Today the UK's privacy regulator starts Looking into World coins Iris scanning Technology a new government report says The U.S lacks legislation to clearly Regulate crypto and the founder of Delta Blockchain fund Kavita Gupta breaks down What a new bill focused on D5 protocols Could mean for VCS in the space [Music] Welcome to cnbc's crypto world I'm Tanya McKeel crypto prices stabilizing after Yesterday's losses but still weighed Down ahead of the fed's next rate Decision at noon Eastern Bitcoin traded Below 29 200 either traded just under Eighteen hundred and sixty dollars while Xrp Rose to 70 cents still holding on to Some of the gains made after the ruling In the SEC Court battle Let's talk about some of the top stories The UK's privacy regulator is looking Into the launch of worldcoin the Information commissioner's office told CNBC quote we note the launch of Worldcoin in the UK and will be making Further inquiries the office also said That organizations must conduct a data Protection impact assessment before any Processing that is likely to result in High risk like special category Biometric data World coin is the crypto Project by openai CEO Sam Altman where Users provide retina scans and receive a Digital identification and free
Cryptocurrency the service rolled out on Monday after adding 2 million people During its initial trial run the project Has already faced criticism from the Likes of vitalik buterin who raised Privacy concerns over how much Information someone might be giving away By scanning their irises we reached out To worldcoin for comment on the UK's Inquiry but haven't heard back yet next Middle Eastern crypto exchange range Just obtained a license to operate in The United Arab Emirates The Exchange Which is backed by coinbase's vcrm Announced on Twitter that the financial Services regular regulatory Authority in Abu Dhabi granted the first license to Operate a virtual assets brokerage and Custody service to reign as crypto Companies have been rethinking their Strategy in the U.S amid a regulatory Crackdown here the Middle East has Emerged as one of the new hubs Attracting talent and finally a new Government report finds that the U.S Needs clear legislation to close gaps in Crypto regulation a report from the Government accountability office says no Federal financial regulator has Comprehensive authority to regulate the Spot market for crypto assets that are Not Securities the GAO also says that Congress should consider legislation for Non-security crypto assets and stable
Coins Congress has yet to move forward With crypto legislation since the Collapse of crypto firms like FTX last Year Sticking with crypto legislation for our Main story several bills with a focus on Crypto have been introduced recently one Of which is bipartisan legislation Requiring defy services to meet the same Anti-money laundering and economic Sanctions compliance obligations as Other Financial firms the goal to try And prevent crypto facilitated crime Crypto world's Talia Kaplan spoke with Kavita Gupta the founder and managing Partner of Delta blockchain fund to find Out how this bill could impact the Investment strategies of VCS in the Space Recently we've been hearing about Several bills aimed at providing a Regulatory framework for crypto in the U.S earlier this month Senator as Wellness and gillibrands unveiled their Revamped crypto Bill and just last week House Republicans introduced a new Digital asset oversight Bill also last Week we learned that the Senate is Getting ready to take another stab at Regulating the crypto industry with a New bill that would Place stringent Anti-money laundering requirements on D5 Protocols I read that this new Bipartisan Senate bill in some cases
Would hold Venture Capital firms and Other large investors accountable for Sanctions violations taking place on D5 Platforms your fund is an early stage Venture Capital fund focused on Blockchain technology and Decentralization So I'm curious to get your reaction to This bill what does it signal to you Talia my first my first reaction and the Biggest question is what are regulations How are you sanctioning and what are the Basis of the sanctions I think you and Me have talked about this multiple times In the past we really would love to have Regulations so that we are in a very Clear idea what is right what is wrong If we don't think something is right at Least as an industry we can come Together and question SEC or cftc or Parliament like senate or government Like whatever is the right authority to Question like the way Ripple uh Ripple Case has happened or coinbase case is Happening but right now my first Question to the whole bill and I went Through every detail all the 25 Pages The question is what are you sanctioning In basis of what so are you sanctioning That we are doing eels on D5 but when Was it told when was it said that that's Not acceptable are you sensioning that In case we hold any of the tokens when Which has been deemed as security but
What are the basis for deeming them as a Security and what when are you going to Tell us that something which I did two Years back is not going to be a problem Two years later so those are my first Reactions like the lack of clarity or Direction or even a lack of Direction Going forward by SEC who clearly wants To have a who wants to be a regulatory Body for this Is what is completely confusing me and I Don't even know what to do with the bill If it passes first of all it's a Proposal it's not something which has Been passed and has been implemented and Tomorrow onwards we have to live with it I think even I'm I'm very grateful to Have this conversation started but what Where I am is like tomorrow if I wake up And I say hey Thalia blue is banned from Tomorrow I think and we're gonna talk About this what does that even mean for You are you gonna like stop endorsing or Looking amazing in blue that's how Confusing it is Well do you think this bill signals Anything at all and I should say thank You so much for saying um for that those Kind words earlier but do you think that This bill signals anything at all I mean Perhaps the fact that the bipartisan Support for the bill does it highlight The recognition of the growing Importance of defy in the financial
Landscape and the need to regulate it to Safeguard against illicit activity does That does that come about to your mind At all It does so I mean there are multiple Pieces some of which you touched right If you are talking about kyc and Compliance then that would be a very Fave that would be a very fine way of Saying hey what is the kyc associated With it there are already products on Blockchain which like synapse one of our Portfolio companies which has been doing On chain kycs right if you are talking About regulation around how institution Can adopt it and does institutions uh Like let's say Banks who have money from Different other entities will have to Make some disclosures to their existing Investors that makes sense right now What you're just saying is oh VC funds Are going to be responsible for D5 what Does that even mean you know so if we Gonna have a conversation around Regulations conversations around kyc Within regulations if we're going to Talk about Clarity this is what you can Do and this is what you cannot do with That much of clear guidance right while You are saying we can be liable can be Liable for something but at the same Time you continue to pay taxes for Everything right wrong black or white And be responsible for it it's a very
Confusing statement So obviously you think this is confusing And things aren't clear right now but do You think this new bill could have the Potential to directly impact Venture Capital firms like yours and how will it Affect overall investment strategies Especially those in the defy space Uh as of now we are not changing Anything I just got back from ECC Paris Which is one of the biggest conference In the space I hosted a big uh very Exclusive VC investor launched it and Here a single person talking about it From the VC industry U.S investors uh You uh European investors I think the Thought is oh there is another news from SEC without any clearance let them go Through the Hoops let them have the Conversation maybe year two year later Let's see how does the government really Come around it that's when we know that Okay there has to be steps taken by as a Firm as as a firm when we are Responsible for so many people we just Can't make a quick judgment or a big Decision on our investment strategy Based on a news which doesn't really Have any like speaking of the SEC Earlier this month Ripple scored a Partial Victory when a federal judge Ruled that the crypto company did not Violate Securities laws when issuing xrp To retail investors that decision marked
A blow to the sec's efforts to regulate The crypto industry what do you think The implications of that ruling are for The industry Um so I feel like it was a very Interesting Uh it was a very interesting take by uh By the court because at one point they Said that oh the the Ripple tokens sold Xrp sold on in a pragmatic way which is Through the exchanges does not make it a Security but the Institute but but the Association Ripple itself selling it to Institutions does make it like a Security sale I think it's a very Different way of looking at the product Which is very interesting because so far The conversation has always been is the Parent entity like ethereum Foundation Or Solana Foundation are they Decentralized enough are there enough Validators run by itself that was the Last time how the decision on ethereum Whether it's a security or not was made And I think this time we are looking at It how it is sold to be defined whether The same token could be deemed as a Security sale or do be deemed as a Retail and not a security sale that's What I took away from which goes back to To the principle of early icos that how Do you decentralize the sale of the Medium how is there an incentivized Model associated with it or is it purely
For speculative model so I feel like Going forward there are certain pieces Both both sides actually at least in Public came out and touted it to be Their win SCC touted the institutional Sale part as their win and rippled uh Basically came and took the claim that Pragmatic sales are there where but it Does open up a very Middle Ground as I Was talking about which is not exactly What crypto World wants which not Exactly what SCC wants but a right Definition for all of us to move forward Okay that's all for crypto world today But we'll be back again tomorrow so We'll see you then Foreign [Music]
