In recent regulatory news, Dutch police have reported an increase in electricity fraud associated with crypto mining, a Michigan Republican member of the House Financial Services Committee has urged Congress to make the development of clear guidelines overseeing the cryptocurrency industry a top priority, and digital currency advocacy group, Chamber of Digital Commerce, has published a report outlining regulatory principles governing the cryptocurrency industry.
Dutch Authorities Crack Down on Electricity Theft
The Netherlands has experienced a 20% spike in non-cannabis related electricity fraud cases – a growing number of which have been attributed to cryptocurrency mining.
Petra van der Veen, team leader of the fraud team for leading Dutch distribution network operator, Stedin, states that unexplained heat and electricity problems experienced in a neighborhood are reliable indicators of potential electricity fraud.
She recalls: “Once, we got a report from people saying their walls were strangely hot. The place next door showed all the signs of an electricity-stealing weed farm,” however, when police raided the building, it was revealed to be a “bitcoin mine” instead.
“Electricity fraud can pose dangerous situations for the neighbors,” Van der Veen adds. “That’s why detecting electricity theft is one of our priorities. We have a social obligation to help police and municipalities to nip these in the bud as soon as possible.”
Republican Advocates Lawmakers Focus on Protecting Crypto Investors
Representative Bill Huizenga, a Michigan Republican and key member of the House Financial Services Committee, has expressed his belief that developing a clear and comprehensive regulatory framework governing cryptocurrencies should be a top priority for Congress.
Mr. Huizenga described the current regulatory apparatus pertaining to initial coin offerings and crypto assets as “muddied and fairly opaque,” and emphasized the need to protect investors.
The representative also emphasized the challenge associated with classifying virtual assets, stating: “Everyone’s trying to figure out whether it’s fish or fowl,” Mr. Huizenga said. “It turns out it might be a platypus. It’s kind of an unknown, or something sort of in between. How do we deal with that?”
Chamber of Digital Commerce Publishes Crypto Guidelines “for Policymakers & Practitioners”
Token Alliance, an initiative of the United States-based cryptocurrency and distributed ledger technology advocacy group, the Chamber of Digital Commerce, has published a document outlining a number of “guidelines for policymakers and practitioners” regarding digital tokens.
The document provides an overview of current regulatory apparatus governing the digital token markets of the United States, Canada, the United Kingdom, Australia, and Gibraltar. The document then discusses some of the specifics pertaining to commodity regulations, securities, and initial coin offerings.
James Newsome, former chairman of the United States Commodity Futures Trading Commission and current co-chair of Token Alliance, stated: “The Token Alliance is taking a positive and proactive approach towards working with regulators, which could ultimately create unprecedented opportunities for investment, innovation, and jobs. This report will serve as an important resource for policymakers seeking to educate themselves and engage in meaningful industry dialogue.”
What is your response to Mr. Huizenga’s depiction of the current state of cryptocurrency regulation in the United States?
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