Global Tech Regulation Updates: US Stablecoin Legislation, South Korean Crypto Laws, European AI Election Guidelines, and Kenyan AI Bill Controversy
Summary:
This news roundup discusses the US Treasury Secretary's call for improved digital asset regulation, the nearing agreement between Democrats and Republicans on stablecoin vision, South Korean updates to the Virtual Asset Users Protection Act, the European Commission's proposed guidelines for AI use during elections, and backlash against a proposed AI bill in Kenya. Campaigns for stablecoin regulation, an expectation of severe consequences for significant crypto scams, the identification of AI-generated content to safeguard future European elections, and Kenyan IT professionals urging rejection of a flawed AI bill are featured prominently.
US Treasury Chief Janet Yellen believes Congress needs to plug gaps in digital asset supervision that could have a negative impact on stakeholders and the financial network. During a hearing that assessed the Financial Stability Oversight Council's yearly report on February 6, she was asked by Rep. Patrick McHenry, Chair of the House Financial Services Committee, about her stance on looming regulation concerning stablecoins and clarifying the crypto realm's legislation. Yellen emphasized that regulations on various fronts such as safeguarding wallet owners and monitoring stablecoin issuers are paramount.
A day following this, Representative Maxine Waters unveiled that both Democrats and Republicans are nearing a mutual understanding on stablecoins, an issue she and McHenry have been discussing for nearly two years. The discussions have primarily revolved around whether the Federal Reserve should have jurisdiction over stablecoins and if it has the power to establish rules surrounding their issuance.
Dominating discussions in the stablecoin conversation is Circle, whose CEO Jeremy Allaire is hopeful of comprehensive stablecoin laws being passed by US government in 2024. The company, known for issuing the stablecoin USD Coin (USDC), has been strongly advocating for stablecoin regulation. Since late 2021, the company has reportedly spent $760,000 lobbying with strategic consulting firm Invariant.
South Korea may impose a life sentence for major crypto fraud cases. The country has recently updated the Virtual Asset Users Protection Act, prohibiting usage of confidential key details about crypto currencies, manipulation of the market and unlawful trade. Offenders could serve more than a year in jail or pay a fine of three to five times their unlawful earnings, according to the legislation. Should offenders make more than 5 billion won ($3.8 million) from unlawful crypto trade activities, they could face a life sentence.
The European Commission is introducing guidelines for AI concerning elections. It is now a requirement for large tech platforms such as TikTok, X and Facebook to detect and manage AI-created content in order to prevent misrepresentation during forthcoming European elections. This initiative focuses on potential risks during elections, with measures on mitigating risks associated with generative AI content before or after an electoral event.
In Kenya, there has been strong public disapproval of a new AI bill. It has been suggested by Kenyan IT professionals that the 2023 Robotics and Artificial Intelligence Society Bill should be dismissed, citing several flaws. During a session by the National Assembly's Communication, Information and Innovation Committee, it was observed that specialists in the AI and robotics were not included in the drafting phase of the bill, which the legislation intends to fine entities practicing AI and robotic activities without a license from Robotics Society of Kenya.
Published At
2/12/2024 11:00:00 PM
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