Telegram’s policy shift raises privacy concerns

Telegram’s policy shift raises privacy concerns

The Telegram messaging app recently made a significant update to its privacy policy, which has raised privacy concerns among its users.

Telegram will start sharing user data with relevant authorities in response to valid legal requests.

The messaging app will share the IP addresses and phone numbers of users who violate the app’s rules, Telegram CEO Pavel Durov announced on Sept. 23.

The policy update raises concerns for privacy-preserving technologies, considering that it contradicts Telegram’s foundational principles, according to Anndy Lian, author and intergovernmental blockchain expert.

Lian told Cointelegraph:

“[This] highlights the ongoing tension between regulatory compliance and the protection of user data […] The concern is that such compliance could set a precedent, encouraging other privacy-focused services to follow suit, thereby eroding the privacy standards that users have come to expect.”

The new policy represents a significant change in Telegram’s user guidelines following concerns raised about the potential misuse of the platform for illegal activities. The policy shift occurred on Aug. 24, a month after Durov was arrested in France.

Telegram policy update should discourage criminal activity: Durov

While Telegram’s new policy update could raise privacy concerns for the messenger app’s users, it mainly aims to curb criminal activity on the platform.

As part of Durov’s efforts to make Telegram safer, the app implemented artificial intelligence algorithms and human moderators to remove all the “problematic content” from Telegram Search.

The new policy shift aims to make Telegram Search safer for users and deter criminal activity, wrote Durov:

“These measures should discourage criminals. Telegram Search is meant for finding friends and discovering news, not for promoting illegal goods. We won’t let bad actors jeopardize the integrity of our platform for almost a billion users.”

Telegram is the world’s fourth most popular online messenger app, with over 900 million monthly active users as of April 2024, according to Statista.

Related: China still controls 55% of Bitcoin hashrate despite crypto ban

Meta and WhatsApp are already sharing user data with authorities

While Telegram’s policy shift may come as a surprise, it is not unprecedented among the world’s top online messaging apps.

WhatsApp, currently the largest messenger app by users, is widely known for sharing user data with law enforcement, according to the application’s privacy policy, which states:

“Based on the circumstances, we may disclose information to law enforcement in response to an emergency disclosure request where we have a good faith reason to believe that the matter involves imminent risk of serious physical injury.”

These policies are similar to Meta’s Messenger, which also complies with requests from authorities.

Since July 2013, Meta has complied with over 301,000 requests from authorities, providing user data for over 77% of the total 528,000 legal requests received, according to Meta’s policy page.

 

Source: https://cointelegraph.com/news/telegram-policy-shift-privacy-concerns

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Op-ed: Binance’s reputation at risk as CFTC allegations raise concerns

Op-ed: Binance’s reputation at risk as CFTC allegations raise concerns

The U.S. Commodity Futures Trading Commission (CFTC) has sued Binance, the world’s largest cryptocurrency exchange, and its CEO, Changpeng Zhao (CZ), for allegedly violating federal law by allowing Americans to trade crypto derivatives on its platform.

The CFTC has been investigating Binance since 2021 on allegations that the exchange allowed U.S. residents to use its platform to buy and sell crypto derivatives, which require registration with the CFTC under current laws. The lawsuit alleges that Binance solicited U.S. users for millions in revenue, violating federal law. CFTC has also sued Binance for operating without being registered with the agency and without proper know-your-customer procedures.

The lawsuit also claims that Binance traded against its customers, taking advantage of inside information and manipulating markets to increase profits. Additionally, Binance’s former chief compliance officer, Samuel Lim, was charged with aiding and abetting the company’s violations. This is a severe breach of trust if this is true. The accusation of Binance trading against its users is particularly troubling. If true, this would be a betrayal of trust and a violation of the principles of fair trading.

Impact on Binance

As a cryptocurrency exchange, Binance should be a neutral platform that facilitates trading between buyers and sellers, not one that takes advantage of its users. If found guilty by the CFTC, it could face significant penalties and consequences. The CFTC can impose fines, seek injunctions, and even ban individuals or companies from participating in commodity markets. Binance could also face civil lawsuits from affected users or investors.

Additionally, Binance’s reputation could be severely impacted if found guilty of the CFTC’s charges. Trust is essential in the cryptocurrency market, and if Binance is seen as a bad actor that trades against its users, it could result in a loss of confidence from its clients and investors. It could affect Binance’s ability to operate in the U.S. and other regulated markets, limiting its growth potential.

Impact on industry

From a broader perspective, it could harm the entire cryptocurrency industry. Binance is currently the world’s largest cryptocurrency exchange and plays a significant role in the market. A loss of confidence in Binance could lead to a decrease in overall market trust and investment. It could increase regulatory scrutiny and stricter regulations for other cryptocurrency exchanges.

Rostin Behnam, CFTC Chairman, said in a statement:

“For years, Binance knew they were violating CFTC rules, working actively to both keep the money flowing and avoid compliance. This should be a warning to anyone in the digital asset world that the CFTC will not tolerate willful avoidance of U.S. law,”

If I am not wrong, this is the first time CFTC has gone against a crypto exchange. The allegations by the CFTC are not to be taken lightly, and Binance should address them with transparency and accountability. It is vital to remember that these are allegations, and Binance has not been found guilty of wrongdoing.

Therefore, we should reserve judgment until all the facts have been presented in court. The consequences of being found guilty by the CFTC could be severe for Binance and its operations. It remains to be seen what the outcome of the lawsuit will be, and Binance has denied any wrongdoing and vowed to fight the charges.

It is also important to note that Binance has been scrutinized by various regulators worldwide. This is not the first time the exchange has faced accusations of regulatory violations. This raises concerns about the exchange’s compliance procedures and willingness to follow regulatory requirements.

Binance has responded to the lawsuit, stating that its priority is to continue protecting its users while working with regulators to ensure compliance. Binance has denied the allegations, stating that they have always complied with U.S. regulations and that the CFTC’s claims are without merit.

CZ had also publicly clarified on his blog:

“We are collaborative with regulators and government agencies worldwide. While we are not perfect, we hold ourselves to a high standard, often higher than what existing regulations require. And above all, we believe in doing the right thing by our users at all times. In this journey towards freedom of money, we do not expect everything to be easy. We do not shy away from challenges.”

It remains to be seen how the case will play out. Still, the CFTC is taking a strong stance on regulating cryptocurrency trading — companies like Binance must ensure they comply with all relevant laws and regulations to avoid similar legal action in the future.

The outcome of the lawsuit remains to be seen, but companies like Binance must comply with all relevant laws and regulations to avoid similar legal action in the future. Ultimately, the importance of regulatory compliance and transparency cannot be overstated. Binance’s ability to clear its name and move forward in a transparent and accountable manner will be crucial for the entire industry’s health and growth.

 

Source: https://cryptoslate.com/binance-reputation-at-risk-as-cftc-allegations-raise-concerns/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Are NFT Regulated? What Are The Concerns?

Are NFT Regulated? What Are The Concerns?

The hype around NFT has slowed down. It seemed like NFT was slated for explosive growth in 2022, being named “word of the year” and coming off a record-high volume in January this year. But as it turns out, that was the peak. Looking at Q3 2022 NFT trading volume around the top 8 chains. There is a 76.4% trading volume decrease from Q2 2022 to Q3 2022.

Since then, the trading volume has tumbled 83% from the start of the year, according to Footprint Analytics’s data on CoinGeco. Recent months have logged numbers lower than July 2021, right before NFT summer. Most notably, Ronin and Avalanche have fallen out of the Top 8, replaced by ImmutableX and Panini. Recent sports mania has spilt over to the NFT space, propelling Flow into the Top 3. Solana’s NFT ecosystem doubled its September volume while all its competitors faltered.

During this period of time, where the market is bearish, you will see changes. For example, in Q3 Magic Eden gains grounds on OpenSea dominance. Magic Eden was the only one that saw growth in September, doublings its month-on-month volume and dominance, while the rest of its competitors continued to slip further. Magic Eden (22%) has gained ground on OpenSea’s (60%) dominance, but it remains to be seen if it can sustain its current momentum.

Another factor in sustaining the current momentum is aligning with the regulatory norms. There is still disagreement over how to handle NFTs, which makes it difficult to set clear regulatory norms. NFTs can now be seen in one of three ways: as commodities, securities, or intellectual property. Let’s explore each interpretation in more detail.

Commodities

Commodities are defined by US law as reasonably interchangeable services, goods, and rights, including money and interest rates, that are traded as commercial articles. The Commodity Futures Trading Commission (CFTC) asserts that cryptocurrencies like Bitcoin and Ethereum, as well as renewable energy credits and other intangible assets, are included in the definition of commodity.

If we take NFTs, they resemble cryptocurrencies in several ways. They may be bought and sold and are based on blockchain technology. In addition, the CFTC emphasises price manipulation and commodities exchanges more than it does on underlying assets and issuers. The Commodity Exchange Act (CEA) may be implemented if it is decided that NFTs should be classified as commodities. The CEA’s rules on manipulative trading may be applicable in this situation.

Securities

Most NFTs with a single owner and only one unique asset are unlikely to be securities. However, under certain situations, they might. If an NFT possesses security-like characteristics or otherwise satisfies the Howey test, such as when money or another kind of compensation is invested with a reasonable expectation that gains will result from others’ efforts, then the NFT may be subject to US securities legislation. A case-by-case Howey analysis is essential to ascertain if a specific NFT is a security. NFTs may, however, violate securities laws in the following situations, depending on the specifics:

  • NFTs are pre-sales of digital assets intended to be used on a platform that has not yet been developed, with the sale’s proceeds going toward developing the platform;
  • Digital assets can be “pooled” or “fractionalised” (for instance, in the case of art, when creators pool resources and divide profits, or where several NFTs reflect different investors’ fractional ownership of a single asset);
  • NFTs are a license to a digital asset (like a song) and a portion of its earnings (e.g., a percentage of sales).

Intellectual Property

NFTs might be covered by intellectual property rights such as copyright, design patents, and trademark protections. As a result, buyers of NFTs should be aware of any associated intellectual property rights. In fact, the license that comes with many or even most NFTs merely allows the NFT buyer to use, copy, and display the NFT.

A clip of renowned basketball star LeBron James’ slam dunk is an excellent illustration. The video was made available as a limited-edition NBA highlight video collector. The NBA collectables are available for purchase and sale on the Top Shot NFTs market. The NBA owns the copyright, nevertheless, and the rules of its licensing agreement continue to apply to any purchased item’s replication.

However, while most NFT producers place limitations on commercial use, other authors grant NFT owners broader rights. Members of the Bored Ape Yacht Club (BAYC) have the right to use their “apes” for commercial purposes, which allows them to produce and market hats, T-shirts, mugs, and other items.

Brand owners should consider how current or upcoming design patents can protect against imitations or infringement in addition to trademark and copyright protection. Because they grant owners full ownership of an infringer’s profits rather than just the fraction related to the use of the design, design patents are important intellectual property protections compared to other IP rights.

Fraud Schemes

Despite being a relatively new idea, NFTs are already being utilised to commit numerous forms of fraud. Here, we go over some of the most prominent NFT-related fraud schemes that have occurred:

  • Tokenisation– The process of producing digital tokens that reflect ownership of physical assets is known as tokenisation. This happens when someone steals an artist’s creation without their consent and “mints” it to create an NFT.
  • Wash trading– This is the practice of users manipulating transactions by trading with themselves or others to feign large demand for an NFT, manipulate its price, or enhance its visibility.
  • Insider trading– The practice of using information that is not generally known to benefit personally from it. In recent high-profile situations, employees and executives of NFT companies and markets have engaged in behaviour that may be viewed as unfair or illegal. Various events generate negative press for these organisations. NFT insider trading regulations frequently forbid buying NFTs based on secret information. Similarly, multiple forms of trading in business NFTs that aim to inappropriately manipulate the perceived price or trading volume of such NFTs are prohibited.
  • Anti-Money Laundering– NFTs, especially those with large value, may occasionally be utilised to aid in money laundering. A study on how the art market aids in the financing of terrorism and money laundering was released by the US Department of Treasury. The study covered a variety of topics, including the dangers of financial crimes in relation to digital art and NFTs. The study discovered that the high-value art market has several intrinsic characteristics that could make it susceptible to various financial crimes.

To Conclude

As we can see, the market for NFTs is still growing, and it will take some time until an appropriate regulatory framework for NFTs is put in place. Having said that, governments all over the world have already begun the process of developing NFT norms and standards, proving that they are seriously interested in these digital assets.

Additionally, you should be aware that the phenomenal success of NFTs will undoubtedly result in fraudulent activities. For this reason, it is becoming more and more crucial to conduct your research before purchasing or investing in NFT collections or projects.

 

Source: https://www.msn.com/en-us/money/markets/are-non-fungible-tokens-nft-regulated-what-are-the-concerns/ar-AA13ijBk

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j