US Federal Reserve and FinCEN proposed to tighten tracking of cryptocurrency transactions
According to the document, the US Federal Reserve and FinCEN are proposing to change the thresholds at which banks must collect and store information about remittances. Regulators are proposing to decrease this value from $ 3,000 to $ 250 for any transfers outside the US. The proposal will also expand the definition of "money" to include cryptocurrencies.
The Fed will accept public comments for 30 days after the proposal is posted in the Federal Register. Individuals can submit reviews online or via email. Note that although cryptocurrencies do not have legal tender status, according to the proposal, they can still be used to transfer value:
“Typically, cryptocurrencies can be exchanged instantly anywhere in the world through P2P payment systems that allow any two parties to transact directly with each other without the need for an intermediary financial institution. In practice, however, many people store and transfer cryptocurrencies using a financial intermediary such as a "wallet" or "exchange".
The document points out illegal transactions using cryptocurrencies, including transfers by the North Korean hacker group Lazarus. Recall that in the spring, CipherTrace published a detailed analysis of how Lazarus hackers laundered stolen crypto assets worth more than $ 100 million, bypassing KYC checks on cryptocurrency exchanges.
BNY Mellon has processed $ 137 million in transactions for organizations linked to the OneCoin pyramid, according to FinCEN filings released last month.
Al Khaleej Sugar Launches Blockchain-Based Sugar Trading Site
▪️On the platform, tokenized goods are traded, while the tokens “represent up to 100,000 tons of raw sugar”. DigitaSugario uses the Universa blockchain to record ownership of tokens. The storage of tokens is charged with an annual fee of 2.5% and an exchange fee of 0.4%.
▪️The platform was launched in collaboration with the Dubai Free Zone Administration and the Dubai Government Commodities Trade Authority (DMCC). DigitalSugario became the first global spot trading exchange for sugar, usually traded using futures and options.
▪️As noted by Jamal Al Ghurair, Managing Director of Al Khaleej Sugar, the blockchain platform is in line with the UAE Blockchain Development Strategy adopted by the government in 2018.
▪️At the beginning of the year, it was reported that it was planned to create a "Crypto Valley" with an incubator for companies working in the field of cryptocurrencies and blockchain in the Dubai Free Economic Zone.
Central Bank of Switzerland and BIS will start testing the state cryptocurrency by the end of the year
🇨🇭The Chairman of the BIS Innovation Center Benoît Cœuré announced this at a conference in Shanghai. He said the Proof-of-Concept (PoC) will allow researchers to experiment with government digital currency, use it for retail payments, as well as study interactions with existing payment systems and monitor compliance with regulatory requirements.
🇨🇭BIS also plans to involve other central banks in the initiative, including the Hong Kong Monetary Authority (HKMA) and the Central Bank of Thailand. Köre believes that such cooperation will allow more efficient testing of cross-border payments using government cryptocurrencies.
🇨🇭In the past year, SNB and BIS teamed up to study trends in the digitalization of the financial sector and expand their knowledge of financial markets. Departments believe that digital currencies from central banks can simplify the settlement of tokenized assets between financial institutions. However, such digital currencies should "peacefully coexist" with fiat currencies and not endanger the financial stability of states.
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