Reference Source: https://blog.ineuron.ai/Understanding-Blockchain-and-Digital-Assets-News-and-Trends-of-2022-2OORi8zEqq
Although blockchain technology in AI has a wide range of applications, this bulletin will focus primarily on smart contracts and blockchain in financial services. The way we approach digital assets is by referring to them as traditional asset types or functions (although both types and functions may overlap), that is, digital assets as:
Investing in securities Cryptocurrencies The commodity market Accounts, deposits, and intangibles Instruments of negotiation Paper chattel electronic A digital asset
This bulletin will cover the law and regulation governing blockchain, smart contracts, digital assets, and the legal developments supporting the infrastructure and ecosystem that enable these technologies to be used.
Read more: https://www.brsoftech.com/blog/pi-digital-currency/
The bipartisan Responsible Financial Innovation Act governs digital assets. The Responsible Financial Innovation Act, introduced by US Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY), was introduced on June 7, a bipartisan bill that would create "a comprehensive digital asset regulatory framework that supports responsible financial innovation, transparency, flexibility, and robust consumer protections by integrating digital assets into existing laws."
The DOC issues a request for comments on the crypto framework. The US Department of Commerce (DOC) published a request for comments in the Federal Register on May 19, asking for comments on Developing a Codeigniter Framework on Competitiveness of Digital Asset Technologies. There are 17 questions about digital assets, covering competitiveness, comparisons to "traditional" financial services, financial inclusion, and technological advancement. Please submit your comments by July 5 at 5 p.m.
The Virtual Currency
FDIC name improperly used by CFPB. Federal Deposit Insurance Corporation (FDIC) insurance claims are prohibited practices, according to an enforcement memorandum released by the Consumer Financial Protection Bureau on May 17. Issuers of stablecoins engaged in such practices, according to the memorandum.
The DOT announces results of the G7 meeting. It was announced in a press release issued by the US Department of Treasury (DOT) on May 20 that the G7 finance ministers and central bank governors, along with the heads of the World Bank Group, the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), and the Financial Stability Board (FSB), had met recently. It was noted that multilateral economic cooperation would be strengthened, and that "tax challenges arising from globalisation and digitalization" would be addressed as well as "the potential role of Central Bank Digital Currencies (CBDCs) in cross-border payments.".
In addition to supporting the FSB's efforts to monitor and address crypto-asset-related financial stability risks, the communique "urged the FSB to work closely with international standard-setters so that consistent and comprehensive regulation of crypto-asset issuers and service providers can be developed and implemented as quickly as possible, so that crypto-assets, including stablecoins, are held to the same standards as other financial instruments.."
A CFTC commissioner discusses customer protections and crypto regulation. A CFTC Commissioner told CNBC and Yahoo! Finance on May 24 that shadow banking in the crypto space requires regulation, according to the CFTC. Regulation of stablecoins was also discussed, as well as consumer protection. CFTC Commissioner Pham affirmed the need for regulation to protect retail customers and noted that the agency monitors cryptocurrency markets constantly to ensure that any necessary enforcement actions are taken.
Regulations on stablecoins are issued by the NYDFS. Adrienne A. Harris, Superintendent of New York's Department of Financial Services (DFS), announced a new set of guidelines regarding the issuance of US dollar-backed stablecoins on June 8.
Stablecoin backing and redeemability, reserve requirements, and independent audits are among the requirements set forth in the guidance for US dollar-backed stablecoins issued by DFS-regulated entities.
Public comments are sought on crypto oversight by the California DFPI. DFPI announced on June 1 that it will invite comments under the California consumer financial protection law regarding crypto asset-related financial products and blockchain development services. To develop guidance for covered persons and service providers involved in the offering and providing crypto asset-related financial products and services in California, the DFPI seeks input from stakeholders and the public. It also seeks regulatory clarity and supervision, as appropriate. The DFPI is seeking comments regarding regulatory priorities, regulation and supervision under California Consumer Financial Protection Law (CCFPL), and market monitoring. The DFPI will then initiate a rulemaking process.
ENFORCEMENT ACTION AND LITIGATION
Insider trading scheme involving digital assets was allegedly perpetrated by a former NFT marketplace employee. Former Ozone Networks, Inc. product manager Nathaniel Chastain was indicted by the US Department of Justice (DOJ) on June 1. A scheme to commit insider trading in non-fungible tokens (NFTs) by using confidential information about which NFTs would appear on OpenSea's homepage for his personal financial gain has been accused of wire fraud and money laundering. Each of the charges against Chastain carries a maximum sentence of 20 years in prison, including one count of wire fraud and one count of money laundering.
Read More: How to create online trading exchange platform For bitcoin/cryptocurrency?
Digital asset and commodity futures fraud involving Oregon and Illinois residents and a Florida company amounts to $44 million. Sam Ikkurty, Ravishankar Avadhanam, and Jafia LLC were charged with fraudulently requesting participation in an income fund investing in digital assets and other instruments, which the CFTC announced on May 19. In the complaint, the defendants are alleged to have solicited $44 million from at least 170 individuals for buying, selling, and digital trading assets, commodities, derivatives, swaps, and futures contracts. Rather than investing the pooled funds as represented, the defendants transferred them to other accounts under their control and for their benefit, according to the complaint. CFTC claims investors have been defrauded, ill-gotten gains have been disgorged, civil penalties have been enforced, and permanent trading and registration bans are in place.
In the lawsuit, partners are alleged liable for losses caused by DAO because the company is a partnership. In a putative class action lawsuit filed in the Southern District of California on May 2, Sarcuni et al. vs. box DAO et al. 3:22-cv-00618-BEN-DEB allege that a decentralized autonomous organization (DAO) constitutes a general partnership, which makes the partners jointly and severally responsible for a hack that victimized class members. A bZx developer negligently fell for a phishing scam that allowed unauthorized access to the plaintiffs' cryptocurrency account passphrases after the plaintiffs deposited $1.6 million in cryptocurrency with the protocol known as bZx. Several defendants are members of, and investors in, the bZx DAO, including the co-founders of the protocol. Attorneys' fees and damages are also sought in the complaint.
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SPOTLIGHT ON INDUSTRY DEVELOPMENTS
Blockchain and digital asset trade associations merge. An announcement was made on May 25 regarding the merger of the Global Blockchain Business Council and Global Digital Finance. According to a press release, approximately 500 institutional members and 178 ambassadors will operate across 95 jurisdictions and disciplines under the combined association.
SPOTLIGHT ON INTERNATIONAL DEVELOPMENTS
A marriage made in heaven: satellites, blockchain, and ESG? A major challenge for corporations and governments today is verifying ESG initiatives. It is usually possible to report on the social and governance aspects of ESG via blockchain development company and external reporting, but measuring environmental impact can be challenging. As part of the ESG movement, satellites and blockchain have recently gained a lot of attention. The need for verifiable environmental metrics to substantiate green initiatives is partly due to investor and stakeholder pressure.
Stablecoins are legalized in Japan. The Japanese parliament passed a bill establishing a legal framework for stablecoins on June 2. Issuers must, among other things, guarantee stablecoins are linked to yen or another fiat currency, and holders must have the right to redeem stablecoins for face value. A year after the framework is implemented, it becomes effective.