by Last week was relatively quiet when it came to enforcement news, but it did bring some specific local changes to the regulations. US Representative Tom Emmer introduced legislation in the House of Representatives that could prevent the Federal Reserve from issuing a central bank digital currency (CBDC). According to the Minnesota lawmaker, the bill could prohibit the Fed from issuing a digital dollar “directly to anyone”, prohibit the central bank from implementing a CBDC-based monetary policy, and require transparency for digital dollar projects.
Canadian securities administrators have released a notice outlining the new commitments they expect from crypto asset trading platforms seeking registration in Canada. The new commitments address issues that include asset segregation, leverage, capital determination, transparency and more. But above all, it provides for a ban on the use of algorithmic stablecoins.
A joint statement by the three U.S. federal agencies advised the banking industry to create new risk management policies to address liquidity threats posed by the vulnerability of the cryptocurrency market. The Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a statement reminding banks to apply existing risk management policies when addressing cryptocurrency liquidity risks.
By July 2023, the Financial Stability Board, the International Monetary Fund (IMF) and the Bank for International Settlements will present documents and recommendations that set the standard for the global cryptocurrency regulatory framework. The announcement was made by representatives of the world’s 20 largest economies, collectively known as the G20.
The IMF says that no cryptocurrencies are legal tender
The IMF board approved a crypto asset policy framework that did not give crypto assets official currency or legal tender status. Elements of an effective Crypto Asset Principles document provides a framework of nine policy principles that address macro-financial, legal and regulatory issues and international coordination. According to the first principle, protecting sovereignty and monetary stability, “do not give cryptocurrencies the status of official currency or legal tender.”
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Emojis are considered financial advice and have legal ramifications
A U.S. District Court judge for the Southern District of New York ruled that emoticons such as a rocket, a stock chart, and money bags indicate a financial return on investment. In his decision on Dapper Labs’ application to reject an amended complaint alleging its NBA Highlights violated safety regulations, Federal Judge Viktor Marreo wrote: “And while the literal word ‘profit’ is not included in any of the tweets,” The rocket ship emoji, the “stock chart” emoji, and the “money bag” emoji all objectively mean one thing: financial return on investment.”
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SEC objects to Binance.US offer for Voyager assets
The U.S. Securities and Exchange Commission (SEC) has opposed a move by Binance.US to seize over $1 billion in assets belonging to now-defunct cryptocurrency lending company Voyager Digital. The SEC is formally investigating whether Binance.US and related debtors have violated anti-fraud, registration, and other federal securities laws. The Agency paid particular attention to the security of assets in connection with the planned acquisition. According to the regulator, the information provided in Voyager’s proposed asset purchase does not adequately determine whether Binance.US or related third parties will have access to the client’s wallet keys or control over anyone who has access to such wallets.
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Nigeria is in talks with a New York firm to reorganize the CBDC
After many attempts to create an effective digital currency, the Central Bank of Nigeria is approaching a New York tech company to renew the core technology. According to sources close to the matter, the Nigerian financial authority has discussed plans to develop a new and improved system with New York-based technology company R3. While it is one of the first countries to launch a CBDC, Nigerian eNaira has had a slow start, with low adoption among the population. According to some reports, the ambitious project is “crippled” as only 0.5% of Nigerians use CBDC.
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