Weekly Update #16: Interpol, Walmart, And OneCoin

Dominik Olech
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November is going to an end, with the Christmas season slowly appearing on the horizon. But the cryptocurrency industry can’t afford for casually waiting for the Santa, with many things happening recently.

Last week, we talked about some governmental ideas for digital currencies announced by various authorities. But today, we have more current affairs to discuss. 

Crypto legal status in the UK

Cryptocurrency regulations are a frequently raising topic during the last months. Usually, we are talking about it in the context of the latest American dispute about Libra. This time, the legal status of digital assets was also discussed in the United Kingdom. The statement was published by Lawtech Delivery Panel via Tech Nation network, and it concerned cryptocurrencies, distributed ledger technology, and smart contracts.

According to Lawtech Delivery Panel director Jenifer Swallow, due to increasing importance (and value) of the smart contract market, proper regulations should be adapted. Moreover, she also believes that the lack of legal status is the main obstacle on the road to adoption of digital assets.

New banking options for American crypto firms

Because of the regulatory discussion mentioned above, crypto-related entrepreneurs in the US face ongoing difficulties. However, there is at least one glimmer of hope for them. Banking service platform Cashaa is going to offer opening accounts for crypto firms using the US dollar. Since today, all interested crypto firms may apply for it. The cost for it is a fee of 250,000 Cashaa’s token, which is about $1,576, according to CoinDesk.

In exchange for that price, Cashaa’s clients will receive full access to the automated clearinghouse (ACH) and SWIFT networks. In the time of ongoing crypto exclusion, such an offer is exciting.

Walmart and blockchain

Walmart maintains close relations with the blockchain industry for quite a time. A few weeks ago, we mentioned about its plans for pursuing our own stablecoin. Today, the Canadian branch of this retail corporation is cooperating with DLT Labs to launch freight and a payment network based on the blockchain technology.

The system will facilitate conducting transactions and deliveries from third-party carriers, which supplies at least 400 retail stores throughout Canada annually. The new solution is easily accessible via an app provided by Walmart, and all operators need to implement new solutions before February 1, 2020.

Interpol fights with encryption

Law enforcers struggle with encryption and privacy measures for quite a time. And no wonder, since the strong securities may provide anonymity for criminals of all kinds. On the other hand, cryptography may also secure citizens from the government’s invigilance. It is tough to find a golden mean between those two factors.

During Interpol’s conference in Lyon, France, the group decided to release a resolution previously introduced by the US Federal Bureau of Investigation (FBI). The main goal of Interpol is to encourage tech providers to develop solutions facilitating the work of law enforcers. As for now, the high-tech securities conceal sexual exploitation of children and other criminal activities. As Reuters cite:

“Tech companies should include mechanisms in the design of their encrypted products and services whereby governments, acting with appropriate legal authority, can obtain access to data in a readable and useable format.” 

No hope for crypto in Shanghai

We recently mentioned in one of our articles how China is going to eliminate cryptocurrency trading. The situation is apparently getting even worse, and China is openly leading to crackdown crypto in Shanghai. People’s Bank of China has announced that any activities related to cryptocurrencies should be reported to authorities.

This is just another measure taken by the People’s Republic of China to discriminate cryptocurrencies. Apparently, the Chinese government is attempting to divide crypto and the blockchain industry. President Xi Jinping announced recently a new state’s direction, which is strongly bassing on the blockchain technology. However, if the government is willing to achieve dominance in that field, it needs to eliminate private contributors.

OneCoin’s lawyer laundered $400 million

In last Sunday’s article, we gave you a short summary of the probably most notorious scam in the entire cryptocurrency industry: a OneCoin. The case is still ongoing, and despite the missing of the firm’s founder, Ruja Ignatova, the company keeps functioning. However, the brother of Ignatova, Konstantin Ignatov, was recently captured, and now new details about the company come to light.

We already learned that in OneCoin’s businesses involved Neil Bush, brother of former President George W. Bush, and son of the late President George H.W. Bush. New detail, however, applies to the other partner of Ruja Ignatova, a lawyer Mark S. Scott. Current pieces of evidence suggest that he received about $50 million (mostly in the form luxury goods like a 57-foot yacht or three multimillion-dollar homes) for laundering about $400 million for the so-called “cryptoqueen.”

Image by HUANG Zheng / shutterstock.com

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