US Bank Regulators to Roll Out Uniform Rules for Crypto & FinTech Firms; Streamlining Licensing

  • In efforts to ease the regulatory process for payment services and crypto firms, the United States is set to introduce a unified set of regulations that will be used in about 48 states.

As per a press statement shared with Bitcoin Exchange Guide, money services businesses based in the United States, composed of crypto firms, will in the near future enjoy easy regulatory processes. The press statement explains that the Conference of State Bank Supervisors (CSBS) is set to launch a group of state regulators which will oversee all the licensing work.

CSBS will bring together 48 state regulators who have agreed to come up with a unitary set of supervisory rules. Until today, crypto-based firms as well as payment service companies were forced to adhere to numerous individual state regulations.

About 78 firms will benefit from the fresh simplified format and according to an official at CSBS, these companies move more than $1 trillion per year combined. The enactment of the unified state regulations will help ease operations across many states.

John Ryan, CSBS’s CEO, stated that the new initiative will come with numerous opportunities which will help businesses operating in the country to expand their services. Ryan also quipped that the new model will work safely just like in the old regime.

He explained that the states will not be giving up their authority but will realize efficiencies through sharing of information. Ryan also explained that although states will be sharing information, every state has the right to conduct and independent examination when the regulators deem it necessary.

The new initiative comes after several complaints were filed by crypto and fintech firms as they try to get a solution on having a state-by-state supervisory regime that delayed the licensing process. CSBS embarked on testing various approaches to determine what could work well in efforts to come up with a lasting solution. The current unified approach led to promising results which culminated in the establishment of a pilot initiative last year.

Western Union’s Rosemary Gallagher whose firm participated in the pilot program praised the initiative saying it will lead to a faster licensing process.

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Author: Joseph Kibe

ING Bank Launches ‘Travel Rule Protocol’ to Ease FATF Compliance for Crypto Businesses

  • Top Netherlands bank, ING, introduces a new protocol system to ease crypto exchanges and firms aiming at implementing the recommended FATF’s Travel rule.
  • The new protocol, Travel Rule Protocol, or TRP, in short, sets ING as the first bank ever to comply with the Travel Rule affecting virtual assets.

In a report released earlier on Tuesday, ING launched the TRP joining forces with Standard Chartered, Fidelity Digital Assets, and several crypto-native firms, including BitGo, Crypto Broker AG, Metaco, 21 Analytics and OSL/BC Group.

The protocol aims to take a “regulatory first approach,” allowing firms dealing with digital assets to comply with the FATF recommendations easily. In a statement released on the launch, Hervé Francois, Blockchain Initiative Lead on Digital Assets at ING said:

“With a regulatory first approach, we are actively involved in different working groups to support standardization of this emerging ecosystem and ultimately pioneer mass adoption.”

The protocol, however, will steer away from the public cryptocurrencies such as bitcoin and ether favoring to work exclusively in decentralized ledger technology (DLT) projects. Hervé continued:

“ING, as an innovation leader on blockchain/DLT, sees increasing opportunities concerning Digital Assets on both asset-backed and native security tokens.”

“More Like SWIFT”

According to the statement, the new partnership aims at developing an infrastructure that offers virtual asset service providers (VASPs) a direct way to “query for the existence of contact or address,” such as a legal entity identifier and essential public information.

One source familiar to the matter stated the platform was more like SWIFT transfers, the interbank messaging and settlement system. The protocol also offers a hybrid system (permissionless and permissioned network) promoting an open, transparent solution to firms having trouble with the FATF Travel Rule compliance.

ING Bank in Blockchain

ING is a big digital assets player since opening its blockchain branch in 2018. Since the Travel Rule recommendation became public in 2019, the bank set out plans to get an understanding and look for opportunities in the crypto space that banks can fit into.

The Travel Rule is a recommendation by the Financial Action Task Force (FATF) to include any virtual asset service provider in the global anti-money laundering and anti-terror financing rings.

In a meeting scheduled for June 24th (tomorrow), the FATF committee will look into the overall progress of the implementation of the rule giving further recommendations.

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Author: Lujan Odera

Singapore Exempts Binance, Coinbase, Gemini, and Ripple From its Current PSA Crypto Act

Singapore is counted among one of the crypto hubs of the world as it offers ease of business for these crypto service providers when a majority of the countries around the globe have taken a stricter regulatory approach.

Although Singapore recently enforced crypto legislation in the form of the Payment Services Act (PSA), the country has exempted popular crypto exchanges such as Binance and Coinbase along with Ripple from the act, right from the start of the new year.

Under the PSA act, crypto service providers are supposed to obtain an operating license from the Monetary Authority of Singapore (MAS). However, as per an official notification released on March 24, it has been revealed that several crypto service providers have been allowed to offer specific crypto service without the need of the operating license for a limited period of time.

The exempted firms including Binance, Ripple, and Coinbase have been offered a lease of 6 months from the start of the new year. All these firms can continue offering their service until July 28, 2020. After the said period is over, these crypto firms would be required to file a license under the current PSA act.

Few Crypto Service Providers Offered One-Year Grant

While Binance, Ripple and Coinbase have been offered a lease of 6 months, there are several other crypto entities which have been offered a longer period of exemptions from the PSA. These firms include the Gemini exchange, the OKCoin exchange, PundiX, Cumberland, DRW Holdings and a subsidiary of BitGo, which have been granted a lease period of 12-month.

Both Gemini and BitGo can continue offering specific crypto services such as account issuance services, domestic money transfer services, and inward cross-border money transfer services until January 28, 2021.

The move to exempt certain crypto service providers to operate in the country without the need to get an operating license can be seen as a bullish move by the MAS to encourage crypto adoption and establish Singapore as one of the crypto capitals of the World. After the said exemptions period are over, it would be interesting to see if the Singapore regulatory bodies grant any further exemptions to other crypto service providers looking to launch their service in the country.

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Author: James W

Popular Crypto Charting Platform TradingView Sees Bug Surface Causing Significant Losses for Users

Popular Crypto Charting Platform TradingView Sees Bug Surface Causing Significant Losses for Users

There are many benefits to digital trading such as the swiftness of transactions and the ease of communication. At the same time, there are also the adverse effects of technological errors and malfunctions which can have catastrophic results.

This has been evident in the number of hacks that have occurred within the crypto industry which has led to the loss of hundreds of millions of dollars across several exchanges.

One of the most recent examples of technological error, however, was not due to malicious hack and the stealing of crypto but rather a bug that occurred in the retracement display for TradingView, a popular platform for traders and stock analysis. The bug in question manifests itself on the platform display and it has allegedly lost traders an incalculable sum of money thus far.

So far word has been going around the trading community about this bug and a Twitter user by the name cryptoteddybear has put out a video and a series of tweets explaining how exactly the bug works and warning others to realise as well as TradingView itself to take action.

The Bug

According to the video and tweets the issue on the platform begins when the default views presented by TradingView are measured.

The video demonstrates using the ethereum/USD chart which shows the retracement of the Fibonacci line which appears to be incorrect.

As damaging as the bug allegedly is, tradingbear says that he has been paying user of TradingView’s services and that the bug in question had first been reported to TradingView over five years ago by another user but the issue was never corrected.

“In log scale you would expect Fibonacci to calculate retracements in percents, but it does it for absolute values and adjusts as you move the tool,” the user said.

TradingView allegedly stated that they will be doing something about it but this was over a year ago and no corrections has been made.

This is particularly troubling considering that TradingView is used in both stocks and crypto trading circles and the site is also a social community and suite of tools to help people make trading rules. Users of the platform can gain a following by posting their ideas to the site and publicizing their skills.

Those most vulnerable in the trading community are those who make use of the Elliott analysis techniques. Those people should not be making use of TradingView due to terror but the platform has continued to grow none-the-less have never bothered to actually fix the issue.

According to trading teddybear, traders are losing money due to the bug and momentum seems to be building for a class action motion against TradingView and and also a bid to determine just how much money has been lost as a result of the bug.

Since TradingView admitted knowledge of the bug over a year ago, they could be liable for whatever losses have occurred through the use of their platform.

“However, until these recent videos, the problem has constantly been ignored by TradingView, screwing up an unimaginable number of traders in the process for amounts of money which are not even calculable. TradingView has been displaying an unbelievable amount of unprofessionalism in this story,” a source told CCN.

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Author: Tokoni Uti