US financial watchdog fines early Bitcoin mixer 60M for money laundering

FinCEN has fined the operator of early crypto mixers Helix and Coin Ninja for Bank Secrecy Act violations.

The founder and operator of some of the first "mixing" services in crypto will have to cough up $60 million to United States regulators, even as he faces continued criminal charges.

The U.S. Treasury's Financial Crimes Enforcement Network, or FinCEN, announced on Monday a $60 million fine against Larry Dean Harmon, the man behind Helix and Coin Ninja.

Harmon was arrested in February for operating a stable of tumblers, or mixers, that Washington, D.C. prosecutors allege constitute unregistered money services businesses. Those charges against him say he laundered over $300 million in Bitcoin. According to today's announcement, "FinCEN’s investigation has identified at least 356,000 bitcoin transactions through Helix."

Mixing services attempt to privatize cryptocurrencies by sending them through a massive series of transactions involving various wallets. The process aims to obscure the origins of coins as well as the entity in control of them when they come out of mixing. Harmon's mixers were only accessible via the dark web.

FinCEN claims that Harmon deliberately flaunted the provisions of the Bank Secrecy Act, the cornerstone of U.S. Anti-Money Laundering legislation. It was violations of the BSA that led to criminal charges against the executive team of crypto exchange BitMEX earlier this month.

U.S. authorities have been on the prowl for criminal activity based on crypto. The Department of Justice recently released a report that highlighted privacy tokens like Monero (XMR) as a cause for alarm.

 

written by Kollen Post

https://cointelegraph.com/news/us-financial-watchdog-fines-early-bitcoin-mixer-60m-for-money-laundering

Chris Corey

Vinnik trial for extortion and Bitcoin money laundering begins in Paris

The Russian national linked to the laundering of $4 billion of Bitcoin stolen during the Mt. Gox hack is finally in court.

The trial of the alleged launderer of $4 billion worth of Bitcoin (BTC), Alexander Vinnik, got underway in Paris on Monday.

However, despite reported links to the 300,000 BTC hack of Mt. Gox in 2014, prosecutors are focusing on a 135-million-euro ($159 million) ransomware fraud targeting French businesses and organizations between 2016 and 2018.

According to The Associated Press, Russian national Vinnik is being charged with extortion, money laundering and criminal association after 20 victims of the "Locky" malware paid the ransom in Bitcoin through BTC-e.

Vinnik is alleged to be one of the creators of the malware and the former operator of the now-shuttered cryptocurrency exchange, although he claims that he was only a technical consultant at BTC-e and had no knowledge of any wrongdoing.

If found guilty, Vinnik faces up to 10 years in prison.

As Cointelegraph reported, Vinnik was originally arrested in Greece in 2017 at the behest of United States authorities.

There followed a legal tug of war, with prosecutors from France, the U.S. and Russia all petitioning for his extradition. Vinnik himself expressed a preference to be extradited to Russia, where he faces lesser charges.

Earlier this year, Greek authorities ruled that he would be extradited first to France, then to the U.S and finally to Russia

Even following his extradition to France, Russian authorities unsuccessfully requested that he be allowed to return to his home country under house arrest.

If tried in the U.S. in the future, Vinnik is likely to face charges related to the $4 billion hack of Mt. Gox. The 300,000 BTC stolen in the hack were allegedly laundered through the BTC-e exchange and Vinnik's own personal wallet.

 

written by Jack Martin

https://cointelegraph.com/news/vinnik-trial-for-extortion-and-bitcoin-money-laundering-begins-in-paris

Chris Corey

BLOCKCHAIN – THE QUIET ACHIEVER

BLOCKCHAIN – THE QUIET ACHIEVER 

Markethive Blockchain, the quiet achiever

Time For Trustless Trust 

Blockchain technology is what I consider to be a quiet achiever, and is subtly easing its way into the mainstream in many industry sectors that impact all of us in one way or another. Since my previous articles on Blockchain, we’ve seen an increase in the implementation of blockchain technology as now more than ever it has become a “time for trust”, as quoted by one of the big four auditing monopolies PwC.    

Without a doubt, Blockchain technology will have a beneficial effect on every aspect of business in the future, however, this is a gradual process that requires time and patience. Many traditional businesses are mindful of and watching this evolution, but sitting on the fence waiting for more examples of blockchain technology. Why?

Because traditional businesses will require more transformation when integrating Blockchain and will have to completely reconsider their processes to harvest the maximum benefits of this technology.  Meanwhile, companies with a culture of innovation lead the way into this new era of transparency and immutability. 

Although Blockchain was initially considered only suitable for banking, finance, and cryptocurrency sectors, we are now seeing the benefits in many other industries as well. Currently, we have a lot of solutions that are either in the pilot or beta phase or already being utilized in this enterprising way of not only keeping businesses honest but provides a range of benefits for the public.

 

50 Companies Already Using Blockchain Technology
BLOCKCHAIN 101

101Blockchains.com compiled a list of the top 50 companies across a range of industries as indicated in the infographic above, however, I’m going to add an industry that is at the forefront with a metamorphic influence and used by billions of people. It’s infiltrated our daily lives and increasingly is a way of life for communication, work, and livelihoods.  

Numerous giants in this industry have been in the notorious spotlight for misuse of personal data, political bias, and tampering, questionable algorithms to name a few. If you haven’t already guessed, yes it’s social media, particularly Facebook, and will probably be the last, if at all, to align themselves with a transparent, public blockchain for the benefit of its users on every level. 

Truth About FaceBook’s Libra

Even Facebook’s yet to launch Libra coin that has recently come up against regulatory pressure is a private blockchain (permissioned) that uses an access control layer to govern who has access to the network making it more centralized. In other words, validators are vetted by the network owner, unlike public decentralized blockchain where applications can be added to the network without the approval or trust of others, using the blockchain as a transport layer. 

The Libra blockchain would more likely be for financial transactions only and will not benefit from the network effect.  Nor would the issues of privacy and data harvesting be addressed, in fact, Facebook, which ironically banned ads related to cryptocurrency and initial coin offerings, has not said how it might use blockchain technology, so a public blockchain, by its very nature, could well pose a threat to Facebook.

Blockchain is a distributed ledger with data stored across a network of computers and rules that are enforced by its many participants. It’s the opposite of Facebook, which is a massive centralized organization that controls all the infrastructure underlying the 2.7 billion global users on its proprietary social network.

IMAGINE A BLOCKCHAIN FUTURE

Imagine…

Imagine a vast online network where we all hang out, chat, and buy things, but that’s not owned by Facebook, Google, or Amazon. That’s the vision many more people are seeing in blockchain technology as it becomes more understood. The companies using blockchain technology are actually securing their place in the changing ecosystem.

As 2020 comes to a close, there are now over 3 billion social media users around the globe using some form of social media, many are marketers, either for companies or in business for themselves. 

Blockchain technology as a foundation in social media will be able to solve the problems related to notorious scandals, privacy violations, data control, and content relevance. 

The integration of a decentralized blockchain ensures that all the social media published data remain untraceable and cannot be duplicated, even after its deletion. Furthermore, users will get to store data more securely and maintain their ownership. 

Blockchain also ensures that the power of content relevance lies in the hands of those who created it, instead of the platform owners. This makes the user feel more secure as they can control what they want to see. 

There are many upcoming social media platforms built on the blockchain, primarily used for sharing content through blogging and being rewarded with their native cryptocurrency. In my research, I’ve found some doing well, while others have tried and failed. Below I’ve outlined a few that stand out. They are each compared with a Web 2.0 platform or as close to it. 

SOCIAL MEDIA ON BLOCKCHAIN

Bitchute: is a peer to peer web torrent video sharing platform, predominantly funded by users’ donations and scaling memberships. Monetization including tipping creators’ content is handled by 3rd party processors via Bitbacker, Coinpayments, Paypal et al. The responsibility for payments are passed on to the user, not Bitchute. Primary user interests: politics, activism. Alexa ranking: 2,172. Comparison: Youtube.

Steemit: Steem blockchain-based social media platform. Earn Steem coin and Steem Dollars which is a USD soft-pegged asset to post, comment, and curate. Primary user interests: advice, finance, economics. Alexa ranking: 20,069. Comparison:  Reddit.

PeakD:  Underpinned by the Hive which is a new blockchain that originated as a fork of Steem. In February, TRON acquired Steemit, Inc., which allowed it to gain control over Steem. In response, several Steem nodes and users created Hive, introducing a new governance model that is designed to prevent anyone from gaining control over the blockchain.

Despite those differences, PeakD social media functions are very similar to those of Steemit. Users can post content on the social blogging platform, Peakd. Users receive HIVE crypto tokens for posting content and commenting on that content. Primary user interests: Blogging, miscellaneous communities. Alexa Ranking: 40,004 Comparison: Markethive Social Media Platform

Minds: is an open-source social media platform. You can earn Minds ERC20 tokens for contributions. Minds measure your contributions to the network on a daily basis and you receive a “Contribution Score”. They then calculate how much you have contributed to the network relative to the entire community. That determines the percentage of the Daily Reward Pool that you earn.

Users’ only receive credit for unique interaction, meaning you can only earn credit from another unique user once per metric per day. (eg. If a friend votes on my content 100 times in a day, I will only get credit for 1 vote).
Primary user interests: politics, activism. Alexa ranking: 11,591. Comparison: Facebook.

Narrative: is a user-governed social media platform for bloggers. Earn NRVE tokens to post, comment, curate, moderate, and own niches. Since its inception, some members of the Narrative community have incorporated and are negotiating a new platform with the aim to be reborn with a new platform name along with some improvements integrating to the new Discord server.  Primary user interests: n/a. Alexa ranking: 2,284,842. Comparison: Medium.

Memo: is a BCH blockchain-based social media platform. Earn BCH via posting. Data is stored directly to the blockchain, not the cloud, using OP_RETURN. Using the Memo OP_RETURN Protocol, the message you include with your transaction will show up as a post on the site. You can also use this protocol to like or reply to a previous memo.
Primary user interests: Bitcoin Cash, micro-blogging. Alexa ranking: 214,778. Comparison: Twitter.

However, According to Bitcoin.org the use of OP_RETURN is irresponsible in part because Bitcoin was intended to provide a record for financial transactions, not a record for arbitrary data. Perhaps Memo should build their own blockchain specifically for content and data.

SocialX: is a photo and video sharing blockchain-based platform. Earn SOCX crypto token rewards for contribution and licensing. SocialX is a community-driven social media platform allowing users to publish photos and video content. 

SocialX has created its own blockchain to tackle various challenges associated with blockchain-based projects including the decentralization of photos, video, and other media. 
Primary user interests: Varied content of a social nature. Alexa ranking: 2,223,697. Comparison: Instagram.

Indorse: Ethereum-based coding evaluation and assessment recruiting platform. Earn IND tokens for activity on the network. Primary user interests: coding, recruiting. Alexa ranking: 395,295. Comparison: Linkedin.

Markethive: built on blockchain technology, is a Social Market Network and much more than a social media or blogging platform. It incorporates all inbound marketing tools including SaaS, CRM, AR email systems, eCommerce, along with a digital media broadcasting platform. I am yet to find a blockchain comparison on the internet for Markethive. 

Earn Markethive coin (MHV) for every activity and engagement on the platform as a free member. Be rewarded for your loyalty while building your business online in a collaborative environment. Created for the struggling entrepreneur, delivering a sovereign platform so all have the opportunity to excel and prosper. Primary user interests: business, marketing, blogging, current news, commercial arts, entrepreneurialism. Alexa ranking: 3,152. Comparison: Marketo, Hubspot, LinkedIn.

(Alexa rankings and data retrieved on October 18, 2020)

Blockchain – A Real Differentiator 

Blockchain can be a real differentiator, a new technology with the potential to be a force for good, leaving centralized web 2 platforms behind with their tyrannical protocols.

Blockchain holds different meanings and use cases for different industries, with every industry being able to benefit from blockchain technology, however, by enlarge people still have limited knowledge of how blockchain can be a transformational change to all sectors.

Many cannot see beyond its association with cryptocurrencies and are confused about the differences between blockchain and cryptocurrency. A good way of understanding the relationship between crypto and blockchain is to compare it to an application on your smartphone. (e.g. Menulog or Messenger), and the platform on which that application is running (IOS or Android). Blockchain is the platform and cryptocurrency is an application that runs on the blockchain platform. 

The confusion stems primarily from the fact that the platform (blockchain) and cryptocurrency (Bitcoin) came onto the scene at the same time. The first time blockchain was recognized is when it took the world by storm as the technology behind bitcoin. When in fact, it was first conceptualized back in 1991 using the term “Timestamping”, which was basically an immutable ledger, long before Bitcoin.

More organizations are reassessing their operations as they do battle with the repercussions of the pandemic lockdown of 2020. It has accelerated many disruptive trends that will create entire new markets and displace others in the process. There is a shift towards new ways of working, communicating, and transacting online.

Trust Is Fragile

Trust is faltering, becoming an increasing issue in the digital world and organizations are clearly recognizing the importance of building trust with their people, customers, and business partners. They are paying far greater attention to the risks that undermine trust online such as fraud, data loss, or misuse along with many other forms of cybercrime. 

And in a more traditional sense we have all had to trust the institutions, middlemen, and the powers that be with our finances, documents, data, and the like, for decades, which has historically been the demise of society, even countries, almost becoming 3rd world. This type of trust will become irrelevant in the blockchain-enhanced digital world. 

A decentralized, immutable distributed ledger (blockchain) has been coined as a “trustless” protocol, meaning there’s no need for trust as in the traditional sense. Blockchain technology supersedes the old trust method, transforming into a “trustless trust”. 

 

An Emerging Technology Coming To Light

By integrating blockchain, organizations can build greater trust and transparency in areas such as certification, recruitment, commercial transactions, and the way they secure, share, and use data and content.

An increasing number of organizations are now seeing that blockchain technology provides an opportunity to change for the betterment of all, improving reputation, providing more growth and sustainability, build confidence, and propel any industry forward. 

 

Both Industries And Society Will Reap The Greatest Rewards 

PwC economists expect blockchain technology to bring benefits across a wide range of industry sectors and a lot of the value will be realized behind the scenes. This recent analysis in pdf format estimates blockchain technologies could trigger a $1.7 trillion boost in the global economy by 2030.  

They expect between 10% and 15% of worldwide infrastructure to be using blockchain within a decade with the biggest beneficiaries poised to be the public administration, education, and healthcare sectors. 

Also, wholesalers, retailers, manufacturers, and construction services will benefit from using blockchain to engage consumers and meet the demand for provenance and traceability.

There will be broader benefits for business services, communications, media, marketing, and advertising with the billions of users looking like winners with more of an equal opportunity to earn a living online. For ease, stability, and protection, blockchain technology will play a significant role in the next normal. 

 

ecosystem for entrepreneurs

 

 

Deb Williams
A Crypto/Blockchain enthusiast and a strong advocate for technology, progress, and freedom of speech. I embrace "change" with a passion and my purpose in life is to help people understand, accept, and move forward with enthusiasm to achieve their goals. 

 

 

Chris Corey

95 of winners in China’s CBDC lottery spent digital yuan prizes

Some winners purchased additional digital yuan during the pilot.

The vast majority of China’s $1.5 million digital yuan lottery winners have received and spent their “red envelopes” of digital yuan.

As of Oct. 18, a total of 47,573 out of 50,000 lottery winners in China have received their prizes, Shenzhen authorities officially announced on Sunday.

According to the announcement, the winners conducted a total of 62,788 transactions accounting for 8.8 million yuan ($1.3 million). This amount represents about 88% of the total 10 million yuan ($1.5 million) that was to be distributed in the giveaway pilot in Shenzhen.

Some winners have not only spent their “red envelopes,” but also topped up their wallets, having purchased an additional 901,000 yuan ($134,000).

Shenzhen launched a pilot program to promote the digital yuan with a public giveaway on Oct. 9. Lottery organizers will take back the unused amount of the digital yuan packets if winners do not spend it by Oct. 18.

As previously reported, a total of 2 million people applied to participate in Shenzhen’s digital yuan giveaway program as of Oct. 12.

China’s central bank digital currency — the digital yuan — began testing in April 2020. Pilots were subsequently expanded to nine cities including Shenzhen, Guangzhou, as well as Hong Kong and Macau.

 

written by Helen Partz

https://cointelegraph.com/news/95-of-winners-in-china-s-cbdc-lottery-spent-digital-yuan-prizes

Chris Corey

Amid IRS bounty and competitor progress Monero developers ship a major update

A new Monero update brings improvements in performance, speed, and security amid increased scrutiny from law enforcement and developments from competitors

First announced in September, Monero developers today went live with a network update featuring a new version of its node software, codenamed 'Oxygen Orion.' The product of 30 contributors, the update promises significant improvement across nearly all aspects of the privacy-focused cryptocurrency’s performance.

The highlight of the new update is the compact linkable spontaneous anonymous group (CLSAG) feature. According to the Monero blog, CLSAG will reduce transaction sizes by 25% and improve transaction times by 10% while maintaining transactional privacy.

The developers wrote:

"CLSAG enables smaller and faster transactions with rigorous security."
In addition to CLSAG, the new update brings security improvements to the network especially with regard to Dandelion ++, which is responsible for hiding user IP addresses.

Technically speaking, Monero updates are hard forks so it is imperative that network participants make sure that their software is up to date. Users who store their XMR in a hardware wallet will need to stay updated with the latest firmware, the blog noted.

This latest update comes amidst an uncertain outlook for the cryptocurrency due to pressures on multiple fronts.

In September the U.S Internal Revenue Service (IRS) offer a bounty of up to $ 625,000 to anyone who can crack Monero's privacy. Additionally, the Department of Homeland Security claimed to have acquired software that can track Monero transactions, though some researchers question the veracity of those claims.

Meanwhile, rival privacy cryptocurrency Zcash is heading into a halving event sometime this November, which some analysts believe will lead to bullish price action for the competing asset.

In spite of these headwinds, positive social media sentiment for XMR is up roughly 4% in the past week, according to analytics provided by TheTIE.

 

written by Husayn Hashim

https://cointelegraph.com/news/amid-irs-bounty-and-competitor-progress-monero-developers-ship-a-major-update

Chris Corey

OKEx founder reportedly under investigation as exchange suspends withdrawals

OKEx founder Star Xu was reportedly questioned by police a week ago.

The founder of major global cryptocurrency exchange OKEx has been reportedly questioned by authorities previous to OKEx suspending cryptocurrency withdrawals.

OKEx founder Mingxing Xu, also known as Star Xu, has reportedly been questioned by the police, Chinese news agency Caixin reported today. According to the report, the executive was investigated “at least a week ago” and has also been absent from work for some time.

When approached for comment on Xu’s participation in a police inquiry, OKEx told Cointelegraph that the exchange is no longer affiliated with OK Group, where Xu is a senior executive, and therefore was not in a position to comment on his activities.

The news comes shortly after OKEx suspended withdrawals of crypto assets on its platform today. According to the exchange, OKEx’s private key holders are cooperating with a public security bureau in an ongoing investigation. The exchange told Cointelegraph:

“We are unable to disclose the nature of an ongoing investigation but would like to assure all OKEx users that their funds are safe and that all other functions on OKEx are unaffected.”

OKEx CEO Jay Hao said that the decision to temporarily suspend withdrawals was taken “with user security in mind,” stating:

“As a world-leading exchange, user security is not something that OKEx can or will ever compromise on. We will do everything in our power to reinstate this service promptly and will provide updates on the matter as soon as possible.”

 

written by Helen Partz

https://cointelegraph.com/news/okex-founder-reportedly-under-investigation-as-exchange-suspends-withdrawals

Chris Corey

Bankless society inevitable’ due to crypto says Morgan Creek CEO

People will be able to “bank themselves” with crypto.

A bankless world is inevitable due to the “natural evolution of technology,” according to a top executive at multi-billion dollar investment manager, Morgan Creek Capital.

The firm’s CEO Mark Yusko believes that a “silent revolution” powered by cryptocurrencies like Bitcoin (BTC) will eventually lead the world to a bankless society.

In an Oct. 13 interview with Brazilian Dash-focused YouTube channel Dash Dinheiro Digital, Yusko said that people around the world will, in time, be able to “bank themselves through crypto.”

Despite his claims regarding a bankless society, the CEO noted that he does not mean banks will disappear entirely, stating:

“We will still need banks to do lending, digital currencies, or digital fiat to go along with crypto at the core. But the idea that we’re moving to a global borderless world, and nation-states will become less important, global systems will become more important, and you can be a citizen of the world as opposed to a citizen of a single nation-state.”

Yusko is the founder, CEO and chief investment officer of Morgan Creek Capital Management. The company was founded in 2004 to provide investment management services to institutions and wealthy families as well as discretionary strategies to assist clients in building investment programs.

Morgan Creek Capital is known for running a dedicated digital asset investment business known as Morgan Creek Digital. The subsidiary is co-founded by Yusko and Anthony Pompliano. In August 2020, Pompliano predicted that Bitcoin will eventually capture more of the market than gold, breaking the $400,000 threshold.

 

written by Helen Partz

https://cointelegraph.com/news/bankless-society-inevitable-due-to-crypto-says-morgan-creek-ceo

Chris Corey

Five mega exchanges hold 10 of Bitcoin’s entire supply

The Bitcoin ecosystem continues to be dominated by a handful of platforms and companies.

Roughly 10.6% of Bitcoin’s (BTC) circulating supply is currently held on just five centralized exchanges, according to data published by Chain.info.

More than 1.96 million BTC is currently held between the major exchanges Coinbase, Huobi, Binance, OKEx, and Kraken.

Likely owing to its custody services, Coinbase holds by far the most, with 944,904 BTC currently spread across approximately 4.39 million different wallet addresses.

Huobi ranks second with 323,665 BTC held in roughly 901,600 unique wallets, followed by Binance with 289,961 BTC across nearly 2.7 million addresses. OKEx has 276,184 BTC in 339,000 wallets, while Kraken holds 126,510 Bitcoin among 672,000 addresses.

The next seven exchanges — Bitflyer, BIttrex, Bitfinex, Poloniex, Coincheck, Gate.io, and Bitstamp — hold a further 210,000 Bitcoins between them.

The data shows that many users still prefer to accept security risks associated with holding a significant portion of their holdings on centralized exchanges in spite of cryptocurrency’s fundamental ethos of decentralization and mantra of "not your keys, not your Bitcoin".

The percentage of the Bitcoin supply held on the five centralized exchanges may actually add up to significantly more than 10%, with Chainalysis recently estimating that the 3.7 million BTC that have not moved in more than five years are likely lost. If that’s true, then nearly 15% of Bitcoin’s supply is currently custodied across five centralized platforms.

 

written by Samuel Haig

https://cointelegraph.com/news/five-mega-exchanges-hold-10-of-bitcoin-s-entire-supply

Chris Corey

Spain’s new bill proposal complicates crypto for citizens

Spain’s new anti-tax fraud bill includes crypto implications.

Awaiting parliamentary approval in Spain, a fresh bill draft intends to cut out illegal tax dealings, as first reported by Cointelegraph’s Spanish branch. This could mean smaller business transactions as well as mandatory crypto-asset reporting, even for assets held or transacted internationally.

The "Draft Law on Measures to Prevent and Combat Tax Fraud" recently received the green light from the Spanish Council of Ministers, Spain’s central governing entity, according to an Oct. 13 briefing from the country’s minister of finance, María Jesús Montero.

When cryptocurrency began to take more of a global spotlight in 2017, some countries began to step up their tax overwatch measures in an attempt to corral their share of any relevant profits made via the industry. Spain’s fresh bill draft requires the nation’s citizens to report any digital asset usage or holdings, even if such usage includes assets held or transacted outside of Spain.

The bill also bans all cash business transactions higher than 1,000 euros, down from the country’s former 2,500 euro limit. The latter amount remains in place for non-business transactions between persons however, Cointelegraph reporting detailed. Any business-related payment higher than 1000 euros must occur in electronic form, seemingly increasing the surveillance of Spain’s residents. If central bank digital currencies come into play, financial tracking could become even easier for countries, giving citizens less privacy and freedom.

A recent effort led to 350 of the country’s government workers receiving 1 euro-worth of crypto. This small sum was sent to each member of the country’s Congress of Deputies in an effort to educate them on this up-and-coming technology.

 

written by Benjamin Pirus

https://cointelegraph.com/news/spains-new-bill-proposal-complicates-crypto-for-citizens

Chris Corey

G7 will oppose Libra launch until regulations in place

“No global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements.”

Countries representing the world’s largest economies said in a draft of a statement that they would initially oppose the launch of Facebook’s Libra project.

According to an Oct. 12 report from Reuters, central bankers and finance ministers from the United States, Canada, Japan, Germany, France, Italy, and the U.K (also known as the Group of Seven, or G7), said it would halt global stablecoin projects pending appropriate regulatory oversight.

The draft stated:

“The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards.”
The statement comes from representatives of the seven countries, assembled in June 2019 to examine how central banks can regulate cryptocurrencies. The group has raised concerns over how to ensure digital assets comply with anti-money laundering laws, consumer protection rules and other regulatory matters. A G7 report last October stated that “global stablecoins” posed a threat to the global financial system.

As a result, Facebook’s Libra stablecoin may not get approval from the necessary regulators. Cointelegraph reported last year that France had teamed up with Germany, Italy, Spain and the Netherlands to prevent Libra from launching in Europe. In April, the G20’s Financial Stability Board issued a comprehensive stablecoin study, presenting 10 recommendations to regulate them effectively.

The G7 draft also included the group’s concern over ransomware attacks, which it states “jeopardize essential functions along with our collective security and prosperity.” Such attacks have been on the rise in countries including the United States, France, Germany, Greece, and Italy since the start of the pandemic earlier this year.

 

written by Turner Wright

https://cointelegraph.com/news/g7-will-block-libra-launch-until-regulations-in-place

Chris Corey