UK politicians don metaverse avatars as they share Web3 roadmap

September 21, 2023 Coin Telegraph

Blockchain

“Web3 represents a paradigm shift that reimagines the very fabric of the internet,” said British MP Natalie Elphicke.

A group of British politicians took to the metaverse to address global leaders in a 51-nation gathering on Sept. 20, setting out a vision for the United Kingdom’s blockchain and Web3 industries.

The metaverse gathering saw eight British Lords and politicians address global leaders on the opportunities and challenges posed by the growth of Web3 technology

Natalie Elphicke, member of parliament and chair of the new All Party Parliamentary Group (APPG) for Blockchain Technologies, appeared as her unique avatar in the metaverse, where stressed the importance of the next iteration of the internet:

“Web3 represents a paradigm shift that reimagines the very fabric of the internet.”

As chair of the APPG on blockchain technologies, I was pleased that me and Avatar Natalie could join the British Blockchain Association’s Global Summit today to give a keynote speech - held in the metaverse. @Brit_blockchain @APPGBlock pic.twitter.com/hDriQA5rAv
— Natalie Elphicke MP (@NatalieElphicke) September 20, 2023

In her keynote, Elphicke said that the U.K. has the potential to become a blockchain-enabled “smart country” but noted the nation was “lagging competitors” in securing blockchain-related jobs.

The first UK national priority is Web3 industry growth and workforce planning, she said before adding:

“Part of that is about making the UK an attractive hub for Web3 founders, developers, programmers, and companies to work here,”

*Natalie Elphicke metaverse avatar. Source: APPG*

Elphicke called for more national blockchain roadmaps and collaboration between countries, commenting that so far, fewer than 12 countries have published roadmaps.

She said another priority was taking forward the National Blockchain Roadmap, published in 2021. The roadmap sets out an ambition to build a blockchain-based “digital nation” with the technology being applied to climate mitigation efforts, industrial symbiosis networks, and digital identity programs.

She also mentioned DeFi, stating that it poses “unique challenges and opportunities for regulators and policymakers,” before adding that “ensuring transparency, auditability, and accountability in these ecosystems is paramount.”

The Conservative Party politician also spoke about real-world asset tokenization. “It is unquestionable that our world is being tokenized,” she said before adding “Physical assets are getting tokenized, and this trend will only grow from here.”

However, on Sept. 19, an online safety bill aimed at regulating certain UK internet services including activities in the metaverse passed through parliament.

Magazine: Is the Metaverse really turning out like ‘Snow Crash’?

Weak competition in AI race could hurt consumers: UK watchdog

September 19, 2023 Coin Telegraph

The UK's Competition and Markets Authority wants to prevent AI from being used to undermine consumer trust.

There is a “real risk” that the artificial intelligence industry could develop in a way that could end up with only a few firms dominating the market, while consumers are bombarded with harmful information, according to the United Kingdom's competition watchdog.

In a report published Sept. 18, the Competition and Markets Authority looked into AI Foundation Models, concluding that while AI has the potential to change how people live and work, “these changes may happen quickly and have a significant impact on competition and consumers.”

The competition regulator cautioned that in the short term, if competition is weak, or developers fail to heed consumer protection law, consumers may be exposed to significant levels of false information or AI-enabled fraud.

In the long term, there’s a chance that a handful of firms could end up gaining or entrenching positions of market power, which could lead them to not offer the best products or services, or charge high prices, it said.

“It is essential that these outcomes do not arise,” said the CMA, with CEO Sarah Cardell adding:

“There remains a real risk that the use of AI develops in a way that undermines consumer trust or is dominated by a few players who exert market power that prevents the full benefits being felt across the economy.”

To remedy this, the watchdog proposed several “guiding principles” to ensure “consumer protection and healthy competition while allowing full economic benefits.”

These guiding principles appear to focus on increasing access and transparency — particularly when it comes to preventing firms from gaining advantages by using AI models.

CMA principles on AI development. Source: gov.uk

The U.K. competition regulator said it will publish an update on the principles and their adoption in early 2024, along with an insight into further developments in the AI ecosystem. It has engaged with AI developers and businesses deploying the technology already, it said.

It is not the first time the U.K. has cautioned over rapid advances in AI. In June, the British prime minister’s AI task force adviser, Matt Clifford, said the technology would need regulation and control within the next two years to curb major existential risks.

Also in June, Japan’s privacy watchdog warned ChatGPT’s parent company OpenAI about its data collection methods.

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Coinbase signals EU, Canada, Brazil, Singapore and Australia as priorities

September 8, 2023 Coin Telegraph

America

The crypto exchange’s focus on non-U.S. markets is part of a next phase in its expansion plans, said the firm.

Coinbase has flagged several countries outside the United States where it intends to focus its operations in the near term, citing their comparatively clearer crypto laws.

In a Sep. 6 blog post, Coinbase’s international business VP, Nana Murugesan and international policy VP, Tom Duff Gordon, marked the European Union, United Kingdom, Canada, Brazil, Singapore and Australia as “near-term priority markets.”

The pair said the countries are “enacting clear rules” and Coinbase would focus on “acquiring licenses, registering, and establishing and strengthening operations” in them.

Globally, countries are vying to become crypto hubs. Regulatory clarity has emerged in the EU, UAE, China (HK), Singapore, Australia and Canada, to name a few.
— Coinbase ️ (@coinbase) September 7, 2023

“Every part of the world is seeing progress on crypto-forward regulation — except for the U.S., which is opting for a ‘strategy’ of enforcement of existing rules and new regulations through the courts,” the pair wrote.

They added the country is “sidelining itself” on crypto regulations which puts at risk its influence over the space.

“We’re committed to helping to update the global financial system and providing more economic freedom and opportunity, and won’t stand idle just because the U.S. is,” they wrote.

The crypto exchange faces regulatory action in its native U.S. — with a lawsuit from the Securities and Exchange Commission accusing it of selling unregistered securities and operating illegally.

‘Go Broad, Go Deep’ goes phase 2

Coinbase’s new priority markets are part of the second phase of its expansion plans — which it dubbed “Go Broad, Go Deep.”

It outlined its plans to establish partnerships with global and local banks and payment providers to expand its fiat ramps along with assuring its governance systems are compliant.

Its lobbying and visibility efforts will also intensify ahead of the EU elections next June.

It flagged plans to engage with the G20 aiming to create global crypto standards and will keep a “scorecard” on each country's crypto regulatory progress.

Coinbase is seemingly focusing its G20 lobbying efforts on Brazil — set to take the G20 chair in 2024.

In March, Coinbase expanded its offering in Brazil and according to the blog post co-founder and CEO Brian Armstrong will visit the country later this year “to engage with key decision-makers and stakeholders.”

Magazine: Asia Express: Thailand’s national airdrop, Delio users screwed, Vietnam top crypto country

UK to spend $130M on AI chips amid scramble to buy up computing power

August 21, 2023 Coin Telegraph

UK to spend 0M on AI chips amid scramble to buy up computing power

The chips will be used to set up an AI resource as a recent report said 20% of firms can’t get enough computing power for AI.

British Prime Minister Rishi Sunak is set to spend $130 million (100 million pounds) to buy thousands of computer chips to power artificial intelligence, amid a global shortage and race for computing power.

The Telegraph reported on Aug. 20 that the United Kingdom aims to build an "AI Research Resource" by mid-2024 as part of Sunak’s plan to make the country an AI tech hub.

The government is reportedly sourcing chips from makers NVIDIA, Intel and AMD — and it is understood that the science funding body UK Research and Innovation — which is leading the effort — is in the late stages of ordering 5,000 NVIDIA graphic processing units (GPUs).

However, while $130 million has been allocated to the project, the funds are reportedly seen as insufficient to match Sunak’s AI hub ambition, meaning government officials could pressure for more funding in an upcoming November AI safety summit.

It follows a recent report that said many companies are struggling to deploy AI due to available resources and technical obstacles.

In March, an independent review of the country’s AI computing capabilities said investment in the space is “seriously lagging” behind international counterparts in the United States and European Union.

At the time, less than 1,000 NVIDIA chips were available for researchers to train AI models — a panel recommended the U.K. make available at least 3,000 top-quality chips to meet immediate needs.

On Aug. 16, S&P Global’s global AI trend report found that many firms reported they’re not ready to support AI, due to not having enough computing power, along with challenges managing data and security concerns.

We teamed with S&P Global to launch a global survey of #AI practitioners & decision-makers to see what’s driving or hindering their AI projects.

Today, we published the survey’s findings in this new 2023 Global Trends In AI report. Get the skinny here https://t.co/k9W5AQ9hwg
— WEKA (@WekaIO) August 16, 2023

While it's still early days for AI — S&P senior research analyst Nick Patience said a deciding factor for who will lead in the space will be decided by who can support AI workloads.

AI Eye: Apple developing pocket AI, deep fake music deal, hypnotizing GPT-4

Worldcoin (WLD) Under Investigation in France Days After Launching and Signing Up Over Two Million: Report

July 28, 2023 The Daily Hodl

Crypto Memes and ‘Finfluencers’ To Be Targeted by Regulators in UK As New Rules Kick In

July 19, 2023 The Daily Hodl

Crypto memes can be considered financial promotions, says UK watchdog

July 18, 2023 Coin Telegraph

britain

Memes found to be non-compliant with financial promotion rules could carry up to two years in jail under a proposal from the FCA.

Crypto firms and influencers may need to start slapping disclaimers on crypto memes to stay compliant with advertising laws in the United Kingdom, according to a new proposed guidance from the country's financial regulator.

On July 17, the Financial Conduct Authority (FCA) released a proposed guidance on social media financial promotions which targets promotional memes and financial influencers — “finfluencers.”

Too many people across the UK are being shown financial promotions from unsuitable sources.

We’ll be ramping up our work to stamp out illegal financial promotions, particularly those found on social media. #financialpromotions #financialservices https://t.co/sK8r5ExxVm
— Financial Conduct Authority (@TheFCA) July 17, 2023

The FCA said it’s seen memes from crypto firms circulated online which many don’t realize are subject to its promotional rules.

It said promotional memes are particularly prevalent in the crypto sector and added any type of communication could be considered a financial promotion.

*Example of a crypto investing-related meme the FCA considers a financial promotion. Source: FCA*

The FCA considers crypto a high-risk investment. It can be advertised to retail investors at large but there are requirements such as including risk warnings and a ban on investment incentives.

It said in Q4 2022, 69% of financial promotions on websites or social media from authorized firms were amended or withdrawn following FCA intervention.

It launched the consultation to update its guidance from 2015 and make clear its expectations on how marketers are to implement its regulations around promotions.

Finfluencers in the crosshairs

The FCA stated it’s seen an increase in the number of finance-oriented influencers promoting financial products they have little knowledge of, which typically target a younger audience.

It warned influencers their promotions could be an offense punishable by up to two years in jail, an unlimited fine or both. The law applies even to promotions from outside the U.K. which could have an effect in the country.

In its reasoning for the reminder, it cited a report that claimed over 60% of 18-to 29-year-olds follow social media influencers, with three-quarters saying they trust their advice.

A 2021 FCA survey found 58% of respondents under 40 years old cited hype from social media and the news as reasons for their investment in what the watchdog considers a high-risk product.

Public comments on the proposed guidance are open until Sep. 11.

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UK on Path Toward Crypto Clarity As Financial Services and Markets Bill Inches Toward Legislation

July 4, 2023 The Daily Hodl

Binance UK office one of 2,403 companies sharing ‘utility closet’ in Suffolk

June 20, 2023 Coin Telegraph

address

Binance has drawn attention for using a small building as its registered office in the UK, but tech firms have used a similar trick for years.

The United Kingdom-registered address for an entity of one of the world’s largest crypto exchanges, Binance, is nothing but a tiny building in Britain’s east that is shared by thousands of other companies.

On June 19, a post on the r/buttcoin subreddit showed the so-called “utility closet” Binance Ltd and thousands of other firms use as a registered office address in the U.K. — a tactic often used by other tech firms and large companies.

Binance Ltd’s address points to the small town of Mildenhall in Suffolk county, England. Google Maps shows the site is a small, nondescript garage building on the outer edge of the town about an hour and a half's drive from Britain’s capital London.

*The top image shows Binance’s office address registration with the government while the image spliced below shows the address on Google Maps. Source: Reddit*

Companies House — the government's company’s registrar — shows Binance Ltd shares the address with 2,403 active companies in total.

The address is actually the site of a company called OfficeServ, a virtual registered address service provider that aims to give a “believable business location,” as per its website.

Companies House shows Binance Ltd is registered to provide ”other service activities not elsewhere classified.” Binance has around six entities in Britain across various addresses registered to provide IT and financial services.

Cointelegraph contacted Binance for more information on the entity but did not immediately receive a response.

Tech firms shell games

Technology companies have employed such virtual “shell” addresses around the world and in the United States for years. These are used for a host of reasons — from providing privacy, obscuring patent filings or registering a business in a corporate tax haven.

Most notable is the Corporation Trust Company, the world’s largest registered agent service firm, used by thousands of firms, including well-known companies such as Google, Walmart, Coca-Cola and Apple. It operates out of a similarly nondescript brick building in Delaware.

This utterly nondescript building in Wilmington, Delaware is (probably) the most famous address in corporate law.

1209 North Orange Street.

It houses the Corporation Trust Center, the registered agent address of about three hundred thousand businesses. Including some giants. pic.twitter.com/HhdaUfKXCU
— Lucius Winslow (@Lucius_Winslow) November 15, 2020

The firm was used by Apple last November in an attempt to obscure the patent fillings for its recently announced Vision Pro headset and related operating system.

Another firm, Wyoming Corporate Services, was described in a 2011 Reuters exposé as a “brick house” in a “sleepy city” and home to 2,000 registered companies at the time.

Magazine: Peter McCormack’s Real Bedford Football Club puts Bitcoin on the map

Ripple welcomes MiCA regulation as US lawsuit highlights lack of clarity

June 14, 2023 Coin Telegraph

Adoption

Ripple’s operations gear up in Europe and Asia despite an ongoing lawsuit with the U.S. Securities and Exchange Commission.

Cryptocurrency payments service provider Ripple continues to see global adoption of its payment services despite a long-winded legal battle with the United States Securities and Exchange Commission (SEC) over its XRP (XRP) token.

In a wide-ranging interview with Cointelegraph at Money 20/20 in Amsterdam, Sendi Young, Ripple’s managing director for Europe and the United Kingdom, unpacked the firm’s growing remit worldwide, despite ongoing regulatory scrutiny in the United States.

Cryptocurrency exchanges and businesses have clashed with U.S. regulators over the past year, with a lack of regulatory clarity threatening to stifle innovation and adoption of blockchain-based services, systems, and cryptocurrencies.

Meanwhile, the European Union is well on its way to instituting a set of requirements and standards for the cryptocurrency industry across the continent after the long-awaited Markets in Crypto-Assets (MiCA) legislation was signed into law on May 31.

The divergence of regulatory perspectives in the U.S. and Europe is wide, Young told Cointelegraph, highlighting Ripple’s business growth outside of the U.S., which is in part due to progressive regulatory oversight in different markets:

“That lawsuit is very isolated to U.S. regulations or the lack of clarity and certainty thereof. It almost accentuates the kind of environment that we have in Europe and the United Kingdom.”

Young added that Ripple continues to foster private-public partnerships, and open dialogue with regulators and policymakers, with both parties educating each other as the industry develops:

“It does enable business to grow and innovation to happen. I would say we’re very fortunate in this sort of U.K., Europe environment, which is setting standards globally.”

In a European context, Young believes the MiCA regulatory framework will facilitate a “level playing field” that fosters healthy competition and innovation in the cryptocurrency space, while driving adoption among traditional finance players.

“I think that’s where we’ve seen much bigger mainstream take up and the real benefits of crypto’s utility being realized. Without clear regulation, that is impossible. I see that as the first step in getting more mainstream adoption.”

Young highlighted Ripple’s expanding basket of services aimed at plugging into an increasingly interconnected financial ecosystem. This is in part facilitated by crucial fiat on-ramps and off-ramps, as well as the development of central bank digital currencies (CBDCs) and stablecoins:

“It’s really a number of different currencies and CBDCs. They’re all going to be coexisting, and that kind of ability to interoperate, to go in and out, is going to be very important.”

Ripple’s ongoing lawsuit with the SEC took an interesting turn in June 2023, as eagerly awaited documents relating to a speech from former SEC corporate finance division director Bill Hinman highlighted contradictory viewpoints on classifying cryptocurrencies as securities.

Magazine: Peter McCormack’s Real Bedford Football Club puts Bitcoin on the map

UK

‘Go Broad, Go Deep’ goes phase 2

Finfluencers in the crosshairs

Tech firms shell games

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