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Regulation

New FATF Rules May Open Up Crypto To A Layer Of Middlemen

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Many best cryptocurrency news sites are posting about the new FATF rules – carried out by the Financial Action Task Force (FATF) which is a multi government body responsible for the ways cryptocurrency exchanges and virtual asset companies operate.

As the updates show, the new FATF rules may open up cryptocurrency to a layer of middlemen. Even though it requires them to collaborate with major financial service companies and blockchain analysis firms, the new regulations will at the same time enable a whole class of corporations and outfits to insert themselves in the crypto ecosystem – and profit from it.

The new FATF rules and guidelines will apparently come with an update and ratify with what many countries – such as the United States and Japan – have already implemented with regards to KYC (know your customer) and AML (anti money laundering) guidelines. On the other hand, they will also introduce a number of new and more complex requirements which will oblige virtual asset service providers (VASPs) to improve their game considerably and coordinate in better ways.

The latest cryptocurrency news show that by doing this, the transactions themselves need to be routinely monitored and therefore detect unusual and potentially criminal patterns. As the new FATF rules could implicate, a new ‘travel rule’ will also necessitate that exchanges and money transmitters share customer information with each other so that one exchange can confirm (for example) that a customer on another platform is sending 10 Bitcoins to a verified identity.

All of this will mean a lot of crypto. For one, the FATF rules are described as very helpful to the crypto world by many altcoin news analysts. However, cryptocurrency exchanges and service providers might not be able to interpret and implement the new FATF guidelines themselves – and will likely need help from a range of financial services firms (such as PwC or Deloitte), legal firms, cryptocurrency associations and regulators. All of these entities will play a role in outlining what the new guidelines mean in the context of their specific businesses.

In other words, the consulting firms such as Deloitte and law firms are seeking to insert themselves as middlemen between VASPs and the new FATF rules and guidelines.

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Regulation

Chairman Of US CFTC Calls For Principle-Based Regulation

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The Chairman of US CFTC (Commodity Futures Trading Commission) Heath Tarbert, urged for a principle-based regulation for cryptocurrencies. He stated that with this approach, regulating the digital assets will allow a period of development and observation which could be more appropriate to adopt more targeted rules as we are reading in our cryptocurrency news.In today’s altcoin news, we see that Tarbert delivered his remarks on crypto regulation in his op-ed which was published on the official CFTC website on November 19. The Chairman of US CFTC noted that the term ‘’principles-based regulation’’ does not apply only to the light-touch approach of deregulation but that this is actually far from it. He pointed out that this approach involves moving away from detailed rules to relying more on a higher level including the broadly-stated principles’’ to define the standards for regulated companies and products.To make the point, Tarbert quoted the former British Prime Minister Winston Churchill who said:
 “If you make 10,000 regulations, you destroy all respect for the law.”
According to Tarbert, the regulators should understand the potential outcomes and risks of digital assets before enforcing the rules and he argued:
 “What we don’t want to do is take a heavy hand and snuff out innovation altogether. Given the rapid pace of innovation and the markets supporting it, taking a principles-based approach to regulating digital assets and other fintech products would permit a period of development and observation. After we fully understand the outcomes and potential risks of digital assets, it may be appropriate to adopt more tailored and targeted rules or a more balanced combination of principles and rules.”
While expressing the supportive stance for the development of the technology, Tarbert still devoted a lot of attention to the risks that emerge within the industry. He noted:
“Our willingness to allow innovation to develop should not be confused with a tolerance of fraudulent behavior or a so-called light-touch approach.’’
He added that the CFTC is now working out how the basic aspects of principles-based regulation can be applied for crypto exchanges. His remarks are much similar to his predecessors’ Chairman Giancarlo when he argued that crypto needs a ‘’ do no harm’’ approach from the regulators in order for it to be successful.
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Bitcoin News

New BTC Drop To $7,100 Caused By China ‘Disposing Of’ Local Exchanges

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The latest cryptocurrency news bring a new drop in the price of the most dominant cryptocurrency - mainly due to the fact that China recently vowed to dispose of all the local exchanges operating in the country. The new BTC drop to $7,100 was triggered by the statement on November 21 by the People's Bank of China which warned that it is taking action against entities that are involved in trading cryptocurrencies such as Bitcoin (BTC).The move was also in response to a rise in the trading activity after the public endorsement of blockchain technology by the country. While pledging to keep its promise to outlaw trading, the PBoC vowed to "dispose of" any such activity which it discovered under its jurisdiction.
“Once it is discovered, it will be disposed of immediately, and it will be prevented from happening early,” a translation of the statement reads.
The new BTC Drop has tanked the cryptocurrency further and is now rattling the markets, sliding almost 10% and bouncing off the support around $7,000.Meanwhile, the city of Shenzhen revealed an investigation into the similar cryptocurrency trading operations which was again spearheaded by the PBoC. The commentators included Binance CEO Changpeng Zhao, all arguing that the focus of the probe genuinely was bad actors - and that it would ultimately be beneficial.The latest statement which comes with the new BTC drop to $7,100 proves that China is an influential figure that is setting the price of Bitcoin (BTC) up and down. The PBoC underscored the official government position in favor of blockchain but against cryptocurrency more clearly than ever before.“Investors should be careful not to mix blockchain technology with virtual currency,” the statement shows as it also paraphrases similar warnings that appeared in government media publication People's Daily late last month.On another note, it seems that the new BTC drop to $7,100 triggered even more drops in the coming altcoin news. Ethereum (ETH) nosedived by 13% to a price of $149, Bitcoin Cash (BCH) did the same and is now at $2017 while Litecoin (LTC) has registered a 12% drop to $46.53 now. This is perhaps the biggest drop in the past month, setting a new 4-week low for many coins on the market. 
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Regulation

Chinese Central Bank Reaffirms Its Sentiment: Blockchain – Not Bitcoin

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The Shanghai branch of the People's Bank of China recently commented the situation revolving around cryptocurrencies. As the announcement published in the news this Friday shows, the Chinese central bank observed a resurgence in the cryptocurrency related speculation through ICOs, IEOs, STOs and other capital raising or token distribution methods.The crypto news show the Chinese central bank announcement in full, continuing to argue about the sale of tokens for Bitcoin, Ethereum and other virtual currencies and how it remains “essentially unauthorized illegal public financing, suspected of illegal sale of tokens, illegal issuance of securities and illegal fund-raising.”The PBoC Shanghai branch also added that crimes via cryptocurrencies have "seriously disrupted the economic and financial disorder." As such, the Chinese central bank noted that it will keep “monitoring the virtual currency business activities within the jurisdiction,” which will be “disposed of immediately” if discovered.https://twitter.com/DoveyWan/status/1197807060877901825The Chinese media and analysts echoed this decision, which comes shortly after the leading state-run publicaiton named Xinhua released an entire article about Bitcoin. The article translates to 'Bitcoin: The First Successful Application of Blockchain Technology' and was seen by many on Twitter - being described as a groundbreaking development for the crypto space.The head of the crypto focused venture fund Avon Ventures (which is a fund that is affiliated with Fidelity) reminded his followers that this article - while explaining the ins and outs of Bitcoin - calls the cryptocurrency "highly concentraded/centralized" phenomena and something that is bad for the climate or used for black market transactions.https://twitter.com/intangiblecoins/status/1193885788313927683What's important at this point is the fact that the Chinese central bank is the first to bash digital assets through an article. The People's Daily which is another state-run outlet in China reminded the people that Xi's support for blockchain does not equate to support for crypto earlier this year, noting:
“The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies.”
With a mixed climate and mixed reactions from the media, it is up to the Chinese to decide what does Bitcoin present and what could it change in the national and global economy.
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Regulation

Argentinians Want BTC Over Peso Amid USD Crackdown

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The central bank in Argentina had banned consumers from purchasing Bitcoin (BTC) and other cryptocurrency with credit cards on November 1 - after which followed a backfire in the country. The latest cryptocurrency news show that Argentinians want BTC and over the past two weeks, the country has traded the highest amount of Bitcoins on the peer-to-peer platform LocalBitcoins as data shows.According to the charts which are visible on many data aggregators, Argentina has a fragile economy right now and one of the biggest factors in the high adoption of crypto in the country is the high volatility of the Argentine peso. In the past five years, the value of the peso has fallen by 85% - which is why Argentinians want something more stable.The truth is, residents of the country have had little confidence in their currency and favoured to convert their spare pesos into relatively stable dollars. However, the peso is Argentina's sovereign currency which people earn and spend all the time. Still, it is the US dollar that defines the value of goods and services, while the peso-dollar exchange rate is making the news all the time alongside weather and traffic reports.While Argentinians want BTC and to trade crypto, the authorities are uncertain about the future. One of the analysts and crypto moguls who offered advice was the crypto bull Tim Draper, who told the president of Argentina back in March 2019 to legalize Bitcoin in order to improve the country's economic situation. Draper counselled the president and said that there is a potential to improve the devaluation of the Argentine peso and relieve the brain drain.The CEO of the Anchor stablecoin, Daniel Popa, also had his say about the situation in the South American country. Argentinians want BTC and trust crypto more as a store of value than the peso mostly because Bitcoin cannot be manipulated by the government.
“Unfortunately, bitcoin does not offer predictability, underlining the ongoing need for a universally-accepted stablecoin and financial standard that could be adopted by anyone in the world, including those suffering from the negative economic impacts that stem from war, natural disasters, health crises, and disruptive monetary policies,” Popa added.
On September 1, the Central Bank of Argentina had imposed restrictions on US dollar purchases in order to revive the plunging peso.
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