New draft for crypto regulation from Bermuda’s financial regulatory is in our crypto news today according to their official press release published on Tuesday.
The official document for the draft created by the Bermuda Monetary Authority is entitled ‘’Digital Asset Custody Code of Practice’’ hopes to clarify the stance on crypto custodial services in Bermuda in order to protect their clients’ assets.
In the document, there’s a detailed regulatory basis for the offering of crypto custodial services where business management and technology issues were included, but also transaction handling and operating hot and cold storage.
The goal is to deliver high protection for the crypto custody clients and the Bermuda Monetary Authority suggested that the Digital Asset Business must implement ‘’any assets belonging to clients are kept segregated’’.
The DAB is allowed to put all of the assets of the clients in a trust with a qualified custodian and they are also allowed to use indemnity insurance and take any other possible measures to guarantee the assets of the clients in case the DAB is suspended.
BMA’s senior advisor of financial technology Moad Fahmi explained that the authority will provide support a ‘’healthy digital asset ecosystem’’ so that ‘’quality players’’ that can impact the financial market, in general, be involved.
The Bermuda Monetary Authority is not a central bank but it is an integrated regulator of the financial sector in Bermuda and also operates as an issuer of the national currency of Bermuda.
Back in April, the BMA published another paper that was meant to measure the feedback from the public regarding the regulation of crypto-related services. Also, the government of Bermuda issued the first license for an ICO in July 2018.
US Congresswoman Wants Facebook To Pause Its Crypto Plans
“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a crypto-currency until Congress and regulators have the opportunity to examine these issues and take action.”Right now, Waters' fears are warranted. In times when Facebook has a torrid history over its privacy and information handling performances, the CEO of the company Zuckerberg and the COO of Facebook Sheryl Sandberg had to appear before the Congress last year for questioning. The past that Facebook has, mixed with the US Congresswoman's intentions, may definitely halt the very long-awaited project and send shivers down the spine of the crypto community. Right now, it is clear that the Congress wants the social media giant to take things slow. Other lawmakers also said that they need more information regarding the project. The US Congresswoman and Chair Waters and her sentiment shows the following in a letter sent to the Rep. Patrick McHenry, who is another member of her committee:
“It is incumbent upon us as policymakers to understand Project Libra. We need to go beyond the rumors and speculations and provide a forum to assess this project and its potential unprecedented impact on the global financial system.”We don't know if Facebook responded to this letter. But as the coming altcoin news show, even if they did - lawmakers now want to hear more details about the Libra project.
US Banking Committee Senate Sets Hearing For Facebook’s Crypto Project
“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a cryptocurrency until Congress and regulators have the opportunity to examine these issues and take action.”On July 16, the US Banking Committee will hold a hearing titled "Examining Facebook's Proposed Digital Currency and Data Privacy Considerations." Jerome Powell, who is the head of the US Federal Reserve, was featured on many best cryptocurrency news sites for his recent announcement in which he said:
“[Facebook] has made quite broad rounds around the world with regulators, supervisors and lots of people to discuss their plans and that certainly includes us.”As government officials in other countries noted, there is a lot of doubts and concerns about the new Facebook project. One of them was the French Minister of Economy and Finance Bruno Le MAire, who noted that the government intends to "ask for guarantees" from Facebook in regards to its Libra cryptocurrency project. Earlier today, other altcoin news spread showing that the Chairman of the Russian State Duma Committee on Financial Markets, Anatoly Aksakov, said that the country won't legalize the use of Facebook's Libra cryptocurrency.
Chinese Tech Giants Believe Crypto Regulation Is Major Concern
Bancor Exchange Plans To Restrict US Residents From Trading
“This decision has been made in light of increased regulatory uncertainty; at this time, we believe this is the most judicious decision for all the members of our ecosystem,” the blog post shared on Bancor exchange reads.It also continues stating that the decision will "enable the Bancor community and ecosystem to innovate faster and with greater clarity." Currently, Bancor runs as a decentralized protocol using a P2P setup. As many best cryptocurrency news sites noted, it is unclear what was the factor that motivated the move. The regulatory situation now involves another decentralized exchange (DEX) named Etherdelta, which did the same thing in 2018 - illustrating the difficulties of operating such a service in the US. Last year, the country's Securities and Exchange Commission (SEC) charged the founder of Etherdelta, Zachary Coburn, with operating an unregistered securities trading platform and a $300,000 fine. Right now, the Bancor exchange is in the latest cryptocurrency news on many websites. As it adds in the blog post, all of its users will still be able to hold and transfer tokens, while conceding that the decentralized portions of its network were beyond its control and would thus remain open to the US traders.
“We would like to clarify that this functionality will be blocked to users accessing the website bancor.network, which offers an interface to blockchain activity. As the Bancor Liquidity Network is a collection of smart contracts on the blockchain, and a non-custodial system, we cannot restrict users from accessing the blockchain itself. This cannot be blocked,” the blog post concludes.If you are new to the latest regulation frenzy in the US, you should know that new international recommendations from the Financial Action Task Force were brought up - placing stringent new ID requirements on any entity and user facilitating crypto trading - both for US residents living in and ones living out of the country.
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