Fintech PR
CoinGeek Delves Into What FinCEN’s New Guidelines Mean for DApps, Lightning Network and Privacy Coins
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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
HAMILTON, Bermuda, Dec. 19, 2024 /PRNewswire/ — FXGiants has recently launched a series of exciting bonuses. Participants on the FXGiants‘ online trading platform can now amplify their trading potential with a broad spectrum of bonuses that are tailored to fit different trading needs. These bonuses not only add extra value but also act as a safety net for traders to explore the financial markets without risking too much.
“Our goal with these deposit bonus options is to empower traders of all levels,” said Christopher Oates, the spokesperson for FXGiants. “Under this scheme, we have diverse categories, including Bonus Maximiser, Booster Bonus, and the Bonus Advantage. These bonuses are designed to provide flexibility to clients as they trade on the FXGiants online trading platform.”
Exploring the FXGiants Bonus Options
The bonus options at FXGiants come with versatile advantages. The Bonus Maximiser provides a full 100% boost on all deposits without limit, whereas the Booster Bonus offers a 40% bonus on all deposits up to $4,000 for traders who want to moderately enhance their capital. On the other hand, the Bonus Advantage provides a 60% bonus on deposits up to $5,000, giving traders a better handle on risk. These bonuses enhance the trading experience on the FXGiants online trading platform.
“At FXGiants, we are committed to a trading environment that meets the evolving needs of our clients,” Oates added. “Our online trading platform is a robust ecosystem designed to support traders with advanced execution, extensive market insights, and continuous improvements. As we move forward, we will keep expanding our offerings to ensure that traders have access to the best resources and support.”
About FXGiants
FXGiants stands out as an international broker providing access to over 300 financial instruments across 6 asset classes. Traders can operate through the popular MetaTrader 4 platform, and benefit from exceptional trading conditions such as competitive spreads, flexible leverage, and fast execution. With deposit boosters, partnership programs, an educational blog, and account types tailored to both novice and experienced traders, FXGiants remains dedicated to delivering a one-stop trading solution.
Terms & Conditions apply. Bonus cannot be withdrawn.
All trading involves risk. It is possible to lose all your capital.
FXGiants is a trade name of Notesco Int Limited; a company incorporated in Anguilla with registration number A000001800 and registered address The Valley, AI2640, Cosely Drive, 1338, AI.
Website: https://www.fxgiants.com/
View original content:https://www.prnewswire.co.uk/news-releases/fxgiants-online-trading-platform-launches-bonus-initiative-to-reward-traders-302338463.html
BEIJING, Dec. 23, 2024 /PRNewswire/ — Cheung Kong Graduate School of Business (CKGSB) successfully hosted the Western China MBA Professor Training Program in collaboration with the China National MBA Education Supervisory Committee and Shantou University School of Business on December 17 and 18, 2024. 58 professors from over 40 universities in China nationwide, mostly western China, attended this training.
Since 2007, CKGSB has been aspiring to address the pressing disparities in management education between eastern and western China with its MBA professor training program. As of 2024, the program has trained 372 professors from 155 universities across 22 provinces, 4 autonomous regions, 3 direct-administered municipality in China, indirectly impacting tens of thousands of MBA students.
This year, the training focused on social innovation and business for good, a topic many participating professors found lacking in their day-to-day teaching and research. Professor ZHU Rui (Juliet), CKGSB Professor of Marketing and Director of the ESG and Social Innovation Center, led the training. She introduced how CKGSB has been innovating with the integration of business for good in management education, and how our relevant practice-based course has already helped 2,800+ students integrate ESG into their businesses. Professor Zhu also hosted an interactive workshop with the training’s participants on how they may build this idea into their teaching.
Participants shared in their post-program survey that Professor Zhu’s teaching and her ESG Assessment map gave them a new perspective on how to balance profits and social responsibilities. Many also felt inspired on how to bridge the gap between research and practice.
Recognized in CKGSB’s 2022 and 2024 ESG and Social Innovation Reports and honored as a finalist for the 2021 China Social Impact Award by the United Nations and British Chamber of Commerce, this program exemplifies CKGSB’s impact in this critical area. Through partnerships with the government, NGOs, and business schools, this initiative has made significant progress in promoting quality education and reducing inequalities.
For more information on CKGSB’s ESG and social innovation efforts, visit our ESG and social innovation website.
About CKGSB
Established in Beijing in November 2002, CKGSB is China’s first privately-funded and research-driven business school. The school aims to cultivate transformative business leaders with a global vision, sense of social responsibility, innovative mindset, and ability to lead with empathy and compassion (https://english.ckgsb.edu.cn).
View original content:https://www.prnewswire.co.uk/news-releases/ckgsb-successfully-hosts-2024-mba-professor-training-program-for-western-china-302338458.html
VADUZ, Liechtenstein, Dec. 23, 2024 /PRNewswire/ — Wirex, a global leader in bridging traditional and digital finance, has announced the addition of VNX Euro (VEUR) and VNX Swiss Franc (VCHF) to its platform. With this integration, Wirex users can now spend VEUR and VCHF directly through their Wirex cards, streamlining everyday transactions and enhancing convenience.
Wirex cards allow users to use VEUR and VCHF in various ways. Whether users receive payments in VEUR and/or VCHF, use them for remittances (including cross-border transactions), or sell digital assets for stablecoins instead of fiat, Wirex provides the simplest solution for spending in real life. Users can instantly convert their stablecoins into fiat currency and send them directly to their bank accounts, catering to those who prefer traditional banking options.
Pavel Matveev, Co-founder of Wirex, said: “We’re excited to welcome VNX Euro (VEUR) and VNX Swiss Franc (VCHF) to Wirex. This addition allows our users to effortlessly spend stablecoins in real life, whether for daily purchases, remittances, or managing their digital assets. At Wirex, our goal is to make digital currencies as convenient and versatile as traditional money, and VEUR and VCHF are another step toward achieving that vision.”
Future Features
Additional features will be rolled out later after the launch, complementing the immediate benefits of VEUR and VCHF. These include loans and high-yield X-Accounts, both of which are growing in popularity among Wirex users. Loans offer a smart and tax-efficient way to access liquidity without selling underlying digital assets. Users can leverage their BTC, ETH, SOL, and other digital assets, as collateral for loans in stablecoins, allowing them to benefit from potential appreciation while accessing funds without triggering taxable events.
X-Accounts provide an opportunity for users to earn industry-leading yields of up to 15% APY on their stablecoin balances, enhancing the overall value proposition of holding VEUR and VCHF within the Wirex ecosystem.
Upcoming Advanced Opportunities
VEUR and VCHF have the potential to become preferred options in Wirex’s advanced trading products, such as Wirex DUO and Wirex Multiply. Notably, Euro-backed stablecoins have already demonstrated significantly higher usage among Wirex users than larger USD alternatives, highlighting strong demand for Euro-denominated trading options.
As Wirex explores adding VEUR and VCHF to these products, it aims to further strengthen its position as a leader in digital finance by offering innovative solutions that bridge the gap between traditional finance and digital assets.
Disclaimer: The term “stablecoin” is used herein in relation to VEUR and VCHF for marketing purposes. The reader however shall understand that VEUR and VCHF are fiat-referenced tokens which are described in more detail in the VNX Gold based Fiat Referenced Tokens (FRT) Terms and Conditions which are available for review at www.vnx.li
About VEUR and VCHF
Both VEUR and VCHF are multichain tokens referencing the Euro and Swiss Franc, developed by VNX, generated by a licensed token generator under the Blockchain Act in Liechtenstein. VEUR and VCHF are supported by the reserves ensuring 1:1 parity and represent a reliable digital asset in the crypto world. These tokens combine the stability of fiat currencies with the convenience of crypto, enabling quick, low-cost, and 24/7 accessible cross-border payments while opening new opportunities in DeFi.
About Wirex
Wirex is a prominent UK-based digital payments platform with over 6 million customers spread across 130 countries. It offers secure accounts, making it easy for users to store, purchase, and exchange multiple currencies seamlessly. As a principal member of both Visa and Mastercard, Wirex goes beyond traditional services, embracing the evolving trends of Web3 to provide mainstream access to digital finance and wealth management. Having processed transactions totalling $20 billion, Wirex aims to contribute to the adoption of a cashless society by facilitating straightforward transactions in various currencies worldwide. Wirex is simplifying digital payments, making it more accessible and convenient for people across the globe.
Photo: https://mma.prnewswire.com/media/2586836/Wirex_VEUR_VCHF.jpg
Logo: https://mma.prnewswire.com/media/2031625/5077408/Wirex_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/wirex-adds-veur-and-vchf-stablecoins-to-its-platform-for-seamless-spending-302338369.html
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