Latest in Legislation 06

Mexico turns toward Bitcoin legalization, while Singapore's financial watchdog imposes stricter rules.
  • Singapore's financial watchdog pushes for increased restrictions on crypto
  • Mexican senator advocates the legalization of Bitcoin despite the central bank's opposition
  • KuCoin vows legal action against misinformation and states that it is not ceasing withdrawals, according to rumors
  • Several private Chinese companies create initiative to require verification processes for NFT purchases

The Scoop:

Indira Kempis, senator of the Mexican state of Nuevo León - strongly believes that Bitcoin should be recognized as legal currency, in order to promote worldwide financial inclusivity. He proposed a bill that would address the challenges faced by Mexican citizens in gaining access to financial services and education. However, the central bank of Mexico has still excluded crypto from the country's financial framework.  

“It is evident to me that financial exclusion is one of the major issues that few of us have tackled with workable solutions.”

Indira Kempis, Senator of Nuevo Leon

More than half of Mexico's population lacks a formal savings account. The senator believes that Bitcoin's adoption in Mexico will help provide these individuals with a long term savings instrument that can grow exponentially in the future. Since his appearance in office in 2018, Kempis has heavily encouraged the economy to steer towards crypto, and has since engaged in an extensive network of crypto advocates and entrepreneurs.

KuCoin, the Seychelles-based trading platform - has denied all rumors that it would cease allowing withdrawals in the near future. According to CEO Johnny Lyu, the platform is operating as usual. Famous influencers on Twitter including @KongBTC and blockchain investigator @otteroooo urged their followers to withdraw funds from KuCoin. They warned that the exchange plans on halting withdrawals as soon as possible, and that this was "not a drill."

KuCoin Johnny Lyu cryptocurrency crypto Twitter tweets
Lyu shuts down rumors regarding KuCoin's halting withdrawals.

After Lyu dismissed the rumors, he highlighted the company's strong position by disclosing a recent $150 million funding. He also mentioned that the company plans to hire for more positions, and asked that investors use their own best judgement when faced with FUD. KuCoin stressed that they reserve the right to take legal action for any misinformation regarding closure of their services. Later, Lyu confirmed that he'll disclose the company's 2022 H1 review report with in-depth information about their operations soon.

The Monetary Authority of Singapore (MAS) is considering "placing limits on participation" for investors, while introducing rules on the use of leverage for crypto transactions. The MAS has been mindful about adding restrictions that will impact how retail investors handle crypto, according to Tharman Shanmugaratnam, senior minister and MAS chair of Singapore. He mentioned that the financial watchdog will review "placing limits on retail participation” for crypto investors.

They also plan to institute rules on leveraging crypto transactions while maintaining regulatory transparency. Last January, the MAS was responsible for shutting down crypto ATMs in Singapore that frivolously portrayed crypto trading, and trivialized its risks. Ultimately, their goal is to ensure better consumer protections, maintain financial stability, and safeguard the monetary policy.

According to a report from the South China Morning Post, a few private Chinese companies plan to implement an initiative to de-anonymize NFTs. This will be deemed the "Self-Discipline Initiative," and large Chinese companies are taking extra steps to verify user identities in the digital sector. Some companies that have already onboarded include Baidu, JD.com, Tencent Holdings, and Alibaba's affiliate company - Ant Group. The first step of verification requires real name authentication for those who buy, issue, and sell NFTs. Furthermore, payments can only be covered by legal tender.

Tencent China cryptocurrency crypto Bitcoin
Tencent Video has agreed to take extra steps for verification processes. 

Ultimately, the goal of these private companies is to eliminate any doubts Chinese citizens might have about NFT collections. The document also states that tokenized products of any kind will not be offered, including securities and precious metals. In short, the initiative aims to restrict the operation of private companies in the NFT space unless they possess the appropriate documents and certifications.

New crypto adoption:

Decrypting Legalese:

💡
Consensus Mechanism - Proof of Burn or (PoB) gives miners the right to "burn" or eliminate cryptocurrency which grants them the right to add blocks in proportion to the coins destroyed. Miners usually burn coins or tokens to buy virtual mining rigs. These rigs provide power to mine blocks and the more currency burned - the bigger the ensuing virtual mining rig. 

DISCLOSURE:

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. Charts, graphs and references to any digital assets are for informational and illustrative purposes only.

Finblox Blog is associated with Finblox - a reliable cryptocurrency earnings platform where you can buy and earn passive income on your digital assets.

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