crypto regulations

Andreessen Horowitz Names New York Stock Exchange’s Top Regulator to Head Its Cryptocurrency Unit

Andreessen Horowitz venture capital firm has tapped the current head of the New York Stock exchange (NYSE)’s regulatory unit as its new chief regulatory officer to spearhead its thriving cryptocurrency division.

Anthony Albanese, as the new chief regulatory officer at Andreessen Horowitz, will take the position that would focus on cryptocurrency portfolio companies in social media, payment systems, digital storage, gaming, creative marketplaces, and many more.

According to the Wall Street Journal report, Albanese is set to join the Silicon Valley-based venture capital firm in mid-November. Albanese becomes the latest regulator to join a company active in cryptocurrency markets, where regulations are still emerging, and several crypto-related businesses operate in a legal gray area. His role would involve outreach to regulators and assisting in shaping strategy for Andreessen Horowitz’s cryptocurrency projects.

Before serving as the chief regulatory officer at the NYSE, Albanese was the superintendent of the New York State Department of Financial Services (NYSDFS) when he helped to introduce BitLicense for cryptocurrency companies in 2015. Such work experience makes him understand issues regarding drafting regulations and standards for the crypto industry.

During his tenure at NYSE, Albanese left a legacy of being a tough and strong enterprise leader who does not hesitate to punish traders for small rule violations. He, therefore, has a proven professional work experience that makes him a valuable human capital at the venture capital firm that launched its crypto fund project in 2014.

Last year, Andreessen Horowitz made a bold move by becoming a registered investment adviser, after obtaining a legal approval from the US Securities and Exchange Commission (SEC), thus gives the venture capital firm more flexibility to invest in things like cryptocurrency projects. Andreessen Horowitz is one of the earliest venture capital firm believers in blockchain and cryptocurrency technology.

Since 2014, the venture capital firm has been directly investing in cryptocurrencies such as Bitcoin and Ether as well as other crypto-inspired businesses like Coinbase cryptocurrency exchange, MakerDAO stablecoin developer, Compound cryptocurrency lender, Celo mobile payments startup, Anchorage cryptocurrency custodian, and many other crypto projects in the United States.

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Turkey Government Considers Introducing New Regulations After Collapse of Two Crypto Exchanges

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Turkey is considering new regulations for the crypto market. The development comes after two crypto exchanges abruptly went bust a few days ago.

The collapse of Thodex and Vebitcoin, who among the leading crypto exchanges in Turkey, was a huge blow to thousands of Turkish crypto investors who were unable to access funds worth millions of dollars in cryptocurrencies, after the two exchanges went bankrupt last week.

A senior official familiar with the talks said that the Turkish government is planning to develop a central custodian bank to eliminate counterparty risk.

The official stated that authorities are examining how to create a capital threshold for crypto exchanges and education requirements for executives in such firms.

The official further said that the authorities are set to complete the preparation for a regulatory framework in the coming weeks. The Finance Ministry, the Treasury, the Financial Crimes Investigation Board (MASAK), and the Capital Markets Board (SPK) are said to be involved in the effort.

Uncertainty Around Turkish’s Crypto Policy

It has been a tragic month for the crypto market in Turkey. On April 16, the Central Bank of Turkey issued a ban on the use of cryptocurrencies for payment of goods and services. The central bank stated that transactions conducted through the use of cryptocurrencies presented “irrevocable risks.”

The ban is set to come into effect on April 30.

Last Thursday, Thodex crypto exchange, which is based in Istanbul, stopped its trading activities – an incident that unfortunately resulted in more than 390,000 active customers being unable to access their funds.

The following day, Friday last week, Vebitcoin crypto exchange made an announcement that it halted its operations, citing financial constraints facing the firm.

Police arrested Vebitcoin CEO IIker Bas and three other employees, who are now all part of a wider fraud investigation.

Police also launched a manhunt for Thodex CEO and founder Faruk Ozer, who is reported to have fled to Albania’s capital with around $2 billion of customers’ funds. Interpol issued a red notice for the warrant of arrest of Ozer after Turkish authorities made the request.

On Friday last week, Şahap Kavcıoğlu, the Central Bank governor of Turkey said that the finance ministry and the Treasury are working on wider regulation concerning crypto assets, and stated that the bank does not plan to ban them.

The uncertainty comes at a time when the already rising crypto boom in Turkey gained momentum over the recent year. Many citizens have turned to cryptocurrencies to protect their savings from the depreciation of the Turkish Lira currency and to hedge against inflation.

There is an estimate of 5 million active crypto users in Turkey as of now. In the last 24 hours, the daily trading volume of Turkish crypto markets was estimated to be around $1.6 billion, according to CoinGecko.com.

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SEC Chair Gary Gensler Asks Congress to Regulate Crypto Exchanges

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Gary Gensler, the newly appointed chairman of the US Securities and Exchange Commission, has requested that the US Congress make some major decisions regarding cryptocurrency regulation.

The SEC chair addressed this during a hearing hosted by the House Financial Service Committee, where market volatility surrounding the GameStop stock price jump witnessed early this year was discussed.

Gensler made such comments as a response to a question asked by Rep. Patrick McHenry about what the SEC would do to ensure that the crypto industry remains compliant with the law and conforms with legitimate use cases.

Gensler responded that US investors lack protection when they trade Bitcoin on crypto exchanges. He therefore asked US Congress to consider upping investor protection for crypto exchanges.

Gensler stated that since crypto exchanges do not have a regulatory framework provided by the SEC or the Commodity Futures Trading Commission (CFTC), US Congress was the one responsible for instilling greater investor confidence through regulating crypto exchanges.

Although the SEC’s authority involves regulating digital assets that the regulator considers securities, Bitcoin does not fall under this category.

Gensler stated that Bitcoin is a commodity under US law and is not subject to the SEC’s oversight. He said:

“There’s a lot of authority that the SEC currently has in the securities space, and there are a number of cryptocurrencies that fall within that jurisdiction. But there are some areas, particularly Bitcoin trading on large exchanges, that the public is not currently really protected.”

Without a strong market regulatory oversight on crypto exchanges, Gensler said that there is no protection against manipulation or fraud. He said that the 2 trillion crypto market could benefit from greater investor protection and therefore suggested that Congress play an active role in bringing greater regulatory clarity, especially around exchanges. Gensler said:

“It’s only Congress that can really address it. It would be good to consider whether to bring greater investor protection to the crypto exchanges.”

Regarding the GameStop frenzy, Gensler talked about the role of online communities such as Reddit in boosting stock prices. He however stated that he is not interested in curtailing the freedom of expression, but rather that he was more interested in seeing whether malicious actors took advantage of such communities to manipulate markets.

He disclosed that the SEC plans to release a report this summer evaluating the GameStop trading craze and the reaction to it.

Fixing Gaps in Crypto Industry

Gensler was sworn in as the chairman of the SEC last month. During his nomination, he suggested that more government oversights of crypto assets will be coming. His appointment could have a significant impact on the cryptocurrency industry. Crypto advocates have projected that under his leadership, the US could see a Bitcoin ETF approval and the much-needed regulatory clarity in the field of digital assets.

As a former Commodity Futures Trading Commission chairman and former Goldman Sachs investment banker, Gensler has a great wealth of experience to serve as SEC chairman. What sets him apart from his predecessors is that Gensler is the first blockchain technology and crypto expert to head the SEC. He was a professor who taught the course “Blockchain and Money” at the MIT Sloan School of Management and he regards Bitcoin as a “catalyst for change.”

JPMorgan CEO Warned Investors Against Bitcoin Investment, Calls for Clear Regulations to Crypto Trading

Jamie Dimon, the CEO of JPMorgan Chase Bank, once again reiterated his stance on Bitcoin cryptocurrency, still believing that people should not invest in crypto. The US billionaire investor’s view on Bitcoin did not change much over the previous few years.

While speaking at a virtual hearing organized by the US House Committee on financial services on Thursday, May 27, Dimon stated that Bitcoin is not supported by an asset and therefore said: “Something that’s not supported by anything I do not believe has much value.”

The chief executive officer warned people against purchasing cryptocurrencies. He stated that stablecoins and blockchain are not in this group, and his opinion does not dictate whether his company embraces cryptocurrency.

“My own personal advice to people is to stay away from it,” Dimon stated as a response to a question raised by Ohio Representative Warren Davidson, a crypto-friendly congressman.

Although Dimon’s personal views on Bitcoin have not changed much, it appears that there is a significant change in his tone about cryptocurrency. He stated that his opinion does not imply that JPMorgan clients don’t want exposure to Bitcoin.

This is based on how one has to run a business; Dimon stated that while citing an example of Marijuana.

“My own personal advice to people is to stay away from it. But that does not mean the clients don’t want it – this goes back to how you have to run a business. I don’t smoke marijuana, but if you make it nationally legal, I’m not gonna stop our people from banking it,” Dimon said.

The administrator admitted that JPMorgan was examining ways to allow its clients to purchase and sell cryptocurrency safely and have Bitcoin appear on their bank statements.

However, the bank executive emphasized that cryptocurrencies have many risks and are inferior to traditional assets.

“It’s nothing like a fiat currency; it’s nothing like gold,” Dimon stated. “Buyer beware.”

Dimon also lamented the lack of regulations in the cryptocurrency space, which he termed a “serious emerging issue.” The executive thinks that regulatory authorities should step in and regulate the crypto industry.

Banks Eyeing Bitcoin

The latest development about Dimon’s scepticism about cryptocurrency comes when JPMorgan is planning to provide a Bitcoin fund for its premium clients.

Last month, JPMorgan Chase announced that the institution is preparing to provide an actively managed Bitcoin fund to wealthy clients.

The JPMorgan Bitcoin funds could be launched as soon as possible as this summer. The bank plans to offer an actively managed Bitcoin fund, which is a significant break from the passive fare offered by crypto industry supporters like Galaxy Digital and Pantera Capital, which allow wealthy clients to purchase and hold Bitcoin through funds without ever touching it themselves.

NYDIG and Digital Galaxy are currently providing Bitcoin funds to Morgan Stanley clients.

Although Dimon is still not a Bitcoin supporter and has no interest in it, he admits that JPMorgan clients might force the bank to offer services associated with the cryptocurrency.

US SEC Chair Gary Gensler: Coinbase and Other Crypto Exchanges Must Register with Agency

The US Securities and Exchange Commission Chairperson Gary Gensler has stated that cryptocurrency exchanges should come in and talk to the market regulator. The SEC boss made such a statement just a few days after aiming for the Coinbase trading platform over one of its products.

Gensler appeared before the Senate Banking Committee on Tuesday, September 15, where he intensified the pressure on cryptocurrency exchanges, saying he would like to regulate them.

The SEC chair warned that cryptocurrency exchanges like Coinbase should register with the regulator, which he previously raised concerning whether cryptocurrency trading platforms qualify as securities exchanges.

Gensler mentioned that exchanges should register with the agency, as some of their tokens or products may be securities, unlike Bitcoin, which regulators think is more like a commodity.

“I’ve suggested that platforms and projects come in and talk to us. Many platforms have dozens or hundreds of tokens on them,” Gensler said. “There are securities on these trading platforms; under our laws, they have to register with the Commission unless they qualify for an exemption,” he added.

In his prepared remarks for the committee, the SEC’s Chairman talked about the need for cryptocurrency trading platforms to register as securities trading platforms.

While Gensler did not mention any specific companies, he reiterated that any exchange that has security listed must register with the SEC.

Crypto Regulation Problem

The announcement from the US SEC comes a few days after the commission told Coinbase Global Inc that it plans to sue the crypto exchange if it goes ahead with plans to launch a program that allows users to earn interest by lending digital assets.

On September 9, Gensler stated that products that bear a specific interest-rate return could fall under SEC oversight as securities and also hinted that some stablecoins should also fall under that category.

During that time, the SEC threatened to sue Coinbase if the cryptocurrency exchange goes ahead with its program called “Lend”, which allows users to earn interest by lending crypto assets.

Coinbase now plans to delay the launch of its “Lend” product until at least October.

In response, Coinbase CEO Brian Armstrong criticised the commission’s handling of the exchange’s plan to roll out a lending product, which the SEC has determined to be a security.

Armstrong accused the commission of “really sketchy behaviour” and stated that he failed to see how the lending product was security. He disputed the SEC’s determination, saying “Lend” is not an investment contract or note. Armstrong stated that Coinbase was threatened with legal action before the SEC gave a single bit of actual guidance to the crypto industry.

Meanwhile, crypto-industry figures and some lawmakers need the SEC to clarify what it thinks it can and can’t regulate.

In his prepared remarks, Gensler stated that the SEC is working with the Federal Reserve, the Treasury, the commodities regulator, and other agencies on a regulatory framework.

Legislation Introduced to Remove SEC Chair Gensler from His Role

The Securities and Exchange Commission (SEC) is facing new controversy, as United States Representative Warren Davidson has announced plans to introduce legislation that would remove SEC Chair Gary Gensler from his role. The move follows the SEC’s proposed rule amendments, which could bring certain brokers under additional regulatory scrutiny and redefine an “exchange.” While Gensler has said the proposed changes could benefit investors and markets, SEC Commissioner Hester Peirce has criticized the move, accusing the regulator of stifling new technology and entrepreneurship.

Peirce, who is known as “Crypto Mom” for her pro-crypto positions, has criticized the SEC’s approach to crypto regulations. She believes that the SEC has been expanding its reach to solve problems “that do not exist” and has refused to alter current regulations to allow room for new technologies and new ways of doing business. Peirce has also accused the SEC of using the “notice-and-comment rulemaking process” as a threat. In her opinion, a concept release should have been issued instead of the proposed rule amendments, given the concerns over their ambiguity and scope, and the SEC’s “limited understanding” of the space.

The SEC has faced criticism for using enforcement actions to develop the law on a case-by-case basis, rather than creating clear regulations. The regulator has launched more than a few high-profile actions against crypto companies such as Ripple, LBRY, and Coinbase over alleged violations. It has also taken aim at staking and stablecoins, prompting some critics to argue that the SEC has been stifling innovation in the crypto space.

Meanwhile, Davidson’s proposed legislation to remove Gensler from his role as SEC Chair has raised eyebrows. Gensler is widely regarded as a tough regulator who is committed to protecting investors and ensuring market stability. He has previously served as chairman of the Commodity Futures Trading Commission (CFTC) and is known for his work in implementing the Dodd-Frank Act, which was designed to reform the U.S. financial system after the 2008 financial crisis.

In conclusion, the proposed legislation to remove SEC Chair Gary Gensler from his role is the latest development in a long-running debate over crypto regulations. While Gensler has said that the proposed rule amendments could benefit investors and markets, Commissioner Hester Peirce has accused the SEC of stifling innovation and entrepreneurship. The SEC has faced criticism for using enforcement actions to develop the law on a case-by-case basis, rather than creating clear regulations. It remains to be seen whether Davidson’s proposed legislation will gain traction, but it is clear that the debate over crypto regulations is far from over.

Indian Supreme Court Expresses Discontent Over Lack of Crypto Regulations

The absence of defined rules and regulations governing cryptocurrencies in India has lately drawn the attention of the country’s Supreme Court. The court referred to the lack of such legislation as “unfortunate,” underscoring the pressing need for a legislative framework to regulate the rapidly expanding crypto industry.

The court has come under fire as the number of cryptocurrency-related criminal prosecutions increases. In response, the Union administration has been ordered by the Supreme Court to specify whether it plans to create a federal office particularly dedicated with looking into these instances. The national level needs a dedicated organization that can comprehend and fully probe the complicated nature of crypto transactions, the court noted.

In addition to investor safety, the Supreme Court is also concerned about the growing number of innocent investors who are being taken advantage of because of the complicated nature of cryptocurrency transactions. The court emphasized that an increase in fraudulent activities is being caused by the lack of a competent national institution to look into such matters.

Strangely, the government moved quickly to enact crypto taxes regulations, which took effect in April 2022, despite its slowness to develop clear crypto principles. The lack of legislative certainty has caused many established enterprises to migrate from India, which has had a substantial influence on the Indian cryptocurrency sector.

Despite the government having been told to start working on a crypto law as early as 2018, the court’s views came as a surprise. The regulatory ambiguity surrounding cryptocurrencies in India is further exacerbated by the fact that the final text of the crypto law has not yet been presented.

The Supreme Court’s comments highlight the urgent need for India to develop a thorough legal framework for cryptocurrencies. The court’s demand for clear legislation and a specialized investigative agency might be a big step toward securing investor security and stopping criminal activity as the nation deals with the potential and problems provided by the crypto industry.