You have to be able to go to a court to unmask participants under some circumstances,
I’ve just said about three things there that will drive the crypto purists berserk, like the trusted third party and so on. But in fact, there’s not a technological alternative that I’m aware of. For most people if they’re going to have a big part of their net worth tied up in crypto assets, they’re going to want to have that security blanket of a trusted third party that can solve the problem
(Crypto must be) pseudo anonymous, so the regulators can see
Crypto market cap trends low amid news of regulations | Source: Crypto Total Market Cap on TradingView.com
Representative Foster is, of course, voicing legitimate concerns for everyday investors worried about how transactions are locked into the blockchain with regard to security. Especially considering the recent uptick in ransomware attacks in the US. In that sense, safeguarding investments is of the utmost importance for blockchain technology as it continues to grow and on top of the minds of those drafting legislation on crypto.
Related Reading | Bitcoin Lacks Momentum Above $36K, Why BTC Could Correct Lower
Foster later proposes that a court could unlock a crypto user’s identity with a guarded key of some sort. Indeed, for cryptocurrencies to become fully adopted by the mainstream, they will eventually be regulated by the governments where they operate. And in some cases, may have to be less anonymous than users would like
Yet with any decentralized financial system, the point of that system is to stay away from regulation. Let the code run itself. The US and anyone else looking to control crypto will have to strike a fine balance between regulation and the decentralized financial liberation that blockchain inherently is.
How Will This Effect Crypto Prices?
News of new regulations will always scare first-generation crypto investors. Especially since the ability to not be regulated by a single entity is one of the reasons blockchain technology was invented.
But in fact, any news is good news and more US regulation could help crypto on the whole. With more regulation, more able investors and businesses can be reached. As there are more investors in the pool, crypto prices will continue to rise with the growing new demand.
Related Reading | The USDC Stablecoin Will Soon Expand Its Reach To 10 More Networks
Are Bigger Regulations Around The Corner?
Unfortunately, the answer is probably yes. As blockchain technology becomes more widely accepted and used around the world, more regulations will be put in place. Rogue operatives will certainly still be able to maneuver through countries where the technology stays unregulated, but the days of a Bitcoin wild west are over.
Keep in mind, with more regulation comes more application of the technology. With both more users and uses, the blockchain market is poised to continue growing.
Featured Photo by Casey Horner on Unsplash, chart from TradingView.com
Driving ‘purists beserk’: Co-chair of blockchain caucus wants to ‘reverse’ crypto transactions
Democratic Representative Bill Foster has called for legal power to identify wallet holders and reverse crypto transactions in instances of criminal behavior such as ransomware attacks.
13 more crypto firms withdraw licensing applications in the UK
Local and international crypto businesses in the United Kingdom seem unable to meet stringent demands set by financial regulators.
Bipartisan bill to study blockchain and crypto passes US House of Representatives
The Consumer Safety Technology Act passed quickly in the House, and if enacted would require the study of blockchain tech and digital tokens.
Existing Indian law could impose 2% levy on crypto bought from offshore exchanges
Existing law in India could mandate a 2% levy on cryptocurrency purchases from offshore-based exchanges servicing India’s market.
Mark Cuban calls for stablecoin regulation in wake of Iron Finance ‘bank run’
After a bank run on the Iron Finance protocol cost him dearly, Mark Cuban is calling for regulation to define “what a stablecoin is and what collateralization is acceptable.”
Iran Minister Proposes Kish Island As Crypto Exchange Hub
Iran’s ICT minister has made a proposal that the Persian Gulf island of Kish should be transformed into a crypto exchange hub.
Kish is an island off the Persian Gulf coast in Southern Iran, and it hosts one of the country’s free trade zones. Muhammad Javad Azari Jahromi, Iran’s information and communications minister, made the proposal during a visit to the island.
Kish has the infrastructure to emerge as a hub for international crypto exchanges in the region. Authorities need to start talks with neighboring countries.
The Persian Gulf island is a tourist location with over a million visitors each year. The government plans to make it a financial trade zone as well, which will further attract more people.
As the island’s excess energy can’t be sent to the mainland, the government allows it be used by crypto miners. According to a report from Financial Tribune, several mining farms are already up and running in the island.
Regulation Of Crypto Exchanges
Currently, trading of crypto is banned within the country, even though mining is allowed for licensed companies.
There are a few exceptions, however. In April, Iran’s Central bank authorized that the digital assets mined inside the country can be used for making payments of imports.
Policymakers in Iran are already at work for setting up the regulations for crypto exchanges, and the proposal from the ICT minister comes amidst it.
Related Reading | Looking Ahead: What Should EU Regulations for Cryptocurrency Sector Look Like?
However, regulating digital assets isn’t a simple task. And no state body wants to take full responsibility over it.
The High Council of Cyberspace cited certain concerns related to cryptocurrency mined outside the country. The deputy chief said,
It is not clear who has developed cryptocurrencies. We have no precise information about those who have invested in the digital currencies. As such, we do not encourage investors to put their money into digital assets.
He also said, “Cryptos could help the country bypass sanctions in a limited number of cases,” and emphasized that central banks should come up with an approach to this effect.
The Central Bank of Iran has said that it isn’t in a hurry to announce the regulations related to crypto.
The institution intends to collaborate with other government foundations, like the High Council of Cyberspace, on a roadmap.
Related Reading | How CABEI Will Support Implementation Of Bitcoin Law In El Salvador
Bitcoin Back To Going Up?
BTC has enjoyed a week of overall upwards trend at last, after the huge drop-off last month.
BTC is 5% in the last 7 days | Source: BTCUSD on TradingView
It seems like the market is bullish again, but it’s unclear whether that is truly the case yet.
SEC warns investors of the risks with Bitcoin futures
The SEC has warned that “investors should understand that Bitcoin, including gaining exposure through the Bitcoin futures market, is a highly speculative investment.”
Stricter crypto laws will stifle innovation, says SEC Commissioner Hester Peirce
Crypto-friendly SEC Commissioner Hester Peirce called for nuanced cryptocurrency regulations as several agencies pursue stricter policy mandates.
After googling it, CFTC boss says DeFi is a ‘bad idea’ and probably illegal
CFTC Commissioner Dan M. Berkovitz has called for a crackdown on unregulated DeFi derivatives platforms.
Latin lawmakers don lazer eyes on Twitter in support of Bitcoin
An increasing number of Latin American lawmakers are donning Lazer eyes on their Twitter avatars to express their support for Bitcoin and digital assets.
South Korean regulators parley with 20 crypto exchanges
The FSC is in dialogues with South Korea’s crypto exchanges amid expanded regulatory oversight.
51 crypto firms withdraw licensing applications in the UK
The inability to satisfy Anti-Money Laundering standards set by regulators in the United Kingdom is reportedly forcing many crypto companies out of business.
Former congressman Ron Paul: Bitcoin is money and should be taxed the same
Former congressman Ron Paul believes Bitcoin should be regulated and taxed the same as money.
US must win CBDC race to maintain dollar’s global reserve currency status: Federal Reserve Governor
The Federal Reserve Governor has urged the United States to be at the forefront of developing CBDC to maintain the U.S. dollar’s role as a global reserve currency.
New York bill proposes to ban crypto mining for 3 years over carbon concerns
A bill seeking to “pause” crypto mining for three years in New York was referred to the state’s Environmental Conservation committee on May 3.
