This “dichotomy” refers to the SEC approving bitcoin futures ETFs but not spot products, allegedly due to concerns over market manipulation.
The securities regulator has rejected several bitcoin spot applications and recently delayed ruling on seven applications. This includes a recent filing by global asset manager BlackRock. Applications from WisdomTree, ARK Invest, Bitwise Asset Management, VanEck, Invesco, Galaxy Digital, Fidelity and Valkyrie have all been put on hold by regulators.
U.S. regulator denies blocking AI chip exports to Middle East
According to a Reuters report, the U.S. Department of Commerce stated on August 31 that the Biden administration “has not blocked the sale of chips to the Middle East.”
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Earlier, a report by Nvidia revealed that the US government has expanded the requirements for export licenses for artificial intelligence chips.
Nvidia’s direct competitor, Advanced Micro Devices (AMD), has also received a similar letter from regulators.
The Commerce Department did not comment on whether the requests targeted specific U.S. companies. However, the new rules will require Nvidia and AMD to obtain licenses before selling flagship chips to “some Middle Eastern countries,” the document said.
Neither company said whether it had applied for the said permits, or whether it had any feedback on permits in the area.
In its quarterly report, Nvidia warned regulators that “effective exclusion from all or parts of China” could “damage” the company’s long-term performance.
In October 2022, the Biden administration issued preliminary export control measures to slow down China’s development of advanced artificial intelligence systems using powerful semiconductor chips made by US companies.
Officials in Washington said on June 29 they were considering further tightening the rules, which would further limit the computing power of chips available in the Chinese market.
The U.S. government’s move has been closely watched by other regulators around the world. Shortly after the initial U.S. rules went into effect, agreements were reached with the Netherlands and Japan to limit exports of semiconductor manufacturing equipment to China.
Officials in Britain, France and Germany have all publicly said they are considering scrutinizing Chinese foreign direct investment in key areas such as artificial intelligence.
China responded by saying it would control the export of gallium and germanium, the main raw materials needed to produce artificial intelligence chips.
Crypto travel rule comes into effect in the UK
Crypto asset businesses in the United Kingdom can now start withholding certain cryptocurrency transfers to comply with new cryptocurrency travel rules that come into effect on September 1.
The rules for virtual asset service providers (VASPs), first proposed by the Financial Conduct Authority (FCA) on Aug. 17, require UK-based VASPs to “collect, verify and share information related to the transfer of crypto assets.”
One of the FCA’s shared expectations is that if an inbound payment is received by a person or entity in an overseas jurisdiction that has not imposed the travel rules, VASPs must decide “whether to make the crypto asset available to the beneficiary.”
The same rules apply to Brits wishing to send money outside the UK.
The travel rule was established in June 2019 by the United Nations agency Financial Action Task Force. The UK will introduce legislation to enforce the travel rules in July 2022.
It seeks to enforce anti-money laundering and counter-terrorist financing rules for activities conducted on-chain.