Gary Gensler says the SEC will not herald a China-style crypto ban, however Congress might | Forex Information | Monetary and Enterprise Information

SEC chairman Gary Gensler.

  • SEC chairman Gary Gensler said the agency will not impose a China-like crypto ban because that authority rests with Congress.
  • Most tokens could be some form of security, he said at an SEC prudential hearing on Tuesday.
  • Gensler asked questions from a lawmaker who beat him up for “brutally” running over investors.
  • Sign up for our daily newsletter here, 10 things before the opening bell.

Gary Gensler said the Securities and Exchange Commission has no plans to ban cryptocurrencies as the authority actually rests with Congress, adding that most tokens pass the test of being some form of security.

The SEC chair did that Comments at a hearing in the House of Representatives Tuesday after Republican lawmaker asked Ted Budd if the U.S. Securities and Exchange Commission could follow China in imposing a blanket ban on cryptocurrencies.

“No. I mean, that would be a matter for Congress,” said Gensler.

“I think a lot of these tokens pass the tests of being an investment contract or note or other form of security that we bring into the SEC’s investor protection mandate,” he added.

The concern in the crypto world is that the U.S. government may restrict or ban digital assets, much like it did with gold in 1933. Gensler previously said that crypto exchanges must register with the agency because some of their tokens or products could be securities.

The People’s Bank of China Declared crypto transactions illegal Late last month, a move analysts said was in line with the central bank’s stance over the past decade.

“Our approach is really very different,” Gensler told the House Financial Services Committee.

He noted that the SEC is looking into how the industry can best protect investors and consumers, and comply with anti-money laundering and tax compliance laws. It would also be in the Problems that stablecoins could pose, he added.

Gensler’s comments echoed those recently made by Federal Reserve Chairman Jerome Powell, who said the Federal Reserve had no intention of banning cryptocurrencies.

At the same House hearing, Patrick McHenry asked Gensler on the SEC’s stance on digital assets and reprimanded him for being vague about what a digital asset actually is.

“Some of your comments have raised questions in the marketplace and made things less than clear,” said McHenry. “You made seemingly spontaneous remarks that move the markets, you disregarded rule-making by issuing an out of order statement, and you’ve essentially been rude to American investors.”

Gensler said the agency is following the Administrative Procedures Act, which requires a regulator to issue a general notice of the proposed rule.

McHenry asked Gensler if he a. have reviewed Safe Harbor Proposal created by SEC Commissioner Hester Pierce. The proposal aims to give developers of digital networks a three-year grace period to develop a platform with a registration exemption from federal securities laws.

“Commissioner Peirce and I discussed your thoughts on a possible safe haven,” said Gensler. “I think the challenge for the American public is that if we don’t monitor this and put in place investor protection, people will be hurt.”

Continue reading: Altcoins to Buy: These 15 little-known and undervalued tokens could see an ether-style spike due to significant developer interest, according to Bank of America

Las Cruces police obtain stories of film prop cash getting used as forex

LAS CRUCES – Las Cruces police received two reports over the weekend of movie props that were approved as legal tender over the weekend, a press release said Monday.

In the press release, police stated that movie props may look like real currency, but in most cases they don’t have the same texture.

According to the police, movie prop bills are usually slightly smaller in size than the actual currency. It usually also has wording identifying it as a fake currency. For example, movie prop money typically reads:

  • “For use in films only” at the top of the bill.
  • The word “copy” is usually printed on both sides of the invoice.
  • “This notice is not legal tender” or “For film use only” is usually printed on one or more sides of the invoice.
  • Often the name of the president is left out or changed.
  • The serial numbers are often the same for all movie props.

It is not illegal to have money for movie props. However, passing on movie props or an illegal currency could be classified as a criminal offense or federal crime depending on its use, police said.

Anyone who receives suspected prop money or illegally made invoices in actual currency should call the police immediately at 575-526-0795.

‘Placing their cash the place their mouth is’: This is what three analysts should say about Coinbase’s choice so as to add $500 million of crypto to its stability sheet | Foreign money Information | Monetary and Enterprise Information

Coinbase Co-Founder and CEO Brian Armstrong

Coin base announced on Thursday that it was Add $ 500 million in cryptocurrency to its balance sheet while at the same time 10% of its quarterly net income is allocated to a portfolio of crypto assets. Insider gathered insights from three Coinbase analysts to help understand the move.

“I like that they put their money where their lips are,” said Mizuho analyst Dan Dolev.

He told Insiders that Coinbase is still heavily fiat money for a company with crypto headquarters for its business. This move changes that, although Dolev would like the exchange to go a step further and charge customer transaction fees in crypto rather than dollars.

“That would signal even more commitment to the cryptocurrency,” said Dolev.

Coinbase CFO Alesia Haas admitted that the majority of Coinbase’s financial transactions – like paying sellers and employees or investing company money – on a Friday are “heavily weighted” in fiat blog entry. But she said Coinbase wants to lead by example by enabling the adoption and use of crypto, and that investment is a step towards that goal.

“We believe that more and more companies will keep crypto assets on their balance sheets in the future,” said Haas. “We hope that by incorporating more crypto assets into our own corporate financial practices, we can take another step towards a more open crypto economy.”

Chris Kuiper, a CFRA stock research analyst, reiterated Dolev’s comment that the announcement shows Coinbase’s commitment to the cryptocurrency industry. Kupier maintained his “Buy” rating on Coinbase after it was announced that he was broadly positive on the stock.

However, adding crypto to Coinbase’s balance sheet adds an additional layer of risk as the company’s share price is already tied to the price and trading activity of Bitcoin, Chris Brendler, senior research analyst at DA Davidson, told Insider. The Coinbase share often moves in parallel with the Bitcoin price.

“That won’t necessarily make or destroy the company,” Brendler told Insider. “But it’s certainly a little scary when you put money into one of those commodities that you’re already pretty closely connected with.”

Part of this risk is offset by a cash balance of $ 4 billion that Coinbase is building in anticipation of a “crypto winter” and possible regulatory action, said Kupier.

Brendler added that since Coinbase is so tied to crypto, Coinbase will need to have more cash than other high-growth non-crypto companies in case there is a “crypto winter” or a prolonged period of low crypto prices and activity.

How digital foreign money is altering how we give and obtain cash

Right now, the world of cryptocurrency is like the Wild West. Just think of all of them modern prospectors in search of their fortune. If you are looking for gold in the digital world, I have tons of resources to help you out!

In a recent episode of Kim Komando Explains, my team and I give you all the tips you need for a successful crypto career. Basically, now is the best time to jump on the bandwagon. Retailers are also starting to accept digital currencies. (We even heard that Amazon will add crypto payment features!)

Get this: Some nonprofit groups accept donations through cryptocurrency. I spoke to recently The New York Times about how this can create a revolutionary game in the world of gift giving. Here’s what you need to know.

Sounds great … but it’s also pretty complicated

As with all things nebulous blockchain related, cryptocurrency donations are difficult for laypeople to understand. This is one of the biggest hurdles for donations.

Charities may not have the money to hire IT professionals to figure out how these donations are processed. You may not even understand how they work. That means they could be missing out on a lot of money.

Daily technical news that is important to you

Privacy, security, the latest trends, and the information you need for your best digital life.

Second is the problem of volatility. If you’ve caught up on the news, you probably know that bitcoin prices are extremely sensitive. You will one day take off like a rocket and soar to new heights.

ANOTHER WAY TO MAKE BANK ONLINE: Click here for everything you need to know about NFTs

The next thing you know is that Bitcoin is crashing towards earth, making dollar signs plummet in value and bleeding. Let’s say a charity receives $ 7 million in bitcoin on a Friday. The value could drop to $ 6.5 next Monday. (This is just an example; we’ve never heard of it, but it’s good to think about.)

Overall, they can be difficult to understand for people who are not tech buff. They are also much more difficult to predict than cash donations. When you donate $ 7 million in fiat currency, that value will be preserved. The same cannot be said for cryptocurrency donations.

Would you like to learn more about cryptocurrencies?

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Get it now while you are thinking about it so you can read it later. It is not yet known which cryptocurrencies Amazon will accept. (Keep in mind that there are over 10,000 different types of cryptos available.)

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Adjustments to AML and Digital Foreign money Laws for Reporting Entitles and Cash Service Companies | Bennett Jones LLP

Companies dealing with “virtual currencies” Monetary services company (MSBs) and others Reporting units (REs) to the Canadian Financial Transaction and Reporting Analysis Center (FINTRAC) are subject to new compliance obligations regarding transfers of virtual currencies over CAD 10,000 and keeping KYC (know-your-client) records as an update of the proceeds of The Act on Crime (Money Laundering) and Terrorist Financing (PCMLTFA) and related regulations come into effect on June 1, 2021

As of 2020, MSBs must:

  1. report suspicious Monetary transactions; and
  2. Do another KYC check when converting or transferring money according to regulations.

With effect from June 1, 2021, the above obligations of MSBs extend to transactions in virtual currencies. MSBs are also required care for and Submit Transaction records for transfers of virtual currencies over C $ 10,000 in a single transaction or over C $ 10,000 over several transactions within 24 hours (large VC transactions) and report these large VC transactions to FINTRAC.

In addition, the following KYC obligations will be expanded to apply to all REs:

  1. Business relationships: All REs must determine when a business relationship was established with a customer and keep a record of such business relationships.
  2. Politically exposed people: All REs must determine if customers are “Politically Exposed Persons” and conduct additional risk assessments in relation to those customers.
  3. Advantageous possession: All REs are required to keep records of a company and verify its identity, collect information on ownership, control structure and names of directors.
  4. Ongoing monitoring all KYC information from all REs.

background

The above changes are part of a broader multi-tiered overhaul of the AML regulatory framework aimed at addressing new challenges caused by the emerging cryptocurrency industry in Canada and are in line with aspects of the Canadian Securities Administrator Three year business plan Modernize the regulatory regime for crypto trading and crypto assets in Canada.

The first major revision came into force on June 1, 2020, whereby persons or organizations that “trade in virtual currencies” are required to register as MSB with FINTRAC. This means that those currently engaged in virtual money transfer or exchange services had to already be registered as MSBs. MSBs have ongoing reporting, record keeping, KYC and compliance requirements. The upcoming changes are designed to ensure that the activities of new MSBs from the first update are captured under the general obligations of all MSBs, and to harmonize the ongoing obligations of REs to transactions in virtual currencies in addition to traditional monetary transactions.

As of June 1, 2021, “virtual currency” will be defined in the provisions on the reporting of income from crime (money laundering) and terrorist financing (SOR / 2001-317) as well as in the provisions on income from crime (money laundering) and terrorist financing as follows:

(a) a digital representation of value that can be used for payment or investment purposes that is not fiat currency and that is easily exchangeable for Funds or any other virtual currency that is easily exchangeable for Funds; or

(b) a private key of a cryptographic system that enables a person or organization to access a digital representation of value in accordance with paragraph (a).

Applicable companies trading virtual currencies should take steps to ensure that they will be able to comply with the rules when they go into effect. The Bennett Jones Fintech and blockchain team can advise and support you in managing these and other changes to the crypto regulatory regime.

Remarks:

1. See https://canadagazette.gc.ca/rp-pr/p2/2019/2019-07-10/html/sor-dors240-eng.html and https://canadagazette.gc.ca/rp-pr/p2/2020/2020-06-10/html/sor-dors112-eng.html for the full text of the changes.