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Floki Inu Restricts Access to Staking Programs in Hong Kong: Regulatory Concerns Addressed

In a recent development, Floki Inu has made the decision to block users in Hong Kong from accessing its staking programs. This action follows a warning from the Securities and Futures Commission of Hong Kong, which raised concerns about the staking programs being labeled as suspicious investment products due to the high annualized return targets ranging from 30% to over 100%. Despite the regulatory scrutiny, the Floki team has come forward to defend the elevated Annual Percentage Yield (APY) by explaining that it is a result of allocating the majority of TokenFi's token supply to stakers. Key Points: Floki Inu has restricted access to its staking programs for users in Hong Kong. The Securities and Futures Commission of Hong Kong issued a cautionary warning regarding the staking programs' high annualized return targets. The Floki team justified the high APY by attributing it to the allocation of the majority of TokenFi's token supply to stakers.

European Banking Authority Proposes to Include Crypto in Money Laundering Guidelines: What You Need to Know

As a long-time participant in the cryptocurrency industry, I was intrigued by the recent news that the European Banking Authority (EBA) is looking to include crypto in its guidelines for money laundering and terrorism financing. While the move is not surprising given the continued growth of the crypto market, it is still a significant development that could have far-reaching implications for the industry and its users.

The EBA's proposal would expand the scope of its existing guidelines to include "crypto-asset service providers" (CASPs), which is a broad term that covers a wide range of businesses involved in the crypto market. The guidelines would include warnings about transactions with self-hosted crypto addresses and CASPs that are not subject to the forthcoming MiCA regulations.

As a proponent of responsible crypto use and compliance with regulations, I believe that the EBA's proposal is a step in the right direction. By including crypto in its guidelines for money laundering and terrorism financing, the EBA is acknowledging the importance of this rapidly growing market and taking steps to ensure that it is not used for illicit purposes.

However, the devil is always in the details, and there are some potential concerns that need to be addressed. Here are a few key points to consider:

  • The EBA's proposal is still in the consultation phase, and firms have until August 31, 2023, to submit comments. This means that the guidelines may change significantly before they are finalized.

  • The inclusion of self-hosted crypto addresses in the guidelines could be problematic. Self-hosted addresses are not associated with any particular service provider, which makes it challenging to identify the owner of the address or track its transactions. This could make it more challenging for law enforcement to investigate potential money laundering or terrorism financing activities.

  • The guidelines may add additional regulatory burdens to CASPs, which could stifle innovation and growth in the crypto market. It is essential to strike a balance between regulation and innovation to ensure that the industry can continue to thrive while maintaining compliance with the law.

Overall, I believe that the EBA's proposal is a positive development for the crypto industry. It underscores the importance of responsible crypto use and compliance with regulations, which is essential for the long-term health and growth of the market. However, it is crucial to ensure that the guidelines are appropriately tailored to the unique characteristics of the crypto market to avoid unintended consequences.

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