Minute crypto regulation n. 7: Bitcoin and cryptocurrencies in front of the financial police

On the occasion of this monthly article, we will provide an overview of legislative projects or new regulatory trends related to Bitcoin (BTC) and cryptocurrencies. In this seventh work of the Crypto Regulation Minute, we will go to the United Statesto Qatar before ending up under the coconut trees ofHawaii.

United States: Bitcoin, Ethereum and companies are commodities

On 16 May 2022 the President of Commodity futures trading commission (CFTC) of the United States, Rostin Behnamspoke on the subject cryptocurrency regulation in an interview with CNBC. In this regard, the CFTC chairman said that Bitcoin, like Ether, are services which, as such, fall within the scope of the commission.

In addition, he explained that the CFTC was working in conjunction with the Securities and Exchange Commission (SEC) to regulate the cryptocurrency industry to ensure protection efficiency of customers of this market.

Then, Rostin Behnam, when asked about the bill in Congress, insisted on stating the following:

“It’s a bit of an old problem between the CFTC and the SEC. Historically, we have a very good relationship. In this space [celui de la crypto]In my view, it makes sense that the commodities are regulated by the CFTC and that the securities are regulated by the SEC. “

Finally, to the question about SEC Chairman Gary Gensler’s claim more digital tokens are financial securitiesRostin Behnam reiterated this the biggest cryptocurrencies (Bitcoin and Ether) are services. Paradoxically, the CFTC chairman said he did not believe there was a disagreement between the 2 regulators.

He concludes the interview by saying that the CFTC and the SEC want regular the area “thoughtfully”everything inside to protect customers and financial stability.

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Qatar: Home of the first cryptocurrency exchange (or not)

According to a press release dated May 19, 2022, the exchange Coinmena based in Bahrain would be the first to make his entry into the territory of Qatar. This announcement was made by Coinmena who claims that Qatari residents can now link their bank accounts to crypto wallets.

In fact, the co-founders of Coinmena stated:

“We are delighted to become the first cryptocurrency exchange to offer our services in Qatar. Investors have long questioned our plans to enter the country. Therefore, this news represents an important step in our geographic expansion plans (…). “

However, there are reasons for request Coinmena’s announcement. In fact, according to a statement on the same day, the Central Bank of Qatar (BCQ) put on guard Residents of Qatar against ” financial institutions and unlicensed service providers “.

Furthermore, with this notice, the Central Bank stated that:

“No financial institution has been authorized to provide digital currency exchange, transfer and trading services.”

Finally, the BCQ stated that it would lead to it causes against any entity that provides digital asset services without a license issued by it. Keep on !

Hawaii: In the midst of cryptocurrency regulation

On the Hawaiian side, the month of May 2022 is more than ever placed under the sign of cryptocurrency regulation. In fact, the 2 main regulatory committeeswhich are that of Trade and Consumer Protection (CPN) and that of Ways and Means (WAM), have agreed to starting a work group.

CPN and WAM Committee Voting Records – Source: Hawaii State Legislature

This group called “Task Force Blockchain and Cryptocurrencies” will have the main focus of monitor the local ecosystem digital assets and explore the potential use of cryptocurrencies. Therefore, the working group should “create a master plan to explore use and regulation” digital assets and blockchain technology.

Regarding blockchain technology, the Blockchain and Cryptocurrency Task Force will focus on developing a plan to extend this technology to achieve a public and private sector adoption.

The creation of such a working group is unprecedented in the cryptosphere. A few months ago, the SEC’s Nigeria presented a FinTech unit for the regulation of the local ecosystem digital assets.

Have a good week in the Journal du Coin!

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