The UK High Court has granted a Worldwide Freezing Order (WFO) against Craig Wright, amounting to £1.548 million (approximately .98 million). This decision stems from Peter McCormack’s application, which argued for the necessity of the WFO due to Wright’s fundamentally fraudulent defamation claim. Wright had asserted he was Satoshi Nakamoto, Bitcoin’s creator, and sought damages […]
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White House Rehires Adviser Who Helped Develop Biden’s Executive Order on Crypto
The White House has rehired Carole House, who helped develop President Joe Biden’s Executive Order on Ensuring Responsible Development of Digital Assets, as Special Advisor for Cybersecurity and Critical Infrastructure Policy at the National Security Council. Previously, House worked at the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), leading efforts on cybersecurity and virtual currency […]
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Crypto Friendly Evolve Bank Under Scrutiny: Cease and Desist Order Issued
The Federal Reserve and Arkansas State Bank Department have mandated sweeping reforms at Evolve Bank & Trust following significant compliance breaches. The order highlights issues in anti-money laundering efforts and consumer protection, especially in its dealings with fintech companies and prominent crypto players like FTX. Compliance Concerns Trigger Regulatory Action Against Evolve Bank Evolve Bank […]
Bitcoin News
Argentina to Regulate Cryptocurrency Exchanges With Executive Order
The government of Argentina is reportedly preparing to regulate cryptocurrency service providers with an executive order. The measure would be directed to keep Argentina out of the Financial Action Task Force (FATF) gray list, putting crypto service lenders under the oversight of the local securities watchdog. Argentina Reportedly Set to Regulate Cryptocurrency Service Providers by […]
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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 Seeks Court Order for Ripple’s Financial Statements in Ongoing Legal Tussle
The legal battle between the SEC and Ripple Labs continues, with the SEC seeking court intervention to obtain Ripple’s financial statements and data on institutional XRP sales.
SEC’s Legal Pursuit of Ripple Continues With Request to Disclose Financials and XRP Contracts
The U.S. Securities and Exchange Commission (SEC) has intensified its scrutiny of the cryptocurrency firm Ripple Labs, Inc. According to a January 11 filing, the SEC is seeking a court order to compel Ripple to produce financial statements for 2022 and 2023, as well as contracts related to institutional sales of XRP, its native cryptocurrency.
The SEC’s request is seeking contracts for sales made after the SEC initially filed a complaint against Ripple. The SEC’s action is based on a previous finding by Judge Analisa Torres that these institutional sales prior to the complaint were essentially unregistered securities transactions.
Additionally, the SEC wants Ripple to provide a formal written response (known as an interrogatory) detailing how much money it earned from these institutional sales after the SEC filed its complaint, but only for contracts that were signed before the SEC’s complaint was filed. The SEC argues that these documents and the interrogatory response are crucial for “tailoring a penalty to deter future violations,” suggesting potential injunctions and civil penalties against Ripple.
Ripple, for its part, maintains that its future XRP sales should not be subject to injunctions as they are exempt from registration and securities laws. However, the SEC’s recent request indicates a persistent pursuit of regulatory oversight, especially following the partial victory Ripple achieved in July 2023 when Judge Torres also ruled that certain sales were not securities offerings.
The legal battle, which began in December 2020 with the SEC alleging Ripple’s XRP sales as unregistered securities offerings, saw a limited resolution in October 2023. The SEC dropped charges against two Ripple executives, leading to the conclusion of most aspects of the case in December 2023. Despite this, the recent filing for new information signals that the SEC is not backing down, and penalties against Ripple remain a possibility.
The SEC’s latest action aligns with its broader enforcement strategy in the crypto industry. Ripple’s chief legal officer, Stuart Alderoty, has previously criticized the SEC for its rigorous regulatory approach, labeling it as an “out of control regulator.”
As Ripple prepares to respond to the SEC’s motion, confidence in the crypto community is high in light of the SEC’s historic spot bitcoin ETF approval. Ripple’s trial with the SEC is slated to begin in April.
Will the SEC be successful in getting injunctions or civil penalties against Ripple? Share your thoughts and opinions about this subject in the comments section below.
Nigerian Central Bank Lifts February 2021 Crypto Prohibition Order
The Nigerian central bank has reversed its Feb. 5 order which barred banks and financial institutions from extending their services to crypto entities. The central bank said new guidelines align with the Financial Action Task Force’s updated recommendation 15, which calls for the regulation of virtual asset service providers.
Guidelines Align With FATF’s Recommendation
On Dec. 22, the Central Bank of Nigeria (CBN) announced that it had rescinded an order that prohibited banks from servicing the crypto industry. In its newly issued guidelines on the operation of bank accounts for virtual asset service providers (VASPs), the central bank stated that the order also supersedes the Jan. 12, 2017 prohibition.
As previously reported by Bitcoin.com News, the CBN’s Feb. 5, 2021 prohibition order specifically requested that Nigerian financial institutions exclude crypto entities from the banking ecosystem. Under then-governor Godwin Emefiele, the central bank actively enforced the order and this resulted in many bank accounts linked to crypto being closed.
However, in the circular which explains the rationale for abandoning the prohibition order, the CBN said the decision aligns Nigeria’s regulations with global trends. The circular also cites the Financial Action Task Force (FATF)’s updated recommendation 15 as one of the reasons for the central bank’s changed stance.
“Current global trends have shown that there is a need to regulate the activities of virtual asset service providers (VASPs) which include cryptocurrencies and crypto assets. Following this development, the Financial Action Task Force in 2018 updated its recommendation 15 to require VASPs to be regulated to prevent the misuse of virtual assets for ML/TF/PF,” the CBN stated.
The central bank added that a section of the country’s money laundering laws now recognizes VASPs as part of the definition of a financial institution, while the rules issued by the Securities and Exchange Commission provide a regulatory framework for their operations.
Nonetheless, in its circular sent to banks and other financial institutions, the CBN said these entities are still barred from either holding, trading, or transacting in virtual currency on their own account. The central bank added it expects immediate compliance with the new guidelines.
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Argentina’s President Javier Milei Issues Major Deregulation Measures via Executive Order
Javier Milei, president of Argentina, has issued an emergency executive order repealing a series of laws to prepare the state for upcoming privatization and modernization moves. The executive order, which has 366 articles, touches on major aspects of Argentine life, including rents, job regulation and land regulation. It also converts all state companies into limited companies.
Argentine President Javier Milei Launches Massive Deregulation Measures
President Javier Milei has launched the first batch of measures focusing on reducing the footprint and reach of the state in Argentina, as he promised during his campaign. On December 21, Milei issued a national emergency executive order that modifies — and eliminates — some of the most relevant laws that regulate work, rent, product pricing, and other aspects of the Argentine citizens’ lives.
The executive order, titled “Decree of Necessity and Urgency – Bases for the Reconstruction of the Argentine Economy,” grounds its action on the economic crisis that Argentina is currently facing, arguing that the only way of overcoming this situation is to revamp the country’s economy.
The document states:
The National State will promote and ensure the effective validity, throughout the national territory, of an economic system based on free decisions, adopted in an area of free competition, with respect for private property and the constitutional principles of free circulation of goods, services, and work.
For this objective, the order calls for the deregulation of trade, services, and industry throughout the national territory, declaring all restrictions on the supply of goods and services void and converting all state companies into limited companies, preparing them for an upcoming privatization action.
The 366-article emergency order is garnering immense opposition from lawmakers in the Argentine Congress, which can void it if both chambers repeal it by a simple majority.
Analysts and experts are already questioning the constitutionality of the changes to the existing regulatory framework, stating that they could even lead to legal action against Milei. Raul Ferreira, a law professor at Buenos Aires University, stated:
The decree is openly unconstitutional because the legislation that is intended to be carried out with the aim of permanence has to be made by Congress.
What do you think about Milei’s steps to deregulate the Argentine economy? Tell us in the comments section below.
UAE Bitcoin Miner Signs Order Worth Over $380 Million With Microbt
United Arab Emirates-based bitcoin miner Phoenix Group PLC has signed an order worth more than 0 million with Whatsminer mining rig maker Microbt. Bijan Alizadehfard described the collaboration with Microbt as a reflection of his company’s “strategic foresight.”
Microbt to Integrate Hydro-Cooling Miners
Phoenix Group PLC, a bitcoin mining company based in the United Arab Emirates (UAE), has signed an order worth more than 0 million with Microbt, a mining rig manufacturer. As part of the agreement, Phoenix Group PLC will receive mining equipment valued at 6 million, with an additional option worth 6 million.
The UAE-based bitcoin miner is also collaborating with Microbt to integrate hydro-cooling miners, which is a significant milestone towards Phoenix Group’s goal of creating High-Performance Computing (HPC) data centers. Bijan Alizadehfard, the co-founder and CEO of Phoenix Group PLC, described the collaboration with Microbt as a reflection of his company’s strategic foresight.
“This collaboration with Whatsminer [Microbt] is a milestone for Phoenix Group, reflecting our strategic foresight and commitment to pioneering in the tech industry. Our successful listing on the ADX has further empowered us to pursue such significant partnerships, enhancing our capabilities in the blockchain and cryptocurrency sector,” Alizadehfard said.
Phoenix Group has announced a multi-million dollar deal with Microbt, coming just days after its highly successful initial public offering (IPO) which raised over 0 million.
The oversubscribed IPO and the deal with Microbt both signal a new era of growth and innovation for the UAE company. Phoenix Group PLC aims to leverage these advancements to reinforce its position as a leader in the global technology industry.
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Biden Administration Issues Landmark AI Executive Order
United States president Joe Biden has issued an executive order to establish new rules and standards that artificial intelligence (AI) companies will have to follow to secure the leadership of America in the field. The executive order also ostensibly seeks to protect the privacy of citizens and examine the effects that AI tools will have on the national labor market.
Biden Administration Issues AI Executive Order
U.S. president Joe Biden has recently issued an executive order that tackles the field of Artificial Intelligence (AI), seeking to establish standards that companies in the industry will have to follow to operate in the U.S. The order, one of the most comprehensive issued by any government, also seeks to avoid discrimination produced by AI algorithms and protect citizens’ privacy.
One of the features of the order is that it will require AI companies to “share their safety test results and other critical information with the U.S. government” when their activities pose “a serious risk to national security, national economic security, or national public health and safety.”
The National Institute of Standards and Technology (NIST) will be in charge of creating the standards for these tests, which will be applied to critical infrastructure projects to ensure they can withstand AI-derived threats.
More Determinations
Another key issue the order touches on includes the development of methods that allow citizens to verify that communications are official and not AI-generated through “guidance for content authentication and watermarking to clearly label AI-generated content.”
With this document, the Biden administration recognizes the threat that AI-developed systems pose to the labor security of Americans. To mitigate this effect, the order states that it will “develop principles and best practices to mitigate the harms and maximize the benefits of AI for workers” while also calling for producing a report to examine the possible impact of AI on labor disruptions.
Citizen privacy is also addressed, with the order calling on Congress to “pass bipartisan data privacy legislation to protect all Americans, especially kids,” by researching privacy-preserving techniques and examining how companies collect and use information.
Reactions
The scope of the executive order and its possible effects on the future of AI in the U.S. have spurred several reactions from various organizations. Regarding the standardization initiatives for AI-related testing, Maia Hamin, an associate director with the Atlantic Council’s Cyber Statecraft Initiative under the Digital Forensic Research Lab, stated:
This one-two punch could be a path to getting something like a regime for pre-release testing for highly capable models without needing to wait on congressional action. Hopefully, the NIST standards will encompass both the cybersecurity of the model … and its usefulness for malicious cyber activity.
SAG AFTRA, the U.S. actors guild syndicate, which is currently on a nationwide strike that also has an AI-related component, congratulated President Biden, stressing that “it is imperative that workers & unions remain at the forefront of policy development. We look forward to working together for a human-centered approach.”
What do you think about the Biden Administration’s AI executive order? Tell us in the comments section below.