Cryptocurrencies have not yet been completely incorporated into the global economy because of the various questions and criticisms surrounding them. Several nations are still quite stringent with their regulations governing the usage of cryptocurrencies, even though certain nations’ objections to this creation have lessened.
Several countries continue to think that cryptocurrencies are the most effective way for criminals to fund their activities. According to them, cryptocurrency volatility may not be healthy for the economy and the mining process damages the environment.
Several nations have tightened their laws and restrictions on the usage of cryptocurrencies to oversee the activities of the cryptocurrency market and avoid any harm that may be posed by its use.
G7 will collaborate on stronger cryptocurrency regulation
To strengthen consumer protections and increase crypto transparency while addressing potential threats to the global financial system, officials from the United States, the United Kingdom, Canada, France, Germany, and the European Union will work together to develop a plan, according to officials who spoke at the Kyoto summit. The gathering this year is slated to take place in Hiroshima in May.
This response stems from concerns about the dangers that crypto assets pose to the world financial system. The key cryptocurrency exchange FTX went down in November, exposing the unsuitable governance of the sector and shaking the financial markets.
The G7 wants to take the initiative in formulating global standards for digital assets.
Nasdaq Wants to Provide Cryptocurrency Custody
The global exchange company is moving fast to have all the necessary technological infrastructure and regulatory clearances in place, according to Ira Auerbach, senior vice president and head of Nasdaq Digital Assets. During an interview in Paris, he said this. Nasdaq has applied for a limited-purpose trust company charter with the New York Department of Financial Services to run the new company.
The concept, which was initially presented in September, will mark the exchange operator’s first foray into the cryptocurrency industry. Protecting Bitcoin and Ether would be the first step in creating a wide variety of services for the group’s digital assets sector, including execution for financial institutions, according to Auerbach.
US agency is suing Binance and its CEO Changpeng Zhao
The authorities assert that Mr. Zhao and Mr. Lim directed business into a center that Mr. Zhao managed through the use of an “opaque network of firm entities.” The C.F.T.C. asserts that they even helped American crypto dealers set up phony companies to hide their real locations.
Rostin Behnam, the chairman of the C.F.T.C., issued a statement announcing the lawsuit’s filing. She said that Binance deliberately attempted to maintain the money flow and escape compliance for years. Everyone working in the digital assets industry should take this as a warning that the C.F.T.C. will not tolerate willful disrespect for U.S. law.
Bankman-Fried is accused of paying $40 million in bribery
Former FTX crypto exchange founder Sam Bankman-Fried is now being charged with bribery. The Department of Justice charged Bankman-Fried on Tuesday, claiming that she “approved and directed a bribe of at least $40 million to one or more Chinese government officials.”
The payment, according to sources, was an attempt to persuade Chinese regulators to unfreeze some of the accounts connected to FTX’s sister company Alameda, which had more than $1 billion in cryptocurrency. All of this, according to the Prosecution, occurred in November 2021 when Bankman-Fried requested access to the funds so that she could assist Alameda “in securing and maintaining a business.” According to the indictment, Bankman-Fried took “various means” to unlock the cash before allegedly resorting to a bribe that caused the sums to be opened.
SEC complaint led to the closure of the cryptocurrency exchange Beaxy
The Securities and Exchange Commission has now taken action against a cryptocurrency platform for the first time in conjunction with its ongoing investigation into cryptocurrency exchange, brokerage, and clearing services provided concurrently by Beaxy.com.
The maker of Beaxy, Artak Hamazaspyan, is also being sued by the markets watchdog for securities fraud. The company’s cryptocurrency token, BXY, was where Hamazaspyan allegedly took $900,000 to gamble with and spend in other ways, the SEC claimed in a statement issued on Wednesday. BXY, the company’s cryptocurrency token, brought in $8 million through sales.
Gensler was questioned over plans for digital assets, SEC requests an increase in funding of $2.4 billion.
Congressman Sanford Bishop (D-GA) questioned the chairman on Wednesday about if the SEC had “any aspirations to issue a rule to explain how securities laws apply to digital assets,” repeating a common demand for “regulatory clarity” made by the cryptocurrency industry for years. He was adamant that the cryptographic rules were obvious, in typical Gensler fashion.
He did offer a caution, pointing out that the potential for wrongdoing is increased by such development and change and that the SEC needs enough money to deal with dishonest people.