Crypto News Roundup – May 2, 2020

Crypto News Roundup – May 2, 2020

At-A-Glance

  • Shortly after Ripple sued YouTube for its perceived lack of action in halting crypto scams, the video giant suspended the channel of CTO David Schwartz.
  • Japan took a major step toward embracing cryptocurrency with the certification of two regulatory organizations.
  • In a letter to Treasury Secretary Steven Mnuchin, eleven Congress members called for the use of blockchain and distributed ledger technology to distribute COVID-19 relief funds.
  • Despite our current recession, stablecoins like Tether, Circle, and Paxos have all seen impressive growth to their respective market caps.

YouTube Suspends Ripple’s Tech Chief Days After XRP Scam Lawsuit Filing

Coindesk

YouTube doesn’t have a great relationship with the cryptocurrency community, which isn’t about to change anytime soon. Shortly after Ripple sued YouTube for its perceived lack of action in halting crypto scams, the video giant suspended the channel of CTO David Schwartz. While the exact reasoning behind this decision is unclear — and might eventually be attributed to YouTube’s moderation algorithms — the suspension’s timing certainly concerns publishers of crypto content.

YouTube can “terminate” channels that violate the platform’s guidelines including for predatory behavior, hate speech, harassment as well as impersonation. Channel owners are prohibited from creating new channels, but they are allowed to submit an appeal request if they think their channel was suspended or terminated in error.

Wednesday’s events come a week after Ripple initiated a lawsuit against YouTube on allegations the platform had failed to prevent fake XRP giveaway scams on the platform. The filing states YouTube’s unwillingness to suspend scam channels has led to users being defrauded out of hundreds of thousands of dollars, as well as reputational damage for Ripple.

“Ripple has repeatedly demanded that YouTube take action to stop the Scam and prevent further harm. Yet, YouTube refuses, even where the same scheme is replicated time and again on its platform. YouTube’s response has been woefully inadequate and incomplete. As a result, Ripple and Mr. Garlinghouse continue to suffer substantial reputational harm,” reads the lawsuit.

Japan’s Financial Watchdog Certifies Two Cryptocurrency Regulatory Organizations

Cointelegraph

Japan took a major step toward embracing cryptocurrency with the certification of not one, but two regulatory organizations. The nation’s Financial Services Agency recognized the Japan STO Association and the Japan Virtual Currency Exchange Business Association as self-regulatory watchdogs for security token offerings and derivative transactions.

JVCEA will subsequently be renamed the “Japan Crypto Asset Trading Business Association” on May 1.

JVCEA is the official self-regulatory organization for the cryptocurrency industry in Japan authorized to create regulations and policies for cryptocurrency exchanges in the country…

JVCEA enacted a leverage cap of 4x last year, after which some cryptocurrency exchanges in the country reduced their rates. However, some local economic experts suggested that the rate should be further lowered to 2x in order to match those in other jurisdictions such as the European Union.

11 Lawmakers Urge US Treasury to Consider Blockchain for COVID-19 Relief

Coindesk

In a letter to Treasury Secretary Steven Mnuchin, eleven Congress members called for the use of blockchain and distributed ledger technology to distribute COVID-19 relief funds. According to the lawmakers, blockchain would overcome logistical challenges, boost liquidity, and maximize the transparency of each transaction.

Reps. Tom Emmer (R-Minn.), David Schweikert (R-Ariz.), Ro Khanna (D-Calif.), Warren Davidson (R-Ohio), Ted Budd (R-N.C.), Tulsi Gabbard (D-Hawaii), Anthony Gonzalez (R-Ohio), Bill Posey (R-Fla.) and Ben McAdams (D-Utah) and Delegate Stacey Plaskett (D-U.S. Virgin Islands) joined [representative of Florida Darren Soto] in signing the letter.

“We understand your primary mission is to deliver urgent and necessary assistance to America’s small businesses and working families,” the letter says. “As the pandemic continues to impact the economy, we look forward to supporting the Administration’s efforts to get American small businesses running while also prioritizing health, safety and proper oversight.”

Stablecoins Provide Cover as Global Risks and Uncertainty Quake

Cointelegraph

While few markets are faring particularly well in this recession, stablecoins are among the rare exceptions. Over the past year, Tether (USDT), Circle (USDC), and Paxos (PAX) managed to increase their respective market caps by 161%, 191%, and 146%. What’s more, stablecoins are seeing higher month-over-month growth since February compared to non-stablecoin assets like bitcoin and ethereum.

Talking to Cointelegraph, Binance chief compliance officer Samuel Lim shed some light on the likely causes of such growth. “Stablecoins have been used more frequently in trading due to huge market volatility in the past year,” he said, “but apart from that, we have also seen an increase in its public adoption and usage.” In reference to Tether’s growth in particular, Lim added:

“The issuance of USDT has increased greatly, but its market share is gradually decreasing, which means other stablecoins have been growing phenomenally — not to mention that it [USDT] may face potential competition from CBDCs [central bank digital currencies] or even the likes of Libra.”

That’s the roundup for May 2, 2020. Check in next week for the latest news of cryptocurrency innovation and regulation around the world!

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