U.S. Congressman Brad Sherman has proposed an amendment designed to enhance the enforcement of sanctions on Russian digital assets. The amendment allows the Treasury Secretary to prohibit crypto transactions linked to Russian entities and requires U.S. taxpayers to report crypto transactions offshore exceeding ,000 to the Financial Crimes Enforcement Network (FinCEN). New Amendment Seeks to […]
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EU Regulator Proposes Stricter Rules for Foreign Crypto Firms
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator, has proposed stricter rules for crypto firms based outside the EU, limiting their ability to directly serve customers within the bloc to ensure fair competition.
ESMA Proposes Stricter Rules for Non-EU Crypto Firms
The European Securities and Markets Authority (ESMA), responsible for regulating and supervising EU financial markets, published consultation papers on two sets of proposed guidelines under the Markets in Crypto-Assets Regulation (MiCA) earlier this week.
The first set of guidance concerns the rules for the reverse solicitation exemption and the supervision practices national competent authorities (NCAs) may take to prevent its circumvention. To ensure a level playing field for companies within the EU, foreign crypto assets service providers (CASPs) will only be able to directly serve customers within the bloc under very limited conditions. “There is only one exemption, if the client at its own, exclusive initiative contacted the firm and requested the service, the third-country firm may provide it,” ESMA clarified, emphasizing:
Third-country firms may not solicit clients in the Union as they are not authorised to provide CASP services in the Union.
While EU financial laws recognize “reverse solicitation,” where customers reach out directly, recent policy changes tighten up these rules, pressuring foreign firms to establish an EU presence.
ESMA also proposed another set of guidelines to define when a crypto asset qualifies as a “financial instrument” under Markets in Financial Instruments Directive (MiFID) rules, bridging the gap between MiCA and MiFID II for EU-wide consistency.
Stakeholders have until April 29 to submit comments on ESMA’s two consultations. The authority will consider the feedback throughout Q2 and expects to release a final report in Q4. The regulator said:
ESMA, and national competent authorities, through their supervisory and enforcement powers, will take all necessary measures to actively protect European Union (EU)-based investors and MiCA-compliant crypto-asset service providers from undue incursions by non-EU and non-MiCA compliant entities.
What do you think about these proposed rules by ESMA? Let us know in the comments section below.
Janet Yellen Urges Congress to Enact Stricter Regulations for Crypto Industry Amid SEC Shakedown
In a recent statement, former U.S. Federal Reserve chair and current Treasury secretary, Janet Yellen, expressed her desire for Congress to enact more regulatory measures concerning the cryptocurrency industry. Yellen cited Treasury reports on cryptocurrencies that have pinpointed various risks linked to the fast-growing sector.
Yellen Sees ‘Holes in the System Where Additional Regulation Would Be Appropriate’
During a “Squawk Box” interview on CNBC with Andrew Ross Sorkin on Wednesday morning, the conversation ranged from the debt ceiling to the state of the U.S. economy but also delved into digital currencies in light of recent lawsuits filed by the U.S. Securities and Exchange Commission against Binance and Coinbase. Yellen alluded to Treasury reports examining crypto, a requirement issued by President Joe Biden’s executive order on the topic.
Yellen fervently believes that increased regulation is necessary within the crypto domain and advocates for Congress to take action and establish appropriate policies. “We’ve identified a number of risks [with crypto]. I’m supportive of those agencies to use the tools they have,” Yellen told Sorkin. Yellen added:
I see some holes in the system where additional regulation would be appropriate. We’d like to work with Congress to see additional regulation pass.
On numerous occasions, Yellen has endorsed stringent regulations for cryptocurrencies. During February’s G20 meeting, she informed reporters that establishing a robust regulatory framework was crucial. In November 2022, Yellen referred to the FTX collapse as a “Lehman moment” and emphasized that the crypto industry necessitates “adequate regulation.” Yellen’s latest comments with Sorkin surfaced after SEC Chair Gary Gensler appeared on CNBC just one day prior, declaring that “we don’t need more digital currency.”
What are your thoughts on Janet Yellen’s call for increased regulation in the crypto industry? Do you believe stricter measures are necessary to address the risks involved, or do you have concerns about stifling innovation? Share your thoughts and opinions about this subject in the comments section below.
Reports Show Government Intends To Imply Stricter Regulations On Cryptocurrency ATMs
In a press release yesterday, the federal agency stated that crypto kiosks, or cryptocurrency ATMs, played a major role in the increasing crimes. The United States GAO (Government Accountability Office) blames crypto kiosks for increasing drug trafficking and human trafficking.
Their reason, however, was that cryptocurrency ATMs aren’t as restricted as crypto exchanges, making their transactions harder to track. The GAO projects that it can be more difficult to curtail illegal transactions as crypto kiosks are becoming more and more popular in the U.S. and worldwide.
Related Reading | Altcoins Are Encroaching On Bitcoin’s Dominance On Digital Payments
To salvage these impending problems arising from crypto kiosks, the GAO recommended that the Financial Crimes Enforcement Network (FinCEN) and IRS cooperate to place more effective regulations on crypto ATMs.
Total Market Cap declines by 3% on daily chart | Source: TradingView.com
While observing the challenges in battling crypto-related crimes, GAO explained that the lack of information about crypto kiosks restrains law enforcement’s capability to defeat crime.
Several Agencies Battle Crypto Crimes
In the report, GAO also observes how, globally, cryptocurrencies are used in facilitating crimes and trafficking. Also, agencies have arisen to resist the increase of crypto-associated crimes. These agencies include the Immigration and Customs Enforcement (ICE), U.S Postal Service (USPS), and even the Internal Revenue Service (IRS).
The Irregularities of Crypto Crimes
Although the study shows that crypto-related crimes have upsurged irregularly. Recently, a new report from the crypto research company showed the contrary. In the latter research’s findings, crypto crimes reached their lowest point in 2021-contrary to its increasing volume of the entire blockchain transactions in the year.
Thus, as cryptocurrencies become more adopted, crypto-related crimes will simultaneously increase. However, the expansion of overall crypto transactions is far-outperforming some criminal activity.
Crypto Kiosks And Human Trafficking
The GAO’s report showed that cryptocurrency has recently been adopted as a means of payment for human trafficking. By ‘human trafficking,’ we imply sex trafficking and labor trafficking. More commonly, sex traffickers now adopt cryptocurrencies as a payment option.
Crypto ATMs And Drug Trafficking
The report also stated that after the shutdown of Silk Road-the online dark web market—in 2013, the entire hidden web marketplace has become more secure. Thus, making the marketplace for illicit drugs more difficult for the law to detect. Again, this is because of the growth of smaller marketplaces.
Tightening Gaps Against Cryptocurrency ATMs
The GAO’s problem with cryptocurrency ATMs is that, although the ATM operators must be registered with the FinCEN, they don’t usually notify law enforcement agencies about their ATMs’ locations. That action impedes the federal agencies’ access to locate ATMs in areas stated as high-risk regions for financial crimes.
Related Reading | American Rapper Lil Baby On Holding Bitcoin And Ethereum Over Fiat
Thus, by increasing regulations on cryptocurrency ATMs, the GAO presumes that enforcing the government will access better information. Also, they will be able to locate potentially illegal transactions.
Featured image from Pixabay, chart from TradingView.com
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Japan Introduces Stricter Regulation for Crypto Margin Trading
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Mexican State Bank Announces Stricter Rules for Crypto Exchanges
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Chinas Stricter Regulatory Stance on ICOs Signal Caution, Not Calamity
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Thailand Cryptocurrency Committee to Clarify Stance, Stricter Regulation
Asia seems to be leading the big crypto selloff at the moment. Fake news of a complete ban in India sparked off the self-perpetuating slide yesterday. There was no ban but mainstream media won again by disseminating more FUD. Some countries remain fully open to crypto and Thailand at the moment is among them.
According to reports in local media a crypto committee is expected to clarify its stance on how to regulate digital currencies within the Southeast Asian nation this month. As in South Korea, again where there has been no ban, Thailand aims to safeguard against fraudulent activities and duplicitous investments.
Direction needed
Finance permanent secretary Somchai Sujjapongse told media;
“Allowing bitcoin transactions to be made without warnings and direction from regulators is not acceptable,”
There could have been something lost in translation with this quote. The real motives from The Bank of Thailand, Finance Ministry, and Securities and Exchange Commission (SEC) are to issue warnings about the risk of trading unregulated digital assets.
The triumvirate is in the process of setting up a working panel to tackle the issue of regulation. Somchai went on to say;
“The working panel must work more rapidly over the next month to inform regulators on how to handle bitcoin. However, it is not correct to consider blockchain harmful if we do not prefer… bitcoin, as blockchain technology can create benefits. We can reap benefit from using blockchain technology.”
Again loosely translated this means that there will be no ban but a little more regulation which is essentially what most governments want. Only China and Vietnam have banned trading in the region. It is likely that Thailand will coordinate with other countries on how to tackle cryptocurrency regulation.
Regional influence
Currently Japan and Singapore are the two most liberal countries in Southeast Asia towards crypto trading. South Korea simply cannot make its mind up. Every week another threat or warning emerges yet citizens are still trading freely, albeit using their own names now since anonymous accounts have been banned.
Ministers in India yesterday stated that cryptos would not be allowed for illegal activities and that the government;
“will take all measures to curb the use of these crypto-assets in financing illegitimate activities or any part of payment systems,”
Contrary to the FUDfest that spewed out of mainstream media following the speech, Indian citizens are still trading cryptocurrencies.
Thailand currently only has one crypto exchange, BX Thailand, which lists 11 digital currencies for trade in fiat and several others for trade in crypto. It has a daily trade volume of around million.
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