The European Central Bank (ECB) is in our latest cryptocurrency news for saying that the “central banking community” will update its monitoring of cryptocurrency transactions (on and off-chain) and apparently “refine” it.
According to a report shared on August 7 and titled “Understanding the crypto-asset phenomenon, its risks and measurement issues,” the ECB argues that “closing the data gaps associated with crypto-assets” is continuing to pose a significant challenge on the regulators and financial institutions alike.
The report which is viral in the altcoin news, also argues that the risks and spillover effects of crypto assets to the real economy depends on the extent that the two spheres are actually interconnected. It therefore advises that the European Central Bank (ECB) should prolong and refine its qualitative as well as quantitative analysis of the new asset class.
However, the public nature of the current distributed ledger technology based crypto asset networks broadly provides transparency, as the report notes. This is why the decentralized and patchily-regulated nature of crypto asset related activities complicates the efforts to organize systematic data collection efforts. This is mostly because of the absence of hard transaction data that covers both on- and off-chain activity and results in only a partial view of the crypto asset marketplace.
The report by the European Central Bank also outlines a couple of initiatives that will apparently refine the crypto asset data collection and analysis – which have already been undertaken by entities including the Irving Fisher Committee on Central Banking Statistics and expert groups which are in charge of investigating the statistical classification of crypto assets in the System of National Accounts.
The European Central Bank says that the authorities must contend with “relatively illiquid crypto trading platforms that may be affected by wash trading” and take into account the “lack of consistency in the methodology and conventions used by institutionalised exchanges and commercial data providers.” The report is featured on many best cryptocurrency news sites today.
In the conclusion, the ECB pledges to continue to analyze the world of on-chain and off-chain protocol transactions and focus on harmonizing and enriching the metadata for off-chain transactions – plus developing the best practices for crypto asset indicators.
Mike Pompeo Wants To Heavily Regulate Crypto Transactions
“We know this from 9/11 and terror activity that took place in the 15 years preceding that where we didn’t have good tracking, we didn’t have the capacity to understand money flows and who was moving money.”In order to mitigate a redux of the 9/11 attacks which were enabled through financial technologies, Pompeo proposed that ‘’electronic financial transactions’’ should be regulated by the same laws that a global platform like SWIFT is regulated under as well. He admitted however that it will be very difficult to do so and stated that the world is much less secure without the proper regulation over a cashless world. In fact, Mike Pompeo argued that the regulatory oversight over fiat finance has ‘’helped keep the entire world secure and to fight terrorism and other nefarious activity.’’ In his statement, Mike Pompeo didn’t really mention certain fintech platforms or even cryptocurrencies but he commented directly to an inquiry from Kernen. His statements on the crypto industry are coming right after other members from the Trump administration commented on digital assets as well. The President of the United States himself claimed that cryptocurrencies such as Bitcoin can facilitate illicit activity and that Libra should also abide by traditional banking laws as we read in the altcoin news previously.
US Secretary Of State: Crypto Should Be Regulated Like SWIFT Transactions
“My sense is this: We should use the same framework that we use to regulate all other electronic financial transactions today. That’s essentially what these are. These are monies moving through markets, or in some case dis-intermediated transactions.”His statement is all over the latest cryptocurrency news. Michael Pompeo is now seen as one of the optimists for cryptocurrencies. As he said, the same rules that apply to transactions “flowing through SWIFT or flowing though our financial institutions ought to apply to those transactions as well." He also agreed that it will be difficult to establish a regulation like this. The interview covered a range of issues. From the state-run propaganda farms using Twitter and Facebook to the Hong Kong protests, the Trump adviser and US Secretary of State addressed the use of pseudonymous cryptocurrencies in the funding of terrorism and money laundering. He also argued that if such private transactions became a norm, it would “decrease the security for the world if that’s the direction we travel.” The US Secretary of State agreed that being able to track the flows of money around the world has helped a lot over the years. As he said:
“This has helped keep the entire world secure and to fight terrorism and other nefarious activity … We need to preserve a financial system, a global financial system, that protects that,” Pompeo said.Many best cryptocurrency news sites took a new idea from this interview - and showed the US Secretary of State also agrees with the interviewers who joked that all money laundering until now has been conducted with fiat currency. For those of you who don't follow our Bitcoin and altcoin news, the regulation of cryptocurrencies in the United States shows that it is legal to use Bitcoin (BTC) in the country - but the payments are subject to taxes and reporting requirements - just like any other cryptocurrency - through ledgers which are used to keep track of the existence of BTC.
ICO Rating Charged For $268,998 Following Violation Of Anti-Touting Provisions
“The securities laws require promoters, including both people and entities, to disclose compensation they receive for touting investments so that potential investors are aware they are viewing a paid promotional item. [...] This requirement applies regardless of whether the securities being touted are issued using traditional certificates or on the blockchain.”Without admitting or denying the findings by the SEC, ICO Rating agreed to cease and desist from committing any future violations in the realm of these provisions. The agency also paid disgorgement and prejudgment interest of $106,998 and a civil penalty of $162,000. In August this year, many best cryptocurrency news sites reported that the SEC reached a $7 million dollar settlement with PlexCorps and its owner Dominique Lacroix, as well as the business partner Sabrina Paradis-Royer and the company itself over an allegedly fraudulent ICO. Unlike the ICO Rating case, this was a more complicated lawsuit. This month, the New England based firm SimplyVital Health Inc. also settled with SEC over an alleged sum of $6.3 million used for an unregistered ICO. The company did not confirm or deny the allegations that it violated certain aspects of the 1933 Securities Act - but was featured in the altcoin news for agreeing on a cease and desist order that was levied by the SEC. As it stands, the United States Securities and Exchange Commission (SEC) is getting stricter towards ICO companies and potentially fraudulent initial coin offerings (ICOs). The agency penalized several big projects so far and it seems like it won't stop doing the same in the future.
Israel Bitcoin Association Wants Local Banks To Disclose Crypto Policies
"Under the Banking (Licensing) Law, it is the duty of a bank to state to the Bank of Israel the policy under which it refuses to conduct transactions. We therefore contacted the Bank of Israel and asked for this information, but the Bank of Israel did not agree to disclose this policy to us. We therefore decided to petition the court to force the Bank of Israel to provide us with a copy of the policy submitted to it by the banks.”Israeli banks have been denying the Israel Bitcoin Association the ability to open accounts in the country, even though the association does not buy or sell cryptocurrency. This, as the report shows, is likely due to the association's name which includes the word Bitcoin. So far, many other traders and crypto related businesses have struggled with difficulties making deposits and remaining tax compliant because of the crypto-averse banking policies in Israel. According to some reports in the altcoin news, cryptocurrency traders in Israel cannot pay taxes and are unable to make deposits of funds obtained through cryptocurrencies.
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