The Central Bank of Nigeria has directed four fintech companies to cease the creation of new accounts, citing their potential use by cryptocurrency traders. An executive from one of the affected fintech companies has associated the Central Bank’s directive with a current audit of the Know Your Customer (KYC) procedures implemented by these firms. Fintech […]
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Regulatory Clampdown — Alaska and Florida Order Binance US to Cease Operations
A recent report indicates that regulatory authorities in Alaska and Florida have prohibited Binance US from operating within their jurisdictions. This development comes in the wake of Binance, along with its previous CEO Changpeng Zhao, reaching a plea agreement with the U.S. government.
Alaska and Florida Issue Cease Operations Orders to Binance US
Binance US, a subsidiary of Binance – the world’s leading crypto exchange by trading volume, has been ordered to cease operations in Alaska and Florida, according to state regulatory mandates. The news was initially revealed by Wall Street Journal (WSJ) journalist Caitlin Ostroff, highlighting the American exchange’s previous complications in these states.
Reportedly, the Office of Financial Regulation in Florida had enacted an emergency suspension of Binance US’s license for money transmission. The report further highlights that this month, the Alaska Division of Banking and Securities reportedly refused to renew the license of Binance’s U.S.-based crypto exchange.
A Binance US spokeswoman told Ostroff that the exchange was in “active dialogue with state officials.” The recent developments in Florida and Alaska come after the plea agreement that former CEO Changpeng Zhao (CZ) and Binance entered into with the U.S. government.
CZ is scheduled for sentencing on Feb. 23, 2024, with a potential 18-month prison term. Furthermore, on Jan. 23, 2024, a judge denied CZ’s request to travel to the UAE, even though he proposed to secure his travel with equity.
Regarding the situations in Alaska and Florida, the Binance US spokeswoman chose not to provide any comments on the possibility of the U.S. exchange appealing the prohibitions, as reported by Ostroff. Based on the data gathered on Jan. 28, 2024, Binance US ranks as the 41st largest crypto exchange by volume, having processed trades amounting to million over the last 24 hours.
What do you think about Florida and Alaska banning Binance US? Share your thoughts and opinions about this subject in the comments section below.
SEC Clampdown Has Crypto Space Abuzz, Pantera Capital Says We’re in Bull Market, and Much More — Week in Review
There’s been no shortage of news in past weeks when it comes to the United States Securities and Exchange Commission (SEC) taking action against crypto exchanges and companies. From Kraken, to Paxos, to Terraform Labs, it seems enforcement is in the air when it comes to chair Gary Gensler’s organization. In other news, South Sudan has reportedly banned U.S. dollar transactions, and crypto-focused investment firm Pantera Capital says we’re in the next bull cycle. All this just below in the latest Bitcoin.com News Week in Review.
Binance CEO Warns of ‘Profound Impacts’ on Crypto Industry if BUSD Is Ruled as a Security
Binance CEO Changpeng Zhao (CZ) has warned of “profound impacts” on the crypto industry if stablecoin Binance USD (BUSD) is ruled as a security. His warning followed an alleged lawsuit by the U.S. Securities and Exchange Commission (SEC) against Paxos, the issuer of Binance USD.
[Opinion] Stiffing the Staker: The SEC’s Latest Crackdown on Crypto Innovation
The crypto world was jolted last week when the Securities and Exchange Commission (SEC) shut down Kraken’s staking program, much to the satisfaction of Chairman Gary Gensler and his team. But what does this mean for the future of cryptocurrency and, more specifically, staking?
Terraform Labs and CEO Do Kwon Charged by SEC With Multibillion-Dollar Crypto Fraud
The U.S. Securities and Exchange Commission (SEC) has charged Terraform Labs and its CEO, Do Hyeong Kwon, with fraud, alleging that Kwon and his company orchestrated “a multibillion-dollar crypto-asset securities fraud.” The securities watchdog insists that Kwon raised billions from investors by creating an “interconnected suite of crypto-asset securities,” many of which were involved in unregistered transactions.
Report: South Sudan Government Bans US Dollar Transactions
The government of South Sudan has reportedly prohibited U.S. dollar-based transactions and has directed that all local payments be settled in the local currency. The Salva Kiir Mayardit government reportedly said it also wants all signed commercial contracts to be based on the local currency.
Pantera Capital on Bitcoin: We’re in Next Bull Market Cycle
Crypto-focused investment firm Pantera Capital says bitcoin has seen its lows and “we’re in the next bull market cycle.” Dan Morehead, the firm’s founder and managing partner, noted: “Over the long-term, bitcoin price has been in a secular uptrend of 2.3x annually over the past twelve years, on average.”
What are your thoughts on the SEC’s recent actions? Should cryptocurrencies require the approval of third parties like Gensler’s regulatory body? Let us know in the comments section below.
PayPal Clampdown on UK Academic Cheating Could Drive Kenyan Writers to Bitcoin
PayPal announced last week that it would no longer process payments associated with academic essay-writing services, intended to give wealthy, lazy students in the UK a way to get qualified without working for it. Although the move might benefit the UK education system, it could cause the loss of jobs for thousands of academics living in the third-world – unless they discover Bitcoin soon.
Reports state that even before the news that PayPal would no longer facilitate payments associated with essay-writing platforms, the company had made it difficult for those living in countries such as Kenya. Of course, Bitcoin does not make you prove who you just because it thinks a payment is “abnormal” for whatever reason.
PayPal’s Censorship Highlights Once Again the Need for Bitcoin
Less than a week after NewsBTC reported on PayPal’s new fee structure potentially alienating merchant users and driving them towards crypto, another example of the company censoring transactions has come to our attention. As announced last week, the global payments giant will no longer work with companies that unite academic writers with students wanting to pay their way through a degree.
The move, according to a report in the Kenyan Tribune, has been influenced by the British Education Secretary, Damian Hinds, lobbying the firm last month. This, according to an extensive exposé by UK newspaper The Daily Mail, was prompted by 46 vice chancellors from various British universities demanding a ban on essay-writing website in the interest of protecting the integrity of UK institutions.
![Blockchain University](https://www.newsbtc.com/wp-content/uploads/2018/08/Blockchain-University.jpg)
PayPal refuses serve third-world essay-writers providing work for UK students.
Although the move by PayPal might well help reduce the numbers of students obtaining degrees fraudulently, it also creates a powerful incentive for third-world academic writers who depend on such work to explore alternative payment methods – chief amongst these, given that the issue is essentially one of financial censorship, is Bitcoin.
In a lengthy post, a Kenyan academic writer explains just how big the essay writing industry has become in their home nation. Thousands of university graduates, unable to find work elsewhere, rely on high levels of income they can generate through producing texts for lazy, first-world students. The author of the piece details how they are paid more than ,000 each month for their services, which in Kenya, is higher than the average professional wage.
Even prior to the latest news that PayPal would be withholding services to those believed to be writing essays for students to pass off as their own, the author of the post states that the company would frequently make it difficult for writers to be paid for their work. Examples of this include withholding supposedly large transfers (even as low as ,000) from professionals until the company had performed various identification checks on individuals. The author believes that such checks were based on an assumption by PayPal that such a sum of money represented a large amount in Kenya and therefore, it must be associated with crime – something, which if true, is hugely discriminatory against those living in third-world nations.
With such relatively large sums of money on the table, it seems likely that any further crackdown by the UK on essay-writing services would just drive those producing dissertations to create their own websites offering services directly for Bitcoin. In fact, the latest move by PayPal might be incentive enough for them to look for less restrictive alternatives already.
Related Reading: Is Largely Unbanked Africa Primed for Bitcoin Adoption?
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SEC to Host Forum on Crypto and Blockchain, Is Bitcoin Clampdown Looming?
The United States’s Securities and Exchange Commission has announced that it will hold a public forum on blockchain and crypto assets. The event is the second of its kind and will take place at the SEC Headquarters in Washington DC on May 31.
The forum is being held in conjunction with the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub). It was first announced in October, when FinHub was initially launched.
Will the SEC Continue its Cautious Approach Towards Bitcoin and Crypto?
Thus far in terms of digital currency regulation, the planet’s largest and most influential financial regulator, the US SEC, has been reserved in its approach towards the crypto space. With its cautious stance, the agency appears to be allowing the industry to evolve, rather than making any drastic regulatory moves that could hinder clear potential for innovation.
In accordance with this, the SEC will hold its second forum dedicated to crypto and blockchain tech:
SEC staff to hold #Fintech Forum to discuss distributed ledger technology and digital assets https://t.co/jRCgjmnBLy #secfintec
— SEC_News (@SEC_News) March 15, 2019
According to a press release from the financial regulatory body, the event being held at the end of May will feature a panel of digital currency experts and academics. The goal will be to promote greater communication and understanding between the industry’s various participants.
Amongst other areas covered by the forum, the following topics will be debated: ICOs, crypto asset platforms, and blockchain technology generally. The focus will be on how these various technologies will impact both investors and the market generally going forward.
As mentioned, the SEC forum is open to the public to attend. The agency will also broadcast the forum live online via its official website. More information about this and the panellists selected to represent the crypto and blockchain space will apparently become available in the coming weeks.
The announcement of the date of the second SEC forum on the cryptocurrency space comes just after after the agency announced that it would be going on a “crypto tour” to help influence the direction of whatever regulations are forthcoming. The goal of the tour is to meet investors, influencers, and other crypto market participants. This should provide the SEC with a much clearer picture of how to proceed with policing the ever-growing industry.
Although the SEC is yet to truly reveal its hand with regards impending regulation of the digital asset space (aside from policing some of the more blatant scams associated with crypto), the fact that it is going to such great lengths to understand the industry is certainly encouraging. Regulators clearly see potential within these disruptive technologies and are keen to avoid coming down hard on the ever-expanding space for fear that it may drive many of the startups based in the US overseas to more welcoming regulatory climates.
Related Reading: After SEC’s Endorsement, Ethereum (ETH) Likely to Rise than Tank
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QuadrigaCX Prompts Regulators to Move: Will Canada Clampdown on Crypto?
The QuadrigaCX debacle that has gripped the crypto space so far this year has evidently not gone unnoticed by Canadian financial regulators. In a consultation paper, the Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) appealed for the input of various crypto market participants to help with a proposed regulatory framework to address investor protection in the space.
The paper seeks input on areas including custody, asset verification, price determination, and market surveillance. All comments regarding the paper must be submitted by May 15.
CSA and IIROC Seek Input on Crypto Regulatory Framework
Canadian regulators have been spurred into action following the recent QuadrigaCX case in which the CEO of a Canada-based crypto exchange supposedly died with the only access to the company’s funds in cold storage. Various twists and turns in the narrative, including allegations of “fake death mafias” and the missing crypto never being there to begin with, and those QuadrigaCX customers that have lost out due to the fiasco are still no closer to having their money returned.
Presumably in response to this (or at least accelerated by it), IIROC and the CSA published a joint consultation paper earlier today seeking members of the cryptocurrency community to comment on a range of issues that would potentially impact upon how the space is eventually regulated.
The paper goes by the catchy title of: “Joint Canadian Securities Administrators/Investment Industry Regulatory Organization of Canada Consultation Paper 21-402 Proposed Framework for Crypto-Asset Trading Platforms”. It proposes that crypto exchanges be required to be registered as marketplaces, investment dealers, or both. This will depend on the nature of assets traded at the platform, as well as other considerations.
In a summary of the paper, CSA Chair and President and CEO of the Autorité des marchés financier, Louis Morisset, is reported to have said:
“Platforms have told us that a tailored regulatory framework is welcome as they seek to build consumer confidence and expand their businesses across Canada and globally.”
The CEO and President of IIROC, Andrew J. Kriegler added:
“Platforms have told us that a tailored regulatory framework is welcome as they seek to build consumer confidence and expand their businesses across Canada and globally.”
He went on to state that it was important to adapt to technological innovation such as cryptocurrency and that regulations should be tailored to “unique business models”. Yet, maintaining investor protection was also paramount to the role of regulators.
The paper goes on to state that both the CSA and IIROC are keen to work with international regulators and welcome discourse on a variety of different approaches.
From the wording on the crypto consultation paper, despite the fact that hundreds of millions of dollars are currently in limbo thanks to the mismanagement of QuadrigaCX’s custody solution, it still seems that Canada’s lawmakers are keen to nurture the ever-growing digital industry, rather than clampdown hard on it. The kind of tailor-made regulatory approach that it details is certainly encouraging for the future of the space.
Related Reading: After QuadrigaCX Fiasco, Another Shady Bitcoin Exchange Surfaces in Canada
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PBoC Looks to Tackle Airdrop Tokens Market in New Clampdown
The People’s Bank of China, the country’s central bank, is looking to clamp down on airdrops free distributions of crypto tokens.
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Curbing Illegal Activities is Not a Crypto Clampdown in India
It seems that governments are falling over themselves to crack down on Bitcoin and cryptocurrencies. Each day politicians from different nations berate the blockchain based digital assets and issue dire warnings over their perceived dangers. Mainstream media picks this up and a FUD party ensues, usually fueling a self-perpetuating selloff.
The Indian government is the latest to adopt this mentality by stating that they do not consider cryptocurrencies as legal. According to local media Finance Minister Arun Jaitley raised concerns during his annual budget speech.
Curbing illegal activities
During the meeting he addressed the issue of the growing popularity of cryptocurrencies within the country and stated:
“The government does not consider cryptocurrencies legal tender or coin, and will take all measures to curb the use of these crypto-assets in financing illegitimate activities or any part of payment systems,”
In the same breath he went on to say that the government will explore the use of blockchain, especially in creating a distributed ledger system based on the technology.
The Ministry of Finance has previously warned about virtual currencies in December when it stated;
“Virtual Currencies (VCs) don’t have any intrinsic value and are not backed by any kind of assets. The price of Bitcoin and other VCs, therefore, is entirely a matter of mere speculation resulting in spurt and volatility in their prices. VCs are not backed by Government fiat. These are also not legal tender. Hence, VCs are not currencies,”
Despite the cautions and today’s statement on the need to prevent digital currencies being used for illegal activities no exchange closures or clampdowns have occurred in India.
Panic ensues
The wave of fear has already hit social networks with panicked FUD spreading netizens harking on about a complete ban on crypto trading. This has not happened and is not happening, it is another classic case of the media misquoting and misunderstanding the situation.
Those that are legally trading crypto and declaring their taxes do not come under scrutiny and will be able to continue, for now. The government does not recognize crypto as legal tender so buying a coffee with Bitcoin will not be possible but trading still is. Curbing the use of cryptocurrencies for illegal activities is NOT the same as banning Bitcoin in India.
The post Curbing Illegal Activities is Not a Crypto Clampdown in India appeared first on NewsBTC.
Bank Indonesia Team Up With Police to Clampdown on Bali Bitcoin Transactions
Indonesia’s Central Bank, Bank Indonesia (BI), have united with the national police service to tackle the illegal use of Bitcoin in Bali. According to them, the tourist hot spot is much more likely to attract people trying to use the cryptocurrency for transactions that are outside the law. The Jakarta Post and local language news source Tempo.co report that on Saturday, January 13, a senior member from BI, Causa Iman Karana, announced the clampdown in Dempasar, the capital of the romantic island getaway location:
“We are looking out for bitcoin transactions in Bali, particularly in tourist spots. We will take measures against non-rupiah transactions.”
Karana also called on the people of Bali to not accept transactions using digital money. For the banker, it is the lack of central authority regulating transactions that is a primary cause for concern. Like most central bankers, the fear of their own pending redundancy was also a likely motivating factor behind his words.
This recent crackdown in Bali is part of a wider initiative against the use of cryptocurrency in the nation of Indonesia. According to national legislators, making transactions in Bitcoin violates Law No. 7/2011 on currency. This recent reiteration underlines the initiative penned at the bank late last year. In early December, Bank Indonesia issued BI Regulation No. PBI: 19/12/PBI/2017. This expressly banned the use of digital currency in Indonesia and stated that all transactions and payments must be made using the national currency, the rupiah. A spokesperson for the bank, Agusman, at the time spoke of the risks posed to those getting involved in the digital currency space. Like Karana, he too deemed the primary issue with virtual money transactions the lack of centralised control:
“We warned people not to carry out transactions with virtual money because there is no authority that regulates the transactions.”
The bank spokesperson went on to highlight the speculative risk of using Bitcoin and other cryptocurrencies. Also amongst his concerns were the dangerous posed to the state because of money laundering, as well as the ease with which virtual currencies could be used to finance terrorism. Agusman concluded with a straight forward message for the people of his country:
Therefore, [BI] wants all parties not to sell, buy or trade the virtual currency.
Indonesia isn’t the first and it certainly won’t be the last country who attempts to stamp out the use of virtual currencies by force. Across the globe, Bolivia, Algeria, Ecuador, and Nepal are amongst those nations that have issued an outright ban on the use and trading of digital currencies. However, such small economies are incapable of moving the price of BTC or any other currency in any dramatic fashion. If the global popularity of crypto continues to grow, it’s likely that these States will be forced to liberalise their knee-jerk legislation or else get left further behind the planet’s larger economies.
The post Bank Indonesia Team Up With Police to Clampdown on Bali Bitcoin Transactions appeared first on NewsBTC.
South Korea bitcoin ban Panic after officials flirt with total trading clampdown
Values of numerous forms of digital currency tumble after South Korea, a hotbed for currencies like bitcoin, weighs up trading ban.
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