However, there’s much that is unknown, as Zuckerberg will also be facing questions from the committee’s 60 members for the hearing, titled: “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors.”
Facebook CEO and founder Mark Zuckerberg will be facing a grilling from lawmakers in Congress at 14:00 UTC (10 a.m. local time) today.
In his testimony before the House of Representatives Financial Services Committee, Zuckerberg has already revealed he will addressing the Libra cryptocurrency project and other issues facing the social media giant more widely.
Committee chair Rep. Maxine Waters has previously said the Libra project should be halted so regulatory issues can be addressed.
ICO Rating Settles With SEC Over Alleged Anti-Touting Violations
The United States Securities and Exchange Commission (SEC) has charged Russian analytical agency ICO Rating for $268,998 for violating anti-touting provisions, according to an announcement on Aug. 20.
In the announcement, the SEC claimed that ICO Rating violated the anti-touting provisions of Section 17(b) of the Securities Act of 1933 by failing to disclose payments it received from initial coin offering (ICO) issuers it rated and published on its platform. Melissa Hodgman, Associate Director of the SEC’s Enforcement Division, said:
“The securities laws require promoters, including both people and entities, to disclose compensation they receive for touting investments so that potential investors are aware they are viewing a paid promotional item. … This requirement applies regardless of whether the securities being touted are issued using traditional certificates or on the blockchain.”
Without admitting or denying the SEC’s findings, ICO Rating ostensibly agreed to cease and desist from committing any future violations of these provisions, paying disgorgement and prejudgment interest of $106,998 and a civil penalty of $162,000.
Earlier in August, Cointelegraph reported that the SEC reached a $7 million dollar settlement with PlexCorps owner Dominique Lacroix, business partner Sabrina Paradis-Royer and PlexCorps over an allegedly fraudulent ICO. The SEC concluded that the defendants raised $8,269,218 through the PlexCoin ICO.
Also this month, New England-based firm SimplyVital Health, Inc. settled with the SEC over an allegedly unregistered $6.3 million ICO. Without confirming or denying the allegations that it violated certain aspects of the Securities Act of 1933, SimplyVital agreed to a cease-and-desist order levied by the SEC.
Hong Kong’s SFC Releases Regulations for Crypto Fund Managers
Hong Kong’s securities regulator, the Securities and Futures Commission (SFC), has officially released regulations for crypto fund managers. The SFC published the regulatory circular on its website on Oct. 4.
In the 37-page document titled “Proforma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invest in Virtual Assets”, the SFC provided terms and conditions for corporations managing portfolios that invest in virtual assets.
Organization and management structure
According to the document, virtual asset fund managers in Hong Kong should always maintain liquid capital of a minimum of 3 million Hong Kong dollars ($383,000) and its variable required liquid capital.
The SFC advised managers to have sufficient human and technical resources for the proper performance of duties as well as to adopt risk management and compliance policies, as well as policies for Anti-Money Laundering and Combating the Financing of Terrorism.
In order to ensure the safety of fund assets, the SFC also requires crypto fund managers to appoint a functionally independent custodian. The regulator emphasized that a virtual asset fund manager should ensure its fund assets are segregated from its own assets, as well as assets of other clients, unless fund assets are held in an omnibus client account.
If a manager receives fiat currency on behalf of the fund, one or more segregated bank accounts should be set up for holding clients’ money, the SFC stated. Bank accounts should be established and maintained with an authorized financial institution in Hong Kong or a bank in a jurisdiction agreed to by the SFC, the document notes.
Additionally, the virtual asset fund manager should evaluate the features of diverse custodial arrangement, including hardware and software infrastructure, security controls over key generation, storage, management and transaction as well as the process of handling blockchain forks, the agency stated.
As reported, Hong Kong has established itself as one of the most progressive jurisdictions for cryptocurrencies and blockchain, as the country is one of the leading countries according to the number of registered digital currency exchanges. Earlier this year, the SFC issued guidance on security token offerings, intending to bring more clarity about the legal and regulatory requirements for the market.