Cryptocurrency has been one of the most disruptive technologies of the 21st century, with its impact being felt across various industries. Online advertising is one of the industries that has been significantly impacted by crypto, and this impact is set to grow in the coming years.

Cryptocurrency has introduced a new way of transacting online, and this has changed the way online advertising works. In traditional online advertising, payments are made through credit cards, PayPal, or bank transfers. These payment methods are associated with high transaction fees, long processing times, and a lack of transparency.

However, with cryptocurrency, online advertising transactions can be made instantly and securely, without the need for intermediaries. This has led to the growth of crypto-based advertising networks, which offer benefits such as lower transaction fees, faster payments, and increased transparency.

One of the key benefits of using cryptocurrency in online advertising is the ability to target specific audiences with greater accuracy. Crypto-based advertising networks leverage blockchain technology to track user behavior and create detailed user profiles. This enables advertisers to deliver highly targeted ads to specific audiences, which results in higher engagement rates and better ROI.

Another benefit of using cryptocurrency in online advertising is the ability to create decentralized ad networks. Decentralized ad networks operate on a blockchain, which means that the network is not controlled by a single entity. This eliminates the risk of fraud and ensures that advertisers and publishers are treated fairly. Decentralized ad networks also provide greater privacy for users, as they are not required to share personal information with advertisers.

In addition to these benefits, cryptocurrency also offers a solution to the problem of ad fraud. Ad fraud is a major issue in online advertising, costing advertisers billions of dollars each year. With cryptocurrency, advertisers can ensure that their ads are being displayed to real users and not bots. This is because blockchain technology allows for transparent tracking of ad impressions and clicks, making it more difficult for fraudsters to manipulate ad data.

Despite these benefits, there are still challenges to the adoption of cryptocurrency in online advertising. One of the main challenges is the lack of regulation in the crypto space. This makes it difficult for advertisers and publishers to navigate the crypto landscape and ensure that they are complying with relevant laws and regulations.

Another challenge is the volatility of cryptocurrency prices. This makes it difficult for advertisers and publishers to plan and budget for their advertising campaigns. However, with the growing adoption of cryptocurrency and the development of stablecoins, this challenge is expected to diminish over time.

In conclusion, the impact of crypto on online advertising has been significant, and this impact is set to grow in the coming years. #cryptocurrency has introduced a new way of transacting online, which is faster, cheaper, and more transparent than traditional payment methods. Crypto-based advertising networks offer benefits such as targeted advertising, decentralized networks, and protection against ad fraud. However, challenges such as #Regulation and price volatility still need to be addressed for the full potential of cryptocurrency in online advertising to be realized.

#feedfeverchallenge #crypto2023 #Binance

In a rapidly evolving financial landscape, the future of finance is being defined by four key themes: Risk (and Resilience), Regulation, Reformation, and Reinvention. These factors are driving the industry’s transformation, while three key pillars—Digital (and Data), Decarbonization, and Decentralization—are accelerating this evolution.

The four R’s: Shaping the financial landscape

Risk (and resilience)

The global financial industry is navigating an era of heightened economic instability and climate-related risks. Simultaneously, the ever-present threat of cybersecurity breaches looms large. 

This challenging landscape has elevated risk management to a top priority for banks and insurers. As emerging technologies like Artificial Intelligence (AI) and tokens disrupt the industry, organizations must find the delicate balance between value and risk.

Regulation

Regulatory regimes worldwide are swiftly evolving, with a strong focus on data privacy and risk mitigation. Regulators are actively enforcing measures to safeguard against capital risks, climate risks, fraud, and technology risks. 

Consequently, investments in financial crime and fraud detection, identity and data management, and robust reporting are being accelerated to meet regulatory compliance requirements. The growth of AI and data privacy regulations is poised to be exponential, further shaping the industry’s future.

Reformation

Digital transformation is on a dynamic trajectory, with value-based cloud, AI-native, and platform-based approaches becoming the new norm. The adoption of open and embedded finance is gaining momentum, driven by enhanced data-sharing capabilities, API monetization, and integrated platform business models. 

This growth fuels the rise of banking-as-a-service and open insurance. Additionally, the emergence of Generation AI (GenAI) is opening new opportunities for industry-wide transformation.

Reinvention

Innovative business models are reimagining industry value chains through disruptive innovations that blur traditional boundaries. Technologies such as the Internet of Things (IoT), edge computing, 5G, blockchain, distributed ledger technology, and augmented/virtual reality are enabling these reinventions. 

Examples include banks and insurers collaborating for bancassurance arrangements, retailers offering buy-now-pay-later services, and auto manufacturers partnering with payment service providers for seamless customer experiences.

The three D’s: Accelerating transformation

Digital (and data)

Digitalization remains a crucial lever for financial institutions to drive operational efficiency and cost transformation. Harnessing the power of data and AI, along with generative AI capabilities, holds the potential to enhance productivity, improve customer experiences, personalize products and services, and reduce risks. 

Legacy modernization and cloud migration will continue to play a role, but AI and machine learning will increasingly focus on customer experience improvement and fraud detection.

Sustainability (decarbonization)

Financial institutions are facing mounting pressure from regulators and customers to integrate environmental, social, and governance (ESG) goals into their strategies. Banks are aligning their lending and investment portfolios with sustainable financing, while insurers are offering reduced premiums for sustainable practices. 

Initiatives aimed at reducing emissions and investing in renewable energy sources are gaining prominence. Advanced technologies and IT will continue to play a pivotal role in these efforts.

Decentralization

Blockchain and distributed ledger technologies (DLT) are catalyzing a new wave of transformation, particularly in capital markets. Central bank digital currency (CBDC) exploration is ongoing, offering smart, instant, and programmable payments. 

CBDCs could enhance cross-border payments with automated FX currency conversion and 24/7 settlements. Digital identity solutions and the evolution towards Web3 (now moving to Web 4.0) have the potential to democratize value exchange. Interoperability and standards will be key to global and scaled adoption of decentralization.

A collaborative approach for success

To thrive in the future, financial institutions must prioritize risk management, regulatory compliance, digital transformation, and innovative business models. Sustainability and decentralization are integral components of this journey. Collaboration with ecosystem partners and regulators will be vital in gaining a competitive edge and differentiation in the ever-evolving financial landscape.

As the financial industry continues to be shaped by the four R’s and accelerated by the three D’s, staying abreast of these trends and crafting strategic roadmaps is essential for financial leaders and decision-makers. The future of finance promises to be dynamic, filled with opportunities for those who adapt and innovate to meet the evolving needs of customers and the regulatory environment.

The word “Crypto” originates from the Greek word “kruptós” meaning hidden or secret. Cryptocurrency is a form of digital currency that exists in a digital form curated to act as a medium of exchange using cryptography. Crypto has stood distinctive from other forms of currency owing to the usage of a decentralized infrastructure to record transactions and issue new units instead of a central issuing authority or regulatory authority. This distinctive trait has made crypto be labeled as a speculative instrument. However, the growth of crypto from a speculative investment to a new asset class has led Governments across the world to explore ways to regulate it. 

Here is the summary of digital currency regulatory landscapes across the world:

USA   

Cryptocurrency regulation in the United States is controlled by multiple government agencies that oversee digital assets, with no formal rules in place yet. Key agencies include the SEC, CFTC, FTC, Treasury Department, IRS, OCC, and FinCEN.

Cryptocurrency sales are regulated if they qualify as securities or involve money transmission. The CFTC regulates market manipulation in crypto assets as commodities. US regulators aim to facilitate digital currency adoption by financial institutions. The Infrastructure Investment and Jobs Act, passed in 2021, introduced provisions requiring digital asset brokers to report transactions exceeding $10,000 to the IRS. It aims to enhance transparency in crypto transactions.

The SEC and CFTC assert jurisdiction over different aspects of the crypto market based on the classification of cryptocurrencies as commodities or securities. Ongoing congressional discussions aim to resolve this regulatory conflict. Future regulations in the US may apply the “Wash Sale Rule” to cryptocurrencies, impacting tax deductions. The government is also considering regulations related to crypto banking, stablecoins, and disclosure requirements.

China

The People’s Bank of China (PBOC) has outrightly banned the exchange of cryptocurrencies in the country as they facilitate public financing transactions without approval from any centralized authority. Furthermore, China has banned Bitcoin mining in 2021, forcing those engaged in the activity to close the operations and relocate to other jurisdictions. However, China recognizes cryptocurrency as an asset to determine inheritance. China officially rolled out its Central Bank digital currency (CBDC) pilot test program to develop the digital yuan subsequently.

Canada

Canada does not recognize crypto as legal tender. However, it is the first country to approve a Bitcoin-exchange traded fund (ETF) with several trading on the Toronto Stock Exchange.

The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada require that the crypto trading platforms and dealers in the country register with provincial regulators. Canada also classified all crypto investment firms as money service businesses (MBS), which requires them to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). Canada also treats crypto similarly to other commodities for taxation.

United Kingdom

Crypto is recognized as a property in the UK but not as a legal tender. There are no specific laws governing cryptocurrency however, crypto derivatives trading is illegal in the UK as well. Crypto exchanges must register with the UK Financial Conduct Authority (FCA) and there are cryptocurrency-specific reporting requirements relating to KYC standards as well as AML and CFT. Despite that, investors are liable to pay capital gain tax on crypto trading profits. Tax applicability depends on the nature of crypto activities and the entity conducting the transactions.

The Future Financial Assets Regulatory Regime for Crypto Assets was introduced in the year 2023 by the Government of the UK with an ambition to become the most open, well-regulated, and technologically advanced capital market in the world. The regime includes strengthening rules for crypto trading platforms, creating a world-first framework for crypto lending, and implementing new rules to protect customers from market manipulation.

Japan

Japan, the most technologically advanced society in the world, was the first and foremost to recognize the potential of a decentralized digital ecosystem. Perhaps Japan was the first country to regulate cryptocurrency and established the Japanese Virtual Currency Exchange Association (JVCAE) in 2020, a self-regulatory body consisting of all the crypto exchanges as members. The Japanese Financial Services Agency (FSA) regulates cryptocurrency along with the Japan Virtual Currency Exchange Association (JVCEA) and the Japan Security Token Offering Association (JSTOA) for regulatory purposes. The JVCEA creates rules and policies for crypto exchange service providers. The JSTOA supervises token offerings and other crowdfunding events. After a period, Japanese lawmakers have tightened digital assets regulations on derivatives trading. 

Singapore

Singapore has stood as the nation that has created an impeccable framework by adopting a balanced regulatory and legal framework for cryptocurrencies and various other entities dealing with them. The Monetary Authority of Singapore (MAS) is the financial regulatory body that licenses and monitors the crypto exchanges as per the Payment Services Act (PAS). Singapore treats cryptocurrency as property and not as a legal tender. Additionally, Singapore imposes taxes on businesses that conduct consistent cryptocurrency trading activities. 

European Union

Cryptocurrencies are broadly legal across Europe; however, crypto exchanges are regulated independently in each state of the union; they adopted the Markets in Crypto-assets Regulation (MiCA) legislation. MiCA presents a harmonized and holistic framework governing the conduct of European crypto asset markets that deals with various issues like consumer protection and the introduction of new license requirements etc. The legislative framework also intends to check the usage of crypto instruments for illegitimate purposes. As for taxation crypto, the percentage varies from 0 to 50 % within the states of the European Union.

India

India has an ambivalent approach towards cryptocurrency; it has neither legalized nor penalized cryptocurrency. However, India levies 30% taxation on all crypto investments and 1% TDS (Tax Deducted at Source) on crypto trades. The Reserve Bank of India (RBI) Central Bank Digital Currency (CBDC) issued the digital Rupee, a tokenized digital version of the Indian Rupee. 

The governments of many countries have been working on regulating and governing cryptocurrencies, while some other countries are exercising partial regulation, others are in pursuit of absolute regulation. The objectives behind regulation are to protect consumers from fraudulent activities and prevent the usage of crypto for illicit activities.

Dubai

While the rest of the world began the pursuit of regularizing cryptocurrency, Dubai has emerged as the best market for the crypto business. The majority of the crypto industry has been moving to Dubai since March 2022, after the announcement of the world’s first independent crypto regulator VARA by the UAE. VARA (Virtual Assets Regulatory Authority) regulates and oversees the usage and exchange of virtual assets in Dubai. 

The Full Market Product (FMP) Regulations of VARA, the world’s first custom-built virtual asset regime, are intended especially to support the offering of authorized services and activities to clients and investors from the Emirate of Dubai. In an innovation-centric environment that is truly borderless, technology-agnostic, and future-focused, VARA aims to develop a model framework for global economic sustainability with the aid of appropriate rules and guidelines intended to assure clarity, assure certainty, and mitigate market risks. The goal of VARA is to position Dubai as a hub for digital assets. 

Moreover, Dubai imposes 0% tax on personal income tax for gains acquired through cryptocurrency transactions including holding and trading. Dubai is a heaven for crypto and blockchain businesses and continues to draw crypto enthusiasts and entrepreneurs from various parts of the world.  

Hong Kong

Hong Kong introduced an independent non-governmental statutory body responsible for regulating Hong Kong’s securities and futures markets and it has guidance related to crypto-assets stating that if a crypto-asset has characteristics of a security as defined under the Securities and Futures Ordinance (SFO) then it will be regulated by the SFC as a security by the SFO and other relevant laws and regulations. Further, the regime governing the offering/marketing of financial products in Hong Kong will be applicable if a crypto-asset qualifies as a security. Crypto assets that are securities may also be subject to laws concerning regulated activities (which attract licensing and authorization requirements).  

Coming to taxation, Hong Kong has no capital gains tax and only frequent cryptocurrency trading is treated as income which shall be subject to a profit tax capped at 16.5%.

El Salvador

El Salvador was perhaps the first country to recognize Bitcoin as legal tender in 2021. Digital Asset Issuance Securities law of the country established a legal framework for issuance of digital assets and a broader crypto token classification which includes all kinds of crypto instruments. A definitive framework is established through this law for all the tokenized securities.

A Bitcoin Fund Management Agency would also be established under the new regulatory framework for digital assets. This agency would be in charge of managing and supervising public offerings of digital assets that the state of El Salvador and its institutions issue.

This also laid the foundation for the issue of the Volcano token, a digital token issued by the state of El Salvador to raise capital to pay down its sovereign debt, direct the funds towards bitcoin mining infrastructure creation, and fund the construction of Bitcoin City.

Portugal

There are no specific laws that govern crypto in Portugal however, there are various laws and regulations that govern cryptocurrency. The Bank of Portugal, in its capacity as both a central bank and a competent national authority for the supervision of credit and payment institutions, is bestowed with the task of overseeing and regulating cryptocurrency exchanges and wallet providers. It also involves creating and enforcing registration and licensing requirements for entities operating within the cryptocurrency ecosystem by the implementation of the EU Directive into Portuguese law. Portuguese Securities Market Commission’s mandate extends to the oversight of the issuance and trading of digital assets classified as securities, such as specific types of tokens originating from initial coin offerings (ICOs) and security token offerings (STOs). Crypto transactions remain nontaxable for individual investors in Portugal. 

Crypto Conflicts  

SEC vs. Binance

The Securities and Exchange Commission, USA has filed a lawsuit against Binance, (the largest crypto asset trading platform in the world), alleging a variety of securities laws violations.

SEC has filed a voluminous complaint against Binance which included the following:

Running an unregistered crypto exchange

Allowing US investors to buy, sell, and trade crypto contrary to the claim made by Zhao (Founder of Binance) and Binance that US customers were restricted from transacting on binance.com

Obscuring efforts made to ensure high-value US customers continued trading on Binance.

Unregistered offers and sales of BNB, BUSD, and crypto-lending products known as “Simple Earn” and “BNB Vault”.

Misrepresentation of implementation of investor protection controls on the Binance US platform.

Diverting billions of dollars of customer assets to third-party entities (owned and controlled by Zhao).  

Manipulative trading that artificially inflated the trading value of the platform.

Binance has replied to the lawsuit stating that “it will put up a vigorous fight against the allegations made by the SEC”. Binance has also questioned the SEC’s refusal to engage with the crypto industry in providing clarity and guidance to the digital asset industry. Subsequently, Binance entered an agreement with the SEC to ensure that US customer assets would never leave the country. Binance has filed a protective order against the SEC to restrain the regulator from excessive deposition.

SEC vs. Coinbase

SEC has filed a lawsuit against Coinbase just a day after its lawsuit against Binance. As per the complaint filed by the SEC, Coinbase is operating as an unregistered securities exchange, broker, and clearing agency and has made billions of dollars unlawfully by facilitating the buying and selling of crypto assets. As per the SEC, Coinbase intertwines the traditional services of an exchange, broker, and clearing agency without having any of those functions registered with the Commission as per law, thus depriving its investors of crucial protection.

In response to the lawsuit filed by the SEC, Coinbase has agreed to register some portion of its business with the regulator and requested the SEC to specify the instruments that the SEC recognized as securities. However, the SEC has refused to budge on any of those attempts.

Coinbase has also the court to dismiss the suit filed by SEC on the ground that “the transactions carried out on Coinbase does not involve any contractual undertakings to deliver any future value reflecting incomes and profits and that they are mere commodity sales with obligations immediately discharged entirely at the moment the digital token is delivered in exchange for payment”. However, the dismissal request was declined by the Court.       

The SEC’s approach appears to be to regulate the cryptocurrencies and crypto companies, exchanges, brokers, and dealers in the same fashion as the stock market and its participants are regulated. The SEC also appears to be hell-bent on treating cryptocurrencies like securities. However, cryptocurrencies have become prominent owing to their unique decentralized nature and the motive of SEC shall go against the nature of origin of cryptocurrencies.

Conclusion

Cryptocurrency regulation varies widely across the globe, reflecting the complex nature of digital currencies. Some nations embrace cryptocurrencies, while others take restrictive approaches. Ongoing legal conflicts, such as the SEC’s lawsuits against Binance and Coinbase, highlight the challenges of fitting crypto into traditional regulatory frameworks.

As the crypto space evolves, regulatory strategies will adapt to protect consumers and prevent illicit activities. The future of crypto regulation will balance innovation with financial security and it will be intriguing to watch how countries navigate this complex landscape.

During the Republican debate in Alabama, crypto takes the center stage with bold proposals and heated discussions on regulation and digital currencies.

Crypto policies were discussed intensely at the Republican presidential debate which was held at Tuscaloosa, Alabama.  

A Presidential candidate, Vivek Ramaswamy, known for including crypto in his campaign,  discussed his crypto policy. He referenced the legal issues of Binance’s former CEO, Changpeng Zhao “CZ”, noting that there’s a need for regulations to be updated.

Ramaswamy mentioned the FTX scandal with Sam Bankman-Fried (SBF) blaming and criticizing the current framework for the collapse. 

See Also: The Price Of Dogecoin Drops After Elon Musk Denies xAI Fundraising

He proposed cutting the SEC workforce and reducing regulators’ grip on crypto. He also stated that cryptocurrencies should be seen as commodities and should not be under the SEC’s control. Ramaswamy also called out SEC Chair Gary Gensler for his unclear stance on Ethereum.

Robert F. Kennedy Jr., now an Independent, suggested making bitcoin exempt from capital gains tax and supporting the right to self-custody bitcoin. He stated his plans to include backing the dollar with assets like gold and bitcoin.

Another Candidate who is the current Governor of Florida, Ron DeSantis talked about Central Bank Digital Currencies (CBDCs), stating his stance against the digital currency,  “they would be dead on arrival if I get elected” he assured. 

DeSantis had previously signed a bill against CBDCs in Florida, although some experts believe this bill won’t stop anything.

During the debate, Ramaswamy made controversial claims about the Jan. 6 Capitol assault and the Democratic Party’s platform. His comments stirred up further discussion among the audience and other candidates.

The post Republican Presidential Debate Centers On Crypto Policies appeared first on BitcoinWorld.

U.S. Senators, spearheaded by Elizabeth Warren, have broadened bipartisan backing for the Digital Asset Anti-Money Laundering Act to regulate cryptocurrency use.

The bill seeks to address the growing concerns around the misuse of cryptocurrencies in illegal financial activities by incorporating digital assets into the existing anti-money laundering and counter-terrorism financing frameworks.

JUST IN: 🇺🇸 US Senator Elizabeth Warren introduces bill to crack down on crypto. pic.twitter.com/T5J1i8B86G

— Watcher.Guru (@WatcherGuru) December 11, 2023

New supporters of the bill include Senators Raphael Warnock (D-Ga.), Laphonza Butler (D-Calif.), Chris Van Hollen (D-Md.), John Hickenlooper (D-Colo.), and Ben Ray Luján (D-N.M.). The supporters joined a coalition already backed by a diverse group of senators, indicating a strong bipartisan effort.

“The Treasury Department is making clear that we need new laws to crack down on crypto’s use in enabling terrorist groups, rogue nations, drug lords, ransomware gangs, and fraudsters to launder billions in stolen funds, evade sanctions, fund illegal weapons programs, and profit from devastating cyberattacks.”

Senator Elizabeth Warren

Echoing Warren’s concerns, Senator Van Hollen remarked, “The lack of basic legal safeguards around crypto opens up Americans to countless risks […] crypto should be governed by the same transparency rules as traditional banks to protect Americans and help ensure it isn’t used to facilitate illegal behavior by criminal enterprises and rogue nations.”

You might also like: Jamie Dimon says he would shut down crypto if given the option

Senator Hickenlooper focused on innovation, noting, “We have safeguards for banks to protect everyone from crime and terrorism. Crypto should have similar safeguards. These reforms will protect safe, transparent innovation.”

Senator Luján added to the chorus of support, highlighting the vulnerability of consumers in the current unregulated state of cryptocurrencies and the need for this legislation to establish strong standards for crypto use.

The bill has garnered endorsements from various organizations, including the Bank Policy Institute, which stated that it supported bipartisan efforts to help crack down on money laundering and believed the measure is an important step.

The legislative initiative comes in response to warnings from the Treasury Department, the Department of Justice, and other experts about the increasing use of digital assets in money laundering, drug trafficking, and other criminal activities.

Read more: Senator Elizabeth Warren calls crypto a ‘new threat’

The 2024 crypto regulatory landscape is marked by significant strides in creating a more structured and transparent environment for cryptocurrency trading. The European Union has taken a pioneering step with the implementation of the Markets in Crypto-Assets Regulation (MiCA). This regulation is a game-changer, mandating licensing for crypto exchanges and wallet providers and enforcing strict rules on transparency and disclosure. It's a major move towards eradicating fraud and protecting consumer interests.
Meanwhile, the UK has been proactive, particularly with the UK Travel Rule, targeting the transparency of crypto transactions to prevent illegal uses. The Financial Promotions Regime is another notable initiative, focusing on consumer protection in crypto financial promotions. Looking ahead, the UK is poised to introduce comprehensive crypto oversight, mirroring the EU's approach.
Singapore's Monetary Authority is also making waves with new proposals limiting financing and incentives for crypto customers. This measured approach is a balance between protecting consumers and fostering innovation, an essential equilibrium in today's volatile market.
The United States, however, presents a contrast with its ongoing regulatory uncertainties. Although a comprehensive regulatory framework is not expected until at least 2025, the SEC's potential approval of spot bitcoin ETFs in 2024 is a much-anticipated development. Moreover, ongoing high-profile enforcement actions by the SEC and CFTC against major crypto players are pivotal in shaping the future regulatory landscape, especially concerning the classification of tokens as securities.
Globally, these regulatory efforts signify a shift towards restoring trust in digital assets. By striking a balance between risk, opportunity, and innovation, these frameworks are poised to reinforce market resilience and investor confidence in the evolving world of cryptocurrency.
#BitcoinPrice2024 #Regulation #BitcoinETFs! $BTC $XRP $BNB

The United States House Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion convened a hearing titled “Crypto Crime in Context: Breaking Down the Illicit Activity in Digital Assets” on November . The bipartisan hearing emphasized the importance of collaboration and regulation in addressing the use of blockchain technology in criminal activities.

Chair French Hill initiated the hearing by referring to a Wall Street Journal article from October 10, which highlighted the use of cryptocurrency by Hamas for fundraising. Hill noted that the article had been corrected on October 27 to accurately reflect data provided by blockchain analytics firm Elliptic. He underscored that just as phones and the internet should not be blamed for terror financing, cryptocurrencies should not be scapegoated either.

US house on crypto crime, actions and concerns

Subcommittee ranking member Stephen Lynch expressed the hope that preconceived notions about cryptocurrencies could be set aside for a more informed discussion.

The panel of witnesses included representatives from ConsenSys and Chainalysis, forensic experts, and a senior counsel from law firm Hogan Lovells. They emphasized the importance of international collaboration and public-private partnerships in preventing the misuse of digital assets. Additionally, they highlighted the necessity for well-crafted legislation and the complexities of tracing blockchain transactions.

During the hearing, Representative Brad Sherman sought an example of a legitimate use of a crypto mixer from Alison Jimenez, President of Dynamic Securities Analytics. However, Jimenez was unable to provide a satisfactory response.

Several prominent members of Congress, including Chair Patrick McHenry, Representative Tom Emmer, Representative Ritchie Torres, and 53 additional House members, sent a letter to U.S. President Joe Biden and Treasury Secretary Janet Yellen on November 15. The letter inquired about the fundraising activities of Hamas and Palestinian Islamic Jihad and the role of cryptocurrency in these efforts. It stressed the importance of understanding the scale of Hamas’s digital asset fundraising campaign in comparison to its traditional fundraising methods.

The letter pointed out that traditional methods of fundraising could potentially generate more revenue than cryptocurrency, and Congress sought accurate information on blocked or forfeited digital assets associated with terrorist organizations. The letter referred to the Wall Street Journal article that brought attention to this issue.

Concerns raised by the Blockchain association

On the same day, the Blockchain Association issued an open letter addressed to Chair French Hill and other members of the Financial Services Committee. This letter was signed by 40 former members of the U.S. military, intelligence officers, and national security professionals who are now affiliated with digital asset companies or venture capital firms. They expressed concerns about the Wall Street Journal article, describing it as “grossly overstated” and “debunked.”

The signatories were worried that the article’s inaccurate information was being used to support legislation that could be detrimental to U.S. national security interests. They emphasized that fostering the growth of a regulated and compliant digital asset industry in the United States would be the most effective way to combat illicit actors.

Georgia lawmakers are grappling with the question of whether the state should enact legislation or regulations specifically addressing artificial intelligence (AI). This deliberation comes in the wake of similar actions taken by other states and at the federal level. As AI technology continues to advance rapidly, the need for legal frameworks to govern its use has become a subject of increasing concern and debate.

A game-changer with far-reaching implications

During a joint meeting of the Senate Committees on Public Safety and Science and Technology, State Senator John Albers, a Republican from Roswell, emphasized the significance of AI. He likened AI to a monumental invention, stating, “This is more than a disrupter, folks. This is like the invention of the wheel. It’s that big; it’s going to impact every part of our lives, and it’s happening in real-time.”

The complexity of regulating AI

One of the challenges in legislating AI is the complexity of the technology itself. Maria Saab, a senior public policy manager representing Amazon Web Services, highlighted the need for careful consideration. She pointed out that existing technology laws and industry-specific regulations may already cover aspects of AI use. Saab suggested that lawmakers should evaluate whether AI introduces new risks beyond those already associated with traditional technologies.

Saab further explained, “When you’re considering whether a new regulation is needed, you should ask yourself whether the use of AI adds new risk beyond the risks already present when the AI is not in use. And then where existing laws are insufficient to address [the] application of [AI], lawmakers should consider whether amending existing applicable requirements may be better than creating a brand new or separate framework.”

This approach, working within existing regulatory frameworks, could potentially ensure that AI expertise is developed within specific sectors and products, leading to more targeted and effective regulation.

The national landscape of AI regulation

Georgia is not alone in its contemplation of AI regulation. Across the United States, various states have been exploring ways to address AI-related concerns. In 2020, Ohio officials unveiled plans to utilize AI tools to streamline the state’s regulatory landscape, demonstrating the growing interest in leveraging AI for governance.

Peter Stockburger, a partner at the Dentons law firm, acknowledged the widespread demand for AI regulation while emphasizing the lack of consensus on the right approach. He posed a fundamental question: “How do you actually regulate AI as a state entity when the technology is accelerating the way it is?”

The call for standards in AI regulation

One proposed solution to the AI regulation challenge is the establishment of technical standards. Stockburger emphasized that entities like the G7, the National Institute for Standards and Technology, the G20, and the United Nations General Assembly have all advocated for the development of technical standards for AI.

However, Stockburger also highlighted a critical limitation of technical standards. While they can address the technical aspects of AI, they may not encompass the societal principles and values that should guide AI systems. To address this gap, he introduced the concept of “socio-technical standards,” which integrate both technical and social considerations.

The need for socio-technical standards

Socio-technical standards represent a novel approach to AI regulation, one that recognizes the importance of aligning AI systems with societal values. Stockburger argued, “The challenge with technical standards is it’s not enough for AI. And that is because AI also has to understand societal principles and values. A technical solution to AI does not take into account social considerations. That’s why we talk about socio-technical standards. It’s a new form of standards.”

As Georgia lawmakers contemplate the need for AI legislation, they grapple with the transformative potential and complexity of AI technology. Balancing the necessity of regulation with the need for innovation and growth presents a formidable challenge. The debate over AI regulation is not limited to Georgia but extends across the nation, with diverse opinions on the most effective approach.

Current State of Crypto Regulation
The global community is struggling with how to define and regulate cryptocurrencies in a way that makes sense. Most countries have no regulations at all, creating uncertainty and inflating risks to investors. Despite this, there has recently been a push by some governments to rigorously classify these assets and legislate around them.
The Countries with Regulations
Japan
Germany
Malta
The Countries with Pending Regulations
USA
South Korea
India
The Countries with a Cryptocurrency Ban
China
Algeria
Morocco
Recent Updates in the US
The United States is one of the biggest markets for cryptocurrencies, and recent regulatory updates have been watched carefully by the industry. There has been some movement on a regulatory framework at the state level, while at the federal level, there has been mostly inaction except for some sporadic public statements.
Washington, D.C.
The city is working on a regulatory framework tailored for digital currency businesses operating in DC.
The Federal Reserve
Federal Reserve Chairman Jerome Powell stated that the US is not in a rush to regulate cryptocurrencies due to their relatively small market share.
The IRS
The IRS is starting to ask tax filers questions about cryptocurrency holdings and is considering releasing further guidelines on cryptocurrency taxation later in 2021.
Recent Updates in Europe
The European Union is often seen as a leader in developing regulations on digital currencies and has described the measures required for proper supervision and regulation. This trend has continued recently with numerous proposals for tighter controls and a push for alignment of crypto regulation between EU member states.
1 The European Central Bank
ECB is exploring ways to regulate stablecoins and has asked for thoughts on digital Euro.
2 The German Federal Financial Supervisory Authority
BaFin has given major cryptocurrency firms an ultimatum to either comply with EU regulations or shut down completely.
3 The UK Financial Conduct Authority
The FCA has decided to ban cryptocurrency derivatives and exchange-traded notes for retail investors and has generally taken a hard line against the industry.
Recent Updates in Asia
Asia has been at the forefront of the global adoption of cryptocurrencies and blockchain. However, the region has been slow to legislate on these new technologies. Recently, however, some countries have taken steps towards strengthening their regulations, while others have maintained a laissez-faire attitude.
The People's Republic of China
China has banned crypto and mining and is currently ramping up enforcement efforts against crypto-related activities.
Japan
Japan's Financial Services Agency is cracking down on unlicensed cryptocurrency exchanges and working to improve regulations to better the industry.
South Korea
South Korea's government is in the process of regulating and licensing exchanges, as it tries to balance technological innovation with consumer protection and safety.
India
India's regulatory approach is currently in limbo as the government struggles to balance its concerns about fraud and abuse with a desire to remain on the cutting edge of change.
Challenges in Implementing Crypto Regulation
Implementing regulations on cryptocurrency presents a plethora of challenges. On one hand, governments want to protect against consumer scams and terrorism financing. On the other hand, they must balance a need for consistency in rules across jurisdictions with the needs of the technology itself. Finding this delicate balance in a rapidly evolving landscape presents an enormous challenge to regulators.
Jurisdictional Vetting
The biggest challenge facing cryptocurrency and blockchain technology is deciding which geographic jurisdiction it falls under. This often leads to frustration on the part of developers and slow progress in cross-border application usage.
Decentralization Issues
Cryptocurrency often exists outside the traditional banking system, and thus the enforcement of laws and regulations can be especially difficult. Nevertheless, regulators can still enforce the law on centralized points using intermediaries, exchanges, and other service providers.
Consumer Privacy Concerns
Crypto regulation struggles to balance adequate consumer protection with investor privacy. Consumers need privacy to complete financial transactions. Nevertheless, law enforcement needs access to information and funds to prevent money laundering, terrorism financing, and other illegal activities.
Impact on the Crypto Market
The crypto market has been significantly impacted by regulation in a variety of ways. On the one hand, clear regulation can bring the industry more legitimacy, giving investors greater confidence. On the other hand, too much regulation can push it back to the shadows, which can be a frictional and dangerous state.
Price Volatility
Prices in cryptocurrencies are notoriously volatile, and sharp swings frequently occur in response to regulatory changes. This volatility can be difficult to predict and manage, making it challenging to formulate long-term investment strategies.
Liquidity Concerns
The implementation of new regulations can have an impact on the overall liquidity of the market. It can, in theory, make it more difficult to buy or sell particular assets or even to achieve global compatibility.
Internationalization
The inherent cross-border nature of cryptocurrencies makes it challenging for countries to develop uniform regulations. The various possible global configurations, global taxation issues, and unequal distribution of data-centers create jurisdiction difficulties that lose the efficiencies possible with an optimized regulatory approach.
Future of Crypto Regulation
If there is one thing we can be sure of, it is that this industry is going to continue to evolve in the near future. Regulators are racing to catch up with the pace of innovation, hoping to establish an adequate framework that will ensure the protection of consumers, institutions, and overall market security. Will our future regulatory environments embrace the potential or shun it and repress it.?

#crypto #Regulation #sustainablemeta