Although money stinks, it is laundered for other reasons. Japanese banks are now putting an end to organized money laundering with a blockchain network, while China is flexing its muscles by testing a CBDC and Ukraine is gearing up for a crypto future. Meanwhile, New York loosens the BitLicense while a new stable coin learns from Libra’s mistakes and shady ICOs are revealed by the SEC. The regulatory ECHO.
JPMorgan: Blockchain network IIN to help Japan fight money laundering
The interbank information network (IIN) of the banking giant JPMorgan is expected to move into the land of the rising sun next year. 80 Japanese banks will initially join the blockchain-based interbank network, which connects financial institutions worldwide and facilitates the exchange with authorities. The reason for the entry is Japan’s increased efforts against money laundering. The Financial Action Task Force (FATF) has accused the Japanese authorities of inadequate anti-money laundering measures.
Ukraine: new bill regulates blockchain assets
The Ukrainian parliament has adopted a second law to regulate crypto assets in the blockchain ecosystem. The law amendment concerns the safekeeping of digital assets and clarifies the responsibilities of the respective authorities. The draft also complies with FATF standards to combat money laundering and terrorist financing. According to the new regulations, private individuals will also be able to offer cryptocurrency services in the future. The law is therefore part of Ukraine’s obligations to the EU under the Association Agreement and still needs to be adopted by the Verkhovna Radader MPs at third reading.
New York financial regulator changes BitLicense guidelines
The BitLicense has been in force since 2015 and has accumulated some dust since then. With high fees, the regulations caused many crypto companies to withdraw from the New York market. Now the New York financial regulator has revised the business license for cryptocurrencies. The changes concern the entry of shares in the commercial register. As a result, providers will in future be able to trade certain listed coins without the approval of the tax authorities.
China: Test of digital national currency by the end of the year
The first introduction of a digital central bank currency is like a demonstration of power. China has therefore reaffirmed its claim as a top candidate and wants to at least test a CBDC at seven banks by the end of 2019. The coming weeks will show how far the test is from a real introduction. With this move, China is pushing ahead with its blockchain efforts in the wake of the digital arms race.
Bitcoin & Co .: US exchange regulator sued ICO operator
The Securities and Exchange Commission (SEC) has sued the operator of an initial coin offering (ICO). According to this, Eran Eyal and his company UnitedData have cheated on investors and have stolen $ 42 million in the process. Between 2017 and 2018, he fled shopin tokens without a securities license and lured investors with the creation of universal buyer profiles, which should be used to create blockchain-based consumer profiles. The cunning Eran Eyal has apparently internalized the rules of the scam game: According to SEC, there has never been such a platform.
Stable coin with IMF orientation: Nobel laureates compete with Libra
U.S. company Saga plans to launch an SGA token tied to a basket of national currencies that could seriously compete with Facebook’s Libra. The stable coin is said to be bound by the special drawing right of the international monetary fund and to be used as a global complementary currency for cross-border payments. The project has received prominent support from Nobel laureates Myron Scholes and Jacob Frenkel from JPMorgan.