FameEX Morning Crypto News Recap | May 11, 2023
Head of Monetary Authority Warns of Strict Crypto Regulations in Hong Kong
Hong Kong is set to introduce new licensing rules for digital asset service providers, and guidelines for banks dealing with crypto companies, according to the head of the Monetary Authority. While the plan is to make Hong Kong a hub for digital assets, companies looking to operate within the region should expect strict regulations.
Peter Schiff, Economist, Warns of Financial Crises and Depressions, Says No Bank Is Safe for Deposits
According to economist Peter Schiff, many more banks are likely to fail, and he has warned that no one's money is safe in any bank. Schiff emphasized that the Federal Reserve's printing of too much money and low-interest rates results in massive inflation and severe economic imbalances. This, in turn, creates financial crises and depressions when the bubbles inevitably burst.
Key Learnings from the European Union's MiCA Regulations
The European Union's Markets in Crypto-Assets (MiCA) regulations could hinder innovation, impose a uniform approach to decentralized finance (DeFi) regulation, raise compliance costs for DeFi platforms and decentralized exchanges (DEXs), and raise privacy concerns, according to industry experts. Balancing regulation with innovation will require cooperation between crypto industry players and regulators.
OpenAI CEO, IBM Executive, and 'AI Pause' Advocate to Testify before Congress
OpenAI CEO Sam Altman, IBM's chief privacy and trust officer Christina Montgomery, and New York University professor Gary Marcus are set to testify before Congress on May 16 regarding the regulation of artificial intelligence (AI) in the United States. The hearing will focus on oversight and the need for ethical guidelines around AI development and use. Montgomery is a member of the US National Artificial Intelligence Advisory Committee. It will be Altman's first appearance before Congress.
Tether Holds $1.5 Billion Worth of Bitcoin in Reserves
Tether, the stablecoin issuer, held around $1.5 billion worth of Bitcoin in reserves, or roughly 2% of the total, at the end of Q1, according to its latest attestation report. The financial advisory and accounting firm also revealed that Tether held approximately $3.4 billion worth of precious metals.
Lawmakers Look to EU and UK as Examples of Crypto Regulation in Joint Hearing
US lawmakers are looking to Europe as an example of cryptocurrency regulation, citing a more "forward-thinking approach" in Switzerland and the EU. Members of the House Financial Services Committee expressed concerns over the lack of clarity from regulators, including the Commodity Futures Trading Commission and the Securities and Exchange Commission, on establishing a "new market structure" for crypto in the US.
Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.