FameEX Morning Crypto News Recap | May 11, 2023

Warning Issued by Hong Kong's Monetary Authority Head Regarding Strict Crypto Regulations
The head of the Monetary Authority has announced that Hong Kong will be implementing new licensing rules for digital asset service providers and guidelines for banks working with crypto firms. The goal is to make Hong Kong a hub for digital assets, but companies operating within the region should be prepared for stringent regulations.

Economist Peter Schiff Cautions Against Financial Crises and Depressions, Warns That Bank Deposits Are Not Secure
Economist Peter Schiff has warned that low interest rates and excessive printing of money by the Federal Reserve leads to inflation, economic imbalances, and eventually, financial crises and depressions, resulting in the collapse of banks. He further claimed that no bank is safe, and individuals should not consider their deposits secure. Schiff also predicted that numerous banks would fail in the future.

"Key Learnings" from the European Union's MiCA Regulations
Industry experts have warned that the European Union's Markets in Crypto-Assets (MiCA) regulations may hinder innovation, impose uniform regulation for decentralized finance (DeFi), raise compliance costs for DeFi platforms and decentralized exchanges (DEXs), and raise privacy concerns. Striking a balance between regulation and innovation will require collaboration between the crypto industry and regulators.

OpenAI CEO, IBM Exec, and AI Pause Advocate to Appear Before Congress as Witnesses
On May 16, OpenAI CEO Sam Altman, IBM's Chief Privacy and Trust Officer Christina Montgomery, and NYU Professor Gary Marcus will testify before Congress on the regulation of artificial intelligence (AI) in the United States. The hearing will center on the need for ethical guidelines around AI development and use, as well as oversight. Montgomery is a member of the US National Artificial Intelligence Advisory Committee. This will be Altman's first time appearing before Congress.

Tether's Bitcoin Reserves Reach $1.5 Billion
According to the latest attestation report, Tether, the issuer of the stablecoin, held approximately $1.5 billion worth of Bitcoin in reserves at the end of the first quarter, which represents roughly 2% of the total. Additionally, the report disclosed that Tether held around $3.4 billion worth of precious metals.

Joint Hearing of Lawmakers Looks to EU and UK for Crypto Regulation Inspiration
Lawmakers in the US are turning to Europe as an example of cryptocurrency regulation, highlighting a more innovative approach in Switzerland and the EU. The House Financial Services Committee expressed concerns about the lack of clarity from regulators, such as the Commodity Futures Trading Commission and the Securities and Exchange Commission, in creating a "new market structure" for crypto in the US.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.