It’s been a week where regulators have stepped up their game, cracking down on blockchain and crypto startups. However, it’s not been all negative, with some regulators launching initiatives that seek to drive adoption of blockchain higher. China was in the limelight again, this time for blockchain initiatives in identity management and a digital currency. In the crypto mining sector, it was a week of comebacks and infighting.
The week has seen a number of fraudulent blockchain startups brought to book. In New York, a blockchain startup founder was charged with wire fraud and he faces 20 years in prison for his crime. The accused, Asa Saint Clair founded a startup which he claimed was affiliated with the United Nations, but ended up defrauding his investors.
In China, a porcelain company is under investigations by the market regulator for possible stock price manipulation. The company announced blockchain projects last year and after China’s president hailed blockchain technology, its stock soared for five straight days. Still in China, Xi Jinping’s embracing of blockchain technology has led to the reversal of the crypto mining ban.
For one Canadian crypto exchange, it wasn’t a good week after regulators seized control and shut it down. The regulator in British Columbia shut down Einstein Exchange after its users raised concerns about its operations.
The U.S. is also moving in the right direction after the country’s Federal Reserve advertised a post for a retail manager who’ll also lead in blockchain research. This came after Congressman David Warren called on the country to regulate blockchain technology or risk losing its superiority to European countries.
In more good news, Finland’s market regulator revealed that it had given the green light to five crypto firms to offer their services in the country.