The New York Department of Financial Services (NYDFS) has made public that it has granted Bitlicense to SCXM and Zero Hash, which are subsidiaries of Seed CX. Seed CX CEO Edward Woodford said, “As virtual currency license holders we will be able to expand trading and settlement services to New York firms through our institutional platform that offers the strong institutional technology, the operational support, and the regulatory compliance that institutions demand.”
The U.K. Finance Minister Philip Hammond said that regulators and not lawmakers should decide on how to regulate Facebook stablecoin Libra. Hammond further stressed that without proper scrutiny, Libra has the potential to pose a great risk to the financial system as it could become a tool for money laundering and financing terrorism. Meanwhile, Bank of England governor Mark Carney can in support of Libra, regardless of the project potential downsides.
A member of former royal family of Brazil, has come out not in favour of cryptocurrency regulation in the country. He argued that, “Good regulation is one that comes from the consumer’s demand for something for which he felt injured and calls for state protection. I question this adventure of wanting to regulate something which consumers and companies organized to receive Bitcoin do not demand.”
A business plan for 2019-2022 has been published by the Canadian Securities Administrators (CSA) and mentioned strategic goals to respond to technology-related emerging regulatory issues stemming from the growing influence of social media and innovation in distributed ledger technology (DLT), including blockchain parallel with their previous aim to introduce a regulatory sandbox for the fintech businesses.
The Financial Industry Regulatory Authority have given its approval to BHPA Inc (a crypto-cloud mining firm) to trade under the ticker “BHPA” OTC Markets Group. The company’s CEO Wenjie Wu commented, “We are excited to be quoted on the OTC and to be trading under a stock symbol that helps to support a cohesive and coherent identity for current and prospective investors,”
The new draft bill named “Keep Big Tech out of Finance” has been shared by members of the U.S. House of Representatives Financial Services Committee with the aim of insulating finance from large tech companies. The document says, “A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value…”
One of the major bill relating to crypto bill “On Digital Financial Assets” (DFA) has been postponed for adoption by the State Duma (Russian parliament). The chairman of financial markets Anatoly Aksakov commented, “The law on the DFA is set to decide whether we will prohibit cryptocurrencies as a medium of exchange in Russian legislation, meaning that there will be no exchange points nor exchanges that work with cryptocurrencies.”
Nigel Green, CEO of deVere Group (a leading advisory firm) has arrived in opinion that positive cryptocurrency regulation should form a central part of the post-Brexit United Kingdom. He shared his view, “The growing cryptocurrency market has already provided tangible economic benefits to other major economies. Post-Brexit Britain will be uniquely placed to go even further and by embracing it, it could reboot the UK’s financial services sector.”
U.S. Congress is currently working on at least three bills that would resolve some of the tricky legal issues surrounding digital money. The Wall Street Journal commented, “Crypto’s backers in Washington say regulatory clarity is vital to the sector’s growth. They also worry the U.S. is falling behind: Japan and Switzerland have developed legal frameworks that have attracted cryptocurrency projects and investment.”
European Central Bank (ECB) executive board member Benoit Coeure has shared that financial regulators must act fast to prepare for Facebook’s Libra stablecoin. Coeure in his call for action, “All these projects are a rather useful wake-up call for regulators and public authorities, as they encourage us to raise a number of questions and might make us improve the way we do things.”