We need to act now to protect investors and the global financial marketplace from the severe risks posed by crypto-assets and must not be distracted by technical obfuscations which mask an abject lack of technological utility. We thank you for your leadership on financial technology and regulation and urge you to consider our objective and independent expert judgments to guide your legislative priorities, which we remain happy to discuss anytime.
Mitigating the negative externalities and existential risks posed by miner-extractable value (MEV) to smart-contract blockchains.
Cybercriminal gangs laundered an estimated $8.6 billion worth of cryptocurrency last year, in 2021, a 30% rise from the previous year, according to a Chainalysis report published today.
MiCA sets out to establis legal certainty, support innovation, increase consumer and investor protection, ensure financial stability and support innovation across a broad definition of the crypto-assets, crypto-asset providers and crypto-assets services market.Join the discussion on the 19th of January 2021 to follow the discussion on MiCA and its implications in the Crypto-assets markets in Europe and Beyond.
Estonia, one of the European Union’s most crypto-friendly countries, is cracking down on hundreds of licensed crypto companies in response to a $220 billion money laundering scandal, according to Bloomberg. Estonia was among the first EU countries to license crypto companies but has been forced to clamp down after hundreds of billions of dollars of dirty money was detected in the Estonian unit of Denmark’s largest lender Danske Bank A/S. It’s put the country at the center of Europe’s biggest money laundering scandal.
Negen Nederlandse bitcoinstartups gestopt vanwege strengere regelsNiet minder dan negen Nederlandse bitcoinpartijen zijn gestopt vanwege de strengere regels voor bedrijven die cryptomunten aanbieden. Dat meldt Bitcoin Magazine.Zonder vergunning mogen bedrijven die geld omwisselen in crypto’s of wallets aanbieden sinds vorige week niet meer actief zijn in Nederland. De regels zijn ingevoerd om witwassen tegen te gaan.Transacties boven de 15.000 euro moeten worden gemeld. Daarnaast moeten bedrijven onderzoek doen naar de identiteit van hun klanten. Ook worden de bestuurders en andere betrokkenen doorgelicht.De partijen moeten de kosten voor het toezicht daarnaast zelf betalen. Per bedrijf komt dat neer op 20.000 euro.Een van de bekendere namen is Bitkassa, voortgekomen uit een bitcoininitiatief in Arnhem. Een andere bekende naam is Bittr, waar gebruikers een vast bedrag aan bitcoins konden aanschaffen via een simpele bankbetaling.Ook de Rotterdamse broker Nocks is gestopt. De software is overigens al verkocht.Coingarden uit Utrecht noemt de ‘te hoge kosten’ als voornaamste reden om te stoppen. De oprichters gaan door met goudbroker Bitgild.Post-a-coin, een giftcarddienst van Bèr Kessels, valt eveneens onder de wet, net als de miningpool Simplecoin, bitcoin gamingplatform Chopcoin en BitZeb. Een negende startup Bitqist is reeds overgenomen doot Bitvavo. Geen van deze startups had kennelijk voldoende financiële draagkracht.
First, the third quarter saw growing awareness of perhaps the biggest clampdown on virtual asset transactions to ever impact crypto exchanges as well as banks and other financial institutions. After months to absorb its implications, these businesses are coming to grips with the fact that in just seven months they will need to comply with the so-called FATF funds Travel Rule. In a major challenge to business models and user privacy, among other changes this rule requires virtual asset service providers (VASPs) to securely transmit (and store) sender and receiver information whenever cryptocurrency moves. At the same time, US regulators emphasized that a similar Travel Rule which has long applied to fiat funds transfers—also applies to cryptocurrency transactions. This has left firms struggling to find a technical solution in time to avoid potentially severe penalties or blacklisting. It will no doubt have implications as regulators seek to have KYC information shared globally.The Blockchain Security Company
Discussions of cryptocurrencies and other blockchain technologies are bedeviled by a nearly universal assumption that attributes that are possible to achieve in theory are guaranteed to be realized in practice. Examples include decentralization and anonymity.Back in June David Gerard asked: How good a business is running a Lightning Network node? LNBig provides 49.6% ($3.7 million in bitcoins) of the Lightning Network’s total channel liquidity funding — that just sits there, locked in the channels until they’re closed. They see 300 transactions a day, for total earnings on that $3.7 million of … $20 a month. They also spent $1000 in channel-opening fees.Even if the Lightning Network worked (which it doesn’t), and were decentralized (which it isn’t), Gerard’s point was that the transaction fees were woefully inadequate to cover the costs of running a node. Now, A Cryptoeconomic Traffic Analysis of Bitcoin’s Lightning Network by the Hungarian team of Ferenc Béres, István A. Seres, and András A. Benczúr supports Gerard’s conclusion with a detailed analysis.
Areas of law covered include:
1 Government attitude and definition
2 Virtual currency regulation
3 Sales regulation
5 Money transmission laws and anti-money laundering requirements
6 Promotion and testing
7 Ownership and licensing requirements
9 Border restrictions and declaration
10 Reporting requirements
11 Estate planning and testamentary succession
The GLI to: Blockchain & Cryptocurrency Regulation 2019 covers government attitude and definition, cryptocurrency regulation, sales regulation, taxation, money transmission laws and anti-money laundering requirements, promotion and testing, ownership and licensing requirements, mining, border restrictions and more
“The Bank of England approaches Libra with an open mind but not an open door, said Carney. “Unlike social media for which standards and regulations are being debated well after it has been adopted by billions of users, the terms of engagement for innovations such as Libra must be adopted in advance of any launch.”Libra, if it achieves its ambitions, would be systemically important,” he went on to say, continuing: “As such it would have to meet the highest standards of prudential regulation and consumer protection. It must address issues ranging from anti-money laundering to data protection to operational resilience. Libra must also be a pro-competitive, open platform that new users can join on equal terms. In addition, authorities will need to consider carefully the implications of Libra for monetary and financial stability.”