Authors: Louisa Xu, Michael Bacina, Petros Xenos, Tom Skevington
Another class action complaint has been filed against Bitfinex and Tether in the U.S. District Court for the Western District of Washington, Binance Holdings Ltd and Tron have been banned on China’s largest micro-blogging service, and France shows clear signs of promoting blockchain growth. Michael Bacina, Louisa Xu, Tom Skevington and Petros Xenos of the Piper Alderman Blockchain group bring you the latest legal, regulatory and project updates in Blockchain.
Consensys compiles collection of Governments co-opting blockchain
Perhaps the most common refrain of the blockchain-skeptic is that blockchain has no real use case, and will never see acceptance or application by serious government entities. In our experience this does not align with reality. Helpfully, Consensys has compiled a list of government or regulator-led blockchain projects in various stages of development around the world. The list doesn’t quite match the headline of “Which Governments are using Blockchain” as it includes a lot of pilot or proof of concept or intentions, which don’t quite equal up to use, but they are all excellent starts
From the US, some highlights include; that Arizona have enacted a law (HB 2417) explicitly granting smart contracts the same legal effect, validity, and enforceability as their standard contract counterparts, that in 2018, Delaware officials began exploring incorporating blockchain into different components of corporate filing processes, and Wyoming legislature passed legislation (SF0125) that amended Article 9 of the Wyoming Uniform Commercial Code to define digital assets that utilize blockchain and distributed ledger technology. Highlights from the UK include; that in partnership with ConsenSys Codefi, Her Majesty’s Land Registry set up a digital asset management platform to explore the potential of blockchain technology in the U.K. real estate industry, and that the Isle of Man launched sandbox-development systems designed to help firms overcome emerging regulatory hurdles.
Finally, highlights from the Australian jurisdiction include; that Australia’s Commonwealth Bank issued a crypto bond for Queensland Treasury Corporation, and that the South Australian government conducted an official election using the Horizon State blockchain-based voting system.
China crypto crackdown elicits Binance and Tron appeal
Binance Holdings Ltd. and Tron have been banned on China’s largest micro-blogging service, Weibo, amid what appears to be fresh steps to crack down on digital currency trading. This crackdown comes after President Xi Jinping hailed blockchain as one of the core technologies spurring China-led innovations, encouraging faster development of blockchain-driven initiatives.
The President’s remarks vigorously incentivised companies to jump on the blockchain bandwagon, despite warnings from Chinese state media, who were increasingly cautious and warned against the frenzy. Watchdogs in Shanghai subsequently began to issue notices calling for a cleanup of companies involved in cryptocurrency trading, and the Shanghai headquarters of China’s central bank and the city’s financial regulator said in a notice co-signed on 14 November, that local government agencies should engage with companies under their supervision and ensure they cut ties to any dealings with cryptocurrency or digital exchanges.
A Binance spokeswoman stated that Weibo suspended the exchange’s account before any notice was issued, claiming that the social media platform did not substantiate its reasons for the ban. Binance and Tron are said to be likely to appeal the decision, with Tron founder Justin Sun, uncertain as to whether the Weibo account shutdown was indeed related to the government notice.
