GIGANTIC Partners Leave Facebook Libra!!!
To keep you updated with what’s been happening in the crypto space over the weekend, today we got four pretty hot pieces of news to share with you. First and foremost, Facebook’s Libra has dealt a pretty difficult blow after key partners including Mastercard, Visa, eBay, and Stripe abandoned the project. Meanwhile, during an interview with the press, former CFTC chairman Christopher Giancarlo emphasized that 2019 will be the year of the regulatory response to cryptocurrencies. Third up, it looks like three major US financial regulators, the SEC, CFTC, and FinCEN warn the cryptocurrency industry to follow US Banking laws and regulations. And finally, in the last section, we have a new update on Telegram’s upcoming token, and how the US SEC has halted Telegram’s $1.7 billion supposedly unlawful token issuances.
The Market Today
Over the weekend, we have a mixed market with some ups and downs. Bitcoin is currently decreasing by 0.68%, fluctuating around the $8,200 mark. Similarly, Ethereum is also falling slightly by 0.32%. Meanwhile, we can see a considerable gain of 1.81% from Ripple’s XRP.
Several key partners exit the Libra Association
According to an article on Bloomberg, the controversial stablecoin Libra dealt with a massive blow considering Visa, Mastercard, eBay, and Stripe, key partners who were going to join their Libra Association, recently abandoned the project. The news comes days before the LIbra Associations prepares to convene its members and ask them to sign a charter agreement. Visa mentioned in a statement that the company would continue to evaluate whether to join Libra in the future and that the
“Company’s ultimate decision will be determined by a number of factors, including the Association’s ability to fully satisfy all requisite regulatory expectations.”
Commenting on the news, a spokeswoman of Libra said on Friday last week that this will not stop them from developing the Libra stablecoin. She added that the group was
“Focused on moving forward and continuing to build a strong association.”
As it worked to create
“A safe, transparent, and consumer-friendly implementation of a global payment system that breaks down financial barriers for billions of people.”
However, other people don’t seem to be that optimistic about the tech giant’s ability to proceed. Michael Pachter, an analyst for Wedbush Securities concerned:
“I don’t think Facebook can do this by itself. Short of a big bank stepping in like JPMorgan, I don’t think this could ever happen.”
Former CFTC chairman: 2019 may be the year of regulators’ response to crypto
Cointelegraph reported that the former CFTC chairman Christopher Giancarlo stated that he expects world governors and regulators to begin responding to cryptocurrencies this year. In his words:
“I would say 2019 is the year in which there’s a growing recognition that regulators and policymakers need to do more than just be aware of these, but may actually need to look at some policy responses.”
In addition to that, Giancarlo recommends the dollar should now have a digital version. He pointed out that the upgrade will enhance the losing hegemony of the dollar:
“I think that the dollar’s status as the world’s primary reserve currency should be enhanced with a digital component and done in a way that doesn’t have to disintermediate the traditional banking system but can be done so traditional finance financial intermediaries can play a role in a digital component to the dollar.”
U.S. financial regulators warned the crypto industry to abide by banking laws
In a statement published last Friday, CFTC Chairman Heath Tarbert, Financial Crimes Enforcement Network Director Kenneth Blanco and the SEC Chairman Jay Clayton claimed that the crypto sphere should follow the banking and financial services laws in the U.S. In their talk, the agencies mentioned Bank Secrecy Act (BSA) to clarify how crypto operators should register their services, as well as follow the laws accordingly. Furthermore, broker-dealers and mutual funds will be required to carry out reasonably-designed AML Programs and report abnormal transactions. Clayton noted that this approach will make sure that investors are protected with fair markets and capital formation, but added that the BSA does provide the SEC with some other requirements.
Telegram’s TON has been halted by the SEC
According to Coindesk, the SEC has halted Telegram’s $1.7 billion ‘unlawful’ token issuance by securing an emergency restraining order against the Telegram Group and its subsidiary TON Issuer. The SEC announced just before the weekend that it filed for and received an emergency action and restraining order halting Telegram from selling or distributing its gram tokens within the US. The release stated that
“Telegram sold 2.9 billion gram tokens at discounted prices to 171 initial purchasers worldwide.”
This amount included more than 1 billion gram tokens to US investors, however, Telegram failed to register its offer or sale. Stephanie Avakian, the co-director from the SEC Division of Enforcement stated that the sudden order is
“Intended to prevent Telegram from flooding the U.S. markets with digital tokens that we allege were unlawfully sold.”
Fellow co-director Steven Peikin added
“We have repeatedly stated that issuers cannot avoid the federal securities laws just by labeling their product a cryptocurrency or a digital token. Telegram seeks to obtain the benefits of a public offering without complying with the long-established disclosure responsibilities designed to protect the investing public.”
And there you have it guys! So what are your thoughts regarding all the news?
What are your thoughts regarding Visa, Mastercard, eBay, and Stripe dropping out?
Do you agree with Christopher Giancarlo – that 2019 will be the year or crypto regulations?
Do you think Crypto companies should abide by banking laws?
And do you think it’s fair of the SEC of halt Telegram’s token issuance?
Please leave a comment right below to let me know what you guys are thinking.
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Disclaimer: Cryptopig content is written by a team of blockchain passionate people. We are not registered as investment advisors. Don’t take the information in this post as investment advice and make sure you do your own research before investing. Cryptocurrencies are a very risky investment, never invest more money than you can afford to lose.