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Romania set to auction Bitcoin and Ether confiscated in criminal case

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The Romanian authorities are set to host their first-ever auction of cryptocurrency, seized from a fraud case. 

On Oct. 2, the National Agency for the Management of Seized Assets (ANABI) announced its forthcoming auction of the confiscated Bitcoin (BTC) and Ether (ETH), as required by a ruling from the Prosecutor’s Office in Ploiesti Court. The specific quantities of cryptocurrency up for auction have not been reported. In a press release, ANABI stated:

Taking into account the nature of the moveable property put up for auction, the successful tenderer will have to inform the Agency, to proceed with the transfer, about the BTC and ETH public addresses associated to a virtual currency trading platform. 

ANBI has clarified that the crypto trading platform used by the successful bidder will need to be a legal and registered entity that adheres to Romania’s legislative norms and guidelines for financial instruments. It must incorporate Know Your Customer requirements for its clients and comply with both domestic and foreign Anti-Money Laundering provisions.

As reported, Romania was previously summoned to the European Court of Justice for its delay in fully transposing the full gamut of provisions outlined in the Fifth Anti-Money Laundering and Terrorism Financing Directive — including those relating to cryptocurrencies — into national law. This July, Romania was fined, alongside Ireland, as a result of the delay, although the country had meanwhile transposed the outstanding elements of the directive.

While the forthcoming auction is a national first, multiple auctions of cryptocurrencies seized in criminal cases have previously been held by national authorities across the world.



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New York authorizes first Yen stablecoin operator in the US

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New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.