Cryptocurrencies and cryptoassets

The USA's Security and Exchange Commission has obtained a series of orders against BKCoin Management LLC and one of its principals, Kevin Kang.

As an global association of more than 1,000 participants in markets, the The International Swaps and Derivatives Association is influential and when it issues material it carries weight outside its own area of concern. So when it has published The ISDA Digital Asset Derivatives Definitions. It makes sense to pay attention, even if you aren't in swaps or derivatives.

John Ho discusses the Regulation on Markets in Crypto-Assets or MiCA.

Cryptowallet provider Ledger said that some of its users had trouble "withdrawing" their assets. At least that's what some correspondents have called it.

But this isn't like when a hedge fund says "we're freezing withdrawal" or when there's a run on a bank (or a crypto exchange). It's more akin to a DDOS attack, albeit in all innocence.

Much store is placed on "mixers," which are also known as "blenders" and "tumblers." Let's strip away the myth.

"Crypto ATMs offering cryptoasset exchange services in the UK must be registered with us and comply with UK Money Laundering Regulations). None of the cryptoasset firms registered with us have been approved to offer crypto ATM services, meaning that any of them operating in the UK are doing so illegally and consumers should not be using them."

Thus said the Financial Conduct Authority today after receiving the judgment in Gidiplus v The Financial Conduct Authority.

Only a few days ago, we covered a story about the then latest initial coin offering ( here) case to conclude in the USA.

Now, two men in California have agreed to plead guilty in a scheme that is not dissimilar.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today announced a settlement with BitPay, Inc., a private company based in Atlanta, Georgia, that offers a payment processing solution for merchants to accept digital currency as payment for goods and services. BitPay agreed to remit USD507,375 to settle its potential civil liability for 2,102 apparent breaches of multiple sanctions requirements. We have edited the relevant media material and commented on it.

The case provides fascinating background as US PoTUS Biden undertakes a wide-ranging review of Trump-era regulations including sanctions. Much will turn on whether such sanctions are "revoked" or "repealed" or, even, just "cancelled." It also draws attention to "know your customer's customer."

This press release from the USA's Securities and Investment Commission is about an old-fashioned (alleged) fund management fraud in which crypto-assets were the hook by which investors were encouraged to put money into a scheme which was not, says the SEC, what the promoters said it was.

You'd have thought that you'd heard the last of US lobbyist Jack Abramoff, the self-styled lobbyist, film producer, writer and businessman when he was awarded the coveted additional position, without which no American businessman's career is, seemingly, complete: that of convicted felon. After all, when you've been jailed for fraud, conspiracy to commit bribery and tax evasion you'd keep your head down, wouldn't you.

But then again, when your entire career has been working with dodgy businesses and doing dodgy political deals, perhaps there's nothing left to do but be dodgy over cryptoassets. A crypto-coin especially designed to be resistant to money laundering: AML Bitcoin was tailor-made for Abramoff. Now he's awaiting sentence and the company behind it is in disarray - and spending investors' money on litigation.

But what lies behind it is even more fascinating and takes us on a global trek from Las Vegas via Texas to London, Singapore and Melbourne - then across the Pacific to...

Dogs, palm trees, a rather individual way of life in the tropics - John McAfee - the chap who, effectively, created the software anti-virus industry - has long been a thorn in the side of the US authorities but exactly why he gets so much attention when so many other slide by is a mystery. Yes, there was something about a gun but now he's in trouble for making comments on Twitter. They say he "fraudulently touted" Initial Coin Offerings. Er.. isn't that tautology?

Arthur Yuen, Deputy Chief Executive, Hong Kong Monetary Authority, today set out Hong Kong's stall. Is today's statement an indication of success or a note being of not-quite competitive?

An article published by CNBC ("Here’s why regulators are so worried about Facebook’s digital currency") says in its teaser "Facebook’s argument is that it won’t be minting new money with its digital currency."

That is absolutely untrue. This is why.

On 13 March, the Bank for International Settlements Basel Committee issued a statement regarding "crypto-assets." Some of its basic assumptions are wrong and fundamentally misleading.

This ultra-simplified explanation clarifies the absolute basics of a subject that has become shrouded in myth and mystery.

The blockchain, crypto-currencies (or cryptocurrencies) like bitcoin, distributed ledgers and smart contracts are, actually, stuff you already know..