- April 13, 2022
- Posted by: admin
- Category: News
In this article, we will provide an overview of legislative projects or new regulatory trends in relation to Bitcoin and other cryptocurrencies.
FRANCE: The First public auction of NFT
As foreseen, the legal bill aimed at amending Article L.320-1 paragraph 1 in the Commercial Code so as to include public auctions of “certain intangible assets”, in particular NFTs, has been definitively adopted. In fact, the law was published in the Official Journal on March 1st, 2022. The application decrees should be published by the end of the year …
However, the auction house FauveParis, renowned for breaking the codes of the profession, decided to disregard these decrees. On March 10th, 2022, FauveParis organized the first public auction of NFT in France. This was not surprising considering that FauveParis had tried to organize an NFT auction due to be held on February 24th, 2022, that is, before the law’s publication. Having been challenged by the Council of Sales (the sector’s regulator), the sale was ultimately cancelled.
FauveParis’ Tweet regarding the first public auction of NFTs in France – Source: Twitter
During this sale, 47 NFTs from different artists were auctioned. Notably among these artists was the American Beeple who holds the record high for an NFT sale with his work “Everyday’s: The First 5000”, which sold for more than 69 million dollars. This sale was a guaranteed success, with some individuals bidding from the street where giant screens allowed them to follow the sale live.
Likewise, the president of FauveParis launched this auction in a tone that even the most sceptical would find reassuring:
“This is a cry from the heart: there is no need to understand NFT, you just need to feel!”
In fact, this is what every form of art ought to inspire: a pleasant and familiar feeling.
THE UNITED KINGDOM: LEGAL ACTIONS AGAINST CRYPTO COMPANIES CONTINUE
In the United Kingdom, the British financial sector regulator, the Financial Conduct Authority (FCA), has said it opened more than 300 cases concerning companies involved in digital assets between April 1st, 2021 and September 30th, 2021. As a reminder, the FCA is a regulatory authority independent of the British government. Its role is to oversee and ensure the proper application of stock exchange law.
Furthermore, between April and September 2021, the watchdog received thousands of complaints relating to alleged crypto scams:
“Between April and September of last year, the FCA received 16,400 inquiries relating to potential scams, an increase of nearly a third compared to the same period in 2020.”
According to the FCA’s data, this would have prevented one in four companies from entering the stock market during this period.
Moreover, the FCA has said it has 50 ongoing investigations, including criminal investigations, into crypto businesses that have not been registered with its services. As of March 2nd, 2022, only 33 crypto companies had been registered with the FCA, and 22 obtained temporary registration approval.
THE UNITED STATES: TOWARDS THE COORDINATION OF CRYPTO REGULATIONS
The American President, Joe Biden, has shown that he is not fundamentally against cryptocurrencies. On the night of March 9th-10th, the President of the United States signed an executive order entitled “Executive Order on Ensuring Responsible Development of Digital Assets”.
This decree aims to address a whole host of problems encountered in the crypto space: consumer protection, illicit finance, “responsible development”, as well as financial inclusion.
Furthermore, this text does not in itself introduce new regulations but enjoins federal agencies to opt for the coordination of their actions. Thus, the Federal Trade Commission, the Securities and Exchange Commission (SEC), and the CFTC are encouraged to coordinate their efforts regarding the supervision of the crypto industry. In addition, the Treasury Department will need to “produce a report on the future of currency and payment systems”.
Therefore, President Biden’s Executive Order can be outlined in 10 categories:
- Policy
- Goals and Objectives
- Coordination
- Central Bank Digital Currencies
- Consumer Protection
- Financial stability
- Actions to combat illicit financing of digital assets
- International cooperation
- Definitions
- General Provisions
Finally, while no section of the decree specifically addresses the crypto industry’s impact on climate change, this concern has not been sidelined by the American President. Indeed, prior to the publication of this decree, Joe Biden had consulted with several environmental authorities, such as the Environmental Protection Agency, asking them to compile a report for him. This report must examine “the potential of these technologies [such as blockchain] to hinder or advance efforts to combat climate change.”
This article is a translation of the following french site: https://journalducoin.com/bitcoin/minute-regulation-crypto-6-france-royaume-uni-etats-unis/