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According to emerging news, on 14th March 2017, the U.S. House of Representatives Committee of Finance Subcommittee on Capital Markets, Securities and investments initiated a process of formulating regulations for the Cryptocurrencies and ICO Markets. Official reports confirm that this is the first among a series of hearings that the U.S. is holding to deliberate on policy formulation to regulate, reorient and realign the market that is taking the world by storm from October 2017.
This meeting was a culmination of the summit held in early March 2018. James Sullivan, the Deputy President Department of Commerce and International Trade Administration portfolio was the presenter at the summit. He had called for concerted efforts from all quotas in policy formulation to regulate and streamline the already robust ICO Markets and the cryptocurrencies growing popularity. The sitting aims to formulate a set of laws and regulations dubbed “The ICO White Paper.” The white paper will address the following issues affecting the cryptocurrencies and the ICO Markets:
• Current regulatory frameworks that regulate these ventures
• Economic efficiencies of ICO Markets as a source of capital for startups
• Approaches to protecting investors’ interests in ICO ventures.
Submissions To The Session
The sitting received testimonial submissions from various experts on economic and financial matters. These professionals are advising the session on factors to consider in managing the cryptocurrency and ICOs markets.
Chris Brummer testimonial. He is a professor of securities law and international trade regulation at Georgetown University Law Centre. The professor of the law pointed out fraud and misrepresentation as the main shortcoming bedeviling the ICO markets. The solution to this problem is disclosure. The professor presented a list of resolutions to curb non-disclosure and align the ICO and Cryptocurrency markets into law-abiding and financially secure investment ventures. According to him, these disclosures have to focus on:
•Promoter’s Location and Contact Information
• Industry Risk Factors
• Problem and Proposed
• Description of Token Technology Solution
• Problem and Proposed Description of Token
• Qualifications of Technical Team
• Promoter’s Location and Contact Information
The professor, further recommends that it should be mandatory for firms offering ICOs to file all the disclosure with the SEC
Mike Lempress testimonial. He is the Chief Legal and Risk officer at Coinbase Inc. His testimonial acknowledged the importance of the cryptocurrencies and ICOs market on the U.S. economy and the world at large. Mike testified that the Federal government has institutions in place that could streamline the errant markets. The testimonial pointed out disharmony among the federal regulatory institutions as the primary challenge following the exercise. According to the affidavit, the U.S. was advised to support this artistic innovation as a new investment tool in the capital markets. Summarily, this testimonial called for the SEC, CFTC, IRS, and FinCEN regulatory bodies to harmonize their approach towards ICOs markets and provide clear regulations.
Peter Van Valkenburg, a director at Coin base, presented a testimonial from a public policy and research on blockchains perspective. This testimonial called for a change of attitude on the policymakers’ part of emerging technologies. According to the findings of his work, the issue at hand has everything to do with the federal regulators applying old laws and assumptions on entirely new technology. The testimonial encouraged the regulators to remodify the understanding of ICO markets and Blockchains to eliminate the confusion in the markets.
Sources privy to Huawei Technologies have disclosed that there are ongoing talks with Sirin Lab (SRN) to develop a Blockchain enabled smartphone. The representatives of the two firms have also confirmed the meeting but failed to disclose further details.
Based in Shenzhen, China, the Tech giant is the world’s third-largest handset manufacturer. The smartphone will have a market niche and is expected to go a long way in spreading the adaption of the Blockchain Technology.
About Sirin Lab
The sources, who sought anonymity, confirmed that Huawei is trying to develop Blockchain enabled smartphones by licensing and using Sirin Lab’s operating system Sirin OS. Sirin Lab is specialized in creating open source solutions that connect blockchains with the markets directly.
The Sirin OS is highly specialized to host complex Blockchain application applications such as secure exchange access, crypto wallet, peer-to-peer resource sharing for applications and payments and, encrypted communications. Most interestingly, the OS supports a cold storage crypto wallet feature. This feature allows the smartphone users to be active in multiple blockchains as they can convert fiat money from one Cryptocurrency to another for use in the Blockchains. Additionally, the Sirin OS can support advanced security features that identify smartphone users based on their behavioral cues and personal biometrics.
The generic OS has already been tested and applied in the Finney Devices – the Cyber Secure Blockchain enabled SRN phones. The Finney devices are priced at $1000 on, and there are 25000 pre-orders as per the firm’s spokesperson, Nimrod May.
The Blockchain Enabled Huawei Smartphone
If the plans are successful, the Huawei smartphone will be the first Blockchain enabled smartphone in the world and the second Blockchain-enabled phone to be developed. The phone will operate on the Sirin OS alongside Android OS. Phone users will, therefore, be able to download or acquire blockchain applications and run them just like any other conventional Android application.
With the Cryptocurrency market currently worth $350 billion and limited mass participation, it is expected that the Blockchains will be available to the masses just like search engines and social media sites. Most of the Blockchain transactions are limited to computers with advanced processing power.
This super smartphone is expected to be ultra-powerful in enabling Blockchain transactions as Huawei Technologies has advanced cloud computing and cloud security technologies, which will complement the Sirin OS specs.
Summarily, in regards to Blockchains, the smartphone users will be able to trade in ICO Markets, and trade Cryptocurrencies on peer-to-peer networks. The smartphone will also be able to support multiple Blockchain applications simultaneously without affecting the performance of the Android-powered applications.
The Timeline for Talks
According to Sirin Labs’ Telegram hat group, it is evident that Sirin Labs and Huawei Technologies have been holding discussions for about two months. Despite the fact that the sources have indicated the talks were preliminary, it is correct to speculate that some deals are in the pipeline or closed already. However, time will tell.
What to Expect
With the information of the meetings out in the public domain, we expect other smartphone developers and manufacturers such as Samsung, Apple, Wiko, and Blackberry to follow suit and develop Mobile operating systems that support Blockchain applications. On the other hand, we expect Huawei and Sirin Lab to close the deal, as it is quite apparent that the talks have been going on for some time and the discussions are in advanced stages.
UK Finance Minister, Phillip Hammond, has pledged to oversee the development of vibrant Cryptocurrency markets in the country. The Minister went on to state that the Cryptocurrency markets would be improved through a formulation of effective policies, which are customized for the UK markets. The world’s fifth-biggest economy (Nominal GDP) is one of the most significant Cryptocurrency markets.
To effectively formulate the policies, the UK government ordered the Financial Control Authority (FCA) and the Bank of England to select a panel of Financial experts to deliberate on the role of Cryptocurrencies in the UK and the regulatory framework to be considered. The UK, therefore, becomes one of the major global financial leaders to initiate a task force to deliberate on the set of structures for regulating the Cryptocurrencies. The French AMF and the US, the House of Representatives Committee on Finance, Securities and Trade has kickstarted the process.
This move, by the UK, comes after the G20 Summit declared that the Cryptocurrencies are Assets rather than currencies. The G2O, however, advised the relevant global institutions such as the World Bank, OECD, FCB and the SFSG to draft framework for sustainable policy formulation.
The British Financial Technology form – Fintech – is expected to partner with Britain’s long-term trade partner, Australia in Cryptocurrency markets. The British strategy “Financial Technology” (Fintech) is expected, under this deal to be operational in Australia. This deal, additionally, entails the transfer of laws and regulation concerning Cryptocurrencies herein referred as “Fintech.” Under this strategy, Australia will constitute an Institution called Fintech Australia, and Britain’s will Innovate Fintech. The two institutions are expected to collaborate on all matters touching on Cryptocurrencies. The UK and Australia markets combined have a population of about 100 million people, which translates to a vast market with massive potential.
The UK Finance Minister further expressed the nations wish to be a front-runner in Cryptocurrencies trade which he termed as a digital evolution. The new laws to be formulated will regulate the UK ICO markets and Cryptocurrencies to enhance transparency and accountability. Furthermore, regulation will ensure that ICOs and Cryptocurrencies are stabilized so that they become sustainable investment approaches to raising capital, earning interests and paying taxes to the government.
However, despite the assurance of better days ahead by Charlotte Croswell, CEO Innovate Fintech, the Bank of England and the FCA are yet to assure the British Market that the Cryptocurrency ventures a are safe investments following earlier warnings of uncontrolled volatility
What to expect
The US, France and other countries have set precedence for government interventions in crypto markets. With the UK on board, we hope to see more states following suit and initiating processes of framework development to support crypto markets.
It is becoming clear to the world that the G20 has already welcomed Cryptocurrencies as a new technology worth nurturing for the future financial services expansion. Before the July 2018 Cryptocurrencies testimonial presentation to the G20, we expect that more countries would have developed a conducive environment for ICOs and Cryptocurrencies.
More startup technology firms will flout the ICOs and Cryptocurrencies process would soar in this positive news. As investors get their stake before a price surge. As at March 22, 13h00, the Bitcoin Price was trading at a high of $9,084.78 and low of 8, 745.32; Pundits are optimistic that the price on the world’s most famous virtual currency would hit $9,500.00 as governments, the G20 and many corporates undo the adverse effect of Google and Facebook ban in their endorsements of validity and viability.
In the 13th G20 Summit held in Buenos Aires, Argentina, the G20 has called for further actions to regulate the Cryptocurrencies by July 2018. The world’s most influential Economics and, Financial Institution was expected by some quarters to draft an array of regulations, but they have instead passed over the task to the relevant global institutions.
The G20 has concluded that Cryptocurrencies are assets rather than currencies and they seek to have a concise framework to regulate this new technology in financial markets. But the group is cautious of the process and has asked for a risk assessment into drafting the set of regulations. The International Monetary Fund (IMF) and the Financial Stability Board (FSB)-institutions that assess financial systems worldwide- will present the risks posed by this process of drafting regulatory polices by April 2018.
Pundits explain such a move as an outcome of FSB Chairman’s Mark Corney, who advised the G20 not to impose regulations on Cryptocurrency just yet as they account for less than 1% of the Global GDP. Mr. Mark further explained in his letter to the G20 on the eve of the summit that even if all the Cryptocurrencies prices surged to their maximum potential, they would not, most probably, exceed 1% of Global GDP. This emerging development does not warrant, immediate action, he advised.
The G20 summit asked the Framework Working Group (FWG) to develop various approaches for consideration. The global leaders pointed out that the body should focus on taxes, competition, data and public expenditure aspects of the Cryptocurrencies. The findings would then inform their next agenda for the year in regards to Crypto-Assets. The FWG have to ensure that their results are specific to different countries economic environments.
In addressing the issue that ICO Markets abet money laundering, the IMF is expected to give a detailed report of capital flows across borders. This request shows that the G20 is demonstrating a particular concern to the allegations from many quarters that ICO Markets are used for money laundering activities and tax evasion. The IMF findings and recommendation will form the basis of G20’s policy formulation agenda in their October 2018 summit. The IMF has a deadline of July 2018 to present the findings and recommendations.
The G20 summit also called on the Organization for Economic Cooperation and Development (OECD) to present a code of liberalization on capital movements. In collaboration with the IMF, the OECD is expected to show how transparent the capital transfers have been in the wake of ICOs.
Finally, the Sustainable Finance Study Group (SFSG) is expected to give a full report on the options available for all G20 members in regards to Capital Ventures in regards to crypto-assets. It is clear that the G20 is alive to the shortcomings in ICO Markets ventures and seeks to protect private investments, develop capital formations and ensure sustainability of ICO Market ventures.
What To Expect
We expect the regulations development process to start from July 2018 presentation of findings by various bodies. The policy framework for ICO Markets and Cryptocurrencies are likely to be in place latest by next year. This gradual and systematic policy formulation process is attributed to the FSB letter to the G2O which pointed out that Crypto-Assets and ICO Markets do not pause any immediate threat to the Global Economy.