Veriscope Regulatory Recap (Jan 22 - Jan 28, 2023)
Back with another Veriscope Regulatory Recap!
This week in focus - the note from the Biden administration officials urging Congress to intensify crypto regulatory efforts, Indonesia signing a new financial law to regulate crypto beyond trading, and a US Democrat introducing a bill for legalizing crypto payments in New York state. Let’s dive straight into it.
US Official Note Urges Congress to Step up Crypto Regulations
The Biden Administration presented in its official blog, from January 27th, 2023, a roadmap for addressing potential crypto risks. It aimed to ramp up enforcement and asked the U.S. Congress to step up its regulatory efforts.
The post cited some significant failures in the crypto industry in recent times, including the implosion of Terra protocol’s algorithmic stablecoin and the collapse of FTX, the third-largest crypto exchange in the world.
The lack of applicable regulations, the prevalence of misleading statements, inadequate disclosures, and weak cybersecurity measures are among some of the risk factors that the blog has identified.
The administration asked not to allow mainstream financial institutions like pension funds to enter crypto markets.
Indonesia Wants to Treat Crypto as a Security
With Indonesian President Joko Widodo signing a new law on January 12th, crypto regulatory powers will now shift from the Financial Services Authority (OJK) to CoFTRA, a commodities watchdog.
ABI, the blockchain trade association of Indonesia, has welcomed the move saying that “this shift has shown a good understanding from the regulator that crypto assets are broader than just trading.”
According to the Indonesian Government, the regulatory changeover would take two years.
The country also has plans to set up a national crypto exchange similar to the NYSE, which the government believes will make market monitoring easier for regulators.
IMF Issues 5-Point Crypto Regulatory Recommendations
The International Monetary Fund (IMF) recommendations ask regulators to license, register, and authorize crypto asset providers. It calls to prohibit crypto entities from conducting multiple functions under one business, as it creates conflicts of interest.
The IMF has also asked for regulators to apply robust regulations, as applicable to banks, to the issuers of stablecoins. It has suggested imposing requirements on traditional financial institutions for crypto exposure or engagement.
The final recommendation called for a consistent global approach to crypto regulation and oversight.
US Democrat Introduces a New Bill for Crypto Payments
A member of the Democratic Party and the representative of the 33rd district of New York, Clyde Vanel, has introduced a crypto bill to the New York State Assembly. It is asking state agencies to legalize and accept cryptocurrency as a means of payment for fines, taxes, fees, civil penalties, and other state-related dues by forming partnerships with entities that will enable crypto payment settlements.
The bill is now in the hands of the New York State Assembly Committee on Government Operations for further study and possible amendments.
The bill requires it to be passed by the Assembly and Senate Body and by the Governor of the State before it could become law.
Shyft Network Tokenomics Update
Last week (January 26th, 2023), we published the Shyft Network token distribution and economic update. At the time of writing, we were at a block 8,884,061, with 595,473,894.1127162 SHFT in circulation.
The current SHFT unlocked at the time of the publication was 951,904,687 on the 26th of Jan. 2022. As yield wrap and AMM solutions have not been launched yet - unlocked tokens are accumulated and are not distributed. Thus, even as they are unlocked - they have not been touched and have not reached the market/users but may be introduced upon the launch of yield wrap programs. Also, it includes unlocked SHYFT treasury tokens.
More details: https://www.shyft.network/newsroom/shyft-network-token-distribution-and-economics-update
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Visit our website to read more: https://www.shyft.network/veriscope, and contact our team for a discussion: https://www.shyft.network/contact.