Weekly Focus:
- US Senate Confirms Janet Yellen as Secretary of the Treasury
- FinCEN Extends Remark Interval for Rulemaking on Cryptocurrency Transaction Necessities
- Hawaii’s Digital Forex Innovation Lab Reopens for Functions
- Philippines Central Financial institution Points Anti-Cash Laundering Tips for Cryptocurrency
- Financial institution of Worldwide Settlements Publishes Survey on Central Financial institution Digital Forex
- Coinbase Declares Extra Particulars Associated to Its Proposed Public Providing
- Valkyrie Investments Recordsdata Utility for Bitcoin ETF
US Regulatory Developments
US Senate Confirms Janet Yellen as Secretary of the Treasury
The U.S. Senate confirmed Janet Yellen’s appointment as secretary of the treasury after a vote on Monday. Secretary Yellen beforehand served as chair of the Federal Reserve and is the primary lady to carry the workplace.
Secretary Yellen has beforehand given combined assessments on Bitcoin, cryptocurrencies, and blockchain expertise usually. In her 2016 testimony to the Home Committee on Monetary Providers, Secretary Yellen acknowledged that blockchain applied sciences “could possibly be extraordinarily useful and convey advantages to society,” and she or he reiterated this perception in later statements. Nevertheless, in a 2018 speech to the Canada Fintech Discussion board, Yellen famous that she was “not a fan” of bitcoin, happening to state that most of the transactions that “happen on bitcoin are unlawful, illicit transactions.”
In her affirmation listening to, Secretary Yellen acknowledged that it’s her perception that many cryptocurrencies “are used, a minimum of in transactions sense, primarily for illicit financing and I believe we actually want to look at methods by which we are able to curtail their use and ensure that anti-money laundering doesn’t happen via these channels.”
Secretary Yellen’s affirmation listening to could also be discovered here.
An article that outlines Secretary Yellen’s earlier statements on Bitcoin, cryptocurrencies, blockchain, and regulation could also be discovered here.
FinCEN Extends Remark Interval for Rulemaking on Cryptocurrency Transaction Necessities
FinCEN has prolonged the remark interval for a proposed rulemaking associated to cryptocurrency and digital asset transactions. The preliminary discover, issued on December 23, 2020, set a deadline of January 4, 2021, for remark submissions. After public criticism, the remark interval was prolonged a further fifteen days, and following an announcement on Tuesday, the remark interval has been prolonged once more to March 29, 2021.
The proposed rule would implement “recordkeeping, verification, and reporting necessities for sure deposits, withdrawals, exchanges, or different funds or transfers of [convertible virtual currencies] or [legal tender digital asset] by, via, or to a financial institution or [money services business].” The proposed rule would goal transactions with unhosted wallets, imposing recordkeeping and reporting necessities, and redefine cryptocurrencies as “financial devices” for functions of the Financial institution Secrecy Act.
The discover of the proposed rulemaking could also be discovered here, and the press launch and spot of extension could also be discovered here.
Hawaii’s Digital Forex Innovation Lab Reopens for Functions
In a Monday press launch, the State of Hawaii Division of Commerce and Shopper Affairs, Division of Monetary Establishments (the Division) introduced the reopening of functions for Hawaii’s Digital Forex Innovation Lab, a digital forex regulatory “sandbox” program. Within the press launch, the commissioner of the Division, Iris Ikeda, acknowledged that the Division wished to develop this system given this system’s “robust begin” and “optimistic traction with the primary cohort of corporations.” The deadline for functions is February 26, 2021, at 5:00 p.m. (HST).
This system permits corporations to supply cash transmitter providers within the State of Hawaii with out acquiring the requisite license. Upon acceptance to this system, the Division points a “no motion” letter, which states that the Division is not going to take motion in opposition to taking part corporations as long as they adhere to reporting and client safety necessities contained throughout the letter. Eleven corporations are at the moment taking part within the sandbox program, and nineteen utilized.
A duplicate of the press launch could also be discovered here.
Now we have beforehand mentioned the impression of regulatory sandboxes here.
Worldwide Regulatory Developments
Philippines Central Financial institution Points Anti-Cash Laundering Tips for Cryptocurrency
The Central Financial institution of the Philippines (Bangko Sentral ng Pilipinas) revealed tips associated to “Digital Asset Service Suppliers,” changing earlier steering directed at digital forex exchanges. The rules present a algorithm and rules to manipulate cryptocurrency enterprise within the Philippines in step with the Monetary Motion Job Drive Suggestions. In discussing the coverage behind the rules, the Financial institution mentioned the stability between the advantages of innovation associated to digital currencies and the dangers posed by cryptocurrencies, resembling its use for cash laundering and terrorist financing.
Digital Asset Service Suppliers should obtain a “Certificates of Authority” previous to working within the Philippines as a cash providers enterprise. Approval for a Certificates requires that the supplier adhere to minimal capital necessities and pay an annual service charge. Moreover, suppliers should meet minimal safety requirements for danger administration, cybersecurity, inner controls, and vendor administration. As soon as operational, suppliers should report and report transaction info, conduct due diligence on prospects, and cling to client monetary safety necessities.
The rules could also be discovered here.
Financial institution of Worldwide Settlements Publishes Survey on Central Financial institution Digital Forex
The Financial institution of Worldwide Settlements (BIS) revealed the outcomes of a survey on central financial institution digital currencies (CBDCs). The survey, carried out in late 2020, was an effort to gauge present central financial institution curiosity and exercise associated to CBDCs. Sixty central banks have been surveyed.
There have been a number of highlights from the survey outcomes. Notably, the “overwhelming majority” (86%) of the central banks surveyed are at the moment analyzing the use, advantages, and penalties of CBDCs, and the report additionally pointed to the Bahamian Central Financial institution’s issuance of the primary normal function CBDC as a major milestone. Moreover, the survey discovered that the variety of central banks conducting normal analysis has elevated in every of the three years surveyed—2018, 2019, and 2020. The variety of central banks conducting experiments utilizing CBDCs, together with the quantity creating pilot applications, additionally elevated after seeing a drop in 2019.
The complete textual content of the survey could also be discovered here.
Business Developments
Coinbase Declares Extra Particulars Associated to Its Proposed Public Providing
Coinbase World, Inc. offered further background into the character of its proposed public providing in a press launch issued January 29, 2021. As we have now beforehand reported, Coinbase submitted a draft registration assertion on December 17, 2020. Following the announcement of the registration assertion, press retailers speculated as to the character of the itemizing and potential valuations. Within the January 29 press launch, Coinbase confirmed “its intent to turn into a publicly-traded firm pursuant to a proposed direct itemizing of its Class A standard inventory.”
The press launch may be discovered here.
Valkyrie Investments Recordsdata Utility for Bitcoin ETF
Valkyrie Digital Belongings LLC submitted an software for a Bitcoin based mostly “change traded fund” (ETF). The appliance, as a Kind S-1 Registration Assertion, was submitted to the Securities and Trade Fee (SEC) on Friday, January 22, 2021. The appliance is one in all a protracted line of earlier functions for a Bitcoin ETF, all of which have been denied. Though the SEC has requested comment on Bitcoin ETFs, it has yet to approve any of the applications that have been submitted.
The “Valkyrie Bitcoin Fund” registration assertion could also be discovered here.
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