Here’s what happened in crypto today

Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.

The former head of the Securities and Exchange Commission believes that a spot Bitcoin exchange-traded fund (ETC) is inevitable. U.S. regulators say they have not blocked AI chip exports to the Middle East, responding to reports from chipmakers that the U.S. government had expanded requirements for export licenses for artificial intelligence chips. Meanwhile, the United Kingdom’s crypto Travel Rule has come into effect, which could see certain crypto transfers halted by cryptoasset businesses under the laws.

US spot Bitcoin ETF approval is “inevitable,” says former regulator

The former head of the United States Securities and Exchange Commission (SEC) believes that a spot Bitcoin ETF approval is “inevitable.”

In an interview with CNBC, former commission chair Jay Clayton said he expects to see “progress” on a Bitcoin ETF. “An approval is inevitable,” he said. “The dichotomy between a futures product and cash product can’t go on forever.”

This “dichotomy” refers to the SEC’s approval of a Bitcoin futures ETF but not a spot product, allegedly over concerns of market manipulation. 

The securities regulator has rejected several spot Bitcoin applications and recently delayed its ruling on seven applications. This includes the recently submitted application from global asset manager BlackRock. Applications from WisdomTree, ARK Invest, Bitwise Asset Management, VanEck, Invesco and Galaxy Digital, Fidelity and Valkyrie were all put on hold by the regulator.

US regulators deny blocking AI chip exports to Middle East

The United States Department of Commerce said on Aug. 31 that the Biden administration has “not blocked chip sales to the Middle East,” according to a report from Reuters. 

This comes after disclosures were revealed in a Nvidia report that the U.S. government had expanded requirements for export licenses for artificial intelligence (AI) chips.

Advanced Micro Devices (AMD), a direct competitor of Nvidia, also received a similar letter from regulators.

The Department of Commerce did not comment on whether the requirements were imposed on specific U.S. companies. However, the new rules would require Nvidia and AMD to obtain licenses before selling flagship chips to “some Middle Eastern countries,” according to the filing.

Neither of the two companies has revealed if they have applied for said licenses or if there was any feedback on licensing for that region.

Nvidia warned regulators in its quarterly report that being “effectively excluded from all or part of China” could potentially “harm” long-term results for the company.

In October 2022, the Biden administration issued the initial export controls in an effort to slow China from developing high-level AI systems with powerful semiconductor chips made by U.S. companies.

Officials in Washington said they are considering tightening the aforementioned regulations even more in a statement made on June 29, which would further limit the computing power on chips available in the Chinese market.

The moves made by the U.S. government have been under close watch from other regulators around the world. Shortly after the U.S.’s initial regulations came into effect, an agreement was made with the Netherlands and Japan to restrict exports of semiconductor manufacturing equipment to China.

Officials in the United Kingdom, France and Germany have all openly said they are considering screening Chinese foreign direct investment in crucial sectors such as AI.

China has responded by saying it will control the export of gallium and germanium products, the primary raw materials needed to produce AI chips.

Crypto Travel Rule comes into effect in UK

Crypto asset businesses in the United Kingdom could now begin withholding certain crypto transfers to comply with the new Travel Rule for crypto that came into effect on Sept. 1.

The rules targeting virtual asset service providers were first introduced by the Financial Conduct Authority on Aug. 17, requiring that VASPs based in the U.K. “collect, verify and share information” relating to crypto-asset transfers.

Have you heard about the Travel Rule in the world of crypto?

 It’s a recommendation from the Financial Action Task Force (FATF) designed to combat money laundering and terrorism financing.

It states that any crypto transaction of over 1,000 EUR/USD must be accompanied…

— Bitstamp (@Bitstamp) August 31, 2023

One of the expectations shared by the FCA notes that if an inbound payment is received from a person or entity from an overseas jurisdiction that hasn’t implemented the Travel Rule, the VASP must make a “risk-based assessment” as to “whether to make the cryptoassets available to the beneficiary.”

The same rule would also apply to Brits looking to send payments outside of the U.K.

The Travel Rule was created by the UN agency Financial Action Task Force in June 2019. The U.K. passed legislation to begin enforcing the Travel Rule in July 2022.

It attempts to enforce Anti-Money Laundering and Counter-Terrorist Financing rules on activities carried out on-chain.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.