The long-awaited watershed moment for the controversial “ICOs” has finally come as France came up with a legislative framework for ICO offerings. It’s a welcoming sign that highlights regulators’ growing comfort with the acceptance of cryptocurrencies and ICOs, especially at a time when the ambiguity around the regulatory acceptance of crypto assets looms tall. The new legislation which is expected to come into effect in early 2019 provides more clarity for both investors and project operators alike. Investors can now invest in ICOs with protections offered by the regulators around transparency and promises.
However, just a few hours after France announced ICO regulations, China reiterated its hostile stance toward cryptocurrencies by issuing a public notice which warned investors against the risks of investing in ICOs. The pace of cryptocurrency innovation lies in the hands of regulators as countries will soon start adopting crypto-friendly or anti-crypto attitudes, creating a schism of regulatory arbitrage. We expect regulators to take a measured and technology-friendly approach, especially when the cost of an impetuous move is the inevitable flight of smart talent and capital, which could have their respective nation states playing catch-up forever.
Team ZenPriveX is in Singapore this week for the inaugural edition ofConsensus Singapore. We hope to come back to with you key takeaways from the event and other interesting things we pick from around conference in Singapore in a newsletter soon.
You can read about our Consensus New York round-up here.
Please hit us up if you are in Singapore this week.
“All Hail CryptoMom” Hester Peirce, the commissioner of the SEC said that the regulator should not impose a condition that new products linked to cryptocurrency markets only on the back of comprehensive government regulation. The comments come after her letter of dissent against the SEC’s rejection of the Winklevoss ETFs.
“Fidelity Crypto Products” Speaking at the Boston Fintech Week conference, Abigail Johnson, Fidelity’s CEO confirmed that the investment group is, in fact, working to develop blockchain and cryptocurrency products. However, she did not define the exact timeline for release. Fidelity has been one of the firms that has long held a positive outlook towards crypto.
“Binance and Kraken Called Out” A number of crypto exchanges are allegedly operating without adequate safeguarding measures and investor protection policies, according to the report published New York attorney general’s office. Among the exchanges operating in New York, Binance, Kraken, and Gate.io were escalated to the NYDFS on the grounds of unlawful business practices.
“Shackling Bitcoin” The MPs on the Treasury committee in Britain called for an immediate regulation of Bitcoin and other crypto assets. The unregulated industry leaves customers unprotected and aides money laundering, according to the committee. The FCA seconds the committee’s findings that Bitcoin and other crypto assets are ill-suited for retail investors.
“China Warns Crypto Investors” About a year after China outlawed all ICOs by issuing a blanket ban, the PBoC issued a public notice asking Chinese investors to be fully cognizant of the risks involved in cryptocurrency trading and initial coin offerings (ICOs). The central bank also added that it is closely monitoring the 124 offshore cryptocurrency trading platforms that are seemingly evading the mainland ban and still serving Chinese customers.
The State of Cryptocurrency Mining by David Vorick
Governance, Bitcoin Narratives and Ethereum featuring Nic Carter