This Week in Crypto: ASIC Plans to Take Action Against High-Risk Crypto Products
Discover the top news stories circulating the block
On November 3rd, the Australian Securities & Investments Commission (ASIC) annual forum took place. Chair and Accountable Authority of ASIC, Joe Longo, stated the following within his opening speech, “We’re seeing issuers promoting high-risk products as appropriate investments that will make up a significant portion of an individuals investment portfolio. This will not be tolerated and action will be taken.” Longo followed this by saying, “While encouraging digital innovation, ASIC will act to disrupt and deter conduct that harms people. Harmful conduct that falls within our jurisdiction, including unlicensed conduct and misleading promotion of crypto-asset financial products, is within our sights”.
Some of the ‘cornerstones’ mentioned in ASICs crypto regulation strategy include:
- Supporting the development of a regulatory framework
- Greater legal clarity for cryptocurrency
- Gathering information from international peers to inform the government on an effective legal framework
- Continuing to disrupt and deter scams involving crypto
More news stories circulating the block:
Lebanon Turns to Bitcoin & Tether Amidst Economic Crisis
The current unsustainability within the financial system in Lebanon has resulted in locals turning to crypto to protect their funds. The Lebanese currency has lost 96% of its value in the last three years, and banks are closing in multiple occasions and putting limitations on the withdrawals of funds. This has resulted in the people of Lebanon losing trust in their banks and relying on Bitcoin (BTC) and Tether (USDT) to store funds and make payments.
Despite living in a country with frequent power outages, some locals are exploring opportunities in crypto mining. Coffee shops, hotels and tourism agencies are now accepting crypto as payment form, even though crypto payments are prohibited by Lebanese law. Locals are also seeking freelance work that can pay with BTC. According to blockchain data firm, Chainalysis, Lebanon ranks second only to Turkey in terms of the volume of cryptocurrency received among Middle Eastern and North African countries.
Research Shows CBDCs could Drastically Reduce Foreign Exchange Transactions
Research efforts by the Federal Reserve Bank in New York on using a central bank digital currency (CBDC) with foreign exchange spot transactions (knows as FX spot) have shown quick results. These transactions are critical for cross-border payments and can serve as building blocks for more complex transactions. It has been noted that the settlement of these trades typically takes ‘about two days’ to complete. Research showed using a CBDC indicated that the same settlement could occur in fewer than 10 seconds on average and could serve the same building block functionality. The report did caution that its findings did not have implications for the adoption of a fully digital central bank currency.
SEC Charges Founder and Promoters of $295M Ponzi Scheme
The US Securities and Exchange Commission (SEC) has charged the founder and three promoters of Trade Coin Club for their roles in a global cryptocurrency Ponzi scheme that deceived more than 100,000 investors worldwide raising 82,000 BTC. Investors were told they could generate “minimum returns of 0.35% daily” from a “crypto asset trading bot,” but instead used these funds to compensate themselves. Trade Coin Club, which marketed itself as a membership group for trading bitcoin, was “a multi-level marketing program” that operated from 2016 through to 2018 and promised profits from the trading activities of a purported crypto asset trading bot, according to the SEC.
Meta Announces NFT Marketplace and Minting on Instagram
Meta announced via Twitter that users will soon be able to make and sell NFTs on Instagram. The purpose of the new NFT marketplace is primarily to support creators and make it easier for them to monetise their work. The new marketplace will use the Polygon blockchain and is said to initially have no fees. Meta has said that for now it won’t charge fees to use the marketplace and will also cover any Ethereum gas fees.
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