The meeting is expected to ignite positive changes that benefit all crypto stakeholders in Nigeria and internationally.
US Banks Rally For Updated Crypto Guidelines As Digital Asset Prices Surge
Amidst a significant surge in cryptocurrency prices, which propelled the total crypto market capitalization to a high of $1.93 trillion on Thursday, influential interest groups are urging the US Securities and Exchange Commission (SEC) to revise accounting guidance that imposes higher costs on US banks for holding digital assets on behalf of their customers.
Banking Trade Groups Urge SEC To Revise Crypto Accounting Rules
According to a Bloomberg report, a coalition of trade groups, including the Bank Policy Institute, the American Bankers Association, the Securities Industry and Financial Markets Association, and the Financial Services Forum, sent a letter to the SEC on Wednesday outlining their desired changes.
The existing guidance requires public companies, including banks, to treat cryptocurrencies they hold in custody as liabilities on their corporate balance sheets. Consequently, banks must allocate assets of a similar value to comply with capital requirements and protect against potential losses.
According to Bloomberg, the trade groups have requested the SEC to consider the following key changes:
- Exclude certain assets from being classified under the broad crypto umbrella. This includes traditional assets recorded or transferred using blockchain networks, such as tokenized deposits, as well as tokens underlying SEC-approved products like spot Bitcoin exchange-traded funds (ETFs).
- Grant regulated lenders an exemption from the current balance sheet requirement while maintaining the disclosure of crypto activities in financial statements.
The trade groups argued that if regulated banking organizations are unable to provide digital asset-safeguarding services at scale, it would negatively impact investors, customers, and the broader financial system.
However, the SEC has defended its accounting guidance, citing the “unique risks” and uncertainties posed by cryptocurrencies compared to other assets held by banks.
Limiting Custody Expansion?
The specific guidance in question, known as Staff Accounting Bulletin No. 121, has faced criticism from banks since its publication in 2022.
Lenders argue that the bulletin limits their ability to expand digital asset services for customers due to the associated high costs. Consequently, banks missed out on providing custody services for recently approved Bitcoin exchange-traded funds, with Coinbase emerging as the preferred custodian for the majority of ETF issuers.
The trade groups also highlighted additional challenges resulting from the guidance, including a “chilling effect” on plans to utilize blockchain technology for traditional assets. While the SEC described SAB 121 as non-binding staff guidance, it acknowledged that following it enhances disclosure to investors regarding firms safeguarding crypto assets for others.
As the SEC faces mounting pressure, there have been efforts by lawmakers to repeal the guidance. A resolution was introduced in the House Financial Services Committee, spearheaded by Representatives Mike Flood and Wiley Nickel, while Senator Cynthia Lummis sponsored identical legislation in the Senate. These measures aim to remove the SEC’s authority in making rules that impact bank custody.
The outcome remains uncertain, as the legislation’s success depends on garnering sufficient support, particularly among Democrats and within the White House.
However, the collective efforts of trade groups, lawmakers, and industry stakeholders could potentially lead to regulatory changes that alleviate the burden on banks holding digital assets, facilitating their participation in the evolving cryptocurrency landscape.
Furthermore, the recent endeavors undertaken by US institutions exemplify a growing interest and eagerness to adopt and invest in cryptocurrencies, particularly Bitcoin.
This heightened institutional involvement has significantly contributed to the swift success of Bitcoin spot ETFs, which gained regulatory approval merely a month ago.
Featured image from Shutterstock, chart from TradingView.com
Prometheum’s Ethereum Custodial Launch Puts SEC’s ETH Classification In The Spotlight
Prometheum, an “alternative” trading platform for crypto “securities” assets, has recently announced the launch of its custodial services for Ethereum (ETH). This move has significant implications for the legal status of the second-largest cryptocurrency by market capitalization.
Fortune Magazine reported that the company’s strategy is to compel regulators, particularly the Securities and Exchange Commission (SEC), to recognize Ethereum as a security.
SEC Pressured To Settle Ethereum Legal Status
Per the report, Prometheum, based in New York, has positioned itself as a compliant player in the crypto industry by claiming to have discovered a path to operate within existing laws.
The company received regulatory approval in 2021 to operate as an alternative trading platform for securities. It gained further attention when it obtained a special-purpose broker-dealer license from the Financial Industry Regulatory Authority (FINRA).
The license allows them to operate as a broker-dealer in “digital asset securities,” a designation no other firm has achieved. This has prompted crypto companies and even members of the US Congress to call for investigations into the firm’s activities.
Previously, the SEC refrained from definitively classifying Ethereum as a security despite declaring several other cryptocurrencies as such.
Prometheum aligns with the SEC’s assessment that most cryptocurrencies are securities and argues that Ethereum can be listed as a security under an exemption called Rule 144, typically used for trading restricted stocks.
The embattled company claims it can use blockchain data to determine whether the assets have been circulating for over a year, a crucial factor in claiming the exemption.
What’s interesting is that Prometheum’s custodial services for Ethereum could potentially force the SEC to determine Ethereum’s legal status. The company’s registered status with FINRA and the SEC, prominently displayed on its website, adds weight to its claim.
Legal experts and academics speculated that the SEC may be forced to rule on Ethereum’s classification due to Prometheum’s custodial launch. This decision could have far-reaching consequences for the crypto industry, challenging the industry’s argument that cryptocurrencies cannot operate under existing securities laws.
Backlash Mounts As Prometheum Shakes Up Crypto Regulations
SEC Chair Gary Gensler, who has intensified enforcement efforts following the collapse of FTX, has emphasized the sufficiency of existing rules while filing lawsuits against exchanges for failing to register with the agency.
Prometheum’s approach contrasts with other crypto exchanges like Coinbase, which argue that the existing rules are outdated. Prometheum’s strategy has drawn criticism from the crypto industry and Republican lawmakers who accuse Gensler of supporting the firm to advance his regulatory agenda.
Overall, Prometheum’s introduction of Ethereum custodial services has thrust the debate over Ethereum’s legal classification into the spotlight.
This move could compel the SEC to decide whether Ethereum should be classified as a security, challenging the crypto industry’s argument for new laws.
While the success of Prometheum’s approach is still uncertain, it remains to be seen how subsequent SEC administrations will respond and whether institutional investors will be attracted to Prometheum’s compliant approach.
Currently, ETH is trading at $2,428, reflecting a marginal 0.5% price increase in the last 24 hours.
Featured image from Shutterstock, chart from TradingView.com
US Treasury Secretary Janet Yellen Urges Congress To Pass Crypto Legislation
In a recent statement before the House of Representatives, US Treasury Department Secretary Janet Yellen emphasized the need for Congress to pass legislation that provides clarity and regulation in the crypto markets.
Secretary Yellen Calls For Action ‘Digital Asset Risks’
During the Financial Committee hearing, Yellen highlighted the “risks” associated with digital assets and called for measures to address potential vulnerabilities and non-compliance with applicable laws and regulations.
Yellen specifically mentioned concerns related to runs on crypto-asset platforms, stablecoins, and the “proliferation” of platforms acting outside regulatory boundaries.
The Treasury Secretary stressed the importance of enforcing existing rules and regulations while urging Congress to enact legislation specifically targeting stablecoins and “non-securities” crypto assets in the spot market.
Notably, Taylor Barr, head of policy at the blockchain trade association Chamber of Digital Commerce, pointed out that the bipartisan FIT for the 21st Century Act, led by Representative French Hill, aligns with Yellen’s call for market structure and regulation.
Hill, a proponent of the legislative environment for crypto, previously highlighted the progress made in the House of Representatives. He emphasized passing the first comprehensive regulatory framework for digital assets and the prudent approach to stablecoins.
Furthermore, Hill believes that these initiatives address significant “regulatory gaps” and contribute to the crypto industry’s growth.
Pro-Crypto Stance And Legislative Initiatives Align
Barr also commended the Clarity for Payment Stablecoins Act proposed by the Chairman of the US Financial Committee, Patrick McHenry.
This act aims to establish consistent oversight and consumer protection for payment stablecoins, incorporating successful state-level regulations and striking a balance between innovation and regulatory certainty.
McHenry, who has been vocal about the importance of the US leading the financial system of the future, has already emphasized the bipartisan progress on legislation to address the regulatory challenges posed by digital assets.
McHenry called for the “completion of the job,” highlighting the Clarity for Payment Stablecoin Act as a crucial step towards establishing a federal framework for stablecoins.
Overall, the convergence of Secretary Yellen’s call for regulation, Representative Hill’s legislative initiatives, and Chairman McHenry’s pro-crypto stance reflect a growing momentum toward establishing a comprehensive regulatory framework for the crypto industry.
However, it remains to be seen how Secretary Yellen’s proposed regulatory enforcement ideas and proposals will strike a balance between fostering innovation, as emphasized by McHenry and Hill while ensuring the growth of nascent technology.
As discussions on crypto legislation continue, the industry eagerly anticipates the outcome, seeking a regulatory environment that provides clarity and consumer protection and positions the United States at the forefront of digital asset innovation.
Featured image from Shutterstock, chart from TradingView.com
Regulatory Victory: Gemini Receives Digital Asset Service Provider Registration In France
Cryptocurrency exchange Gemini, founded by the Winklevoss twins, has been granted crypto registration by the French markets watchdog Autorite des marches financiers (AMF).
According to a recent announcement made by the exchange, this approval allows Gemini to offer its services as a virtual asset services provider in France. The company plans to roll out its products to both retail and institutional clients in the coming weeks.
Gemini Seizes Growth Opportunities In Europe
As announced, Gemini customers in France will gain access to a wide range of cryptocurrencies for trading, as well as “advanced” trading platforms such as ActiveTrader. Institutional clients will also benefit from Gemini eOTC, an electronic over-the-counter trading solution.
Gemini’s regulatory approval in France marks a milestone in the company’s European expansion strategy. According to the exchange’s statement, with a strong sense of regulatory support for the cryptocurrency industry in Europe, Gemini sees growth opportunities in the French jurisdiction.
The founders of Gemini recognized the need for regulatory clarity, which is on the horizon with the European Union (EU) Markets in Crypto-Assets Regulation (MiCA). MiCA allows crypto companies to obtain licenses in one EU country and operate across the entire EU.
Interestingly, Gemini chose Ireland as its European headquarters, joining other major US crypto companies that have selected Ireland as their regulatory hub. On this matter, Gillian Lynch, Gemini’s Head of Ireland and EU stated:
We are delighted to welcome customers based in France onto the Gemini platform in the coming weeks as we further expand access to crypto across Europe. France is a global innovation leader and has a vibrant crypto community as showcased by the success of Paris Blockchain Week. We are excited to soon be able to provide French customers with compliant and secure access to the future of finance as we continue on our mission to unlock the next era of financial, creative, and personal freedom
US Crypto Companies Seek Regulatory Haven In Europe
According to a CNBC report, major US crypto companies are increasingly looking to expand their operations in Europe driven by regulatory challenges in the United States.
The crypto industry has faced scrutiny from US regulators, including the Securities and Exchange Commission (SEC). Gemini and Genesis, a crypto lender, were charged by the SEC last year for allegedly selling unregistered securities. Gemini is contesting the lawsuit, asserting that its interest-bearing products do not qualify as securities.
Per the report, the European Union offers a “more favorable” regulatory environment, and the MiCA regulation provides a framework for companies to operate across EU member states.
While the US has yet to approve comprehensive federal-level crypto regulation, recent developments indicate a growing acceptance of cryptocurrency trade. The SEC’s approval of the first-ever spot Bitcoin exchange-traded funds (ETFs) is seen as a significant step toward integrating crypto into traditional finance.
Despite initial concerns about market manipulation, the approval of Bitcoin ETFs by the SEC is a positive development for the industry. At the same time, several bills related to crypto regulation are making their way through the US House of Representatives.
Featured image from Shutterstock, chart from TradingView.com
Crypto Fraud Unveiled: $1.3B Loss As Chuck Norris-Endorsed CEO Turns Out To Be Illusion
In a recent investigation by The Guardian, alarming details have emerged regarding a crypto project, HyperVerse, that allegedly lost $1.3 billion of investors’ funds.
The report reveals that the chief executive officer promoted by the project, supposedly backed by celebrity endorsements including Chuck Norris, appears to be absent.
Investigation Exposes HyperVerse Crypto Scam
HyperVerse, promoted by Australian entrepreneur Sam Lee and his business partner Ryan Xu, founders of the now-collapsed Australian Bitcoin (BTC) company Blockchain Global, has been scrutinized for its deceptive practices. The project attracted thousands of investors, who ultimately lost millions of dollars.
The investigation raises concerns about the legitimacy of HyperVerse’s CEO, as the qualifications and credentials attributed to the supposed chief executive, Steven Reece Lewis, have no basis.
Promotional material released for HyperVerse claimed that Lewis graduated from the University of Leeds and held a master’s degree from the University of Cambridge. However, neither institution has any record of his existence.
Furthermore, there are no records of Lewis on the UK companies register, Companies House, or the US Securities and Exchange Commission (SEC). Interestingly, Adobe, a publicly listed company, also has no record of any acquisition involving a company owned by “Steven Reece Lewis.”
The report indicates that HyperVerse managed to secure celebrity endorsements, including video messages of support from Steve Wozniak, co-founder of Apple, and actor Chuck Norris.
However, it is unclear how these messages were obtained, as all four celebrities mentioned in the report are available for hire through Cameo, where individuals can pay to have high-profile individuals read scripted messages.
Australian Authorities Under Fire
The investigation also highlights regulatory concerns, as HyperVerse operated without significant scrutiny in Australia despite being flagged by regulators overseas as a possible scam or suspected pyramid scheme.
The Australian Securities and Investments Commission (ASIC) has been referred to the case but has not yet taken action.
Investors in HyperVerse were lured with promises of substantial returns and the opportunity to explore a new digital metaverse similar to Facebook. However, the scheme ultimately resulted in significant losses for investors, estimated at $1.3 billion in 2022, according to blockchain analysts Chainalysis.
The Guardian’s findings shed light on the deceptive practices employed by HyperVerse and raise questions about the responsibilities of regulators in overseeing such projects.
As the aftermath of this cryptocurrency scandal unfolds, investors and authorities alike are left grappling with the consequences of a scheme that capitalized on false claims and celebrity endorsements to defraud unsuspecting individuals.
Featured image from Shutterstock, chart from TradingView.com
Ripple Executive Gives 3 Bold Predictions On Crypto Regulations In 2024
As the crypto market gears up for 2024, the chief legal officer of blockchain payment company Ripple, Stu Alderoty, has released three projections on crypto regulations that could impact investors’ confidence ahead of a year expected to start the new bull cycle by many analysts.
Ripple And SEC To End Legal Tussle In 2024, Alderoty Says
In an X post on Friday, December 15, Ripple shared the predictions of Alderoty on policy and US regulations in 2024. The post included three bold forecasts by the company’s chief legal officer, which generally present a dual outlook on the crypto space. Firstly, Alderoty expects the ongoing court case between Ripple and the US Securities and Exchange Commission (SEC) to come to its conclusion in the new year.
#2024Predictions — It’s that time of year again and we've asked leaders at Ripple to weigh in on what they think 2024 holds.
Our Chief Legal Officer @s_alderoty kicks us off with three bold outlooks on policy and U.S. crypto regulation for 2024. pic.twitter.com/7pcLmk2qPR
— Ripple (@Ripple) December 15, 2023
The blockchain payment firm already scored a “massive” partial victory over the US regulators when Judge Analisa Torress ruled that programmatic sales of XRP do not qualify as a security offering. While many still expect the SEC to still challenge this decision in the Court of Appeals following a final judgment, Alderoty projects the 3-year legal tussle, which he described as a “misguided lawsuit” by the SEC, will finally come to an end.
However, he predicts the commission will continue with its current enforcement action on key players in the crypto space. In addition to Ripple, the SEC has also launched against multiple crypto establishments, including Binance, Coinbase, Gemini, etc.
In his second prediction on US crypto regulations, Alderoty anticipates that the judiciary will continue to curtail the SEC’s excesses in terms of regulation of the crypto space. As a result, the Ripple executive believes the commission will continue to record more losses in court, as seen in similar cases against Ripple and Grayscale.
However, while this may be interpreted as a positive forecast for crypto enthusiasts, it would eventually lead to an intervention by the US Supreme Court which could result in a plethora of possibilities.
Ripple CLO Foresees No Regulatory Framework Yet
Alderoty’s final prediction on US crypto regulations centered on legislative action by the US Congress.
While the Ripple Executive expects the US lawmakers will eventually unanimously agree on the need to create a crypto regulatory framework, He believes there will be difficulty in taking action stemming from disagreements on the specific measures and regulations to be implemented.
In other news, the crypto market is now valued at $1.6 trillion, having experienced 0.5% devaluation in the last 24 hours. XRP, which currently ranks as the fifth-largest cryptocurrency, is trading at $0.6203 with a 0.12% decline over the last hour.
US Treasury Cracks Down: Sanctions Crypto Money Launderer Tied To Russian Elite
In a significant move to combat sanctions evasion and illicit financial activities, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Ekaterina Zhdanova, a Russian national allegedly involved in laundering and transferring funds using crypto on behalf of Russian elites.
According to the announcement, the action aligns with the G7’s commitment to closing loopholes that allow Russian state actors, oligarchs, and proxies to exploit virtual currency to circumvent international sanctions.
Crypto Money Laundering Exposed
Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson emphasized the alleged role played by key facilitators like Zhdanova in aiding Russian elites, ransomware groups, and other illicit actors in evading US and international sanctions through the abuse of cryptocurrencies.
Nelson stated that the Treasury remains steadfast in its efforts to safeguard the global financial system against such exploitation and other risks within the crypto ecosystem.
Allegedly, Zhdanova’s involvement in obfuscating the source of wealth for a Russian client, enabling the transfer of over $2.3 million into Western Europe via fraudulent investment accounts and real estate purchases, drew OFAC’s attention.
Zhdanova’s services provided sanctioned Russian individuals access to Western financial markets that would otherwise be restricted due to US and international prohibitions.
The US Treasury Department alleges that such illicit financial activities enable the evasion of multilateral sanctions and undermine efforts to hold Russia accountable for its unprovoked war and aggression.
Utilizing cryptocurrencies as a facilitator of large cross-border transactions, Zhdanova relied on entities lacking Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) controls, including the OFAC-designated Russian cryptocurrency exchange, Garantex Europe OU.
Zhdanova employed various methods to transfer funds internationally, including cash transactions and leveraging connections with other money laundering associates and organizations.
Additionally, she utilized traditional businesses, such as a luxury watch company with global offices, to maintain access to the international financial system.
Furthermore, it is alleged that Zhdanova conducted crypto exchange transfers on behalf of oligarchs who relocated internationally, facilitating the movement of over $100 million to the United Arab Emirates.
Unveiling The Scheme
Zhdanova also provided a tax residency service in the UAE to Russian clients, potentially participating in identity obfuscation. This service offered clients a UAE tax residency, identification card, and bank account, with payments made in cash or virtual currency, subsequently transferred to foreign bank accounts at the client’s discretion.
Notably, Zhdanova’s services extended to individuals associated with the notorious Russian Ryuk ransomware group. Zhdanova allegedly laundered approximately $2.3 million in suspected victim payments for a Ryuk ransomware affiliate, which has targeted numerous victims worldwide, including the United States, particularly in the healthcare sector.
As a consequence of this action, all US persons must report any property or interests in property belonging to Zhdanova or any entities directly or indirectly owned by her. Transactions involving such property are generally prohibited unless authorized by OFAC.
Featured image from Shutterstock, chart from TradingView.com
JPEX scandal won’t hurt Hong Kong crypto vision: Financial Secretary
Christopher Hui took the stage at Fintech Week and outlined a list of regulatory moves Hong Kong authorities are looking to implement following the JPEX scandal.
PayPal And The Crypto Conundrum: Understanding The UK Sales Suspension
PayPal has announced a temporary suspension of cryptocurrency sales within the United Kingdom for a minimum of three months, commencing on October 1. This decision is in direct response to the recent regulatory reforms introduced by the Financial Conduct Authority, Britain’s financial regulator.
The FCA is set to implement more stringent guidelines aimed at curbing the advertising of cryptocurrencies to British consumers, which includes the mandatory inclusion of risk warnings and the discontinuation of “refer a friend” incentives.
Adapting To Regulatory Landscape
In an email to customers, PayPal UK explained that customers who currently hold cryptocurrency in their PayPal accounts will be able to retain their holdings on the platform without incurring any fees. Furthermore, the option to sell their cryptocurrency at any time will remain available.
PayPal will ‘pause’ crypto purchases in UK
pic.twitter.com/NPkj7F61cC
— Crypto Crib (@Crypto_Crib_) August 16, 2023
However, the ability to purchase cryptocurrencies using PayPal will be temporarily suspended during the company’s efforts to ensure compliance with the new regulations set forth by the FCA.
This move comes against the backdrop of the impending enforcement of the “Travel Rule” in the UK. As of September 1, 2023, all cryptocurrency firms registered under the FCA will be obligated to adhere to the Travel Rule guidelines, a series of crucial Anti-Money Laundering and Know-Your-Customer regulations established by the Financial Action Task Force (FATF).
This mandate was introduced following governmental amendments to relevant legislation in July 2022.
PayPal: Foray In The Crypto Landscape
PayPal, which has rapidly solidified its reputation as a crypto-friendly platform, introduced a notable addition to its offerings with the launch of its PayPal USD (PYUSD) stablecoin early this month.
The company originally unveiled its foray into the cryptocurrency realm within the United States in late 2020, positioning itself as a key player in the ever-evolving landscape of financial technology.
As the financial industry grapples with the ongoing integration of cryptocurrencies, PayPal’s response to regulatory changes highlights the evolving nature of the relationship between traditional financial platforms and the burgeoning world of digital currencies.
While the company navigates these challenges, users and industry stakeholders alike are keenly observing how this temporary pause in cryptocurrency sales will shape the future of PayPal’s engagement with the crypto market within the UK.
PayPal’s decision to temporarily suspend cryptocurrency sales in response to new FCA regulations underscores the complex interplay between regulatory developments and the cryptocurrency industry.
As the company strives to align with evolving standards, the trajectory of its cryptocurrency ventures will continue to influence the broader financial landscape.
Featured image from Francois Poirier/Shutterstock.com.
SEC steps back from defining digital assets in new hedge fund rules
The SEC and its staff are “continuing to consider” the term “digital assets” despite proposing a definition of the term around nine months ago.
Fed conference hears stablecoins may boost USD as global reserve currency
The underlying tech of a central bank digital currency wasn’t enough to convince some panelists at a Fed conference that it could change the international currency system.
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
Why Hillary Clinton Warns Biden Administration To Regulate Crypto Market
During an MSNBC interview, Hillary Clinton continued to suggest hypothetical scenarios in which cryptocurrencies could destabilize the United States and called on the Biden administration to regulate them as she fears that state and nonstate actors manipulate the role of the U.S. dollar.
Related Reading | Inverse Signals: Why Bitcoin Weakness Is Attributed To Dollar Strength
Clinton warned people are only beginning to see the need to regulate the cryptocurrency markets and called to imagine “the combination of social media, the algorithms that drive social media, the amassing of even larger sums of money through the control of certain cryptocurrency chains,”
The former presidential candidate has already voiced her unamicable views around cryptocurrencies before, seeing them as a threat for the United States.
Likewise, for Clinton, the nations of China and Russia are manipulative obstacles for the country.
We are looking at not only states, such as China or Russia or others, manipulating technology of all kinds to their advantage, we are looking at nonstate actors, either in concert with states or on their own, destabilizing countries, destabilizing the dollar as the reserve currency.
Clinton thinks that the Biden administration needs to address many questions regarding the role of cryptocurrencies in the U.S. nation and its economy, but added they might not have much time to do so.
The Former Secretary of State hopes that the current administration will try to operate “exactly” in the way she thinks best based on what she has been “hearing from them”, meaning their views regulations match her hostility.
We certainly need new rules for the information age, because our current laws, our framework, it is just not adequate for what we are facing.
Is The U.S. Marching Towards More Crypto Hostility?
Last week, the Former Secretary of State made a similar warning during the Bloomberg New Economy Conference, where she stated that crypto represents a risk for the stability of the U.S. nation and currency (the U.S. dollar).
Clinton believes the “interesting and somewhat exotic effort” of crypto mining can undermine the role of the dollar and seemed to consider full-ban on cryptocurrencies similar to China’s:
It appears as though China is going to prevent outside technology payment systems, like the cryptocurrencies development, from playing a big role inside China. I think they recognize, giving their nationalism, perhaps earlier than other nations, that this could be a direct threat to sovereignty.
On the other side, Senator Pat Toomey had voiced back in September that the China ban was an advantage for the United States and tweeted his own opinion on the upside of innovation and economic liberty, which Hillary Clinton still fails to approach.
Beijing is so hostile to economic freedom they cannot even tolerate their people participating in what is arguably the most exciting innovation in finance in decades. Economic liberty leads to faster growth, and ultimately, a higher standard of living for all.
Furthermore, Jerome Powell has just been renominated as U.S. Federal Reserve Chair to face the accelerating inflation and other challenges the nation’s economy is facing. Powell has been warry around cryptocurrencies, but he has also stated he would not opt for a ban, but regulatory controls on stablecoins.
Related Reading | Bitcoin Heads Towards $35,000 as Biden Stimulus Hurts US Dollar
Crypto total market cap at $2.5 trillion in the daily chart | Source: TradingView.com
Kraken Is Delisting Top Privacy Coin Monero (XMR) For UK Users
It seems UK users will soon be unable to access Monero on one of the leading crypto exchanges. There have always been concerns around the Bitcoin competitor regarding the absolute privacy that the digital asset confers. Until now, it remains impossible to track/trace Monero transactions, making it the ultimate privacy coin, and governments are worried that individuals will use this to evade taxes.
Another concern is around the use of the cryptocurrency as a criminal tool, although there is no definitive way to tell if this is true. However, it remains high enough on the list of concerns that even countries where cryptocurrencies are not illegal are clamping down on the cryptocurrency. The latest is the UK as regulations have pushed Kraken to remove access for its citizens.
Delisting Monero Over Regulations
In an email sent out to users that were posted on Reddit, Kraken outlines the reason for the delisting. The email explained that the crypto exchange was trying to be in compliance with UK regulations and as such, it will no longer be supporting Kraken (Payward Ltd) on its platform. The delisting will happen in a week and will affect trading activities around the privacy coin.
Related Reading | Cardano Leads Altcoins As Market Marks 13th Consecutive Week Of Inflows
Kraken announced in the email that as of November 26th, UK users will no longer be able to trade Monero (XMR) on the platform. All trading activities will cease including Instant Buy/Sell Services, order book trading on the XMR/BTC, XMR/USD, and XMR/EUR pairs.
In addition to halted trading services, UK users will also not be allowed to fund their balances with Monero on the exchange after November 26th. However, users will be able to withdraw all of their current Monero balance to other wallets or exchanges.
XMR trading at $234 | Source: XMRUSD on TradingView.com
Margin trading is also affected and will slowly go into effect. On November 23rd, UK users will no longer be able to increase their Monero margin positions on the exchange but they can reduce it. Three days after, on November 26th, the exchange will force liquid all open margin positions and cancel all open orders.
In closing, the Kraken team said; “We appreciate your understanding and we apologise for any inconvenience caused. Should you have any questions, please do not hesitate to contact our support team.”
Why The Crackdown?
Monero is one of the few cryptocurrencies that manage to confer absolute privacy to their investors. This has made it the coin of choice for investors who want to be in control of their own money. As this Reddit user eloquently puts it, it’s “One of the few coins that truly makes your money your own. Security without compromising privacy, something that was unheard of only a few years ago.”
Related Reading | New Record For Bitcoin Lightning Network As Adoption Grows
Monero is a cryptocurrency that has maintained the privacy component behind the creation of cryptocurrencies. It puts the investor in complete control and makes it impossible for a third party to interfere or see where the funds are going, and since governments cannot track it, then they cannot tax it. Hence the crackdown on privacy coins to limit their use by residents.
Featured image from Kraken Blog, chart from TradingView.com
How India Sees Crypto: Large Exchange Shows 10x Growth In User Base
Indian crypto exchange WazirX reported a significant growth in its user base and trading volume over the year. They claimed the platform’s user base grew to 10 million during 2021, which represents a tenfold increase.
WazirX’s 2021 trading volume to date has been around $38 billion, CoinDesk reported, with a month-over-month increase of 44%.
They had an important surge of 2,648% in users who registered to the platform from some of India’s largest cities, Mumbai, Delhi, Kolkata, Chennai, Bengaluru, and Hyderabad (Tier II and Tier III), where crypto trading already had reported maturity before with high rates of interest and transactions in users under 35 years.
They claimed this healthy growth also saw a great amount of support and interest by women investors in the areas, who had increased 30% to 40% in the user base by September.
India reportedly has one of the world’s fastest-growing crypto market, with a 641% yearly increase, according to Chainalysis:
Large institutional-sized transfers above $10 million worth of cryptocurrency represent 42% of transactions sent from India-based addresses, versus 28% for Pakistan and 29% for Vietnam. Those numbers suggest that India’s cryptocurrency investors are part of larger, more sophisticated organizations.
Source: Chainalysis 2021 Geography of Cryptocurrency report
Related Reading | Indian Investments In Crypto Grow Rapidly As $40 Billion Milestone Is Reached
Towards Crypto Literacy
In the past year, WazirX has focused on a strategy that aims to grow crypto literacy in India by providing transparency and different sources of education. For this reason, they launched India’s crypto exchange first transparency report last October, where they stated the following:
we are committed to spreading the right information to our users by fostering a conducive environment to help them make informed choices.
Amongst their efforts, WazirX CEO Nischal Shetty carried a Twitter campaign under the hashtag #IndiaWantsCrypto with the purpose of sharing cryptocurrency insights and creating awareness on the industry, “which generates thousands of jobs, not to mention vast amounts of monetary value.”
They have also launched YouTube series, ‘Blockchain Papers’, and a podcast. All to grow the user’s understanding of their platform, clear fears, and misconceptions. They are also collaborating with educational institutions, such as IIT, IIM, and Delhi University.
Tackling misinformation and busting misconceptions around crypto is just one of the ways we think will help our users make informed crypto investment decisions.
These projects are also meant to open paths between the crypto industry and the country’s policymakers, hoping that more widespread information will help bring regulations.
Crypto Exchanges Hope For Regulations
Cryptocurrencies adoption has had a rough path in India over the years. The scenario is not clear enough, although many users and crypto exchanges remain hopeful for future regulations to bring clarity and the possibility for growth in the industry.
In 2018 the central bank of India banned all cryptocurrencies, which had many responses from investors and exchanges who were affected by the decision. Around that time, WazirX launched WazirX P2P “to help users buy/sell crypto with INR” and carried a 1000-day Twitter campaign “to build a case of why we need to allow crypto to foster innovation”.
Then, in March 2020, The Supreme Court of India lifted the Reserve Bank of India’s (RBI) ban and called it “unconstitutional”. The crypto panorama started to soften for India, which allowed WazirX to become one of the country’s largest cryptocurrency exchanges.
Discussions around regulations started to arise back then. India’s crypto exchanges and investors participated in off-the-record meetings with law enforcement agencies and banks hoping to reach a point of amicability.
The expectations are for the government to classify bitcoin as an asset class and for the Securities and Exchange Board of India to regulate cryptocurrencies and bring clarity, closing the doors to another ban.
Currently, the lower house of parliament listed a meeting under the name “Hearing of the views of associations, industry experts on the subject of ‘CryptoFinance’: Opportunities and challenges,” believed to happen in February 2022. Crypto exchanges, like WazirX, were officially included as invitees for the first time around and their hopes continue to raise.
Related Reading | Reports Show 45% Surge In Stock And Cryptocurrency Sign-Ups Across Rural Areas In India
Crypto total market cap at $2.7 trillion in the daily chart | Source: TradingView.com
Pakistani high court orders government to regulate crypto in three months
The SHC also asked for a report on deliberations surrounding crypto regulations within the same time period.
Right-wing Indian group calls for stricter crypto regulations
The leader of the conservative Hindu group has called for proper policing of the crypto space along with other stricter measures targeted at the digital space.
Binance continues push to become regulated crypto exchange with new hire
Amid the weight of regulatory scrutiny, Binance continues to grow its international compliance team for better relations with financial regulators.
VC firm a16z pursuing crypto lobbying push in Washington
Andreessen Horowitz executives will seek to guide U.S. policymakers on standards for crypto and Web 3.0.
