Bitcoin

Exceed the legal limits, July 10th to 17th

Every Friday, Law Decoded provides an analysis of the week’s critical political, regulatory, and legal stories.

publisher’s Note

New developments in cryptocurrencies this week challenge a number of critical limits on legal authority. Accordingly, we analyze several cases that promise to set new lines for the scope and reach of the government.

Cassius complained that Caesar viewed the narrow world as a colossus. While nothing in today’s newsletter will be as dramatic as the death of the Roman Republic, we’ve actually seen a rather mysterious but strangely comical dress rehearsal of bad actors disguised as heads of state. We will also look at some national regulators trying to go beyond their obvious limits.

Exceed the legal limits, July 10th to 17th
Exceed the legal limits, July 10th to 17th

In last week’s Law Decoded, I pointed out that the cryptocurrency industry has a bad habit of forgetting that regulators who manage cryptocurrencies are also managing other colossal financial systems. In a way, today’s newsletter is a relapse into that feeling. A lot of power is at stake.

Elon Musk won’t give you Bitcoin and other hard realities

By far the loudest news that came from the cryptocurrency world this week was the Twitter hack even though it was awesome enough Access and tweet from the accounts of many of the world’s most powerful people, He lacked ingenuity to use this power for something other than a simple scam that offered to multiply bitcoin that was sent to an address.

How many stressed This was an extremely elaborate scam that was carried out on an extraordinary scale. Indeed, when the hack went beyond what is known in the cryptocurrency world CZ, and step towards global figures like Barack Obama, Elon Musk and Jeff Bezos, Lots They saw Donald Trump’s profile and became desperate.

Accepted The president used Twitter to announce guidelines. also for involved in high-profile conflicts against the leaders of Iran and North Korea, while American troops were suddenly forced to plan new mobilizations, The memory of Twitter’s vulnerability as a centralized platform was scary.

For the record, Trump’s profile remained intact. But in the past few months There has been a lot of talk about restricting the authority of social media platforms because of their importance for public discourse. But this is almost a reverse problem for government officials like: Joe Biden, who may be kidnapped by a high profile public profile. You can expect this latest trick and the implicit threat to global order to play a role in future discussions on the subject.. On the other hand, the The blockchain industry uses this to promote decentralized analogs to social media giants.

In any case, Keep in mind that everyone behind this trick only got around $ 121,000 net. Certainly not good news for the reputation of cryptocurrencies in public, However, it is difficult to see that this event is primarily about instant wins.

A highest rupee

The author of an infamous proposed cryptocurrency ban in India said: to tell the industry that it’s not a total ban at all.

Former Treasury Secretary Subhash Chandra Garg said the real objection to cryptocurrencies in the bill it is its use as a currency. He said that such a measure This would enable investments in cryptocurrencies as a digital product.

If so, this is a message that the media, including Cointelegraph, have been confusing in the past. But also, That seems like a remarkably fine line. If you can exchange cryptocurrencies as goods, What about peer-to-peer transactions? How is it possible that all of this ends up in categories like “suspicious as currency”? And how do you really hold such a responsible criminal accountable?

Garg’s concerns are widespread among regulators who see cryptocurrencies as a threat to monetary sovereignty. In places like Venezuela or Zimbabwe is now a highly optimistic argument for Bitcoin to bypass the current government’s monetary agency. But it also seems clear that The full impact of such a ban in India, a country with a population of almost 1.4 billion, has not yet been sufficiently clarified.

They are not my citizens, they are still my problem

After significant tug-of-war, the two U.S. investment regulators SEC and CFTC jointly fined the crypto-based Abra app. for its synthetic exchange servicewhat implemented price movements in US stocks and ETFs in changes to the guarantee that investors will put BTC and Litecoin.

The fines themselves were fairly nominal, totaling $ 300,000, which the app is unlikely to stop. but the case is definitely a loud warning shot for various reasons, between them, the fact that mixed exchanges are one of the areas that trigger SEC and CFTC measures. The nature of the jurisdictional limits of the US financial regulators is also questionable.

Abra had discontinued its synthetic investment services at the SEC’s request in February 2019. The company resumed later that year, after excluding US investors and registering a subsidiary to offer the service in the Philippines. The new intervention from The SEC and CFTC are clearly breaking new ground: Neither agency suggests that the company offer these services to U.S. investors, but they claim responsibility for Abra and its subsidiaries because of the company’s California offices.

Once again, $ 300,000 is not a particularly draconian deal. but it wasn’t Block.one. It is a precedent for the expansion of authority.

further reading

Peter Van Valkenburgh from, Coin Center, shows what the recent legal cryptocurrency and decentralized encryption threats mean (and don’t mean).

JDSupra has updated its information on state and federal laws when it comes to cryptocurrencies among other things new licenses in Louisiana.

Patrick Tan Think about how China’s CBDC could trigger a cryptocurrency boost for citizens who are concerned about their privacy.

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