Category Archives: POLITICS

POLITICS

South African Pension Funds To Be Banned From Crypto Investment

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South African Pension Funds Will Be Banned From Crypto Investment, Draft Rules State. “A fund cannot directly or indirectly invest in crypto assets”

South African pension funds will be prohibited from investing in cryptocurrencies under the new draft rules.

This will replace existing legislation that allows portfolio managers to invest up to 2.5% of funds in crypto as part of an umbrella “other assets” category.

The South African government defines a crypto asset as “any digital representation of value not issued by a central bank, but which can be traded, transferred or stored electronically by natural and legal persons for the purposes of payment, investment and other forms of benefit”. ; It applies cryptographic techniques and uses distributed ledger technology.”

Such a broad definition points to the ban extending to non-tradable tokens (NFTs) and similar tradable digital assets.

Financial regulators in South Africa have noted in recent months that there will be an acceleration in crypto regulation in response to retail investors being scammed by fraudulent investment firms.

Source: coindesk.com

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.

POLITICS

The European Central Bank starts working on the Digital Euro

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The European Central Bank (ECB) has announced that it has established the Digital Euro Market Advisory Group. The Advisory Group will advise the bank on how they can add value to the central bank digital currency offering.

Among those elected to the advisory group are members of banking and economic institutions known in Europe. Among the elected are members of banking and economic institutions known in Europe, such as Société Générale, Nordea, Intesa Sanpaolo, Swedbank, La Banque Postale and Deutsche Bank. Roberto Catanzaro of the Nexi Group, a company that has announced that the digital euro is involved in the design stages, is also part of the council. The group will host at least quarterly meetings starting next month.

According to the statement, 30 members of the advisory group will advise the ECB on how it can be modified to better address the needs of different sectors in the eurozone. It was stated that the issues identified as a result of these group meetings will be moved to the Euro Individual Payments Board, a corporate forum that discusses individual payments, and the payments area will also be addressed specifically.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.

POLITICS

FDIC chief investigates US regulators policy on banks handling of crypto

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Jelena McWilliams, head of the Federal Deposit Insurance Corporation (FDIC), said the agency is working with other regulators in the United States to investigate “under what circumstances banks may engage in activities involving crypto-assets.”

Speaking at the Money20/20 Fintech Conference on Monday, McWilliams said that in coordination with the Federal Reserve and the Office of Currency Control, the FDIC is seeking to provide regulatory clarity for banks to process crypto assets, including stablecoins. The chairman said the FDIC plans to issue “a series of policy statements” on guidance for banks in the coming months.

According to McWilliams, stablecoins have many potential benefits, such as faster, cheaper and more efficient payments to consumers. However, he argued that if “one or more of them become a dominant mode of payment in the United States or globally,” it could have significant impacts on that country’s financial stability as funds are no longer held in insured banks.

“To realize the potential benefits stablecoins have to offer, while taking into account potential risks, stablecoins must be subject to well-designed government oversight,” said the FDIC chairman. “This oversight should be based on the basis that stablecoins mined outside the banking industry are backed by truly secure, highly liquid assets at a 1:1 ratio.”

McWilliams’ remarks came the same day as Bloomberg reported that many US regulators had agreed on the Securities and Exchange Commission, which is spearheading the country’s efforts to regulate stablecoins. The Treasury Department stated in July that it is exploring the creation of some form of banking charter for stablecoin issuers.

www.fdic.gov/

The apparent lack of regulatory clarity regarding their digital assets has been an issue for many firms in the US, who fear legal action or other forms of government response. Some lawmakers have introduced legislation for US regulators to work with participants in the crypto space to better define what is expected of them.

Source: Bloomberg

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.