Binance Founder Ordered to Stay in U.S., AI Regulations in EU Progressing, and U.S. Passes Pro-Blockchain Bill
Summary:
U.S. Judge Richard Jones mandates Binance founder Changpeng "CZ" Zhao to remain within the U.S. until sentencing in February 2024 to mitigate flight risks. Terraform Labs' ex-CEO, Do Kwon, might face extradition to the U.S. The European Parliament and Council are working towards a consensus on AI regulations within EU, Kazakhstan's Financial Monitoring Agency blocks nearly 1,000 illegal platforms in 2023, and a pro-blockchain bill is unanimously passed in a U.S. Congress committee, aiming to boost the nation's adoption of blockchain technology.
A federal judge in the United States has mandated that Changpeng "CZ" Zhao, founder of Binance, must remain in the country until his sentencing in February 2024 due to potential flight risks, should he be allowed to return to the UAE. Judge Richard Jones of Seattle's district court noted that Zhao's immense wealth, properties overseas, as well as his family and privileged status in the UAE, all pose substantial risk of absconding. Zhao pled guilty to a count of Bank Secrecy Act violations two weeks ago on Nov. 21 and agreed to a $4.3 billion settlement from U.S. agencies. The former Binance executive now faces a possible 18-month imprisonment.
In addition, Terraform Labs co-founder and ex-CEO, Do Kwon, might be extradited to the U.S. as Montenegrin Minister of Justice, Andrej Milović, is reportedly considering U.S. officials' extradition requests for Kwon. Kwon had been arrested in Montenegro in March and served a four-month sentence for using forged travel documents. He is presently charged in the U.S. and South Korea for his supposed involvement in Terraform Labs' failure.
Meanwhile, negotiators from the European Parliament and Council have achieved a preliminary agreement on regulation rules for artificial intelligence (AI) in the European Union. The agreed upon rules dictate that any AI systems bearing substantial impact and systemic risks must conduct risk assessments, system resilience tests, incident reports to the European Commission, maintain cybersecurity, and ensure energy efficiency. The use of AI systems to manipulate behavioral tendencies, facial image scraping from the internet or CCTV footage, social scoring, and biometric systems that infer personal information are strictly forbidden. Consumers would have the ability to lodge complaints and obtain explanations.
Elsewhere, Kazakhstan's Financial Monitoring Agency reportedly blocked access to nearly a thousand illegal platforms in 2023. Nine investigations into "unlawful exchange operations" and money laundering were also initiated. The list of blocked unlicensed exchanges includes some significant international platforms. For instance, access to Coinbase website was restricted last November following an order issued by the Ministry of Culture and Information. It was clarified that the restriction was initiated by the Ministry of Digital Development, citing Coinbase's breach of the Digital Assets Law.
Finally, a pro-blockchain bill was passed unanimously by a U.S. Congress committee, assigning the U.S. commerce secretary the responsibility of advocating for blockchain usage, potentially boosting the nation's adoption of this technology. The detailed blockchain bill asks Secretary of Commerce, Gina Raimondo, to promote U.S. competitiveness in relation to the deployment and application of blockchain or other distributed ledger technology. The proposed "Blockchain Deployment Program" would bolster the technology's use and establish government advisory committees comprising federal agency representatives, blockchain industry stakeholders, and experts to encourage blockchain adoption.
Published At
12/11/2023 11:00:00 PM
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