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Tag: Regulation

  • Woes of Australian Cryptocurrency Industry on Regulation

    Woes of Australian Cryptocurrency Industry on Regulation

    The Australian government has been supportive of the block chain technology and the cryptocurrency market. The government had been partnering with various crypto firms in order to better explore the potential of the block chain technology. Grants up to $3 million had also been made available to block chain firms working towards mineral certification and excise taxation solutions.

    The government has tried to create an environment that fosters innovation but regulating the cryptocurrency market is not an easy feat and has become a sore topic in the country. The Australia Securities and Investments Commission (ASIC) has appealed to the local crypto community to collaborate with regulators to help ensure the fostering environment is strengthened. However,

    At the Australia Blockchain conference, senior advisor of strategic intelligence at ASIC, Jonathan Hatch, stressed upon the need for collaboration for regulation. Hatch also pointed out towards ASIC is trying to build trust in the crypto sphere.

    However, Hatch did not receive any positive response as the industry leaders were quick to point out the ambiguities in the regulator’s crypto regulation. Kevin Saunders, CIO of Monochrome Asset Management, urged the regulator to understand the cryptocurrency market more deeply in order to provide clarity on the regulation. CEO of Lygon 1, Justin Amos, also took a hit at the ASIC stating tight regulation will only stifle growth in the industry.

  • OCC Fintech Charter Under Fire From House’s Democrats

    OCC Fintech Charter Under Fire From House’s Democrats

    Brian Brooks, the Acting Comptroller for the Currency from May 2020 to January 2021, had to defend the fintech banking charter in front of the House Financial Services Committee’s Subcommittee on Consumer Protection and Financial Institutions.

    The fintech charter was introduced by the Office of the Comptroller of Currency (OCC) which enabled fintech firms – including cryptocurrency firms – to provide lending and payment products without the scrutiny faced by other firms. The charter placed fintech firms out of the inspecting lens of the banking regulators – allowing crypto firms greater freedom.

    Brooks faced lash back from the Democrats as they argued the viability of the charter given the already largely unregulated status of the cryptocurrency industry. Chairwoman of House Financial Services Committee, Maxine Waters, talked about the complaints registered from banks about the greater freedom that firms under the charter have. Waters furthered bashed the OCC stating the office has stepped outside its authority.

    Brooks was quick to defend the charter stating that the charter bought fintech companies under regulation. Moreover, Brooks also described how the charter is aimed at empowering the financial technology sphere in order to provide greater value to consumers. According to Brooks, the charter enables a greater choice to consumers of lending and payment options; hence empowering consumers. Brooks further stated the charter is designed to help propel the country’s technological dynamism.