Author: Devavrat Singh

The NFT market experienced significant growth and maturity in 2021, with renowned auction house Sotheby’s selling NFTs for millions of dollars and making over $100 million in digital collectible sales by the end of the year. Sotheby’s entry into the NFT space not only signaled the acceptance of NFTs in the art world but also established them as prestigious digital artworks. Despite a decline in interest in NFTs since the peak in January 2022, the art and fashion industries have continued to embrace them. In a recent auction, Dmitri Cherniak’s Ringers “The Goose” NFT sold for an impressive hammer price…

A leaked European Commission paper suggests that the metaverse needs a fresh approach to global governance in order to ensure its openness and legality. The document, obtained by CoinDesk, further recommends the easing of regulations to foster innovation and examines the legal obstacles surrounding emerging digital collaborations such as decentralized autonomous organizations (DAOs). The forthcoming document acknowledges that virtual worlds offer unparalleled possibilities across various societal domains, such as healthcare, education, and culture. It emphasizes that this transformative technological advancement necessitates novel approaches to global governance. To ensure that the future internet remains open, secure, and aligned with EU values…

Bitcoin mining companies are considering the United Arab Emirates as a growing cryptocurrency mining center in the Middle East. This is attributed to collaborations with prominent mining firms and the digital asset division of Abu Dhabi’s sovereign wealth fund in the earlier part of this year. Bitcoin mining specialist Jaran Mellerud provided an update on the recent advancements in the UAE’s Bitcoin mining industry on July 6. The mining revolution started in late 2021 when Zero Two, the digital asset division of Abu Dhabi’s sovereign wealth fund, teamed up with local Bitcoin mining firm Phoenix Technology. The progress continued when…

According to Bloomberg, South Africa has emerged as the first African country to enforce licensing for digital asset exchanges. The financial regulatory body of South Africa has declared that all cryptocurrency exchanges operating within the country must acquire licenses before the year’s end. According to Bloomberg, the Financial Sector Conduct Authority (FSCA) commissioner, Unathi Kamlana, revealed that around 20 license applications have been received since the recent opening of applications, and more are expected before the November 30 deadline. Kamlana warned that after the deadline, the regulator plans to take “enforcement action” against crypto exchanges operating without a license, which…

A group of crypto and blockchain enthusiasts have written a report urging the Hong Kong government to introduce a stablecoin tied to the local currency. This move is seen as a potential challenge to the dominant position of Tether and USD Coin in the market. The report, as translated by Chinese crypto reporter Colin Wu on July 3, was authored by four individuals with strong connections to financial innovation. They include Wang Yang, the vice president for institutional advancement at Hong Kong University of Science and Technology; Cai Wensheng, the founder of smartphone software firm Meitu; Lei Zhibin, an honorary…

Hong Kong’s evolving stance on blockchain technology, cryptocurrencies, and Web3 is expected to attract businesses away from the United States, as industry experts believe. In the past year, the city has taken several initiatives to support the growth of the Web3 sector and facilitate retail investment in cryptocurrencies. One recent example is the establishment of the Task Force on Promoting Web3 Development, further demonstrating Hong Kong’s commitment to this emerging field. Yat Siu, co-founder of Animoca Brands, a Web3 investment firm, has been selected as one of the advisors to Hong Kong’s Task Force on Promoting Web3 Development. In an…

European Union lawmakers have reached a consensus to proceed with the contentious European Data Act, which has faced objections from the crypto community in the past. EU lawmakers have approved the European Data Act, despite opposition from the crypto community. The act seeks to promote the utilization of data for algorithm training and would incorporate a kill switch option for smart contracts to ensure secure termination, which goes against the core concept of trust in such contracts. In a separate development, the European Commission has presented a legislative roadmap to establish a digital euro as a widely accepted and easily…

The debate surrounding the potential introduction of a U.S. central bank digital currency (CBDC) has gained significant attention and has become a contentious political topic in the United States. Interestingly, this concern regarding a CBDC is not limited to the U.S. alone, as both Canada and the United Kingdom also share apprehensions about this form of digital currency. Recent surveys conducted by Trezor, a hardware wallet manufacturer, and WealthRocket, a financial news site, focused on public opinions towards CBDCs in the UK and Canada, respectively. Although these surveys asked different questions, they arrived at similar findings. The population in both…

Hong Kong has formed a task force comprising a varied panel of industry and government representatives to oversee the advancement of Web3 in the region, demonstrating its dedication to embracing this emerging trend. The task force’s main objective is to provide guidance on the responsible and sustainable growth of Web3 in Hong Kong, as stated in the official announcement. The Hong Kong government has established a task force consisting of 15 industry members and 11 key government officials to supervise the advancement of Web3, emphasizing the ethical promotion of its growth. The formation of the task force was announced by…

Simon Callaghan, the newly appointed CEO of Blockchain Australia, is urging Australia’s banks, government, and the cryptocurrency industry to collaborate in addressing the escalating issue of cryptocurrency scams, which predominantly originate on social media and telecommunication channels. Callaghan emphasizes the need for concerted efforts to combat these scams at their root. During Australian Blockchain Week’s concluding day in Melbourne on June 30, Callaghan declared that Blockchain Australia would prioritize combatting cryptocurrency-related scams alongside its other initiatives. The CEO emphasized the importance of collaborating with the banking sector and government to safeguard consumers. However, Callaghan highlighted that scams frequently start on…

According to the executive overseeing Australia’s CBDC pilot, Dilip Rao, who previously worked at Ripple, has been exploring 14 potential applications for central bank digital currencies. While CBDCs may not address current challenges, they have the potential to provide solutions for unforeseen problems, as stated by the executive leading Australia’s CBDC initiative. Dilip Rao, previously associated with Ripple and currently leading Australia’s CBDC research initiative, expressed to Cointelegraph that a central bank-backed digital currency could be designed for future applications that have not yet been contemplated. He stated, “While it may not address current challenges, it could potentially solve future…

Amid a surge in banks limiting specific services due to scams, the Australian government is taking measures to mitigate the dangers associated with withdrawing banking services from cryptocurrency exchanges. The Treasury Department of Australia has expressed concerns that the increasing practice of banks discontinuing services for cryptocurrency businesses could have negative effects, such as reducing transparency within the industry. The Australian Department of the Treasury issued a formal statement on June 28, discussing potential actions to tackle debanking in Australia. Debanking refers to situations where a bank refuses to offer services to customers, citing reasons such as Anti-Money Laundering (AML),…

In its latest Financial Stability Report released on June 28, the Reserve Bank of India (RBI) stated that stablecoins possess significant potential to negatively impact emerging markets and developing economies. The report identified six distinct threats posed by stablecoins, thereby further strengthening the RBI’s arguments against cryptocurrencies. The Reserve Bank of India (RBI), known for its consistent criticism of cryptocurrencies, specifically highlighted the concerns it holds regarding stablecoins, particularly when viewed from the perspective of emerging markets and developing economies (EMDE). In its detailed assessment, the RBI presented six specific issues, despite facing challenges in obtaining reliable and authenticated data…

Asian nations, particularly China, are welcoming America’s strict measures against the crypto industry as an opportunity to establish dominance in digital finance. Despite China’s general opposition to cryptocurrencies, it now has various avenues to emerge as a key player in the field, while other major Asian economies are also adopting their own approaches to embrace crypto, in contrast to the tightening regulations in the West. According to a recent report by Politico, China possesses various strategies to emerge victorious in the competition for dominating the future of money and finance. Despite banning cryptocurrencies for retail purposes, China is actively developing…

According to a report, Thomas Jordan, the head of the Swiss National Bank (SNB), announced the upcoming launch of a wholesale central bank digital currency (wCBDC) pilot project. Speaking at a conference in Zurich, Jordan stated that the project would commence “soon.” Although the SNB remains cautious about introducing a retail CBDC, this announcement highlights their intention to explore the possibilities of a wCBDC. During the Point Zero Forum in Zurich on June 26, Thomas Jordan was quoted as saying that the wholesale central bank digital currency (wCBDC) would be issued on the Swiss SIX digital exchange for a limited…

Turkey is currently grappling with economic uncertainty and unorthodox measures, resulting in the Turkish Lira reaching an all-time low against the US dollar. As the Lira’s value declines, people in Turkey are seeking alternative options, leading to a surge in demand for Bitcoin. Consequently, Bitcoin’s popularity is growing in the country, and its price is experiencing a significant increase. Despite the economic challenges, Bitcoin remains stable above $30,000, indicating its resilience in the market. This growing fascination with Bitcoin in Turkey reflects a widespread search for alternative financial assets among individuals. Turkey is currently facing significant challenges in its macroeconomic…

On June 20, the National Tax Agency in Japan implemented a law revision that eliminates the obligation for token issuers to pay corporate taxes on unrealized cryptocurrency gains. This tax exemption comes into effect approximately six months after the Japanese government approved a proposal to remove the requirement for crypto companies to pay taxes on the theoretical profits from tokens they issued and retained. Since last August, lawmakers in Japan have engaged in discussions regarding new cryptocurrency tax regulations as a component of the overall tax reform for 2023. However, it was only this week that the tax authority finally…

The International Monetary Fund (IMF) acknowledges nations’ pursuit of advantages through digital assets but highlights the significance of managing crypto risks while avoiding their prohibition. It stresses the importance of well-planned legislative responses to both effectively address risks and harness the technological innovation they bring. The IMF emphasized in a recent blog post that some countries in the LAC region have chosen to ban cryptocurrencies due to their associated risks. However, the IMF warns against considering a ban as a sustainable solution. Instead, it suggests focusing on addressing the root causes of crypto demand, such as unmet digital payment needs…

Every week, there seems to be a continuous stream of American fintech companies facing bankruptcy or legal actions from regulators. This relentless crackdown on cryptocurrencies is expected to greatly benefit Asia, emerging as the primary beneficiary. The intentions of the American government regarding a flourishing digital asset industry and the accompanying innovation have become evident in recent months. The presence of regulatory ambiguity regarding asset classification and impulsive actions by federal agency leaders against anything associated with the industry have only exacerbated the situation. Asia, with its clearer regulatory framework, stands to gain the most in the ongoing crackdown on…

Germany’s Federal Intelligence Service, known as the Bundesnachrichtendienst (BND), has introduced a dog-themed NFT collection and initiated an on-chain treasure hunt to attract cyber talent. The agency has released close to 1,000 NFTs on the Ethereum blockchain as part of its efforts to recruit blockchain experts. In June, the Federal Intelligence Service introduced the “Dogs of BND” collection, consisting of 999 dog-themed NFTs inspired by the agency’s guard and security dogs, as well as various intelligence roles. The NFTs can only be obtained by locating a specific character string posted on Instagram, which leads to an Ethereum address. To be…

A bipartisan group of US lawmakers presented a bill on June 20 that proposes creating a commission to examine the nation’s approach to artificial intelligence (AI) and develop regulations for the AI industry. This action follows recent calls from consumer protection organizations in the European Union (EU) for regulators to investigate the AI models powering widely-used chatbots. Representatives Ted Lieu, Ken Buck, and Anna Eshoo introduced the bipartisan National AI Commission Act, which seeks to establish a national entity responsible for developing a comprehensive regulatory framework for AI. The act aims to mitigate the potential risks of unregulated AI technology,…

The Canadian Securities Administrators cautions that deceptive regulatory and dispute resolution organizations are being employed to create an illusion of legitimacy for certain crypto providers. Canadians are urged to verify the authenticity of crypto trading service platforms, as these entities might be utilizing fabricated regulatory bodies to enhance their credibility. The Canadian Securities Administrators’ Investor Alert on June 20 highlights that certain crypto platforms are falsely asserting approval from regulatory authorities and dispute resolution organizations to give the impression of legitimacy. The CSA stated that these websites initially appear trustworthy, featuring information about complaint handling, dispute resolution, and compensating affected…

The United States House Financial Services Committee, comprising Democrats, has initiated the introduction of multiple bills in what they refer to as the initial phase of legislation, intended to tackle the failures witnessed in prominent banks.House Democrats have endorsed 11 bills in response to the recent collapses of Silicon Valley Bank, Signature Bank, and First Republic Bank. Representative Maxine Waters, the committee ranking member, announced on June 21 that the proposed legislation aims to impose penalties and prevent bank executives from future industry employment if they are found to have negligently contributed to their bank’s failure. These measures have yet…

The Ministry of Energy in Russia is urging lawmakers to recognize cryptocurrency miners as energy users and establish regulations. Reports suggest that the next phase could involve implementing taxes specifically for mining activities. Deputy head Pavel Snikkars emphasized the importance of lawmakers advancing related bills, as the ministry supports the legalization of industrial crypto mining. Pavel Snikkars, emphasized the need for defining cryptocurrency miners as a distinct consumer category. He also expressed the ministry’s hope for the introduction of taxation specifically for this consumer category, stating that regulatory measures would need to be implemented to address their unique characteristics. With…

The chair of the Australian Digital Financial Standards Advisory Council (ADFSAC) has cautioned that the Australian government must accelerate its efforts in crypto regulation to avoid lagging behind emerging markets. Loretta Joseph, head of ADFSAC, emphasized that without swift action, the country risks being left behind in regulatory development compared to other nations. Australia’s Treasury initiated consultations for its “token mapping” initiative earlier this year to classify various crypto assets. A paper seeking input on potential licensing frameworks is anticipated to be released in mid-2023, followed by roundtable discussions on crypto licenses in the third quarter. Additionally, there is a…

The government’s dedication to fostering innovation was emphasized by Hong Kong’s Financial Secretary. He highlighted the presence of over 1,900 community enterprises in Cyberport. Chan Mo-po, in a translated statement, acknowledged that a company within the Cyberport community had obtained a license from the Securities and Futures Commission, making it the second virtual asset trading platform in Hong Kong to do so in the previous year. As per the official, Cyberport’s “Financial Budget” allocated approximately $6.3 million (HK$50 million) towards the development of third-generation web3 companies on the Internet. The financial secretary stated that over the past year, Cyberport has…

Hong Kong has recently implemented its Virtual Asset Service Provider (VASP) licensing system, marking a significant milestone in its endeavour to establish itself as a prominent global cryptocurrency hub. The territory is now focusing on advancing in two key areas, the regulation of stablecoins and the progress of tokenized securities. Since the implementation of Hong Kong’s VASP licensing framework in May, crypto exchanges seeking to operate in the city have started applying for registration under the new regime. Although Hong Kong’s VASP regulations are more stringent compared to those in other jurisdictions, exchanges have generally embraced these new regulations. The…

After failing to secure a virtual asset service provider (VASP) license, Binance, a prominent cryptocurrency exchange, has made the decision to withdraw from the Netherlands. As a result, the exchange has urged its users in the country to promptly withdraw their funds. This marks Binance’s departure from the Dutch market. Binance has ceased its services with immediate effect, prohibiting new customers from the Netherlands from opening accounts on the crypto exchange. Starting July 17, existing Dutch customers will only have the ability to withdraw their assets from the platform. No additional purchases, trades, or deposits will be permitted. Despite exploring…

On June 15, the cryptocurrency lending firm Abra faced an emergency cease and desist order from the Texas State Securities Board. The regulatory body, after conducting investigations, concluded that Abra and its affiliates engaged in fraudulent activities and made deceptive claims, as stated in their order. According to the regulator, Abra has been accused of making misleading statements by falsely portraying itself as a “crypto bank,” despite the fact that neither Abra nor its affiliated entities possess a Texas bank charter. Moreover, they are not authorized to conduct operations in Texas and do not offer Federal Deposit Insurance Corporation (FDIC)…

On June 14th, a Senate bill was introduced by U.S. Senators Josh Hawley and Richard Blumenthal, representing Missouri and Connecticut respectively. The bill seeks to revoke the special privileges currently granted to artificial intelligence (AI) companies, which are presently similar to the protections enjoyed by online computer services providers under the Communications Decency Act of 1996 (CDA). The bipartisan bill aims to establish accountability for companies in addressing harm; however, it remains uncertain whether Section 230 is applicable to artificial intelligence (AI).Section 230, located in Title 47, Section 230 of the Communications Decency Act (CDA), grants online service providers protection…