Crypto News Roundup: July 20, 2023 📰

2smh...KMBv

20 Jul 2023

312

Hello and welcome to another edition of Crypto News Roundup, where I bring you the most important headlines from the world of cryptocurrencies and blockchain.

Here are some of the stories that caught my attention today:

Nasdaq Drops Plans for Crypto Custody Service ❌

Nasdaq, one of the largest stock exchanges in the world, has decided to abandon its plans for launching a crypto custody service that it announced earlier this year. The service was supposed to allow institutional investors to store and trade cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) on Nasdaq’s platform.

However, during an earnings call on Wednesday, Nasdaq CEO Adena Friedman revealed that the company changed its mind due to the uncertain regulatory environment and the lack of demand from its clients. She said:

“We like to operate in environments that have a pretty well-known regulatory underpinning. That’s just where we’re comfortable. The fundamental opportunity changed over the last several months, and then the regulatory overhang changed as well, and I think that just made us decide that it’s not the right time.”

Friedman added that Nasdaq is still interested in exploring other ways to support the crypto industry, such as providing data and analytics services, but it will not offer custody or trading of digital assets anytime soon.

Source: Financial Times

US Bill Targets DeFi Sanctions Violations ⚖️

A new bipartisan bill introduced in the US Senate aims to prevent criminals from using decentralized finance (DeFi) platforms for money laundering and sanctions evasion. The bill, titled “The Crypto-Asset National Security Enhancement and Enforcement Act of 2023” (CANSEE), was co-sponsored by four senators: Jack Reed (D), Mark Warner (D), Mike Rounds ® and Mitt Romney ®.

The bill would require DeFi protocols to implement bank-like controls on their user base, such as verifying their identities and checking their sanctions status. If a DeFi protocol fails to do so and allows sanctioned individuals or entities to use its services, it would be held liable for sanctions violations.

The bill defines the person who controls the DeFi protocol as the one who is responsible for complying with these rules. However, if no one controls the protocol, then the liability would fall on the investors who have contributed more than $25 million to the project. This could include venture capital firms or other entities that have funded DeFi development.

The bill also gives more authority to the Treasury Department and its Office of Foreign Assets Control (OFAC) to enforce sanctions on crypto-related activities and entities.

Source: Bloomberg

SEC Chair Seeks More Budget for Crypto Oversight 🧐

The Securities and Exchange Commission (SEC) chair Gary Gensler has asked Congress for more funding to tackle the challenges posed by the crypto market. In a testimony before the Senate Committee on Appropriations on Wednesday, Gensler said that he supports a budget of $2.4 billion for the SEC for the fiscal year 2024, which would allow the agency to hire more staff and enhance its capabilities.

Gensler cited “the Wild West of the crypto markets” which he claims is “rife with noncompliance” as one of the reasons that drives the agency’s need for additional funding. He said:

“We’ve seen the Wild West of the crypto markets, rife with noncompliance, where investors have put hard-earned assets at risk in a highly speculative asset class.”

Gensler said that with more resources, the SEC would be able to better protect investors from fraud and manipulation, enforce securities laws and regulations, promote innovation and competition, and foster capital formation.

The SEC has been actively pursuing crypto-related cases in recent months, such as suing Ripple over its XRP sales, reviewing Bitcoin ETF applications from various firms, and issuing warnings about potential scams and risks.

Source: CoinDesk

RFK Jr. Proposes to Back Dollar with Bitcoin, End Bitcoin Taxes 🤞

Robert F. Kennedy Jr., a Democratic presidential candidate and the nephew of former President John F. Kennedy, has unveiled a bold plan to support the growth of Bitcoin and other cryptocurrencies in the US. Speaking at a Heal-the-Divide PAC event on Tuesday evening, Kennedy said that if elected, he would:

Exempt the conversion of Bitcoin to US dollars from capital gains taxes, which currently apply to any profits made from selling or exchanging cryptocurrencies.
Gradually back the US dollar with “hard assets” such as gold, silver, platinum and Bitcoin, starting with 1% of issued Treasury bills and increasing the percentage over time depending on the outcome.
Recognize the right to self-custody and run nodes for Bitcoin and other cryptocurrencies, and prevent regulators from penalizing banks that serve crypto firms.
Stop the development of a central bank digital currency (CBDC) by the Federal Reserve, which he believes would be a tool for invasive surveillance and control.
Ensure industry-neutral energy regulation for crypto mining and other operations, and support renewable energy sources.

Kennedy said that his plan would help restore strength and stability to the dollar, rein in inflation, and usher in a new era of American financial freedom and prosperity. He also said that his views on Bitcoin and hard currency are inspired by his uncle’s legacy. He said:

“My uncle, President Kennedy, when he was in office, understood the importance of hard currency and the dangers of having pure fiat currency with no other option.”

Source: Bitcoin Magazine

Kuwait Bans Crypto and Virtual Assets Transactions ❗️

The state of Kuwait has become the latest jurisdiction to impose a blanket ban on virtually all operations involving cryptocurrencies and virtual assets. On July 18, Kuwait’s main financial regulator, the Capital Markets Authority (CMA), issued a circular on supervision and issuance of virtual assets in the country.

The circular prohibits any entity from offering or applying for a license to provide digital asset services in Kuwait, such as payments, investments, trading, custody, mining or issuance. The circular also warns the public against dealing with any unlicensed or unauthorized entities that claim to offer such services.

The CMA said that the ban is in line with the requirements set by the Financial Action Task Force (FATF), an intergovernmental body that sets standards for combating money laundering and terrorist financing. The CMA said that virtual assets pose significant risks to national security, financial stability and consumer protection.

The ban is effective immediately and applies to both domestic and foreign entities. The CMA said that it will take legal action against any violators of the ban.

Source: CoinTelegraph

Conclusion

That’s all for today’s Crypto News Roundup. I hope you enjoyed reading our article and learned something new. If you have any comments or questions, please feel free to share them below. And don’t forget to subscribe to my newsletter for more updates on crypto and blockchain.

What do you think about these news stories? Which one is the most interesting or surprising to you? Let me know in the comments section!

Other Daily Crypto News Roundups

Don’t forget to subscribe to my newsletter for daily updates on the crypto world. I will keep you informed about the latest news, trends, tips, and insights on everything related to cryptocurrencies.
Thank you for reading and stay tuned for more!