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Buenos Aires may use blockchain technology to process payments for social assistance

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In order to make social aid payments more transparent, Buenos Aires lawmaker Dario Nieto has proposed a bill that would use blockchain technology to do so. Nieto has expressed dissatisfaction with the various middlemen who profit from these social campaigns and has suggested that the introduction of blockchain could put an end to these practices.

Due to the potential for implementation-wide traceability that blockchain technology offers, many systems are using it. Buenos Aires senator Dario Nieto is recommending using blockchain as a key component of a system to manage social assistance payments. In response, he introduced a bill that would end many of the activities that were a result of these programs.

In his opinion, payments from social assistance programs are frequently used by various middlemen to make money or coerce recipients into taking part in political activities. Regarding this, Nieto said:

The management of social plans has become a huge apparatus used to do politics, with which the leaders of social movements extort people with abusive practices, such as asking for money returns, a percentage of the plan, going to march and block streets.

According to Nieto, blockchain tech might help in this regard, making every payment traceable and putting middlemen out of the equation. He explained:

With blockchain, the money leaves the Ministry of Social Development directly to the beneficiary, without asking for voluntary contributions, without favors such as attendance controls at pickets or marches.

A City Married With Blockchain

Nieto has previously introduced bills based on the blockchain. The legislator has already introduced a bill that would incorporate blockchain technology into a system for managing state contracts and purchases.

A city that has incorporated blockchain into its planning is Buenos Aires. The city is currently finishing up the implementation of TangoID, a blockchain-based ID system, as part of a modernization program. By January 2023, according to Buenos Aires’ government, it hopes to have it operational.

The city announced in August that it would run Ethereum nodes in order to gain more knowledge about the chain for regulatory purposes. The city announced in April that it would accept cryptocurrency as payment for taxes in 2023.

‘Vast Majority Are Securities,’ claims Gary Gensler, asking SEC staff to fine-tune compliance with cryptocurrency.

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Gary Gensler, the chairman of the Securities and Exchange Commission (SEC) in the United States, disclosed that he had asked SEC staff to improve compliance for crypto tokens and intermediaries. The vast majority of cryptocurrency tokens, he emphasized, are securities.

U.S. Senate Committee Chairman Gary Gensler The Securities and Exchange Commission (SEC) discussed crypto regulation and compliance on Thursday at the SEC Speaks conference hosted by the Practising Law Institute.

He noted that all securities markets, including securities and intermediaries in the cryptocurrency market, are subject to the fundamental rules of the SEC’s statutes and said the following:

Of the nearly 10,000 tokens in the crypto market, I believe the vast majority are securities. Offers and sales of these thousands of crypto security tokens are covered under the securities laws.

Gensler admitted that some crypto tokens may not meet the definition of a security. “These likely represent only a small number of tokens, even though they may represent a significant portion of the crypto market’s aggregate value,” he opined.

For example, he previously indicated that bitcoin, the largest cryptocurrency by market capitalization, is a commodity, and falls under the purview of the Commodity Futures Trading Commission (CFTC).

The SEC chairman described bitcoin during his speech Thursday:

Bitcoin, the first crypto token, is referred to by some as ‘digital gold’: trading like a precious metal, a speculative, scarce — yet digital — store of value.

Gensler pointed out that some people in the crypto industry have called for greater “guidance” with respect to crypto assets. He stressed that for the past five years, the Commission “has spoken with a pretty clear voice here: through the DAO Report, the Munchee Order, and dozens of Enforcement actions, all voted on by the Commission.”

Emphasizing the need for investor protection, the SEC boss said:

I’ve asked the SEC staff to work directly with entrepreneurs to get their tokens registered and regulated, where appropriate, as securities.

He acknowledged that given the nature of crypto investments, “it may be appropriate to be flexible in applying existing disclosure requirements,” even though “a handful of crypto security tokens have registered under the existing regime.”

Gensler provided the following information regarding crypto intermediaries: “I’ve asked staff to work with intermediaries to ensure they register each of their functions, including exchange, broker-dealer, custodial functions, and similar roles.”

“I look forward to working with crypto projects and intermediaries looking to comply with the laws,” he said in his conclusion. Additionally, I am eager to collaborate with Congress on a number of legislative initiatives while preserving our current broad powers.

Gensler revealed:

I’ve asked staff to consider using our regulatory toolkit to possibly fine-tune compliance for crypto security tokens and intermediaries.

On Friday, the SEC unveiled its plan to set up a dedicated office to review filings related to crypto assets.

Europol Sees Tools to Tackle Crime in Cryptocurrency and Blockchain Technologies

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In the case of cryptocurrencies, abuse increases with use, according to Europol, which also noted that blockchain technologies give law enforcement a new way to combat crime. The law enforcement organization in Europe claims it can assist in the investigation of money laundering networks.

Understanding Cryptocurrencies Is Vital to Tackling Organized Crime, Europol Says

Following a recent meeting with cryptocurrency experts, financial investigators, regulators, and business representatives, the European Union Agency for Law Enforcement Cooperation (Europol) has concluded that the growing use of cryptocurrencies across borders and industries is accompanied by rising abuse, new types of crime, and money laundering.

At the agency’s headquarters in the Netherlands, the 6th Global Conference on Criminal Finances and Cryptocurrencies recently took place. The joint Working Group on Criminal Finances and Cryptocurrencies of the Basel Institute on Governance sponsored the two-day conference with the aim of fostering cooperation among participants in the investigation and prosecution of crimes involving cryptocurrencies.

The use of the appropriate tools, according to speakers, can “offer an unprecedented opportunity to investigate organized crime and money laundering networks and to recover stolen funds,” according to a press release from Europol. It emphasized the importance of increasing knowledge and expertise in the field of cryptocurrencies for combating crime and money laundering.

According to Europol, law enforcement, regulatory agencies, and the private sector are putting a lot of effort into staying ahead of those who attempt to misuse cryptocurrency assets. The agency emphasized the tightening of EU regulations and the impending rules intended to ensure that virtual currencies like bitcoin are treated equally to other assets in terms of preventing money laundering. This is also easing the seizure and management of crypto funds, the police authority added.

In addition, Europol noted that investigators are using blockchain-based technology to track money flows, which has enabled them to expose more “traditional” criminal organizations and money laundering networks in addition to scammers and hackers. According to the agency, “private companies are innovating quickly to provide the tools and analytical capability to trace funds laundered across multiple blockchains using different obfuscation techniques.”

Over 1,700 people from 119 countries attended the most recent Europol crypto conference, where speakers included representatives of the European Union’s institutions like the European Parliament, blockchain forensics and asset recovery firms like Chainalysis, and law enforcement officials from several European and non-European nations like the United States and South Korea.

The event follows important developments toward regulating Europe’s crypto space. This summer, key EU institutions and member states made a deal on the Markets in Crypto Assets (MiCA) regulatory package after reaching an agreement to adopt a set of anti-money laundering rules for cryptocurrency transactions.

Non-Transferable NFTs are given to local governments as rewards in Japan.

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According to reports, the Japanese government is one of the first governments to award non-fungible tokens (NFTs) to local governments that excelled in a digitization competition as an additional prize. Local governments received the honors as a thank you for their efforts in utilizing digital technology to address local issues.

Issuing and Distributing NFTs via a Low-Cost Blockchain

The cabinet secretariat of Japan recently awarded non-fungible tokens (NFTs) as an additional prize at a ceremony to honor local governments that excelled in a digitization competition, marking what has been called a first for the Japanese government.

In accordance with a Coinpost report, Indiesquare, Bitflyer Holdings, Tree Digital Studio, and Tomonari Kogei provided financial support for this year’s award ceremony. As mentioned in the report, the NFTs were issued and distributed using Indiesquare’s inexpensive blockchain platform, the Hazama Base. Earlier, at a gathering hosted by the Liberal Democratic Party Youth Bureau, the platform had been used in a similar way to print and distribute NFTs.

Known as the 2022 Summer Digi Denkoshien, the award ceremony was held to honor and recognize initiatives by local authorities that “utilize digital technology to solve local issues and improve their appeal.”

Non-Transferable NFTs

Despite the fact that the tokens were created on the Ethereum blockchain, the report claims that Proof of Attendance Protocol (POAP) technology was used by NFTs. Although these tokens cannot be transferred, they are simple to use for verification and remembrance.

Nine mayors in total received the NFT awards, according to another report. Fumio Kishida, the prime minister of Japan, was one of the dignitaries present at the occasion.

A Thai regulator accuses a provider of digital asset services of refusing to respond to an information request; the matter has been referred to law enforcement

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The chief executive officer of Zipmex’s Thai unit, Akalarp Yimwilai, and the country’s securities regulator were recently referred to the Royal Thai Police’s technology crime division. The regulator claimed it took this action after Yimwilai and his business refused to provide information about customers’ digital wallets to a government official.

Zipmex Fails to Share Details on Transfers and Withdrawals on Its Platform

Akalarp Yimwilai, CEO of Zipmex, and the company were referred to local law enforcement, according to Thailand’s Securities and Exchange Commission (TSEC), for failing to comply “with the order of the competent official.” The regulator said it took action after Yimwilai and his business failed to provide information about customers’ digital wallets.

Additionally, Zipmex is charged with failing to give the TSEC official information about the transferring and withdrawing of digital assets through its platform. The TSEC’s announcement came the same day that Zipmex informed its customers that withdrawals in baht and cryptocurrencies had been temporarily halted.

According to reports, Zipmex stated in a message to customers that the suspension of withdrawals was due to the volatility of the cryptocurrency market as well as issues with important trading partners.

The Nation Thailand reported that customers were incensed by Zipmex’s decision to halt withdrawals. According to the report, Zipmex issued a second statement via Facebook promising to lift the suspension by 8 p.m. in an effort to appease irate customers. 2022 September.

Criminal Proceedings Against Zipmex

The Thai regulator, however, claimed in its statement that Zipmex’s and its regional CEO’s actions had violated the Digital Assets Act.

Such actions by Zipmex and Mr. Akalarp are regarded as not complying with the directives of the responsible official. which is unlawful and is punishable in accordance with Section 75 of the Digital Assets Act,” the regulator said in its statement.

According to the TSEC, the action it took is the first step in a process of criminal proceedings against Zipmex and the CEO.

Researcher: After Ethereum’s “Merge,” Bitcoin’s price could drop.

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Kyle McDonald told CoinDesk TV’s “First Mover” the Bitcoin network may be regulated away because of its energy consumption.

Independent researcher Kyle McDonald believes that the Bitcoin network may be “regulated away,” which would lead to a collapse in the value of bitcoin.
He advises selling bitcoin right away. The reason is that investors and regulators may realize that the energy-intensive method that both Bitcoin and Ethereum use now, called “proof-of-work,” was never really necessary after the Ethereum blockchain switches to a significantly less energy-intensive method of validating transactions known as “proof-of-stake.”
Speaking on Friday’s “First Mover” episode of CoinDesk TV, McDonald referred to the “climate crisis” and the enormous energy consumption of Bitcoin. According to him, Bitcoin could be “the first to be regulated away” because it “doesn’t have the coordination like Ethereum to leave proof-of-work.”

Environmentalists and governments have made cryptocurrency’s energy use a major point of contention, and McDonald predicted that bitcoin will never reach “$69,000 again.” In November of last year, the cryptocurrency traded near that level.
This month is expected to see the implementation of “the Merge,” an update to Ethereum’s software that will reduce the number of computers needed to maintain the blockchain.
According to McDonald, it is “highly realistic” that Ethereum could reduce energy costs by 99.95%.
“It’s going to make a difference when you switch from a system that’s running on a few thousand relatively low-power computers to a system that’s about generating as many random numbers as quickly as possible with 10 million [graphic processing units] around the world,”

Ethereum’s switch, a software update called “the Merge,” is expected to happen this month, and one expected benefit is that not as many computers will be required to keep the blockchain going.

To track Ethereum’s energy movement, McDonald created the Ethereum Emissions tracker, which takes a bottom-up approach, but doesn’t factor in Ethereum’s price or the price of electricity, according to McDonald’s website.

“I’m starting with the hash rate, then looking at the hardware and making a technical argument for how much electricity must be used,” he said.

NFT risk
Non-fungible tokens (NFTs), however, present one risk, according to McDonald. In other words, “there’s a good chance some miners will temporarily switch to proof-of-work after the Merge occurs.”
He warned that if the miners do switch, there might be duplicate NFTs on one chain for a short while. It could “potentially even dilute their values” if that happened.
However, the largest NFT market in the world, OpenSea, announced that it would only support the proof-of-stake chain and that it had been preparing for the change to ensure that the “process runs smoothly.”

 

Official announcement: Indonesian Government to Open Crypto Exchange This Year

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A high-ranking government official is said to have revealed that the Indonesian government plans to introduce a cryptocurrency exchange by the end of this year. He emphasized, “We will make sure that all requirements, practices, and necessary steps have been followed.

By year’s end, the Indonesian government intends to open a cryptocurrency exchange, according to Deputy Trade Minister Jerry Sambuaga, who was quoted by Dealstreetasia on Wednesday.

The trade minister explained that the government’s efforts to safeguard consumers amid growing interest in digital currencies while speaking on the sidelines of NXC International Summit 2022 by WIR Group in Bali.

The publication stated that the complexity of the process forced the postponement of the bourse launch, which was originally scheduled to begin in 2021.

“We will make sure that every requirement, procedure, and the necessary steps have been taken,” Minister Sambuaga was quoted as saying. “This is proof that we are being careful. We don’t want to be hasty as it may cause us to miss something.” He elaborated:

Creating a bourse needs many preparations. We need to see which entities should be included in the bourse.

The government official continued, “Secondly, we need to validate the aforementioned entities. Thirdly, there are minimum capital requirements as well as other technical custodian depository requirements.

The CEO of Tokocrypto, Pang Xue Kai, thinks that a cryptocurrency exchange can attract more participants and institutional investors to the cryptocurrency market. The Indonesian Commodity Futures Trading Regulatory Agency has granted licenses to 25 cryptocurrency exchanges, Tokocrypto being one of them (Bappebti).

Pang opined:

The industry will grow, we’ll start seeing more local projects.

Although Indonesia permits the trading of cryptocurrencies as commodities, it does not accept them as payment methods. The Indonesian Directorate General of Taxes announced in April that it had set income tax (PPh) and value-added tax (VAT) on cryptocurrency purchases at 0.1% each.

The Financial Services Authority of Indonesia (OJK) issued a warning in January stating that financial institutions are not permitted to offer and facilitate the sale of crypto assets. However, the Indonesian government will not outlaw cryptocurrencies like China did, according to the nation’s Minister of Trade Muhammad Luthfi in September of last year. However, Indonesia’s top Islamic body, which is also the nation’s Shariah compliance body, has ruled that cryptocurrency is haram, or against the law, for Muslims.

Crypto transactions in Indonesia increased 1,224% to 859.4 trillion rupiahs ($57.5 billion) in 2021 from 64.9 trillion in 2020, according to Bappebti. In the first six months of this year, there were 15.1 million crypto users in Indonesia, transacting cryptocurrencies worth 212 trillion rupiahs.

Ripple will take part in the CBDC Sandbox Program of the Digital Dollar Project.

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The Digital Dollar Project, a non-profit promoting the development of the digital dollar, has announced the beginning of a sandbox program to begin investigating the technical implementations of the envisioned digital currency. One of the four participants who will aid the Digital Dollar Project in “exploring technical and business implementation questions” is the fintech company Ripple.

The Digital Dollar Project (DDP), a nonprofit leading discussions about the proposed digital U.S. dollar, recently declared the beginning of the “technical Sandbox Program to jumpstart further exploration of technical implementations” of the central bank digital currency (CBDC). The DDP stated that the program’s launch is scheduled for October, “with the inaugural cohort focused on cross-border payments.”

According to a statement, four organizations, Ripple, Digital Asset, EMTECH, and Knox Networks, will support the DDP. The statement also said that participants would have the chance to examine current technology in the real world and research how it might affect business operations and strategies. Additionally, participants will run test runs to identify potential use cases.

Explaining her organization’s reasons for launching the sandbox program, Jennifer Lassiter, an executive director with DDP said:

The launch of our Technical Sandbox Program marks the next step in our effort to convene the private and public sector[s] in [the] exploration of a central bank digital currency in the U.S. We understand how important it is to include a diverse set of views and expertise as we look to answer key questions about how the technology could work, the problems we hope to solve, and the ultimate business and individual outcomes we want to achieve.

Lassiter suggested that his organization’s partnership with the private sector not only highlights the importance of collaboration but also helps to lay the foundation “for robust pilots that improve the outcomes and usability of CBDCs.”

Each cohort will have two phases, an education phase and a pilot phase, according to the statement. The initial phase’s main goal will be to aid DDP partners and participants in gaining a practical and business understanding of the technology. A comparison of the variations in potential design options will be made during this phase.

The non-profit group stated that during the pilot phase, tests will be done to “identify and test specific CBDC use-case hypotheses.” The information from these findings will be used to educate both the public and private sectors “on how advancing technical solutions can unlock business value in a transformative way.”

 

Thailand’s new regulations mandate that cryptocurrency advertisements include explicit investment warnings.

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Thailand has enacted stricter regulations that require cryptocurrency businesses to adequately disclose the investment risks in their advertisements. The new rules forbid companies in the sector from making false or exaggerated claims.

According to Bloomberg and Reuters, Thailand’s Securities and Exchange Commission (SEC) has approved new guidelines for cryptocurrency advertisements. The modifications, according to a statement issued on Thursday, follow the SEC’s discovery that some advertisements either failed to mention the dangers associated with cryptocurrencies or contained only positive information.

The relevant risks for investors must now be made crystal clear in the advertisements of cryptocurrency companies in Thailand, and the warnings must be obvious. They ought to discuss both the positive and negative aspects of the anticipated returns in a balanced manner. There must be no false, exaggerated, or misleading claims in the advertisements.

Thai crypto businesses, which have been advertising heavily through digital media and billboards, must now limit the promotion to official channels such as their own websites. They will also have to provide regulators with information about the advertising terms. The securities watchdog explained in the announcement:

Operators must give details of ads and spending, including the use of influencers and bloggers to the SEC, including terms and time frame.

Thai businesses using cryptocurrency assets have 30 days to comply with the new rules the SEC released this week. The tightening of the advertising regulations follows a global market downturn that had an impact on numerous industry players.

One illustration is Zipmex, a cryptocurrency exchange with a Thai license that also operates in other countries. Withdrawals were stopped last month by the coin trading platform and its regional parent, Zipmex Pte. A court in Singapore, where authorities are considering stricter regulations for retail cryptocurrency investors, granted the latter three months of protection from creditors in the middle of August.

The SEC recently fined Zipmex 1.92 million baht (over $50,000) for suspending withdrawals. Penalties were imposed on other crypto companies, too. An executive from the Thailand-based cryptocurrency exchange Bitkub was fined 8.5 million baht (more than $230,000) for alleged insider trading.

Crypto Investors Warned by SEC of Scammers Preying on Their Fear of Missing Out on Social Media

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The Securities and Exchange Commission (SEC) of the United States has issued a warning about con artists preying on investors’ FOMO on social media. The SEC issued a warning: “If a cryptocurrency investment “opportunity” sounds too good to be true, it probably is.”

SEC Says Scammers Often Use Social Media to Defraud Investors

Monday saw the release of an investor alert from the U.S. Securities and Exchange Commission (SEC) titled “Social Media and Investment Fraud.”

Fraudsters frequently use social media to defraud investors, according to a warning from the SEC’s Office of Investor Education and Advocacy. The securities regulator advised investors to exercise caution and “never base investment decisions solely on information from social media platforms or apps”

Fraudsters may exploit investors’ fear of missing out to lure investors on social media into ‘crypto’ investment scams.

The SEC emphasized that “if a cryptocurrency investment ‘opportunity’ sounds too good to be true, it probably is.” “Classic warning signs of fraud are promises of high investment returns with little or no risk.”

In order to entice investors into their schemes, fraudsters may also post fabricated historical returns on their websites showing high investment returns.

The securities watchdog advised anyone thinking about investing in crypto assets or any investments related to crypto to “take the time to understand how the investment works.” “Use the search tool on Investor.gov to look up the background (including license and registration status) of anyone offering you an investment in securities.”

Aside from the SEC, a number of other American regulators have issued alerts about cryptocurrency fraud. Authorities recently issued a warning regarding the alarming rise in popularity of the “pig butchering” cryptocurrency scam. The FBI recently issued a warning to cryptocurrency investors not to fall for the liquidity mining scam.

The first half of this year saw a 15% decrease in illicit cryptocurrency volumes compared to the same period last year, according to blockchain analytics company Chainalysis. To be more precise, the company said that “Total scam revenue for 2022 currently sits at $1.6 billion, 65% lower than where it was through the end of July in 2021, and this decline appears linked to declining prices across different currencies.”