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Elon Musk's Neuralink has implanted its computer chip in a human test subject, marking a significant development in Brain-Computer Interface (BCI) research. The first human subject is reportedly recovering well, and initial results show promising neuron spike detection. Neuralink aims to decode intended movement signals from brain activity, enabling control of external devices by thinking. Musk envisions telepathy as the first product, allowing users to control phones or computers through thought, with initial applications for individuals who have lost the use of their limbs. Neuralink received FDA approval in September for human trials, targeting those with quadriplegia. Neuralink's achievement demonstrates the progress in BCI technology, aiming to empower individuals with limited physical capabilities. The focus on telepathy as an application showcases the potential for technology to enhance communication and control devices through thought. The voluntary human trials, despite...

The Hong Kong Securities and Futures Commission (SFC) has reportedly relaxed one of its crypto regulations by lowering the mandated insurance coverage on digital assets to 50%. OSL, one of the approved crypto exchanges in Hong Kong, stated that despite the reduction in requirements by the SFC, it remains committed to safeguarding at least 95% of regulated assets under custody. The move aims to address the market's volatility and the collapse of several cryptocurrency firms in recent years, emphasizing the importance of robust insurance coverage. OSL has taken out a 2-year digital asset custody policy with Canopius to enhance client protection. The SFC's decision to lower the insurance coverage requirement indicates a regulatory adjustment to accommodate the evolving dynamics of the crypto market. While the move aims to provide flexibility, it also underscores the importance of insurance in mitigating risks for crypto investors. OSL's commitment to maintaining a high insurance ratio...

The European Securities and Markets Authority (ESMA) clarified rules for EU-based crypto firms serving non-EU customers. According to ESMA, third-country firms can provide crypto-asset services to non-EU clients only when the client is the exclusive initiator of the service. This provision, known as the reverse solicitation exemption, is narrowly framed and strictly an exemption. ESMA emphasized that companies cannot use this exemption to bypass the rules outlined in the Markets in Crypto Assets Regulation (MiCA), which came into force in June 2023. ESMA also published a consultation paper on the exemption and another on guidelines defining the classification of crypto-assets as financial instruments. ESMA's clarification provides further guidance on the limitations of crypto-asset services provided by third-country firms in the EU. The focus on the client being the exclusive initiator emphasizes the need for client-driven interactions. The consultation papers aim to bridge the gap...

The Hong Kong Monetary Authority (HKMA) is set to launch a stablecoin regulatory sandbox in the first quarter of this year, marking a significant step in the city's efforts to regulate the stablecoin market. The regulatory push follows global trends, with various jurisdictions, including the European Union, Japan, Singapore, and Dubai, working towards becoming digital asset hubs. The proposed rules would require licenses for marketing stablecoin products to retail investors, ensuring consumer protection and market transparency. Major players like Harvest Global Investments, RD Technologies, and Venture Smart Financial Holdings are engaging in discussions with the HKMA regarding the planned stablecoin trials. Hong Kong's move to regulate stablecoins demonstrates its commitment to fostering a regulated and innovative digital asset environment. The regulatory sandbox provides a controlled setting for testing new products and services, allowing both regulators and participants to gain...

The SFC in Hong Kong has issued a public warning regarding two crypto investment products associated with the Floki ecosystem, namely the "Floki Staking Program" and the "TokenFi Staking Program." The SFC has flagged these programs as unauthorized and expressed concerns over their annualized return promises, ranging from 30% to over 100%. The SFC emphasized that neither of these staking products has obtained authorization for public sale in Hong Kong. In response, the Floki team defended its programs but did not provide specific details about discussions with the SFC. The SFC's warning aims to caution the public against potential risks associated with unauthorized crypto staking schemes. The SFC's warning reflects the regulatory scrutiny surrounding crypto investment products, particularly those promising high returns. The cautionary stance underscores the importance of adhering to regulatory standards in the crypto space to protect investors and maintain market integrity. Market...

The U.S. Commodity Futures Trading Commission (CFTC) has issued a request for comments (RFC) to gather insights into how regulated entities use artificial intelligence (AI) in their compliance efforts and other applications within derivatives markets. The CFTC is interested in understanding the current and potential applications, as well as the risks associated with AI in various areas, including trading, risk management, compliance, cybersecurity, recordkeeping, data processing, analytics, and customer interactions. The feedback received through the RFC may influence future CFTC guidance, interpretations, policy statements, or regulations related to the use of AI in the derivatives markets. The comment period is open until April 24, 2024. The CFTC's move reflects a growing interest in understanding and regulating the use of AI in financial markets. Regulators are keen to explore the impact of AI on market integrity, surveillance, and investor protection. Participants in the...

Lawmakers in the United States are urging the enactment of legislation criminalizing the production of deepfake images after explicit fake photos of Taylor Swift circulated on various social media platforms, including X and Telegram. Representative Joe Morelle highlighted the Preventing Deepfakes of Intimate Images Act, legislation he authored to criminalize non-consensual deepfakes at the federal level. Representative Yvette Clarke emphasized that creating deepfakes has become more accessible and affordable with advancements in artificial intelligence (AI). While no federal laws currently address deepfake images, some lawmakers are pushing for legislation to combat the issue. The incident involving Taylor Swift has reignited concerns about the potential harm caused by deepfake technology. The lawmakers' call for legislation reflects a growing recognition of the need to address the misuse of AI-generated content, particularly when it involves non-consensual and explicit material. As...

Binance.US, the U.S. subsidiary of Binance, is facing increased regulatory challenges with recent actions taken by authorities in Alaska and Florida. The Florida Office of Financial Regulation has suspended Binance.US from operating, citing an "immediate danger" to the public. The suspension is intended to protect the public's interests and must be procedurally fair. In Alaska, the banking division rejected the renewal of Binance.US's license to operate, with specific reasons not disclosed. These regulatory setbacks come amid ongoing investigations by the U.S. Department of Justice and the resignation of Binance's founder, Changpeng Zhao. The regulatory challenges faced by Binance.US underscore the increasing scrutiny and enforcement actions by U.S. regulators in the cryptocurrency space. The suspension and license rejection highlight the urgency for cryptocurrency exchanges to adhere to regulatory requirements and work closely with authorities to address concerns. The outcome of...

Ivan Turogin and Sergei Potapenko, co-founders of the now-inactive Bitcoin cloud mining platform HashFlare, are set to be extradited from Estonia to the United States. The Estonian government has met the necessary conditions to resume the extradition process. Turogin and Potapenko were arrested in Estonia in November 2022, facing charges of conspiracy, wire fraud, and conspiracy to commit money laundering in the U.S. They are accused of operating HashFlare as a Ponzi scheme, collecting $575 million before its collapse in 2019. The U.S. Department of Justice alleges that the co-founders misrepresented their mining operations and defrauded investors. The extradition of Turogin and Potapenko signals a step toward potential legal proceedings in the United States related to the HashFlare case. The U.S. authorities have accused the co-founders of orchestrating a significant scam with numerous victims. If extradited, they may face charges of fraud and money laundering. The case highlights...

Meta (formerly Facebook) has announced plans to build a new data center in Jeffersonville, Indiana, at a cost of $800 million. The 700,000-square-foot campus will support Meta's global data needs, including its artificial intelligence (AI) operations. Construction is set to begin in January, with a targeted completion date of 2026. The site is expected to employ up to 1,250 workers during peak construction and will support 100 high-wage jobs upon completion. The data center will be powered by 100% renewable energy and aims to achieve LEED Gold certification. Meta recently re-entered the trillion-dollar valuation club, and its renewed stock performance is attributed to its focus on generative artificial intelligence. Meta's decision to build a new data center in Indiana reflects the company's commitment to expanding its infrastructure to meet growing data and AI demands. The use of renewable energy aligns with Meta's sustainability goals, and the tax incentives provided by the state...

Cryptocurrency lending platform Nexo has submitted a $3 billion arbitration claim against the Republic of Bulgaria, following a raid on its office in 2023 and a subsequent probe by the Bulgarian Prosecutor General’s Office. Nexo alleges that these actions harmed its business prospects. The claim is filed with the International Centre for Settlement of Investment Disputes (ICSID). Nexo contends that politically motivated allegations by the Prosecutor General’s Office damaged its brand and reputation, leading to financial losses and the collapse of planned initiatives, including a capital-raising effort and a sponsorship deal with a major European football club. The Prosecutor General’s Office had dropped charges against Nexo after finding no evidence of criminal activity. Nexo's arbitration claim against Bulgaria highlights the challenges and risks faced by cryptocurrency businesses operating in regulatory environments that may be subject to political or legal pressures. The case...

The UK Supreme Court has denied self-proclaimed Bitcoin inventor Craig Wright permission to appeal a ruling in his libel case against podcaster Peter McCormack. Wright was entitled to only £1 in compensation for the libel claim against McCormack in July. The Supreme Court's decision means that the £1 nominal damages award stands, as Wright's attempt to appeal has been unsuccessful twice. Craig Wright has long asserted that he is Bitcoin inventor Satoshi Nakamoto and claimed copyright to the Bitcoin whitepaper. Wright has pursued multiple lawsuits worldwide relating to the Bitcoin whitepaper and has faced skepticism within the crypto community. Craig Wright's legal battles and attempts to claim copyright to the Bitcoin whitepaper have been met with skepticism and resistance within the crypto community. The denial of permission to appeal in the libel case is a setback for Wright and reinforces the challenges he faces in gaining broader recognition for his claims. The controversy...