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Regulation

The Token Taxonomy Act: A Bill That Excludes Crypto From Being Classified As A Security

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The United States House of Representatives have recently reintroduced the Token Taxonomy Act – which is basically a bill that aims to exclude cryptocurrency from being classified as a security.

According to a press release, the crypto news today show that the bill initially proposed last December by the Representatives Warren Davidson (R) and Darren Soto (D) and aims to exclude digital currencies from being defined as securities – by simply amending the existing Securities Act of 1933 and the Securities Act of 1934.

The release also notes that the change in the bill will differ from the one which was introduced last year. It also clarifies the jurisdictions of the Commodity Futures Trading Commission (CFTC) and the Federal Trade Commission (FTC), stating that a preemption provisions was included in the Act that would supposedly supercede the “heavy-handed” regulations like the New York BitLicense, which we covered in another post.

With this act, the introduction of regulatory certainty for businesses and regulators in the US blockchain industry is also pushed through – as well as clarifying the conflicting state initiatives and regulatory rulings that have confused the issue.

On a side note, this announcement also calls for attention on the growing strength of digital asset markets and the blockchain industry in Europe and China – stating that the Act is necessary in order to keep the United States competitive in the global market.

According to Representative Soto, “it is about time for the US to step up and lead in blockchain technology.” She also added:

“After months of public input, our Token Taxonomy Act and the Digital Taxonomy Act add critical definition and jurisdiction to create certainty for a strong digital asset market in the United States.  This is an important step to promoting innovation and maximizing the potential of virtual currencies for the U.S. economy, all while protecting customers and the financial well-being of investors.”

According to reports from last month, there is a number of lobbies working on similar blockchain technology issues, and the Representatives have already suggested that this growth is mostly driven by securities regulation.

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Regulation

Indian Central Bank Denies Knowledge Of Proposed Crypto Ban Bill

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indian central bank
Indian Central bank denied the allegations of the proposed crypto ban bill that would make the use and ownership of crypto in the country entirely illegal. The reports that we have in our coming altcoin news, give us a broader picture of the issue. According to the reports that surfaced last week, the Indian lawmakers are working on legislation that could impose a 10-year prison sentence for anyone that is caught holding, using or owning cryptocurrency. During the research, the Indian Central Bank responded to a Right to Information request that was initially filed on June 4 by a blockchain-specialized lawyer. The bank noted that it was not communicating with the governmental agencies during the entire process and it didn’t even receive a copy of the bill. The regulating of Bitcoin and blockchain in India has been going on and off over the past period with multiple threats of bans being introduced by government initiatives as well as the regulatory sandbox from the RBI itself. Although the Indian Central Bank denied the knowledge of the crypto bill ban, it did not necessitate that the reports are false. However, it is worth mentioning that the high level of participation from the bank itself in previous crypto matters. The bill outlines this harsh punishment for anyone involved in any way with cryptocurrencies. The Banning of Cryptocurrency and Regulation of Official Digital Currency Bill noted that the offenders will be sentenced with a non-bailable sentence as mentioned previously in the latest cryptocurrency news. The bill also noted that the degree of punishment will be appropriate to the portfolio of the user. The harsh nature of the bill continues to state that the fines are decided by the courts which also state that they will be three times as much harsh as the profit that the person made from crypto in the first place:
 “The penalty imposed on the accused, according to the bill, shall be either thrice the loss caused to the system, or three-fold the gains made by him/her, whichever is higher. If the loss or gain can’t be reasonably determined, the maximum fine that can be imposed may be notified by the government.’’
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Regulation

Financial Action Task Force Wants To Turn BTC Exchanges Into Banks

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Financial Action Task Force or the FATF aims to make about 200 countries around the world to treat bitcoin exchanges like banks. The latest cryptocurrency news comes today after the reports published on June 11. The intergovernmental body reported that it wants to change how national regulators should treat all of the business which are dealing with cryptocurrencies and that the update will go public on the 21st of the month. It’s not really clear all the way but experts believe that anyone who deals with cryptocurrencies and who exchanges more than 1000 EUR worth of bitcoin will have to provide personal information. For the business who act as exchanges and asset managers, the requirements are that the recipient of the funds must be identified which is a thing that many have insisted on doing but it is impossible with decentralized cryptocurrencies. The financial action task force can only make ‘’recommendations’’ and their applications will vary depending on the jurisdiction of the authorities. For the countries that are not compliant, they can expect to be blacklisted or removed from the entire financial system. Eric Turner, the director of research at crypto research firm Messari noted:
 “Their recommendation could have a much larger impact than the SEC or any other regulator has had to date.”
He also added that the problem was ‘’one of the biggest threats to crypto today.’’ Also, the FATF announced previously an incremental approach to crypto management in 2018:
 “As part of a staged approach, the FATF will prepare updated guidance on a risk-based approach to regulating virtual asset service providers, including their supervision and monitoring; and guidance for operational and law enforcement authorities on identifying and investigating illicit activity involving virtual assets.“
As reported previously in the coming altcoin news, the G20 members pledged to implement the suggestions by the FATF in full and as the deadline approaches, crypto entities are now sounding the alarm noting that an apparent ineptitude on the FATF side will get them.  However, crypto users are not sure what this means. Many stay strong on the stance that Bitcoin is not a bank and is not SWIFT. Bitcoin is also not considered as money and it is just a database. Many want to make sure they keep Bitcoin that way.
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Regulation

G20 Ministers Address The Benefits Of Cryptocurrencies

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The latest cryptocurrency news show that the global finance ministers and central bankers recently reconfirmed their support towards cryptocurrencies and crypto-industry regulations. The G20 ministers attended the G20 Finance Summit held this weekend in Japan - ahead of the Leaders' Summit scheduled for late June. The cryptocurrency markets were a hot topic at the summit. In fact, there was a 14-page document revealed by Japan's Minister of Finance on Sunday, which is designed to reflect the outcomes of the weekend discussions between the G20 Ministers (of finance) and the central bankers. Positive and encouraging, the finance leaders clearly put their support behind the crypto assets while remaining vigilant when it comes to monitoring the risks they pose. They also said that crypto assets, as well as other technological innovations, could deliver many benefits to the financial system as well as the broader economy. The G20 Ministers were featured in the altcoin news for the following statement:
“While crypto-assets do not pose a threat to global financial stability at this point, we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT).”
However, the G20 leaders also reconfirmed their commitment to a globally consistent regulatory environment and agreed that overregulation is an issue that should be avoided. Still, they will have to strike a difficult balance since overregulation is found to stunt the growth and innovation necessary if the industry is to serve its communities. The G20 Ministers and central governors also reiterated their commitment to the various initiatives which happen underway. As they revealed, they fully support the regulatory efforts that protect both consumers and investors - as well as support the market integrity. Another important topic at the G20 Summit was cyber regulation. In times when crime is more and more present online, the G20 leaders agreed on the following:
“…a tsunami of tough new global anti-money laundering (AML) and counter-terror financing (CTF) regulations will roll over the crypto landscape in the coming year.”
The G20 has shown big consistency and a multilateral regulatory approach which was praised by many best cryptocurrency news sites.
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Regulation

G20 Finance Leaders Ask Regulators To Monitor Crypto Risks

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G20 finance leaders and central bank governors are asking the Financial Stability Board (FSB) to consider working on multilateral responses to crypto and to provide better risk monitoring. In the latest cryptocurrency news, we read more on the requests. The G20 finance leaders asked the global-standard-setting organizations and the FSB as well to monitor risks that come out of using crypto assets. The request was made on June 9 and was published on Japan’s Ministry of finance website after the G20 meeting that took place in Fukuoka, Japan. The G20 finance leaders which co-signed the document outlined that they urge relevant institutions to provide greater consideration to crypto assets:
 “We ask the FSB and standard setting bodies to monitor risks and consider work on additional multilateral responses as needed.”
The joint statement also noted that the ‘’technical innovations, including those underlying crypto-assets, can deliver significant benefits to the financial system and the broader economy.’’ This sentence was included in the co-signed document released after the G20 summit was held in July in 2018 in Buenos Aires. After the summit, the authors of the paper raised concerns over the technologies:
 “While crypto assets do not pose a threat to global financial stability at this point, we remain vigilant to risks, including those related to consumer and investor protection, anti-money laundering (AML) and countering the financing of terrorism (CFT).”
The latest statement shows that the involved parties are looking forward to the adoption of the Financial Task Force Interpretative Note (FATF) and the guidelines for crypto assets ‘’at its plenary later this month.’’ The G20 finance leaders also stated that they reaffirm the commitment they have to apply the previously amended FATF standards for crypto. As reported in the altcoin news, the documents show that the finance ministers and central bank governors welcome all the work concerning crypto which is carried out by international regulatory bodies and the International Organization of Securities Commissions and the FSB. The blockchain analysis company Chainalaysis which was in direct contact with the global regulators explained that it will be surprising if the involved parties agree on anything during the new G20 summit this year.
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