by Samuel Mbaki | Jul 3, 2023 | Regulation
Key Points
- Rumors have been spreading that Securities and Exchanges Commission Chair Gary Gensler was on the verge of resigning following internal investigations.
- The SEC has come out to express that no investigation is happening, and its Chair, Gary Gensler, isn’t resigning.
- An ecstatic crypto community had received the rumor.
SEC has communicated that Gary Gensler is not on the verge of resigning after rumors spread alleging that there had been an internal investigation. Gary Gensler has been receiving a lot of hate from the crypto space due to the extensive crypto crackdowns he has spearheaded with the SEC; as such, the rumor of his resigning does not come as a surprise.
The ‘source’ article is fake, AI-generated, and has no basis-SEC
An article with a 97% artificial intelligence generation score has hit the internet claiming that US SEC chair Gary Gensler was on the verge of resigning. The article published on a new website claimed that Gensler had been forced to resign following an internal investigation by the SEC.
The July 1 story appeared on the website dubbed “thecryptoalert.com,” claiming that an anonymous official had tipped the submission of a resignation letter by Gary Gensler. The story had gained traction on Twitter and other socials as breaking news despite the SEC not having released any confirmation on the story.
The SEC later talked to FOX’s Business News reporter Charles Gasparino confirming that Gary Gensler was not resigning/ Gasparino tweeted this, saying the SEC’s response was “as expected.”
This rumor is not the first of its kind. Another one was circulating in April, claiming that Genser was preparing to be “fired.” However, it also doesn’t come as a surprise following the extensive and ‘excessive’ crypto crackdowns that Gensler has been spearheading. His agency is suing Coinbase and Binance and has settled for over $100B with many other crypto entities.
While spreading rumors is not how to deal with Gensler, a legal process is underway to eject him from his seat and restructure the SEC. However, only time will tell if it will come to fruition. Keep watching Fintech Express for updates on crypto regulation and other Fintech-related developments.
by Samuel Mbaki | Jun 30, 2023 | Regulation
Key Points
- South Korea has introduced a basis for imposing penalties and liability damages caused by unfair crypto trading.
- The bill is motivated by actions from collapsed crypto empires like Terra Luna.
A crypto regulation bill has been introduced in South Korea to protect its citizens from the exploitation of unfair cryptocurrency trade practices. The bill, Virtual Asset User Protection Act, was passed by the country’s National Assembly and is designed to provide more protection to South Koreans from illicit trading activities like undisclosed information and advertising, market manipulation, and other notable unfair practices.
South Korea welcomes a crypto regulation bill imposing penalties and liability damages on unfair crypto trades
The Virtual Asset User Protection Legislation reportedly integrates about 19 crypto regulation bills providing a unified one that can serve South Korean investors better. This crypto regulation bill comes after the country was previously used by Do Kwon’s Terra Labs as a host market, only for his crypto empire to collapse due to poor management.
As such, it was expected that South Korea would act harshly on Do Kwon and impose strategies to prevent such an occurrence from ever happening again. According to local media, the main point of the Virtual Asset User Protection Act is to introduce the Capital Market Act fort to digital assets that have a securities nature. It also aims to establish a basis to impose liability and penalties for damages from unfair crypto trades.
Following the bill’s passing, Virtual Assets Providers (VASPs) in the country are now required to take responsibility for user deposits and provide insurance. This measure will make it safer for users against losses resulting from faulty management like hacks and other related risks. Violating the rules and requirements for crypto assets services providers in the region will attract imprisonment of at least a year or major fines.
In other news, the UK has recognized cryptocurrencies as regulatable assets. These developments come shortly after the passing of the MiCA legislation. The country is also preparing to introduce MiCA towards the end of 2024, as the EU parliament requires. Keep watching Fintech Express for stories on crypto regulation and other fintech-related developments.
by Samuel Mbaki | Jun 29, 2023 | Regulation
Key Points
- Canadian lawmakers have tabled 16 separate proposals that push to support the crypto industry.
- The details of these regulations have been exposed by a report released by the Parliamentary Standing Committee on Industry and Technology (INDU) of the Canadian House of Commons.
Canada has received a series of proposals that will directly impact the functioning of crypto organizations in the country. The proposals highlight the potential of blockchain technology in various sectors that also follow recommendations for the recommendation of the House of Commons or the government.
Canada pushes to foster crypto industry growth
The recommendations stated in the report calls on the Government of Canada to recognize the blockchain industry as an emerging innovation with long-term economic and job creation opportunities. It asks the government to prioritize protecting individuals’ right to self-custody and promote reliable access to digital assets.
INDU proposed that the government consider establishing a national blockchain strategy involving experts, entrepreneurs, academics, artificial intelligence, and investors industry cluster. The proposed strategy should set up a platform that fosters information exchange and monitor promising areas of disruption.
The Canadian government has also been called on to pursue international cooperation in developing regulatory frameworks for the crypto and blockchain industry. The report also added that campaigns must be established to educate Canadians on blockchain and crypto industries.
These developments come when multiple governments rally to increase their regulatory touch on digital Assets. The US has been cracking down on crypto organizations while the EU and UAE are setting up regulations to foster the adoption of digital assets. However, it has been commonly noted that there is a need for more oversight and efforts to regulate the industry more tentatively.
Keep watching fintech express for updates on this and other fintech-related stories.
by Samuel Mbaki | Jun 29, 2023 | Cryptocurrencies
Key Points
- A parliamentary vote in Slovakia has been completed approving lower crypto taxes in the country
- The current 25% taxes will be slashed to 7%
Slovakia has joined a growing list of pro-crypto legislation after approving the amendment of the crypto taxes bill, which slashes the taxes to only 7%.
Slovakia to have lower crypto taxes
Slovakia has joined a growing list of countries actively supporting the crypto community. Its country has approved a bill that lowers crypto taxes, among other measures affecting cryptocurrency holders.
The vote was passed on June 28 to reduce personal income tax for profits gained from the sale of crypto assets a user holds for at least a year. The taxes will now stand at 7%, a significant drop from the current 19% and 25% taxation sliding scale. The payments received in crypto assets up to 2400 euros will not be subject to taxation as well.
The bill also excludes income in the form of cryptocurrency from a health insurance contribution of 14%. According to local sources, the Ministry of Finance anticipates the financial impact of the amendment to be around 30 million euros a year. It comes weeks after the parliament passed another amendment to the constitution that codified the citizen’s right to use cash as a payment method in anticipation of the digital euro.
The country is also preparing itself for onboarding the MiCA legislation that was approved recently. This regulation will go into place in the Eurozone in 2024. It is the first of its kind in the world, which sets the EU ahead of other nations like the US. Keep watching Fintech Express for updates on this and other fintech-related developments.
by Samuel Mbaki | Jun 28, 2023 | Cryptocurrencies
Key Points
- Cardano’s Charles Hoskinson has praised the network for its efforts to withstand the bear market.
- Hoskinson believes the network is growing and gaining real adoption under the harshest conditions while maintaining complete decentralization, just like Bitcoin.
Cardano CEO Charles Hoskinson has replied to a tweet praising the Cardano ecosystem for its efforts to weather the current bear market cycle, saying it’s commendable to uphold total decentralization in the process.
Charles Hoskinson praises Cardano for its efforts to stay afloat
Cardano is one of the largest cryptocurrencies, boasting a total market cap of 9 billion dollars. This valuation puts the coin as number 7 in the crypto market showing how immense it is. Cardano was created by Charles Hoskinson, who also serves as its CEO.
Charles Hoskinson was also a founding member of the world’s second-largest cryptocurrency, Ethereum. He, however, disagreed with some of the future developments on the network and stepped back to develop Cardano, which has grown to attain a market dominance of around 0.82%.
Earlier today, he quoted a tweet that had called out possible FUD that interest in Cardano’s ADA coin was waning. The tweet called out a popular Youtuber for saying that the Cardano ecosystem has no TVL and institutions were losing interest. It refuted the claims that it’s the fastest-growing coin in the decentralized finance sector.
The tweet also pointed out Wisdom Tree Cardano ETP and 21shares Cardano ETP, further debunking the claims that Cardano is fading. It quoted a June 21 analysis explaining how different TradFi institutions had accumulated cryptos, with Cardano in the fifth position.
Charles Hoskinson reflected on the matter, saying:
“Lots of noise in crypto. Look for the signal. Cardano is getting real adoption and growing as an ecosystem under our industry’s harshest conditions. Like Bitcoin, this is being done in a completely decentralized way.”
Keep watching Fintech Express for more updates on crypto and other fintech-related developments.
