Latest in Legislation 08

Andorra unveils a digital assets law, while the UK court allows lawsuits in the form of NFTs.
  • Andorra's "Digital Assets Act" will regulate blockchain tech and digital currencies
  • The UK court allows lawsuits to be in the form of NFTs
  • South Korean regulators are clamping down on kimchi premium traders
  • FBI issues a warning regarding fake crypto apps

The Scoop:

In the United Kingdom, you can now file a lawsuit in the form of an NFT. One UK court granted the firm Giambrone & Partners LLP permission to serve legal proceedings to an individual using an anonymous NFT airdrop. Fabrizio D’Aloia, who is represented by Giambrone - is suing one unknown individual, as well as the crypto exchanges Poloniex, Gate.io, OKA, Bitkub, and Binance - for lost crypto funds. D'Aloia views exchanges as the main source of the problem and holds them liable for breach of trust.

The firm applauded the UK government for allowing legal proceedings to recognize the value of NFTs. They believed that it is a significant step towards "greater consumer protections and responsible practice." It's still uncertain how legal documents will be enforced and served via NFTs due to their fairly new application in the legal sphere. Nonetheless, this is a big move for the UK and could signify the start of new format for legal proceedings.

Andorra unveils its "Digital Assets Act" signaling a green light for crypto and blockchain technology. This latest addition to the crypto regulatory framework will help regulate asset-related activities in a structured and transparent way.

Andorra blockchain technology crypto cryptocurrencies
Andorra reveals a Digital Assets Act for blockchain tech and digital assets.

The new act incorporates two main phases, and the first involves creating a new digital currency that can be incorporated in exchanges between two entities. The second phase includes building a proper regulatory framework for digital assets, which will recognize them as valid financial payment methods subject to government regulations. The framework plans to recognize assets as valid financial payment methods subject to the government's regulations. The government believes that crypto exchanges will encourage business owners to promote trade and development in the country.

South Korea is on the lookout for opportunistic "kimchi premium" traders. Kimchi premium is known as the gap in cryptocurrency prices for South Korea, when compared to foreign exchanges. This can be exploited by South Koreans by buying Bitcoin abroad, and reselling it in South Korean platforms such as Upbit.

These trades have attracted considerable attention, and Segye Ilbo reported that the Financial Supervisory Service (FSS) is examining two large transactions made by potential kimchi premium traders. The first transaction was worth roughly $987 million and conducted by Shinhan, a local bank. The second transaction was worth $608,000 and was made by Woori Bank. The suspicious transactions were reported and believed to be concealed by the traders, who tried to send their fiat to accounts in Japan and China to throw regulators off-guard. On-site investigations are currently being conducted and passed along to the prosecution service.

The FBI has reiterated their concerns regarding fraudulent cryptocurrency investment apps. At present, the FBI has identified 244 victims and estimates the approximate loss associated with crypto fraud to be $42.7 million. The announcement followed the decline of the crypto market, and also reported schemes that lure investors into "real" online relationships which resulted in scams through fake crypto apps.

In one incident, the FBI uncovered anonymous digital fraudsters who stole the logo and name of a US financial institution. These fraudsters convinced their victims to download a fake app to deposit their digital assets, and have been running this scam since 2012 until the present day. Another incident took place in October 2021 to May 2022, when cybercriminals "YiBit" defrauded 4 victims of roughly 5.5 million dollars. The FBI encourages crypto investors to be mindful of unsolicited requests to download investment apps. They invite the public to make critical decisions and to do their due diligence when using crypto-related apps.

New crypto adoption:

Decrypting Legalese:

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FINMA is Switzerland's independent financial markets regulator. Its mandate is to oversee banks, financial institutions, insurance companies, and more. Another task of theirs is to regulate insurance intermediaries while protecting creditors, policyholders, and investors. Their main responsibility is to ensure that Switzerland's financial sector is running effortlessly and effectively.

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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