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Bitcoiners Hope to Have a Friend in Top US Regulator Jay Clayton

August 3, 2018 |

Bitcoiners Hope to Have a Friend in Top US Regulator Jay Clayton

Bitcoin might have a mole, a sympathetic insider at the highest levels of the US financial regulatory apparatus, if recent ecosystem press accounts are to be believed. According to a US Securities and Exchange Commission (SEC) meeting transcript, SEC Chair Jay Clayton has privately expressed deep knowledge of cryptocurrencies, including during a heated exchange with staff. Looming spectres of exchange traded fund listings, deciding which digital assets constitute securities, and much more, mean crypto needs all the friends it can get.   

Also read: Coinbase Flexes Muscle, Creates Political Action Committee

Transcript: Jay Clayton Had Heated Exchange with SEC Staff Regarding Crypto

In early June, Eric Werner, Associate Director of Enforcement in the Ft. Worth Regional Office of the SEC, set about welcoming his boss to Houston during a roundtable meeting. Sunshine laws usually demand such events be recorded, and sometimes even transcribed word for word. That appears to be the case here, as Associate Director Werner was tasked with introducing SEC Chair Jay Clayton.

Bitcoiners Hope to Have a Friend in Top US Regulator Jay Clayton
SEC Chair Jay Clayton

It’s arguably the most interesting part of the 19 page document, if only for the suck-up quality of Mr. Werner’s remarks. He flowers Chair Clayton with effusive praise so saccharine readers’ teeth ache after only a few paragraphs. It was Mr. Werner’s “privilege,” for example, to make the introduction of a man so humble he insists “we call him Jay.” However, “don’t be fooled by his informality,” the Associate Director swoons, “because, underneath that, lies incredible aptitude, intellect and dedication” of his superior. It goes on in this manner.

Arriving to page 12, after a laundry list of the SEC Chair’s credentials and super-human like attributes protecting the country and commerce itself, “the Chairman has found time to delve into some cutting edge issues,” Mr. Werner begins on line 1. Finding time to accomplish all of that having assumed office a tender 14 months ago is nothing short of miraculous.

Bitcoiners Hope to Have a Friend in Top US Regulator Jay Clayton

With Friends Like Chair Clayton, Who Needs Enemies

Chair Clayton, according to the Associate Director turned personal cheerleader, also immerses himself into “things like distributed ledger technology, the dark web and initial coin offerings. In fact, the first time that I met the Chairman, I walked into a heated discussion he was having with an attorney in my office about the legitimacy and viability of cryptocurrencies. I was taken aback, honestly, about how much thought he had given to this space and the issues surrounding that.” Bitcoiners Hope to Have a Friend in Top US Regulator Jay Clayton

The cryptosphere has run a little wild with the insight, and assumed Chair Clayton was taking a positive position, outlook toward things crypto. And that does seem to be a fair reading of the passage’s import, seeing as how the SEC is presupposed to crack down on non-government financial innovation. But nowhere is the Chair quoted as affirming cryptocurrencies. It’s turns of phrase from the Associate Director such as “legitimacy and viability of cryptocurrencies” that might be causing most of the ruckus. Regulators at the highest levels of finance engaging in honest debate, much less about decentralized digital money, is indeed a revelation.

Still, Mr. Clayton is on record in several instances as insisting nearly all initial coin offerings (ICOs) constitute securities according to his understanding of the Howey Test, and are therefore automatically subject to SEC jurisdiction. SEC field offices have been aggressive in helping to prosecute peer-to-peer Bitcoiners across the US as unregistered money exchanges. That combination has all but dried up ICOs in the United States, and heavy market capitalized cryptocurrencies such as Ethereum’s ETH and Ripple’s XRP have recoursed to lawyering up just in case they’re tagged securities. Lastly, the bitcoin ETF drama has unsettled crypto markets to no end, rising and falling on the shabbiest of rumors and hints coming from the SEC. With friends like Mr. Clayton, who needs enemies?, might be the more appropriate stance by enthusiasts at this point.   

Do you think SEC Chair Jay Clayton is pro cryptocurrencies? Let us know in the comments section below. 


Images via Pixabay, SEC. 


Be sure to check out the podcast, Blockchain 2025; latest episode here

The post Bitcoiners Hope to Have a Friend in Top US Regulator Jay Clayton appeared first on Bitcoin News.

Bitcoin News

Rare: Bitcoin Mining Company Cleared of Wrongdoing by Regulator

July 29, 2018 |

Rare: Bitcoin Mining Company Cleared of Wrongdoing by Regulator

The Securities Commissioner of South Carolina dismissed its previous order of nearly half a year ago against Genesis Mining. It’s rare, and some say this is a first for the state, as the Commissioner hasn’t previously withdrawn such an order. The company plans to resume services in the United States as a result. The case also might mark a turning point in such for firms beginning to fight back against regulators.

Also read: Ross Ulbricht Murder-for-Hire Indictment to Be Dismissed

South Carolina Securities Regulator Dismisses Previous Cease and Desist Order Against Genesis Mining

“We are happy to announce that the South Carolina securities division has dismissed Genesis Mining from its March 9, 2018, cease and desist,” wrote Shah Hafizi, chief compliance officer for Genesis Mining in reference to a cease and desist order being lifted by the state of South Carolina. “One of our company‘s principles is transparency. After all, it is a core value of blockchain technologies. Over the past five months, we’ve worked closely with South Carolina officials to educate them and provide a practitioner’s perspective on mining, blockchain networks and the decentralized nature of the technologies we support.”

Actually, two crypto related firms were gifted an order of dismissal this week from the Securities Commissioner of South Carolina. Both Genesis Mining and Ship Chain were issued cease and desist order withdrawal notices.

Rare: Bitcoin Mining Company Cleared of Wrongdoing by Regulator

Ship Chain was accused of peddling securities disguised as tokens. Ship Chain pushed back, arguing such was not the case and how they were totally unaware residents of the state could even purchase their token, SHIP. In what appears to be a final decision in the case, Commissioner Meyers wrote the agency “after receiving information regarding matters detailed in the Administrative Order to Cease and Desist issued […] upon due consideration of such information, finds good cause has been shown to vacate the [order],” leaving Ship Chain off the hook.

Genesis Mining, on the other hand, was named a respondent in an unrelated case, also thought to be selling unregistered securities but with cloud mining contracts. It too had its order dismissed; however, co-respondent Swiss Gold, thought to be the mining company’s broker at the time, is still under order.

Rare: Bitcoin Mining Company Cleared of Wrongdoing by Regulator

Genesis Conciliatory, Vows to Work with Regulators

Mr. Hafizi, Genesis COO, “By working together with regulators, we can ensure that investors are protected, and innovation is not stifled. We believe for the industry to reach its true potential, companies and regulators need to collaborate. We strongly encourage blockchain companies, regardless of where they are in the world, to proactively engage with local regulators at all levels.”

Registration, when it comes to business activity in any state, is a particularly touchy subject. Combine that fact with relatively exotic industry as cloud mining companies, and jumping to conclusions is an obvious result by regulators. 

Rare: Bitcoin Mining Company Cleared of Wrongdoing by RegulatorSouth Carolinians purchased hard drive power over blocks of time. To regulators, this appeared to be a form of investment contract, a security. As a result, the state Commission barred both Genesis and Swiss Gold from doing business in its boundaries. Swiss Gold remains under that restraint as of press time.  

The Icelandic company, Genesis Mining, has been in the ecosystem for five years, and is one of the biggest cloud mining companies in the space. 

Can companies recover after being cleared from an indictment? Let us know in the comments section below. 


Images via Pixabay, State of South Carolina.


Be sure to check out the podcast, Blockchain 2025; latest episode here

The post Rare: Bitcoin Mining Company Cleared of Wrongdoing by Regulator appeared first on Bitcoin News.

Bitcoin News

South Korean Regulator Presses Lawmakers to Pass Crypto Bill Urgently

July 28, 2018 |

South Korean Regulator Presses Lawmakers to Pass Crypto Bill Urgently

South Korea’s top financial regulator has urged lawmakers to pass the country’s first crypto bill quickly, citing the urgent need from rising incidents at crypto exchanges. There are currently several crypto-related laws pending at the National Assembly.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Crypto Law Urgently Needed

South Korean Regulator Presses Lawmakers to Pass Crypto Bill UrgentlySouth Korea’s top financial regulator, the Financial Services Commission (FSC), has urged lawmakers to “pass the country’s first cryptocurrency bill quickly,” Bloomberg reported this week. According to the agency, “Korea urgently needs crypto laws as thefts rise,” the publication conveyed, adding that “local exchanges are rife with security flaws and money laundering risks.”

Hong Seong-ki, head of the FSC virtual currency response team, said in an interview:

We’re trying to legislate the most urgent and important things first, aiming for money laundering prevention and investor protection. The bill should be passed as soon as possible.

South Korean Regulator Presses Lawmakers to Pass Crypto Bill UrgentlyThe South Korean government first announced crypto regulation in the second half of last year. In September, initial coin offerings (ICOs) were banned. A crypto task force was established at that time “to improve the transparency of transactions and improve the legal system to protect consumers,” Joongang Daily described.

Since then, the FSC and other regulators have announced additional crypto regulatory measures including the real-name system and trading restrictions on minors and foreigners. However, “the problem is that these announcements have shaken the market but do not provide a proper legal framework for investor protection or market development,” the news outlet pointed out.

According to the publication, there are currently five crypto-related laws pending at the National Assembly.

Inadequate Security Measures

Hong was further quoted by Bloomberg claiming:

While crypto markets have seen rapid growth, such trading platforms don’t seem to be well-enough prepared in terms of security.

In June, two Korean crypto exchanges suffered security breaches. Coinrail was hacked on June 10 with an estimated damage of 45 billion won (~US$ 40 million). Bithumb, one of the largest crypto exchanges in the country, was hacked on June 20 with an estimated damage of about 19 billion won (~$ 17 million).

Putting FSC in Charge of Crypto Exchanges

South Korean Regulator Presses Lawmakers to Pass Crypto Bill UrgentlyFollowing the security breaches at Coinrail and Bithumb, the Korean government immediately launched an investigation into their causes.

The FSC subsequently pushed for a bill to require crypto exchanges to report to and be regularly supervised by the Financial Intelligence Unit (FIU), which is under its supervision. “This is the first time government agencies have said they will oversee virtual currency exchanges,” Maeil Business wrote.

Emphasizing that he personally “wouldn’t recommend putting money in cryptocurrencies,” Hong reiterated:

FSC oversight wouldn’t imply an official endorsement of crypto trading. If the bill is passed, the regulator will focus on policing the exchanges rather than promoting their growth.

Meanwhile, the commission itself is undergoing a major restructuring. A bureau dedicated to financial innovation including cryptocurrencies will be established for policy initiatives, the FSC recently announced.

Do you think South Korea needs to pass a crypto bill urgently? Let us know in the comments section below.


Images courtesy of Shutterstock and the FSC.


Need to calculate your bitcoin holdings? Check our tools section.

The post South Korean Regulator Presses Lawmakers to Pass Crypto Bill Urgently appeared first on Bitcoin News.

Bitcoin News

Vietnamese Regulator Tells Firms and Funds to Stay Away From Crypto

July 26, 2018 |

Vietnamese Regulator Tells Firms and Funds to Stay Away From Crypto

Vietnam’s securities watchdog has required local businesses not to engage in transactions with cryptocurrencies. The announcement follows a directive issued by the country’s prime minister earlier this year aimed at tightening what Vietnamese regulators call the management of crypto activities.

Also read: China Releases Ranking of 31 Crypto Projects

Securities Watchdog Asks Companies to Obey AML Rules

The State Securities Commission of Vietnam (SSC) has required relevant companies and funds not to engage in any issuance, transaction or brokerage activities related to cryptocurrencies. The measure, referred to by local media as a ban, affects public companies, securities companies, fund management firms and securities investment funds. They have also been asked to obey anti-money laundering (AML) regulations.

Vietnamese Regulator Tells Firms and Funds to Stay Away From Crypto

According to the SSC, the announcement is based on Directive No 10/CT-TTg signed on April 11 by Vietnam’s Prime Minister, Nguyen Xuan Phuc, Viet Nam News reported. The document puts an emphasis on strengthening the management of activities related to bitcoin and other cryptocurrencies. The outlet also notes that the use of digital currencies is prohibited in Vietnam.

Not the First Anti-Crypto Measure

This is not the first administrative measure aimed at curbing crypto activities in the country. In April, the State Bank of Vietnam (SBV) banned commercial banks, payment services providers and intermediaries from making transactions involving cryptocurrencies. The central bank also issued a warning stating that such activities may increase the risks of money laundering, terrorism financing, trade fraud and tax evasion.

Vietnamese Regulator Tells Firms and Funds to Stay Away From CryptoLast October, the SBV declared that cryptos do not represent a “lawful means of payment” in the Asian country. Its proposals in that respect, which were submitted to the government in Hanoi, included a ban on the issuance, distribution, and use of cryptocurrencies as well as criminal prosecution and fines for their users.

Recently, citing the familiar argument – the need to improve the management of cryptocurrencies in Vietnam – the Ministry of Finance, the Ministry of Industry and Trade, and the SBV reached an agreement to suspend the import of crypto mining equipment. The proposal came from the Finance Ministry in June, as news.Bitcoin.com reported.

Fraud and Scam in Vietnam

Vietnamese Regulator Tells Firms and Funds to Stay Away From CryptoIn the past couple of years, the Vietnamese mining sector has been growing rapidly leading to a significant increase in the number of imported mining rigs. Digital coin minting, however, has caused concern in Hanoi. In May, close to 150 Vietnamese government agencies, financial institutions and businesses took part in a large cyber-security drill aimed at preventing the spread of mining malware.

Crypto-related fraud has played a role in shaping the current attitude of Vietnamese authorities and regulators towards the crypto space. The country recently had to deal with one of the largest scams in crypto history in which more than 30,000 people were defrauded into investing in the Ifan and Pincoin currencies.

What are your expectations for the future of cryptocurrencies in Vietnam? Share your thoughts in the comments section below.


Images courtesy of Shutterstock and the SSC.


Make sure you do not miss any important Bitcoin-related news! Follow our news feed any which way you prefer; via Twitter, Facebook, Telegram, RSS or email (scroll down to the bottom of this page to subscribe). We’ve got daily, weekly and quarterly summaries in newsletter form. Bitcoin never sleeps. Neither do we.

The post Vietnamese Regulator Tells Firms and Funds to Stay Away From Crypto appeared first on Bitcoin News.

Bitcoin News

Texas Regulator Issues Cease and Desist Order to a Network of Crypto Companies

July 13, 2018 |

Texas Regulator Issues Cease and Desist Order to a Network of Crypto Companies

The Texas State Securities Board has taken an emergency action to stop a network of crypto-related companies from illegally offering investments in the state. A token offering and a mining firm are among those targeted by the securities board as selling fraudulent “cryptocurrency-related investments.”

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Emergency Action Taken

Texas Regulator Issues Cease and Desist Order to a Network of Crypto CompaniesThe Texas State Securities Board announced Thursday that an emergency action has been taken to “target promoters of crypto-mining investments.” According to the notice published on July 12 by the Board:

Texas Securities Commissioner Travis J. Iles took emergency action July 11 to stop a network of companies from fraudulently offering cryptocurrency-related investments to Texas residents.

Utah-based companies Mintage Mining LLC, Symatri LLC, NUI Social, Social Membership Network Holding LLC, and BC Holdings and Investments LLC are named in the emergency cease and desist order. They are all controlled by Darren Olayan of Lehi, Utah. In addition, NUI Social affiliates, Utah-based Douglas Whetsell and Houston-based Wyatt Mccullough, are also named in the order.

Investment Schemes

Texas Regulator Issues Cease and Desist Order to a Network of Crypto CompaniesMintage Mining LLC allegedly issues and offers two different crypto mining-related investments “illegally and fraudulently.” Together with Symatri LLC, they sell “pre-configured computer hardware to mine Kala,” an ERC-20 token which Symatri claims to be “fungible and transferable, and it is expected to be traded on cryptocurrency exchanges in the near future.”

Symatri also claims that more than 13,000 users have signed up for Kala’s ICO, which sold more than 814 million tokens. It supposedly raised over $ 8.5 million and more than 800 BTC. According to the Commissioner:

Symatri is not disclosing material information about the value of its cryptocurrency Kala. Nor is it providing information about the risks of investments in the computer hardware used to mine Kala.

Texas Regulator Issues Cease and Desist Order to a Network of Crypto CompaniesNUI Social is a multi-level marketing company that claims to have more than 300,000 members in 140 countries. Members of the scheme recruit individuals for crypto investments and earn commissions for the people that they recruit.

Whetsell and Mccullough were named for publishing “advertisements targeting Texas residents,” the Commissioner explained. According to the document, the promoters made claims such as:

The average weekly rate of interest varies from three percent to seven percent and the annual rate of interest ranges from 180 percent to 250 percent.

The advertisements also represent that Mccullough’s investment grew 500% within 7 weeks while his uncle’s rose 4,000% in 10 weeks.

The Violations

The order “alleges widespread violations of the Texas Securities Act” by all of the entities and individuals named within. According to the Commissioner, “none of the persons offering any of the investments are registered to sell securities in Texas, nor are the investments themselves registered for sale or have qualified for an exemption from registration.”

The Commissioner elaborated:

The violations include making deceptive claims to the public. Olayan and Mintage Mining, for instance, are telling investors that Mintage is ‘in compliance’ with securities laws, ‘works to always stay ahead of cryptocurrency regulation,’ and ‘remain[s] so continually by keeping in contact with legal firms.’

All named parties have been ordered to immediately cease and desist from offering a security for sale in Texas until the security is registered or exempt. They must also cease acting as securities dealers or agents in the state until they are registered or exempt. They have likewise been told that they cannot engage in any security-related fraud in the state.

What do you think of the Texas State Securities Board’s cease and desist order? Let us know in the comments section below.


Images courtesy of Shutterstock and the Texas State Securities Board.


Need to calculate your bitcoin holdings? Check our tools section.

The post Texas Regulator Issues Cease and Desist Order to a Network of Crypto Companies appeared first on Bitcoin News.

Bitcoin News

Japanese Regulator Responds to Reports of Overhauling Crypto Regulation

July 5, 2018 |

Japanese Regulator Responds to Reports of Overhauling Crypto Regulation

Japan’s top financial regulator has responded to media reports that it is considering overhauling the way cryptocurrency is regulated in the country. The authority has been under fire for the inadequacy of its crypto exchange registration process after it issued business improvement orders to a number of exchanges it previously approved.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

FSA Reportedly Considering New Crypto Law

Japanese Regulator Responds to Reports of Overhauling Crypto RegulationOn Tuesday, June 3, the Sankei Shimbun reported that Japan’s top financial regulator, the Financial Services Agency (FSA), is considering overhauling the way cryptocurrency is regulated in the country. The news outlet claims that the FSA is mulling over switching from using the revised fund settlement law to the Financial Instruments and Exchange Act (FIEA), elaborating:

Virtual currency is considered a means of settlement, the same as electronic money etc. by the revised fund settlement law, but if it becomes subject to the regulation by the Financial Instruments and Exchange Act, it will be treated as a financial product.

The FIEA “obliges securities companies and others to manage customer funds and securities (stocks, etc.) separately from corporate assets,” the publication noted. In addition, companies must establish “a strict investor protection system, such as forbidding insider trading of stocks.”

FSA’s Response

Japanese Regulator Responds to Reports of Overhauling Crypto RegulationImpress Corporation subsequently published the FSA’s response to the reports by the Sankei Shimbun and a few other local publications. After contacting the agency to verify the news, the publication quoted the agency conveying, “there was no such fact.”

The news outlet added that the FSA regularly holds a research meeting with academics experts, financial practitioners, institutional members, and other industry participants to respond to various problems surrounding the crypto industry.

The FSA told the news outlet:

If there are such considerations, it will be taken up as an agenda for the study group…the [said] agenda has not been discussed at all in the past 4 meetings…Things that are not on the agenda at all cannot be considered.

Speaking to news.Bitcoin.com, Ken Kawai, Partner at law firm Anderson Mori & Tomotsune, also expressed his doubt of the source of the news, commenting:

In the long run it may happen but not soon. However, cryptocurrency derivatives including futures, swaps, options and CFD may become regulated under the FIEA relatively earlier.

Current Law Inadequate

The revised fund settlement law went into effect in Japan in April last year, effectively legalizing cryptocurrency as a means of payments and requires crypto exchanges to register with the FSA. So far, the agency has fully approved 16 crypto exchanges.

Japanese Regulator Responds to Reports of Overhauling Crypto RegulationHowever, following the hack of Coincheck in January, the agency has tightened its oversight of crypto exchange operators and have found some of the 16 licensed exchanges to have inadequate internal systems. In March, the FSA issued business improvement orders to two of them – Tech Bureau, which operates the Zaif exchange, and GMO Coin.

Then on June 22, the agency issued business improvement orders to six licensed exchanges: Bitflyer, Bitpoint Japan, Btcbox, Bitbank, Quoine, and Tech Bureau. Bitflyer is Japan’s largest crypto exchange by volume.

Following these orders, the FSA has come under fire for how it approves crypto exchanges. The Sankei Shimbun elaborated, “If the management of the exchange is deteriorated, the mechanism to protect customer assets is insufficient,” adding that by regulating cryptocurrencies with the FIEA as securities, “it will lead to the strengthening of user protection.”

Do you think the FSA should change how it regulates cryptocurrency? Let us know in the comments section below.


Images courtesy of Shutterstock and the FSA.


Need to calculate your bitcoin holdings? Check our tools section.

The post Japanese Regulator Responds to Reports of Overhauling Crypto Regulation appeared first on Bitcoin News.

Bitcoin News

Taiwan’s Financial Regulator to Conduct Limited Oversight of Cryptocurrencies

June 23, 2018 |

The Financial Supervisory Commission of Taiwan has indicated its intentions to maintain only a limited oversight of cryptocurrencies. The regulator said it’s going to focus mainly on the enforcement of anti-money laundering policies, while remaining open towards innovations like those coming from the crypto sector.

The Financial Supervisory Commission of Taiwan has indicated its intentions to maintain only a limited oversight of cryptocurrencies. The regulator said it’s going to focus mainly on the enforcement of anti-money laundering policies, while remaining open towards innovations like those coming from the crypto sector.

Also read: Bitcoin Businesses Denied Banking Services in Ireland

Not Stifling Innovation

The Financial Supervisory Commission of Taiwan has indicated its intentions to maintain only a limited oversight of cryptocurrencies. The regulator said it’s going to focus mainly on the enforcement of anti-money laundering policies, while remaining open towards innovations like those coming from the crypto sector.With the executive power in Taipei still mulling over new regulations for cryptocurrencies and initial coin offerings (ICOs), representatives of Taiwan’s financial regulator indicated their unwillingness to slow down progress in the fintech industry. The Financial Supervisory Commission (FSC) will mainly focus on one of its core duties – overseeing the enforcement of anti-money laundering policies, and will continue to welcome innovations that come with digital currencies.

During a press conference on Thursday, Banking Bureau Deputy Director Sherri Chuang said the FSC prefers to monitor developments and avoid stifling early-stage growth. Quoted by The Taipei Times, she emphasized:

The commission maintains an open stance and welcomes all industry innovations.

Chuang also noted that cryptocurrencies, and the tokens issued through ICOs, which are classified as commodities at this stage, do not currently fall under the commission’s jurisdiction. The regulator is only involved in preventing money laundering through virtual assets, the official reiterated before the media. Sherri Chuang compared the situation with that of the lease finance companies, where the involvement of the regulator is also limited to money laundering prevention.

The Financial Supervisory Commission of Taiwan has indicated its intentions to maintain only a limited oversight of cryptocurrencies. The regulator said it’s going to focus mainly on the enforcement of anti-money laundering policies, while remaining open towards innovations like those coming from the crypto sector.According to another representative of the commission, Securities and Futures Bureau Chief Secretary Chien Hung-ming, ICOs do not cross any regulatory red lines in Taiwan. He explained that each coin offering would be assessed on a case-by-case basis, noting that regulators are primarily concerned with examining the fundraising prospects of the respective token sale.

The FSC will assess each issuance to determine if the digital coin should be classified as a security or a virtual commodity, Chien added. “It is very difficult to define broadly, as each case is different,” the FSC official pointed out.

Not Following China

The Executive Yuan, or the Taiwanese government, has yet to develop and adopt comprehensive regulations for cryptocurrencies and initial coin offerings. In April, high-ranking officials indicated that the respective legislative framework should be developed and introduced by November, 2018, as news.Bitcoin.com reported.

According to a statement by Taiwan’s Justice Minister, Qiu Taisan, the government intends to task the FSC with developing the regulatory system for digital currencies. The Ministry of the Interior, the Investigation Bureau, and the Central Bank of the Republic of China (Taiwan) are expected to assist the commission.

The Financial Supervisory Commission of Taiwan has indicated its intentions to maintain only a limited oversight of cryptocurrencies. The regulator said it’s going to focus mainly on the enforcement of anti-money laundering policies, while remaining open towards innovations like those coming from the crypto sector.

Although cryptocurrencies like bitcoin have been increasingly mentioned as a subject of concern, mainly in the light of money laundering, Taiwan is not likely to severely restrict them. Last year the chairman of the FSC, Wellington Koo, confirmed that the country would not adopt a prohibitive regulatory framework like the one implemented in China.

Earlier in April, Taiwan’s Central Bank signaled it would favor regulating cryptocurrencies under the country’s existing anti-money laundering laws. Its new governor, Yang Chin-long, suggested that the Ministry of Justice should include bitcoin in the scope of ROC’s Money Laundering Control Act.

Do you expect Taiwan to eventually adopt crypto-friendly regulations? Share your thoughts on the subject in the comments section below.  


Images courtesy of Shutterstock.


Make sure you do not miss any important Bitcoin-related news! Follow our news feed any which way you prefer; via Twitter, Facebook, Telegram, RSS or email (scroll down to the bottom of this page to subscribe). We’ve got daily, weekly and quarterly summaries in newsletter form. Bitcoin never sleeps. Neither do we.

The post Taiwan’s Financial Regulator to Conduct Limited Oversight of Cryptocurrencies appeared first on Bitcoin News.

Bitcoin News

Regulator found 20,000 bad accounts at major banks. We still don’t know which ones

June 13, 2018 |

The nation’s top bank regulator told members of Congress on Wednesday that his agency found about 20,000 accounts that may have been opened without customers’ authorization or had other problems during a review of the nation’s largest financial institutions prompted by the Wells Fargo & Co. scandal.


L.A. Times – Business

Regulator to face questions over unauthorized accounts in banking industry

June 13, 2018 |

The nation’s top bank regulator has found evidence that institutions other than Wells Fargo & Co. may have created accounts without customers’ authorization — and a prominent Democrat wants the regulator to name names.

Ohio Sen. Sherrod Brown, the ranking Democrat on the Senate banking committee,…


L.A. Times – Business

Wells Fargo not the only bank to have created unauthorized accounts — but regulator won’t identify others

June 9, 2018 |

A federal bank regulator that has fined Wells Fargo more than $ 500 million over its creation of unauthorized accounts and other consumer abuses has found evidence of sales practice problems at other large and midsize banks — but is refusing to name those institutions.

The Office of the Comptroller…


L.A. Times – Business