Fintech PR
CoinGeek Delves Into What FinCEN’s New Guidelines Mean for DApps, Lightning Network and Privacy Coins
Reading Time: 3 minutes
If there is one thing that the Financial Crimes Enforcement Network (FinCEN) has highlighted with the issuance of its new virtual currency interpretive guidance, it’s that the move has reinforced what responsible thought leaders and experts in the industry have been saying for a while—that it’s time for Bitcoin and the rest of the cryptocurrency ecosystem to grow up and respect laws.
On Thursday, the U.S. regulatory agency issued a new guidance that addresses whether certain cryptocurrency-related businesses need to be regulated as money services businesses (MSB) and comply with the Bank Secrecy Act (BSA) and other relevant laws in the country. The new “interpretive guidance” is a consolidation of FinCEN’s current regulations as well as related administrative guidance issued since 2011 involving “convertible virtual currencies.”
The guidance specifically outlines how decentralized applications (DApps), defined by FinCEN as “software programs that operate on a P2P network of computers running on a blockchain platform,” may qualify as a money transmitter especially if they “accept and transmit value, regardless of whether they operate for profit”—like a virtual currency ATM, vending machine, or a physical kiosk.
“Accordingly, when DApps perform money transmission, the definition of money transmitter will apply to the DApp, the owners/operators of the DApp, or both,” according to FinCEN. This means these types of DApp services will have to secure a license in the state or states they are currently operating in, as well as federal anti-money laundering and Know-Your-Customer procedures.
FinCEN guidance likely to halt Lightning Network
Like in the case of DApps, FinCEN’s new guidance will also make it even more challenging for the Lightning Network on Bitcoin Core (BTC) to grow. As Founding President of the Bitcoin Association, Jimmy Nguyen, explains, Lightning Network nodes are likely to fall within FinCEN’s broad interpretation of money transmitters, which means they would be required to register as MSBs and comply with AML regulations. According to Nguyen, a former 21+year lawyer in the United States focused on technology:
“FinCEN reinforces the definition of ‘money transmission services’ is very broad, and means the transmission of virtual currency from one person to another triggers MSB requirements. FinCEN also confirms that virtual currency payment processors (intermediaries between traditional merchants and customers who want to pay for goods and services with virtual currency) fall within the definition of money transmitters. Given how broad these definitions are, I expect FinCEN’s guidance will further inhibit growth of the Lightning Network beyond traditional payment processors who already hold MSB licenses.”
Not surprisingly, even privacy-centric coins like Zcash, Verge and Monero cannot escape MSB and AML laws. Creators and sellers of anonymity-enhanced coins, along with providers of anonymizing services like coin mixers or tumblers are considered money transmitters in the U.S..
“A money transmitter that operates in anonymity-enhanced CVCs for its own account or for the accounts of others (regardless of the frequency) is subject to the same regulatory obligations as when operating in currency, funds, or nonanonymized CVCs [convertible virtual currencies]. In other words, a money transmitter cannot avoid its regulatory obligations because it chooses to provide money transmission services using anonymity-enhanced CVC,” according to FinCEN.
This isn’t surprising, according to Nguyen, given that FinCEN is a bureau of the U.S. Treasury Department that focuses on combating money laundering and terrorism financing, along with other financial crimes. As such, Nguyen says the agency “will not let privacy coin advocates avoid compliance with laws designed to stop financial crimes.”
Not everyone is an MSB
FinCEN recognizes that non-custodial wallets are not money transmitters; however, custodial wallets can trigger MSB requirements for the host. All crypto exchanges are custodial, which means they are always MSBs, even if operators like Binance focus only on crypto.
Fundraising via ICOs is also likely not engaging in money transmittal, but token offerings can still be regulated by the U.S. Securities and Exchange Commission (SEC) if they offer securities.
The U.S. agency has yet to provide an answer for every situation that takes place in the crypto market, but the new guidance it issued is a step in the right direction towards providing clarity on whether common virtual currency business models will trigger MSB and AML laws in the country. As Nguyen summarizes:
“FinCEN’s new guidance on virtual currencies reinforces what we’ve been saying for a while: it’s time for Bitcoin and the cryptocurrency world to grow up. This means businesses operating in the space need to live in the real world and comply with real world laws, including those governing money services businesses, money transmitters and anti-money laundering, and other Bank Secrecy Act requirements. Unlike other crypto-anarchist camps in the Bitcoin world, Bitcoin SV is building a regulation-friendly ecosystem and we are advising on responsible legislation around the world. While there remains room for more improvement and clarifications, FinCEN’s guidance is a good step to actually help Bitcoin grow by inhibiting its usage for illegal activity, and thus making financial institutions and consumers more comfortable using Bitcoin.”
SOURCE CoinGeek
DUBAI, UAE, Nov. 15, 2024 /PRNewswire/ — Bybit, the world’s second-largest cryptocurrency exchange by trading volume, opens up the November arena for the Bybit Crypto Titans trading competition. Available for users in select regions, a prize pool of 55,000 USDT will be available for a limited time only.
From now to Nov. 30, eligible traders can level up their trading strategies and amplify their winning chances by inviting friends to share two prize pools in two simple steps: register for the event at the Grand Arena, and invite friends and trade.
Battlefields: Once in the Arena, users can pick their battlefields. Up to 30,000 USDT are up for grabs in the Team Battlefield ranked by total trading volume, while another 15,000 USDT is reserved for traders in the Solo Battlefield competing by PnL(%).
More perks: Additionally, top traders and leaders will receive extra perks. Participants will receive a bonus 5 USDT for every new qualified referee, and the first 50 Team Leaders whose team exceeds a threshold amount in trading volume will be entitled to a 100 USDT bonus.
“As trading volumes overall are climbing, we are seeing so many talented traders in our community with a knack for navigating fast-moving markets. This event gives some of them an incentive to share their passion with their friends, and there is room for rewards for the solo trading pros to shine as well,” said Joan Han, Sales and Marketing Director of Bybit.
Market sentiment and activities have been trending up in recent weeks globally, and the enthusiasm is shared among users in niche markets. While traders rush to capture opportunities in a heated market, the Crypto Titans competition encourages users to bring out the best trading game and hone their trading skills for healthier returns.
Find out more about Bybit’s Crypto Titans: November Showdown, terms and conditions apply.
#Bybit / #TheCryptoArk
About Bybit
Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving over 50 million users. Established in 2018, Bybit provides a professional platform where crypto investors and traders can find an ultra-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a proud partner of Formula One’s reigning Constructors’ and Drivers’ champions: the Oracle Red Bull Racing team.
For more details about Bybit, please visit Bybit Press
For media inquiries, please contact: [email protected]
For more information, please visit: https://www.bybit.com
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Fintech PR
Healthcare leaders gather at House of Commons to discuss productivity-boosting tech with MyStaff app
LONDON, Nov. 15, 2024 /PRNewswire/ — Healthcare leaders from 16 NHS trusts gathered at the House of Commons this week to see how Mid and South Essex NHS Foundation Trust is using a groundbreaking new app that transforms staff access to information vital to their patients’ care.
The MyStaff app uses AI and automation to simplify the management of critical policies and procedures, reducing the time staff spend searching for information from almost 10 minutes to under 30 seconds. Over 12,000 of the Trust’s staff have signed up, and around 1,000 are using the app daily.
With £2bn pledged to help digitise the NHS and bring down waiting lists, such time-saving tech is high on healthcare’s agenda. Trust Chief Executive Matthew Hopkins introduced the session, which was hosted by David Burton-Sampson, MP for Southend West and Leigh, and saw technology strategists and users share their experiences of digitising vital healthcare operations.
Matthew said: “Our Trust is working to make the best use of digital technologies wherever this can help staff to provide the best possible care to our patients. MyStaff app is a versatile and easy-to-use tool that improves our governance processes and makes it easy for staff to access the vital clinical information they need when treating patients.”
The Trust developed MyStaff app with digital innovators Diligram, who have created a digital governance solution that helps ensure staff use the latest policies and guidance when delivering patient care. Document compliance rates have grown from 60% to 98%, whilst projections indicate the app could release 55,000 hours’ worth of staff capacity over 3 years, worth almost £4m in staff costs and giving staff more time on patient-facing care.
Diligram CEO Leslie Golding said: “We have worked closely with the Trust on developing groundbreaking technology that supports our healthcare heroes by simplifying access to essential information. We’re proud to be part of this brilliant example of positive digital change.”
Editor’s notes
- Contact: Rob Benson, 07815098560, [email protected]
- Further images, interviews, site visits available
About MyStaff app
The MyStaff app from digital transformation company Diligram is time-saving tech that offers a mobile-first digital corporate governance solution for healthcare providers.
Web: mystaffapp.io
About Mid and South Essex NHS Foundation Trust
MSE is one of the largest Trusts in the country, serving around 1.2million people. Our values are about delivering excellent, compassionate and respectful care.
Web: mse.nhs.uk
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BEIJING, Nov. 15, 2024 /PRNewswire/ — On November 14, 2024, ThunderSoft (Stock Code: 300496), a world leading OS and intelligent device products and technology provider, and HERE Technologies, the leading location data and technology platform, announced a strategic partnership to enhance collaboration in intelligent navigation and high-definition maps. The collaboration aims to support the efficient development of navigation systems, contributing to a more connected and intelligent mobility ecosystem.
The agreement will see both companies maximize their technical strengths and platform resources for comprehensive, multifaceted cooperation. ThunderSoft’s Aqua Drive OS will integrate HERE location data and services, including HERE SDK, HD Map and autonomous driving solutions. These AI-powered elements, create a foundation for developers worldwide to build intelligent system platforms. Additionally, the partnership will deliver tailored intelligent navigation solutions for international markets, addressing the diverse requirements of automotive manufacturers and consumers.
The companies will also collaborate to develop immersive and interactive 3D high-definition mapping solutions by combining HERE’s map data with ThunderSoft’s Kanzi Map engine, establishing a new benchmark in intelligent driving and navigation.
Deon Newman, Senior Vice President and General Manager of HERE Technologies said, “This strategic partnership with ThunderSoft represents a transformative step in delivering on the potential of AI and software-defined vehicles. By uniting our best-in-class location technology with ThunderSoft’s advanced system capabilities, we will together deliver greater insight and intelligence to every journey, empowering our clients to create richer, more personalized experiences for their customers worldwide.”
Hengshang Chang, Executive President and President of SmartVehicle Business Group of ThunderSoft, highlighted the strategic importance of the collaboration, “Our collaboration with HERE holds immense significance. By integrating HERE’s map data and location platform capabilities with ThunderSoft’s pioneering vehicle OS technology, we aim to develop more competitive, globally-oriented intelligent navigation systems for the automotive industry, enabling automakers to achieve accelerated growth.”
About HERE Technologies
HERE has been a pioneer in mapping and location technology for almost 40 years. Today, HERE’s location platform is recognized as the most complete in the industry, powering location-based products, services and custom maps for organizations and enterprises across the globe. Find out how HERE is moving the world forward at here.com.
About ThunderSoft
ThunderSoft, a well-known intelligent operating system products and technologies provider, has been continuously accumulating and innovating in the operating system field, with its business expanding gradually from smart phone to smart vehicle, AIOT and smart industries. Website: https://en.thundersoft.com
View original content:https://www.prnewswire.co.uk/news-releases/thundersoft-partners-with-here-technologies-to-enhance-intelligent-navigation-solutions-302307004.html
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