4 Weeks Ago

The French Finance minister is trying to encourage other European countries to develop a set of rules as to how Cryptocurrencies are to be regulated and taxed, following France’s parliament passing legislation last week on how intermediaries handle these assets.

Known as the “Plan d’action pour la croissance et la transformation des entreprises,” (Pacte) it reportedly enables insurance companies in France to invest in Digital Assets.

France is keen to encourage tech innovation and different types of funding that Digital Assets have been using like Initial Coin Offerings. The French are keen to have some controls and regulations, to ensure that investors are protected from fraudulent activities from firms looking to create Digital Assets, but not to protect investors from losses should they occur.

Regulations vary wildly by country within Europe as there is no pan-European legislation. However, local regulators across Europe are imposing restrictions on platforms that do not have the correct permissions to offer brokerage services. The European Union has previously proposed that firms offering services in the Digital Asset sector be subject to its anti-money ‎laundering and countering terrorist financing regulations.‎

As more governments understand the transformational impact that Digital Assets are able to have on their economies, we are likely to see more jurisdictions formulating legislation to encouraging the adoption of Digital Assets. The alternative is, that because these assets are Digital, companies will base themselves in countries that are more accommodative.

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Cryptocurrency
Finance
Regulators
Digital Assets
https://uk.reuters.com/article/us-france-crypto...KKCN1RR1Y0

A Month Ago

Over 100 organisations from a selection of different industries have signed up to the newly-founded International Association for Trusted Blockchain Applications (IATBA), spawned from a series of meetings held by the European Commission (EC).


The new members are developers, suppliers and organisations who are using Blockchain technology, to develop a "predictable, transparent and trust-based global framework".

The IATBA is relocating to Brussels, and it intends to work with governments and regulators to establish guidelines on interoperability (how each different Blockchain shares data) while promoting an open and inclusive global model of governance for the use of Blockchain technology. Members so far include traditional firms like IBM, Accenture, Barclays, BVVA and Deutsche Telekom, as well as companies active in the Digital Asset space, such as IOTA, Ripple, ConsenSys, and Cardona.

The EU has been monitoring Blockchain developments for a while, and in April 2018 it established the European Blockchain  Partnership that now has 29 members, with Hungary being the latest to join, as it believes the use of Blockchains will be at the heart of public services. To date, 141 Million Euros have been allocated by the EU to Blockchain related projects, and potentially up to 340 million Euros could be committed before the end of 2020, to explore how best to use this technology.

IBM has cited five reasons to use Blockchain – ‘greater transparency, enhanced security, improved traceability, increased efficiency and speed’. Interestingly, in a survey carried out by Capgemini, 93 per cent of UK companies, when asked why they were looking at using Blockchain technology, said it was to save costs (compared to a global average of 89 per cent). Secondly, 87 per cent was reducing risk followed by increasing revenues, at 85 per cent. 

The fact that organisations like IATBA, European Blockchain Partnership and established global brands like IBM, Facebook, Goldman Sachs, Fidelity Investments, Deutsche Telekom, Mercedes Benz, Jaguar Land Rover amongst others all exploring and promoting the opportunities that Blockchain technology offers, we will see more and more applications impacting on our everyday lives.


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Blockchain
Regulators
https://cointelegraph.com/news/european-union-l...dium=email
The Financial Action Task Force (FATF) was set up in 1989 to cover challenges like how to promote and recommend standards to maintain confidence in the global financial system including procedures to fight money laundering, and terrorist financing.

While these intentions are laudable the reality is why would someone carrying out nefarious activities using a Cryptocurrency that leaves a digital footprint, as opposed to cash that is widely accepted and not traceable. Is it fear of the unknow driving FATF?

Interestingly, according to the IMF there are 15 countries currently looking at launching their own Digital Currencies. A number of these countries say a reason to do this is to help governments curb their domestic “black economies” as a Digital currency offers greater transparency and traceability of money flows.


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Cryptocurrency
Regulators
https://news.bitcoin.com/countries-regulate-cry...ial-banks/

2 Months Ago

Guy Hirsch, Managing rector of eToro U.S., sees the increased interest and investments in Digital Assets as a clear “generation shift."

He stated via press release: “we’re seeing the beginning of a generational shift in trust from traditional stock exchanges to crypto exchanges. At the heart of this change are the asset classes themselves.

Younger investors’ experience with the stock market has seen a great deal of loss of trust, with the fall of Lehman brothers...” One of the benefits of people investing in digital assets is that companies can know who their actual shareholders are and so have a relationship with them, and reward so offer them shareholder perks e.g. discounts off goods and services. This is almost impossible when shares are held as they currently are, in nominee structures.

Potentially companies could have no need for share registrars saving them money, as shareholders records can be updated in Real Time, which in turn would help regulators know who owns what which at the moment is impossible for a listed quoted company.

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Asset Management
Blockchain
Crypto
Digital Currency
Investment
Regulators
https://www.ccn.com/bitcoin-is-the-gateway-drug...illennials

3 Months Ago

We have been asked on a number of occasions what are the repercussions if you do not comply with the regulator…

Well following a FBI investigation Homero Garza is now doing time for his involvement in an alleged scam where over $9million of other people’s money was lost. The other question often asked is ‘following the 2008 financial crash no one went to prison” but this is not true according The Financial Times 47 people have been sentenced to date. The lesson is the regulators have teeth and WILL use them and as we increasingly see more and more Security tokens being issued organisations need to ensure they are complying with the relevant regulations wherever selling a token…

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Law
Regulators
Security Token
https://bitcoinexchangeguide.com/fbi-gives-payc...tor-heist/
NASDAQ is the worlds 2nd biggest stock exchange developed a range of surveillance technology to ensure that good market practices are upheld and regulators and traders can have confidence in prices and general trading.

Such monitoring services are now being deployed by at least seven Crypto exchanges and one suspects many regulators will want to question what systems other Crypto exchanges have in place similar to what NASDAQ offers. Such surveillance systems are further signs of Digital Assets maturing and embracing the infrastructure required so that governments, regulators and traditional investors will draw comfort and be more engaged in this new asset class.

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Crypto
Regulators
Digital Assets
https://www.financemagnates.com/cryptocurrency/...ance-tech/
The FCA has released its long-awaited consultation paper into Crypto assets, exchanges, payment providers, wallets and firms involved in this growing market sector.

The report looks at the risks and potential challenges and opportunities that Crypto assets offer, as well as setting out thoughts for UK regulation and outlining the different activities that should be regulated. This consultation paper is a clear sign that the FCA is trying to offer those firms that are involved in this sector guidance to this new asset class and ought to help the UK keep at the forefront of the development of Digital Assets.

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Cryptocurrency
Regulators
https://www.fca.org.uk/publications/consultatio...yptoassets