All posts tagged: crypto assets

UK Says 90 Percent Crypto Firms Applying for Licence Lacks Money Laundering, Fraud Precautions

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As the UK aims to position itself as a leading hub for Web3 innovation, financial authorities are stepping up efforts to safeguard the crypto sector’s stability and security. A recent report from the UK’s Financial Conduct Authority (FCA) revealed that 90 percent of recent crypto firm registration applications have been rejected. Key reasons for these rejections include concerns over inadequate security measures, particularly around fraud prevention and anti-money laundering protocols. In releasing this report, the FCA stated that the feedback is intended to assist crypto firms in better preparing for the registration process in the UK. According to the FCA, the UK received 359 crypto firm registration applications between January 2020 and September 1. Of these, only 47 firms (14 percent) successfully registered, while 40 firms (12 percent) had their applications rejected. A significant majority—240 firms (70 percent)—withdrew their applications before a decision was made, and the remaining 13 firms (4 percent) were outright refused by the FCA. “We have rejected submissions that didn’t include key components necessary for us to carry out an assessment, …

UK Government Plans to Bring New Rules for Stablecoins, Crypto Staking in Next Six Months

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The UK government plans to get new rules governing stablecoins and staking services for cryptoassets approved by lawmakers within the next six months as pressure ratchets up to deliver on specific proposals ahead of an impending general election. Economic Secretary to the Treasury Bim Afolami, speaking at an industry event hosted by Coinbase in London on Monday, said the government was “pushing very hard” on making legislation happen. “We’re very clear that we want to get these things done as soon as possible. And I think over the next six months, those things are doable,” Afolami said. The Treasury first pledged in October to provide more clarity on specific areas of crypto by some point in 2024. That commitment followed an earlier consultation on fiat-backed stablecoins — digital tokens that use reserves of assets to maintain a one-to-one value with a traditional currency like the dollar or pound — and the passing of the larger Financial Services and Markets Act last summer. Market observers like blockchain analytics firm Elliptic have said they expect to see …

Explained | What is the crypto awareness campaign?

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The crypto dilemma stems from concerns about the unregulated currency having a destabilising effect on the country.  | Photo Credit: Getty Images/iStockphoto The story so far: The Investor Education and Protection Fund (IEPF) will launch an outreach programme soon to create awareness of cryptocurrencies and online gaming. The need for the outreach is based on the observation that both crypto-assets and online gaming (that extends to gambling and betting) are still being promoted in a risky manner despite the recent turmoil in the sector. What is the Investor Education and Protection Fund (IEPF)? The Investor Education and Protection Fund (IEPF) is managed by the IEPF Authority, which was set up in 2016 under the provisions of Section 125 of the Companies Act, 2013. The Authority is entrusted with the responsibility of administration of the IEPF, which, besides promoting awareness among investors, makes refunds of shares, unclaimed dividends, matured deposits and debentures and so on to rightful claimants. As for investment education, the idea is to reach out to household investors, housewives and professionals alike in …

What Is ‘Margin’ Crypto Trading and Why Do Experts Think It Should Be Banned in India?

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The digital assets market is a volatile sector where investors are always at risk of losing their funds. Within crypto trading practices, some trends are riskier than others, such as purchasing an NFT in a spur-of-the-moment decision. One such practice is called ‘margin’ or ‘leverage’ trading of crypto assets. Prevalent for a while now, the term made it to the headlines recently after the Canadian government decided to levy a ban on margin trading being offered as a service to Canadian residents by local as well as international exchanges. Margin trading, also called leverage trading allows customers to borrow capital from a broker to invest in crypto assets. The broker can be an individual as well as an entity such as a crypto exchange that offers the service. This practice enables traders to access more capital than what they originally have to bet on a crypto asset. This capital is backed by a collateral. In simple terms, if a trader has Rs. 100 and the exchange being used offers 10x margin on Bitcoin trade, the …

Bank of Israel Seeks Task of Supervising Stable Crypto Assets, Here’s What’s Brewing

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The stir around crypto regulations has intensified around the globe. Israel is the latest nation to join the list of countries that have accelerated their efforts around regulating the digital assets sector. Israel’s ministry of finance is now assessing the threats and challenges associated with the volatile industry, in order to curate appropriate rules to safeguard Israel’s crypto community. The government there is looking to tax crypto held by their citizens abroad, among other proposals. Shira Greenberg, the chief economist of Israel has submitted a detailed report proposing potential rules that may finetune the crypto industry in the Western Asian nation. The proposal includes giving the Bank of Israel the authority to oversee transactions of stable digital assets. “The creation of a mechanism that will be enshrined in legislation for the transfer of supervision to the Bank of Israel over digital assets that have a significant stability or monetary effect,” the blog post by the Israeli government said. Soon after, Israel may also get a committee, dedicated towards regulating the formations and operations of decentralised …