South Korean lawmakers to champion legalised ICOs

South Korea has been on the frontline of ICO regulation in recent months, following the decision of lawmakers there to outlaw initial coin offerings, as part of a wider crackdown on activities within the cryptocurrency space.

Now, a group of lawmakers is reported to be working on a bill that would seek to overturn the ban, and reintroduce ICOs on a legal footing.

According to local media reports, lawmakers are drawing up proposals which could be presented later this year, of early 2019 at the latest. The proposals are being led by Rep. Hong Eui-rak, who told the National Assembly this week of his plans to challenge the 2017 ban.

“The bill is aimed at legalizing ICOs under the government’s supervision…The primary goal (of the legislation is helping remove uncertainties facing blockchain-related businesses,” Hong said, according to Korea Times.

However, far from a return to the free-for-all conditions of the unregulated market, the proposals would allow only “research centers” and public organisations from deploying the funding model, which most market analysts would consider a step in the right direction for legitimising token issues. Nevertheless, the proposals will come as a surprise to some, following the decision in South Korea to ban initial coin offerings in the first place.

The 2017 decision seems to have had little impact on trading volumes or interest in the wider cryptocurrency space in South Korea, save for a reduction in the number of dubious ICOs being launched each month.

It follows similar moves by regulators elsewhere to bring ICOs in line with existing securities laws. In the U.S., for example, the Securities and Exchange Commission declared some ICOs to be de facto securities, accompanied by several other motions towards a formal, regulated environment for the ICO model.

Authorities in China have come down hard on the other extreme, effectively banning the model outright—a policy approach that has apparently gained some traction across other Asian countries.

This makes a new structure in South Korea potentially even more significant, and the chance to set a new precedent for regulating ICOs in the region.

With the implications of the 2017 ban still becoming apparent, it remains to be seen whether the more moderate approach proposed in the bill will gain the necessary support to become law, and to soften the regulatory approach to ICOs in South Korea.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Regulation is coming: SEC commissioner slams ICO industry

The U.S. Securities and Exchange Commission (SEC) has been intensifying its rhetoric around regulating initial coin offerings (ICOs) in recent months, as the regulator increasingly turns its attention to token crowdsales and the wider cryptocurrency space.

Now, in one of the starkest official criticisms to date, a serving commissioner at the securities regulator has criticised the current state of the ICO space, suggesting investors are currently finding it difficult to separate genuine opportunities from opportunistic scams and frauds.

SEC Commissioner Robert Jackson said the current situation with ICOs was the reason the SEC exists in the first place.

“Investors are having a hard time telling the difference between investments and fraud…If you want to know what our markets would look like with no securities regulation, what it would look like if the SEC didn’t do its job? The answer is the ICO market,” Jackson told CNBC.

Citing “troubling developments” in the sector, he continued to say the commission’s priority was to protect investors who might be drawn in: “Right now we are focused on protecting investors who are getting hurt in this market.”

However, Jackson was more optimistic about the future for ICOs, which he sees as inevitably subject to existing US securities laws, telling the news outlet: “Down the road, I think we will be thinking about ways to make those investments work consistent with our securities laws.”

Jackson’s comments come in the wake of several other high profile announcements from US authorities around ICOs and cryptocurrencies. A divisional director of the SEC confirmed at a hearing in the House of Representatives last week that the securities regulator has been working towards a regulatory framework for ICOs, while a former executive from the CFTC confirmed his personal view that many ICOs, including those for cryptocurrencies like Ripple’s XRP and ETH, could ultimately be found to be securities.

It seems inevitably at this stage that the SEC will look to introduce firmer regulation around ICOs and new cryptocurrency tokens. It remains to be seen whether this will help reduce instances of fraud and deception, already too prominent with investments of this kind.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

Flip-flopping Iran finally goes all in on cryptocurrency crackdown

Is the country shutting down competitors in preparation for their own cryptocurrency?

Iran has been going hot and cold on cryptocurrencies lately. In November last year, the secretary of Iran’s High Council of Cyberspace (ICC) said they “welcome Bitcoin.”

“We [at the HCC] welcome Bitcoin, but we must have regulations for Bitcoin and any other digital currency…Our view regarding Bitcoin is positive, but it does not mean that we will not require regulations in this regard because following the rules is a must,” secretary Abolhassan Firouzabadi said.

But then in February, the Central Bank of Iran backpedalled and released contradictory statements, saying they never legally recognized Bitcoin or any other cryprocurrencies in the territory.“The wild fluctuations of the digital currencies along with competitive business activities underway via network marketing and pyramid scheme have made the market of these currencies highly unreliable and risky,” they stated.

And now, they are going all in on the crackdown. The Central Bank has issued an order banning local banks from engaging in any cryptocurrency-related activities, which means any exchanges operating or planning to operate in the country are good as dead.

“Banks and credit institutions and currency exchanges should avoid any sale or purchase of these currencies or taking any action to promote them,” the Central Bank reportedly stated in a report by state news agency IRNA. “All cryptocurrencies have the capacity to be turned into a means for money-laundering and financing terrorism and in general can be turned into a means for transferring criminals’ money.”

Some speculate whether they’re trying to pull off something similar to China’s crackdown on cryptocurrencies—phasing competition early in preparation for launching their own nationally mandated cryptocurrency. In February, Iran’s Information and Communications Technology (ICT) minister Mohammad-Javad Azari Jahromi Tweeted that they are working on their own cryptocurrency. A rough translation of his Tweet in Arabic goes:

“In a meeting with the board of directors of the Post Bank of Iran on digital currency based Won blockchain, the necessary measures for the pilot implementation of the country’s first digital currency were set out by using the country’s elite capacity. A pilot model for review and approval will be presented to the banking system of the country.”

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.

nChain CEO Jimmy Nguyen: Philippines is the perfect market for virtual currency

Nguyen says there’s work to do, but that the BSP is doing right in creating sensible regulation to improve consumer confidence. 

In an interview with Bloomberg TV Philippines, nChain CEO Jimmy Nguyen gave insights on the blockchain and cryptocurrency development in the country and how it can impact overseas remittances. According to Nguyen, the country is in the early stages of cryptocurrency adoption, but is on the right path.

“I think the Philippines is in the early stages of adopting cryptocurrencies generally—and blockchain technology,” Nguyen said, adding however that there aren’t a lot of cryptocurrency exchanges in the country to help citizens participate in the new economy.

“I think it is headed in the right direction. This is the perfect market for virtual currency.”

The Philippine economy benefits highly from overseas foreign workers (OFWs) sending money back to their families in the country. Last year, the World Bank estimated that OFW remittances to the Philippines would hit almost $33 billion, bumping the archipelago up as the third biggest remittance-receiving country behind India and China. Nguyen, says the country’s remittance activities can be made better.

“Remittance and wire transfers could be much cheaper and more efficient. And that’s important to the Philippines.” Nguyen, whose company nChain is helping develop Bitcoin Cash (BCH) for cheap and fast transactions, went on to explain the value of BCH in comparison to BTC for daily transactions due to its usability, despite the former only having existed for only eight months.

As was the global trend, several scammers took advantage of the advent of blockchain technology to pull off Ponzi schemes and other cons, prompting the country’s central bank, Bangko Sentral ng Pilipinas (BSP) and the SEC to issue warnings to the public, along with a set of guidelines for businesses planning to open up exchanges in the country. The BSP has also been in talks with some industry players in the Philippines to help gain better understanding of the technology.

Nguyen commends the BSP’s openness despite the risks.

“I know the BSP issued some guidelines recently to warn people to be careful about investing in virtual currency. In addition to recognizing the risks, it recognized the value for a country like the Philippines.”

He adds that regulation would actually be good for cryptocurrencies. “I think, first of all, it’s a good step for the government to begin sensible regulations for virtual currencies. Some people in the Bitcoin world don’t like that. I, particularly because I’m a former lawyer, think regulation can be a good thing and create more consumer confidence,” Nguyen said.

In terms of the PHP 150 million ($2.9 million) minimum capital requirement imposed by the government on digital wallet operators, Nguyen thinks it’s quite low but “it’s a start.”

“That capital requirement is fairly low, but we are dealing with people’s money. I think it’s important to require the wallet operators and the exchange operators to have backing so that we avoid situations like in Japan—with the Mt Gox hack a number of years ago and a lot of people lost their bitcoin and didn’t have recourse against the company,” Nguyen explained.

“So I think that’s probably a start and over time, as the exchanges and wallets get bigger, they’ll probably raise the capital requirement. I think that’s a sensible step,” he added.

Watch the interview below:

Note: Tokens in the SegWit chain are referred to as SegWit-Coin BTC (inaccurately called Bitcoin Legacy or Core by many) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

India regulators nix crypto transactions in banks

Here we go again. In other example of governments not understanding the industry, the Reserve Bank of India (RBI) has dropped the hammer on cryptocurrencies. Financial institutions in the country that are backed by RBI are no longer permitted to allow their account holders to purchase cryptocurrency through their accounts.

In addition to barring the digital coins, RBI also implemented a policy that prohibits banks from dealing with any entity that settles or exchanges cryptocurrency. In a statement posted on its website, central bank said, “Reserve Bank has repeatedly cautioned users, holders and traders of virtual currencies, including Bitcoins, regarding various risks associated in dealing with such virtual currencies. In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time.

RBI was at least nice enough to recognize that blockchain technology will play a part in a majority of transactions, but indicated that there are still too many questions surrounding the use of the currency, and how users can be protected from financial criminal activity.

“Technological innovations, including those underlying virtual currencies, have the potential to improve the efficiency and inclusiveness of the financial system. However, virtual currencies (VCs), also variously referred to as crypto currencies and crypto assets, raise concerns of consumer protection, market integrity and money laundering, among others,” according to the Indian central bank.

In the spirit of fair journalism, it should be pointed out that RBI’s decision isn’t new to the country. Banks have already begun to take the initiative to block cryptocurrency-related activities on their own, which has resulted in crypto trading to drop around 90%. Nonetheless, until now, the policy was never enacted as a government-backed action.

In order for India’s cryptocurrency fans to trade, they will now have to rely on peer-to-peer platforms such as the one offered by LocalBitcoins. LocalBitcoins currently manages around $1 million in trading for Indian clients. The most appropriate decision would have been to create and implement “Know Your Customer” (KYC) and similar regulations and to provide oversight on the industry.

Note: Tokens in the SegWit chain are referred to as SegWit-Coin BTC (inaccurately called Bitcoin Legacy or Core by many) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

source: https://coingeek.com/india-regulators-nix-crypto-transactions-banks/

Lichtenstein PM takes laidback approach to blockchain

Lichtenstein, Switzerland’s eastern neighbor and home to some of the best snow skiing, enjoys a relatively low-key reputation. For decades, it was a corporate tax haven, with a number of corporations calling it home to take advantage of the country’s low corporate taxes. As the world moves deeper into the digital realm, the country is ready to embrace blockchain technology, and is preparing legislation that could make it as popular with the industry as it was for those looking for tax relief.

In an interview with CoinDesk, Lichtenstein Prime Minister Adrian Hasler revealed that the country’s pending legislation “goes much further than the blockchain legislation of other countries.” It provides a common-sense, but detailed, approach to the technology that highlights innovation while not over-regulating the industry. The country’s goal is to ultimately become a world leader in blockchain technology, according to Hasler.

The prime minister went on to explain that the new laws will provide guidance on distributed ledgers and blockchain technology designed to provide the necessary legal framework upon which to build the country’s legacy. He added that lawmakers are also putting together a plan that will allow for “a wide range of new services and business models relating to these technologies.”

The most poignant comment he provided came from his explanation of how the people view blockchain technology, saying, “There is no point in creating regulations that are excessive and lacking in practical relevance, because then the blockchain economy will simply develop outside the regulations. That surely would not be in the interest of any country. Therefore we want to propose a sensible regulatory approach by means of this law, where the role of the state in creating legal certainty and confidence comes into effect where it is needed.”

In preparing their bill, legislators reviewed laws that were being introduced in other countries and also discussed variables with fintech companies, lawyers and financial service providers. If everything goes well, Lichtenstein will introduce the bill to the public sometime this summer.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

source: https://coingeek.com/lichtenstein-pm-takes-laidback-approach-blockchain/

Australia rolls out AML regulations for cryptocurrency exchanges

Australia has finally implemented new legislative guidelines aimed at regulating digital currency exchange businesses in the land down under. Enacted on Tuesday, the new regulations will require cryptocurrency exchanges in the country to comply with requirements outlined in the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AMF/CFT).

Under the new regulations, domestic exchanges are required to adopt and maintain an AMF/CFT program in their operations. This program will identify, mitigate and manage money laundering and terrorism financing risks. The program will also identify and verify their customers’ identities. A complete Know Your Customer (KYC) system will help in accountability of both digital currency exchanges and the customers, according to Australian authorities.

The cryptocurrency exchanges are also expected to report to Australian Transaction Reports and Analysis Centre (AUSTRAC) any suspicious matters, and transactions involving physical currency of AUD10,000 or more. They are also expected to keep records of their operations, including AML/CTF policies, for seven years.

A six-month period of ‘policy principle’ was put in place and became effective on Tuesday. During this period the CEO of AUSTRAC can only take enforcement actions if acryptocurrency exchange fails to take reasonable steps to comply with the setlaws. In the same period, a transitional regulation arrangement will be made for the already existing businesses. This is meant to allow the businesses to continue with their operations while their registration applications are being reviewed.

All owners of businesses providing cryptocurrency exchange services in Australia are expected to have registered their companies by May 14. AUSTRAC said failure to adhere to the new law would result in criminal and civil penalties, and non-compliant operators could face various fines and up to seven years imprisonment. AUSTRAC also has the powers to issue an infringement notice to any cryptocurrency exchange business which will not comply with the set obligations.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

source: https://coingeek.com/australia-rolls-aml-regulations-cryptocurrency-exchanges/

Belarus targets cryptocurrency companies with crypto-friendly regime

Belarus has finally legalized cryptocurrency activities in the country. On March 28, the presidential decree “on the development of digital economy” came into force. According to reports, the country aims to become a global IT hub that will bring many businesses from around the globe. Many crypto entrepreneurs are expected to invest in the country, because of unprecedented freedoms and the many generous incentives from its newly-enacted decree.

The decree, signed into law last December by President Alexander Lukashenko, made Belarus the first country in Europe to offer freedom for all cryptocurrency activities. The new law has legalized all cryptocurrency-related businesses in the country, including exchange services, initial coin offerings (ICOs), mining operations, and smart contracts, among others.

One benefit from the presidential decree is there will be no taxes imposed on crypto-related activities. Unlike other countries, Belarus has exempted all cryptocurrency-related activities from taxation. Businesses and even private individuals who mine and trade cryptocurrencies in Belarus can now enjoy the tax breaks and other incentives until January 1, 2023. The decree has also allowed international cryptocurrency companies to operate in the country tax-free for the next five years.

To enjoy these benefits, businesses will need to register themselves as members of the Belarus High Technologies Park (HTP). Members of HTP will not be required to apply for work permits. They will also get a special visa waiver regime and a temporary residence status in Belarus.

The presidential decree has caused variety of changes and adoption of new laws and policies in Belarus. This week a crypto accounting standard was adopted to help adjust the accounting systems to accommodate cryptocurrency. The Central bank of Belarus has also made changes in its oversight of commercial banks and other financial institutions. They also address the introduction of new requirements for the internal control procedure.

The new rules and policies are aimed at preventing illicit incomes, terrorism financing and proliferation of weapon for mass destruction from being legalized. The Belarus government said the measures will help strengthen the anti-money laundering measures already set and improve cybersecurity in the country.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

source: https://coingeek.com/belarus-targets-cryptocurrency-companies-crypto-friendly-regime/

Vinny Lingham at TOKEN2049: If cryptocurrency doesn’t self-regulate, governments will

Vinny Lingham tackles dumb money and half-baked tokenization projects which are attracting government scrutiny and can possibly lead to stifling regulation.

Last week’s TOKEN2049 put the ICO frenzy into the spotlight: it seems everyone is launching an ICO. Whether each token has technical and economic merits may be debatable, but it’s quite plain for anyone to see that things are going out of hand.

Civic CEO Vinny Lingham spoke at the TOKEN2049 conference in Hong Kong last week, focusing particularly on governance in the blockchain sphere.  He added that if the cryptocurrency industry wants to retain as much of its freedom as possible, it would need to “self-regulate” and construct its own code of conduct. Otherwise, governments will step in and may impose stricter regulations than most would be comfortable with, which could potentially impede innovation.

“The crypto sector will need to begin self-regulating due to a number of incidents that have caused concern recently, otherwise governments will impose stricter regulations,” Lingham said, summarizing the point in his presentation by saying “industries that don’t self-regulate get regulated.”

“If you look at history, if industries that don’t self-regulate in the sense that the business leaders don’t come together and argue for a code of conduct and a code of practices that becomes uniform across the industry, regulators get involved,” Lingham said.

Citing recent events such as the rise of scams, Lingham says government concern is not unfounded. These days, there are more ICOs than people can imagine, and there’s a lot of “dumb money” pouring into the space as misinformed people jump into investments without knowing full well what the risks are. Many cannot distinguish between legitimate projects and outright scams, despite obvious signs. Some even invest despite barefaced admissions by the project founders themselves that they are indeed, running a scam.

“These people don’t know better so now regulators are stepping up and saying we must protect people. This industry as it is emerging has got a lot of bad actors in it,” said Lingham. “There are things we can do around that as well in order to prevent too much regulation.”

“Token economy design is an important part of what you’re doing. Don’t take the money here and then worry about how you can make it work later on,” he asserted.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

source: https://coingeek.com/vinny-lingham-token2049-cryptocurrency-doesnt-self-regulate-governments-will/

New bill may pave the way for cryptocurrency payments in Russia

A draft bill aiming to protect the rights of cryptocurrency owners was introduced by the minister of finance in Russia, in hopes of boosting cryptocurrency trade in the country. Apart from protection, the bill is expected to regulate the use of “digital money” for payments in the country, according to reports.

Bill No424632-7 shines a light on various cryptocurrency-related activities in the country, such as defining cryptocurrency as digital money and outlining digital rights of digital assets owners.  According to the ministry, the bill will allow authorities to tax the digital currencies to support the state budget. It also deals with other matters like inheritance rights and bankrupt claims of cryptocurrencies.

This new bill was co-sponsored by the speaker of State Duma, Vyacheslav Volodin, and the head of the parliamentary legislation committee, Pavel Krasheninnikov.  Once signed into law, the bill will regulate initial coin offerings (ICOs) and crypto mining, but bans cryptocurrencies. The fate of cryptocurrencies like Bitcoin will be decided by the Central Bank of Russia (CBR).

In an interview with Forbes, KickICO CEO Anti Danilevski said the draft law’s main goal is to define the scope of action and of regulation of cryptocurrency, and not the outright banning of cryptocurrency use in the country.

Russia previously said it would ban cryptocurrencies as they encourage illegal activities like money laundering and financial terrorism.

The bill has also defined bitcoin mining as an entrepreneurial activity that is aimed at creating cryptocurrency and/or validating transactions in exchange for payment in cryptocurrency. This could necessitate bitcoin miners in Russia to register as self-employed persons offering cryptocurrency-related services.

Crypto trade will only be allowed on licensed exchanges of digital financial assets or through the existing trading platforms that have stock exchange licenses. The bill also stated that individuals who have not been registered as qualified investors will only be able to invest 50,000 rubles ($900) in ICOs.

If passed, the new law will require private individuals to open special accounts and wallets with operators—similar to brokerage accounts—before they can use their cryptocurrency holdings.

The new law is expected to be enforced on May 1, 2018. Subsidiary regulations will be developed with the help of the Central Bank of Russia and the Ministries of Financial and Economic Development.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

source: https://coingeek.com/new-bill-may-pave-way-cryptocurrency-payments-russia/

Canada could be poised to regulate cryptocurrency

The world needs to accept the fact that cryptocurrencies are here to stay. Much to the chagrin of banks and financial institutions, the digital currency has not one, but both feet in the door and is poised to revolutionize how money is defined. Cryptocurrency enthusiasts, for their part, need to realize that cryptocurrencies will never advance as an industry without governments getting involved and providing some form of oversight. Canada is making the move, exploring how to regulate the myriad of possibilities in the crypto realm.

Amendments to Canada’s Proceeds of Crime and Terrorist Financing Act (PCMLTF) of 2014 implemented changes to legislation that require businesses handling cryptocurrencies to register with FINTRAC, Canada’s financial intelligence unit. The amendments also prohibit banks from conducting business with entities that aren’t registered with FINTRAC. While this portion of the PCMLTF hasn’t been strictly enforced, that will soon change.

Opponents to the updated legislation are concerned that any regulation will curb innovation. In the U.S., for example, Coinbase has slowed operations after the Securities and Exchange Commission, the Commodities and Futures Trading Commission and the Federal Trade Commission have all expressed their desire to implement wide-reaching legislative controls. China, once the center of blockchain innovation, has taken a strong anti-cryptocurrency stance, forcing many companies to leave the country.

In a hearing last Monday held by FINA, the parliamentary committee that oversees finance, the subject was hotly debated and included a speech by Jonathan Hamel. Hamel is a cryptocurrency expert, as well as the founder of Montreal’s L’Académie Bitcoin, a crypto training and consulting company. Hamel said, “After 10 years of organic growth and institutional adoption, we still see a lot of scrutiny and doubt towards Bitcoin from regulators,” Hamel told Motherboard. “At some point, we have to accept that it’s part of the financial landscape and move on.”

The hearings that began last Monday haven’t yet reached their conclusion. Nor is anyone stating that Canada will bring a complete halt to the industry. Any regulations would be available for public scrutiny once a final report is presented to the House of Commons.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

French central bank warns financial institutions to stay out of crypto

It’s painfully obvious that French regulators need a few lessons on the topic of cryptocurrency. In a recently-released report by the Bank of France (BoF), officials are hoping to implement some drastic legislation that will seriously hinder the advancement of the digital currency in the country. It’s a step back for cryptocurrency, but not at all surprising from the country that thinks escargot is a viable dinner.

The BoF disseminated a report on March 5, outlining how it views cryptocurrency, and the opinion is definitely not vague. The bank said that cryptocurrencies are not money or legal tender and only serve to facilitate cyber-attacks and money laundering. It added that there is virtually no value in crypto-assets. Translated from the French report, the authors of the report argue, “The anonymity that characterizes the means of production and transfer of the majority of crypto-assets favors above all a risk of them being used to criminal ends (sold on the internet for illicit services or goods) or used to the end of money laundering and the financing of terrorism.”

The BoF goes on to indicate that it would support any action that prohibits banks, trusts and insurance companies from taking deposits or loans that have their origin in crypto. It also is pushing for a prohibition on any type of marketing that suggest crypto is a valid product for financial growth, except in certain limited instances, including marketing to only highly experienced investors. No one becomes a highly experienced investor unless they’re an inexperienced investor. It’s the whole “learn to crawl before you can walk” principle.

The next section in the report mimics what has so many banks concerned these days. The BoF said that the cryptocurrency industry has the potential to destabilize financial markets. In case the report authors missed the memo, that’s the whole idea. There seems to be a trend among a large number of banks that focuses only on saving their own assets, and not doing what is best for the community. This, as has been repeatedly demonstrated, is one of the main driving factors behind cryptocurrencies.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.