European Commission drafting law on crowdfunding and blockchain standards, FinCEN to apply AML and KYC rules to ICO administrators, top 5 cryptocurrency price changes, and more!
FinCEN to Apply AML and KYC Rules to Those Who Conduct ICOs
According to CoinDesk, the Financial Crimes Enforcement Network (FinCEN) announced that it will apply its regulations to those who conduct ICOs. In a letter sent to U.S. Senator Ron Wyden, FinCEN’s assistant secretary for legislative affairs, Drew Maloney, explained that “both developers and exchanges involved in the sale of an ICO-derived token would be liable to register as a money transmitter and comply with the relevant statutes around anti-money laundering (AML) and know-your-customer (KYC) rules.”
Kakao To Launch Blockchain-Focused Business Unit
Kakao, the South Korean company that runs the country’s largest messaging app, has announced plans to launch a blockchain-focused business unit. According to TechCrunch, Han Jaesun, the CTO of FuturePlay, will lead the new blockchain business unit. Local media is speculating that the business unit will include a platform that will allow companies to raise funds via ICO.
VideoCoin Has Raised $35 Million Toward its $50 Million Goal, Cancels Public ICO in March
VideoCoin has raised USD 35 million toward its USD 50 million goal from more than 20 investors for its blockchain platform to rival Amazon video. According to CNET, Halsey Minor, the founder of VideoCoin, aims to utilize idle computers in data centers to process video cheaper than Amazon and Google. Due to “overwhelming demand” from private investors, VideoCoin has cancelled its March ICO. Minor expressed his desire to have VideoCoin running in the next 12 to 18 months.
LeadCoin Raises $50 Million in 30 Minutes
LeadCoin announced that it has raised more than USD 50 million in only half an hour in its ICO last week. According to Forbes, the LeadCoin network enables customers to “monetize their data through a blockchain-based platform that lets them sell unused leads and buy ‘hot leads’ in real-time.” LeadCoin is aiming to offer an alternative to online marketing campaigns through Facebook and Google, which are often expensive and have low conversion rates.
European Commission to Propose Draft Law on Crowdfunding and Common Blockchain Standards
The European Commission (EC) will propose a draft law on crowdfunding and establish common blockchain technology standards to facilitate the growth of Europe’s financial technology sector. According to Reuters, the departure of Great Britain from the E.U. next year has put pressure on the EC to attract fintech firms to the E.U. over Great Britain. The EC is reviewing financial rules to see if they are suitable for cryptocurrencies and ICOs.