Weekly Update — DeFi Regulation 12/1–12/8/2021

OKEx shared insights on trading, regulation, DeFi and more during recent Markets Pro AMA

With a trading volume of nearly $12 billion within the last 24 hours, OKEx is the third-largest cryptocurrency brokerage in the world. The OKEx team discussed trading tools, financial regulation, the OkExChain (OEC) blockchain, meme coins, and DeFi offerings on the platform. The India crypto ban is not expected to have a significant effect on the market, according to OKEx Staff. The OKEx chain addresses the blockchain trilemma from the ground up, while the DeFi is a new “DeFi” mode.

Crypto FAQs answered — everything you need to know about crypto regulations, trading, taxes and CBDC in India

At the moment, no regulation prohibits people from mining public cryptos in India. The government of India does not recognize Bitcoin as legal tender, but it is not illegal. Mining cryptocurrency is not illegal, but mining crypto is not illegal. In the near future, the government will introduce legislation regulating crypto trading, including the taxation and other aspects of it. According to experts, there is no law in the country that bans cryptos or says trading such digital assets is unlawful.

The Need To Regulate Cryptocurrencies: Here Are 5 Reasons Why It’s Important From Investors Point Of View

In order to protect the interests of investors, cryptocurrency needs to be regulated. During the current winter session of Parliament, the Indian government plans to introduce a bill to classify cryptocurrencies as financial assets while protecting the interests of small investors. Cryptocurrencies may be restricted in use as legal tender or currency substitutes under the bill, while a minimum investment amount may be required. Furthermore, it proposes to lay the foundation for the creation of an official digital currency to be issued by the Reserve Bank of India and regulated by the RBI. The government can make the cryptocurrency market a safer place for investors if the right regulations are in place.

Biden and Trump S.E.C. Chiefs Trade Tips on How to Regulate Crypto

When selling their tokens, Ripple Labs and its founders raised over $1.3 billion through an unregistered, ongoing digital asset securities offering. An ongoing offering of XRP by Ripple Labs has raised more than $1 billion in the past year. The case may resolve this question, but it suggests that many, if not most, crypto issuers are violating the law by not registering with the agency. In the United States, Bitcoin is regarded as a commodity since there is no single individual or entity responsible for minting the tokens.

Morgan Stanley Sees Crypto-Banking Regulation Arriving Faster Than Expected

Morgan Stanley report says regulators are aiming to develop crypto bank regulations ahead of schedule. In a joint statement issued on Nov. 23 by the Federal Reserve, Federal Deposit Insurance Corp. (FDIC) and Office of the Comptroller of the Currency (OCC), the three organizations outlined a “policy sprint” to develop rules for crypto service providers. As part of this new framework, customers will be able to purchase and sell crypto assets as well as obtain loans collateralized by crypto assets.

FTX releases crypto regulation proposals before US congressional hearing

To help policymakers build a regulatory framework, FTX, a Bahamas-based cryptocurrency exchange, released a list of principles and proposals. This policy recommends the market-structure choices made by several leading cryptocurrency exchanges and recommends their implementation across all jurisdictions. Additionally, FTX discusses the importance of direct membership market structures, in which entities can conduct regulated trades without the involvement of a third party. A regulation demanding greater transparency around the custodians of crypto assets is also recommended by the exchange, which argues platform users deserve to know how custodial services intend to address concerns related to fraud and theft.

Crypto Regulation Tucked Into Infrastructure Bill Raises Surveillance Concerns; Receivers Would Have To Collect Tax IDs on Transactions Over $10,000

The US infrastructure bill tucks a little-known law from 1984, originally intended to discourage large cash transfers, into a crypto regulation. Under the new rule, receivers of crypto payments that total at least $10,000 would be required to collect and report the Social Security number or tax ID of the sender to the Internal Revenue Service. Failure to comply could result in a felony charge. Critics claim that it could be used as a tool of surveillance that circumvents existing laws.

Crypto has a reputation for being hostile to regulation. In Canada, that’s changing

There are six registered cryptocurrency-trading platforms in Canada, with Bitbuy being the first to receive approval to operate under higher standards of a regulated marketplace. In response to a crackdown announced by the Canadian Securities Administrators in March, platforms have beefed up their compliance teams and taken steps to protect investors. Globally, the sector retains a reputation for being indifferent or hostile to regulators, but in Canada it is becoming more professional. “I believe that any investor would prefer to deal with a licensed platform to an unlicensed platform,” said Netcoins CEO Mark Binns.

Gensler Says Crypto Platforms Need to Register

According to Gary Gensler, innovations around crypto and decentralized finance will not last outside of public policy frameworks. During the Digital Asset Compliance & Market Integrity Summit on 1 December, he spoke with Jay Clayton, former SEC chair. Bitcoin futures ETFs have been approved by the SEC, but spot bitcoin spot bitcoin ETFs have not yet been approved. A Grayscale Investments lawyer wrote to the SEC expressing concerns about the SEC’s approval of bitcoin futures ETFs but not bitcoin spot futures.

To join our weekly newsletter for News, Updates & More click here

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
lobbytoken

lobbytoken

Join the fight against harmful crypto regulations. Let’s be proactive, not reactive. @lobby_token $LBY #LobbyToken #CryptoRegulation