Singapore Plans To Regulate Overseas Crypto Transactions

Singapore parliament has enacted new legislation to regulate traders who provide crypto services abroad. Particularly, the law will emphasize on bitcoin providers. The law was introduced after parliament voted on a bill confirming the license of foreign crypto companies operating in the region.

Those companies that do not act accordingly will be exempt from anti-money laundering and counter-terrorism financing regulations.

However, given the government’s dubious pro-crypto actions and the company’s ban on cryptocurrency promotion since then, the parliament’s decision was somewhat surprising. Furthermore, as many people in the region started to use cryptocurrencies, the government also started to pay attention to them.

Notably, cryptocurrency exchange Binance even closed its offices in several regions, including Singapore.

DBS Bank, Singapore’s leading financial institution, has also made conflicting decisions to worsen matters. In February, the bank said it would offer its retail clients crypto trading services by 2022. However, the bank disagreed with its decision to prevent retail customers from engaging in crypto trading services.

Previously, Singapore has developed regulations for digital assets, fintech, and cryptocurrencies. The Monetary Authority of Singapore (MAS) was one of the first adopters of the Payment Services Act 2019. It provides licenses and regulations for payment service providers.

Unsurprisingly, MAS has issued new guidelines to stop the public from trading cryptocurrencies. However, the authorities are trying to support the global crypto industry. They keep a close eye on the Singapore crypto space.

European Commission Opens New Consultations On Digital Euro

The European Commission is asking financial services experts to consider the possible introduction of a digital euro.

In a report on Tuesday, the European Commission’s Directorate-General for Financial Stability, Financial Services, and Capital Markets Union announced that it would prepare an assessment of central bank digital currencies based on the expected impact on financial service providers and retail users, and chambers of commerce.

The committee will consult with industry experts on digital euro issues. This includes international payments, data protection, implications for the financial sector, and financial stability. It also includes use cases for cash payments and anti-money laundering and counter-terrorism financing rules.

To use the digital euro as a single currency alongside euro banknotes and coins, joint lawmakers would need to regulate as proposed by the committee. Moreover, additional legislative adjustments to the current EU legal framework may be required to accommodate a digital euro and possibly digital currencies issued by central banks in non-euro area member states.

The consultations on a digital euro will complement those conducted by the European Central Bank, which recently published the results of a focus group commissioned in September 2021. Feedback from the public and retailers suggests that the potential adoption of the digital euro could benefit from use cases in both online and brick-and-mortar retail stores. The European Commission has until June 14 to accept responses.

In February, European Commission treasurer Mairead McGuinness said that they would propose a digital euro bill sometime in 2023. The European Central Bank has been studying the development of a digital euro as global interest in central bank digital currencies for a long time. In an October 2020-January 2021 consultation, the ECB found that a digital euro could help lower interest rates, speed up transaction processes and reduce the use of cash.

Shopify Faces Another Lawsuit From Crypto Holders Over Ledger Data Breach

Global e-commerce platform Shopify and hardware wallet maker Ledger face major legal hurdles as a group of Ledger users file a class-action lawsuit for failing to prevent a massive 2020 data breach.

The lawsuit, filed Friday in U.S. District Court in Delaware, alleges Shopify wholly and repeatedly failed to protect its customers’ identities.

The complainants accused Shopify and its external data consultant, TaskUs, of disclosing personally identifiable information (PII) of Ledger buyers despite the marketplace’s commitment to ensuring the complete security of Shopify’s platform.

The plaintiffs allege that Shopify and TaskUs knew about the data breach for more than a week before notifying customers. They demanded that Ledger and Shopify disclose the exact nature of the breach and offered financial incentives covering both actual and punitive damages.

France-based Ledger has also been named as a defendant in the case for its marketing claims that promise customer safety. Ledger initially denied that a PII breach had occurred but later had to go back and cite the leak and Shopify in an email notification, the complaint said.

A hardware wallet, also known as a cold wallet, is a physical device that provides additional security for encrypting a user’s private keys and mnemonics. Cold wallets are generally famous for being more secure than hot wallets.

As alleged in the complaint, Ledger used Shopify to power its website’s online store. Therefore, Shopify has direct access to customer PII in the Ledger database. Shopify uses TaskUs for customer support, so it also has access to Ledger’s customer data.

Hackers Stole The Personal Information Of Around 272,000 Crypto Users

Hackers attacked the personal data of users of the 2020 Ledger Newsletter and more than 1 million email subscribers.

A massive phishing and intimidation campaign followed against the ledger owners has resulted in some victims losing their crypto assets.

This isn’t the first class-action lawsuit against Ledger and Shopify over a data breach. In April 2021, another group of complainants filed a lawsuit in California. The complaint includes allegations similar to recent filings in Delaware that Shopify and Ledger carelessly admitted, recklessly ignored, and then knowingly attempted to cover up.

On Saturday, hardware wallet maker Trezor was the subject of a phishing attack. The attack has targeted its users through marketing services provider MailChimp. On Sunday, Trezor confirmed the data breach in a tweet. The company warned users that it would stop communicating via the newsletter and shut down three of its domains.

Central Bank Of Georgia Is Preparing Legislation To Regulate The Crypto Market

Black Sea country Georgia is preparing to regulate its cryptocurrency market. On Monday, the governor of the National Bank of Georgia, Koba Gvenetadze, said that the central bank had prepared a draft regulatory legislation in response to requests from international institutions.

Due to the lack of regulation, the size of the crypto market in Georgia is unclear, Gvenetadze said. However, Moneyval, the European Commission’s anti-money laundering monitoring body, estimated that as of September 2020, its monthly transaction volume was between 3.5 million and 5 million Georgian lari or $1.09 million to $1.64 million per month.

Moneyval asked Georgian authorities to strengthen the practical application of its measures to combat money laundering and terrorism funding.

The upcoming law complies with the International Financial Action Task Force (FATF) requirements. According to the central bank governor continued, they have prepared the draft with assistance from the International Monetary Fund staff. Currently, financial institutions in Georgia cannot provide virtual asset exchange and transfer services. Thus, clients involved in virtual asset activities are considered high-risk and require reasonably enhanced precautions.

Gvenetadze did not give a date to introduce the regulatory law in parliament.

Georgia has long had a crypto mining industry. The country accounts for nearly 1% of the total Bitcoin (BTC) hash rate. This is a remarkable feat for a country of fewer than 4 million people.

Winter power shortages in the remote Svaneti region have been blamed on illegal private crypto mining activities. However, it has abundant hydroelectric power.

The State Church stepped in desperately to curb this harmful practice, issuing a spiritual injunction against it. To maintain the population, private households in the area provide electricity free of charge.