Global Calls for AI Regulations Increase; Crypto Companies Face Scrutiny and Charges
Summary:
From Pope Francis to financial overseers and judges, various public figures are expressing concern over the potential dangers of artificial intelligence, emphasizing the need for regulation and ethical use. In related news, Tether responds to accusations of illegal usage of its stablecoin with collaboration with the FBI, while KuCoin agrees to block New York residents from its platform and pay a $22 million fee. Meanwhile, the U.S IRS has listed crypto-related cases among its top investigations of 2023.
Voices from all corners are speaking up about the potential dangers artificial intelligence (AI) holds, including Pope Francis. The Pope is advocating for an international treaty to oversee AI and ensure its ethical development and usage. Without such regulation, he cautions, we might head towards a "technological dictatorship" scenario. He attributes AI's threat to the predominance of power and profit-seeking motives among developers, risking peaceful coexistence.
Adding to this sentiment is the Financial Stability Oversight Council (FSOC), a group of top financial regulators led by US Treasury Secretary Janet Yellen. They, too, identify risks associated with AI, specifically cybersecurity and model risks, in their yearly report. The council suggests that companies and regulators enhance their competencies to supervise AI applications, identify new threats, and comprehend the highly technical nature of some AI tools.
Across the pond, UK judges are also considering the inherent risks of deploying AI in their proceedings. Four senior UK judges have put forth judicial guidance for AI, which focuses on responsible AI usage in courts and tribunals. While recognizing the perks of AI in court administration, the judges also warn against misinterpretations or misinformation produced by AI in court proceedings.
Meanwhile, Tether, the company behind the stablecoin Tether (USDT), has acknowledged letters to US lawmakers asking for intervention by the Department of Justice, concerning the illegal use of its stablecoin. The company states that it has a customer verification program and transaction surveillance to identify suspicious actions. Furthermore, Tether revealed its collaboration with the FBI in tracking clients activities.
Cryptocurrency exchange KuCoin has reached a consent agreement to pay $22 million to New York State and prevent state residents from using its services. Additionally, the company will close all accounts held by New York residents within 120 days and restrict withdrawal access to a 30-day period.
Rounding out recent developments are findings from the U.S. Internal Revenue Service's investigative arm, which included four crypto-related cases among its top 10 most significant investigations in 2023. Of particular importance was the sentencing of OneCoin co-founder Karl Sebastian Greenwood, whose fraudulent activities landed him a 20-year prison term.
Published At
12/18/2023 11:00:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.