Australia and the UK share their big picture of crypto: Law Decoded, Jan. 31–Feb. 6
The U.K. outline of the future financial services regulatory regime for crypto covers a broad range of topics, from the troubles of algorithmic stablecoins to nonfungible tokens and initial coin offerings. And it’s certainly good news for the industry, as the upcoming regulation doesn’t propose a ban on algorithmic stablecoins or excessive requirements on data sharing for digital asset operators.
The Australian consultation paper on “token mapping” is a foundational step in the government’s multistage reform agenda to regulate the market. Based on the “functional” and technology-neutral method, the paper proposes several basic definitions for all things crypto. Its taxonomy of four types of crypto-related products includes crypto asset services, intermediated crypto assets, network tokens and smart contracts.
And let’s not forget about Hong Kong, where the local monetary authority has issued a consultation summary. In contrast to the U.K., it proposes a prohibition on the operations of algorithmic stablecoins in the country.
Not every week, two major jurisdictions almost synchronically present their vision of how crypto should be regulated in the coming years. Within three days, the treasuries of the United Kingdom and Australia shared their consultation papers, consisting of 80 and 60 pages, respectively.
SEC settles on security claim in LBRY case
The United States Securities and Exchange Commission (SEC) admitted on record that the sale of LBRY Credits (LBC) tokens in the secondary market doesn’t constitute a security. In what many called a victory for the entire crypto industry against the SEC’s overreach regulation by enforcement, Attorney John Deaton settled a major debate during the appeal hearing. The ruling in the case was a relief for many in the crypto community, especially XRP (XRP) holders, as Ripple is currently facing a securities lawsuit from the SEC over the sale of XRP tokens.
FTX debtors seek subpoenas for inner circle of Sam Bankman-Fried
As bankruptcy proceedings continue, FTX and affected parties have requested subpoenas for information and documents from close relatives of former CEO Sam Bankman-Fried. A motion filed in the United States Bankruptcy Court for the District of Delaware seeks to glean valuable information from the likes of Gabriel Bankman-Fried and Barbara Fried, the brother and mother of the FTX founder. According to the filing, FTX and its debtors are pursuing estate assets belonging to the company and investors.
Bank of China ex-advisor calls Beijing to reconsider crypto ban
Huang Yiping, a former member of the Monetary Policy Committee at the People’s Bank of China, believes that the Chinese government should think again about whether the ban on cryptocurrency trading is sustainable in the long run. The former official argued that a permanent ban on crypto could result in many missed opportunities for the formal financial system, including those related to blockchain and tokenization.