STOCKS TELEGRAPH

Tag: Blockchain Regulation

  • BitMEX executives trial date is set for March 2022

    BitMEX executives trial date is set for March 2022

    New York District Judge John Koeltl has set the trial for former BitMEX executives CEO Arthur Hayes, co-founder Benjamin Delo, and chief technology officer Samuel Reed to be held on 28th of March 2022. The head of business development Gregory Dwyer also has to face charges but has not yet appeared. The trial is going to take place eighteen months after the charges were initially filed.

    Defense motions are due to be filed in June while other pretrial motions are expected to be filed by September 2021. The platform had been operating in a jurisdiction outside the United States because of lax regulation – as bragged by an executive – but had also been offering its services to American citizens.

    The three former executives of the cryptocurrency exchange, BitMEX, are accused of evading the anti-money laundering laws as well as the violation of the Bank Secrecy Act. The United States Commodity Futures Trading Commission had charged BitMEX with illegally operating as a derivatives platform. The commission further believes that the crypto exchange has been offering illegal leveraged trading services ever since its launch in 2014. The CFTC investigation has been going on since 2019 and the crypto exchange was given ample time to exclude Americans from its platform through the “Know Your Customer” requirements – which it failed to do so.

    A civil enforcement action was filed against the three executives who are said to own and operate the exchange as well as five entities, namely: HDR Global Trading Limited, 100x Holding Limited, ABS Global Trading Limited, Shine Effort Inc Limited, and HDR Global Services (Bermuda) Limited (BitMEX).

    Apart from civil charges, the four executives are also accused of conspiring to violate and violating the Bank Secrecy Act by the United States Department of Justice. The conviction can land the executives in prison for a maximum of five years with a heavy penalty of $250,000.

  • Cryptocurrencies making headway in Texas

    Cryptocurrencies making headway in Texas

    Cryptocurrencies are making a headway. The bull run of 2021 saw the increased adoption of the blockchain technology at a pace never witnessed before. Wallstreet behemoths and corporate giants have taken the lead in the adoption of cryptocurrencies and a consensus have been reached on the potential of the blockchain technology.

    Texas House of Representatives has passed a bill which will recognize cryptocurrencies under the commercial law in the state. An amendment was proposed at the 87th Texas Legislature to the Uniform Commercial Code or UCC. The amendment will help the adaptation of commercial law to cryptocurrencies. Digital assets and blockchain innovations will be regulated under the UCC – as per the proposed amendment.

    The bill had been earlier proposed by Representative Tan Parker in March and the efforts of Parker have come to fruition as the House of Representatives passed the bill. The next step in the procedure is the passing of the bill in the Senate. In the Texas Senate, the bill is to go through another round of amendments and a potential final vote. If the senate passes the bill, Governor Greg Abbott will have to sign the bill into law.

    Governor Greg Abbott has been a supporter of cryptocurrencies. The governor has also referred to himself as “Supporter of the Crypto law proposal”. With the governor’s unofficial approval for the bill, there is a good chance the crypto proposal will be met with the same kind of attitude in the Senate as well.

    Wyoming is currently the only crypto-friendly state with a clear definition of virtual cryptocurrencies for business – which fosters a thriving environment for blockchain innovation. If the bill is signed into law by Texas, it would make Texas the second crypto-friendly state – ultimately, speeding up the adoption of cryptocurrencies.