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Cryptocurrency

Japan's Consideration of Lightweight Legislation for Non-Exchange Cryptocurrency Intermediaries

2024-11-27

Japan is currently in the process of contemplating new lightweight legislation specifically targeted at cryptocurrency intermediaries that do not fall under the category of crypto exchanges. This move comes as part of the continuous efforts to regulate the rapidly evolving cryptocurrency market. Last week, the Financial Services Agency (FSA) presented its ideas to the Financial System Council Working Group on Payment Services, sparking significant discussions and potential changes in the regulatory landscape.

Japan's Crypto Intermediary Legislation: A Shift in Regulation

Background of Japan's Cryptocurrency Landscape

Japan has long been a significant player in the cryptocurrency world, with the infamous Mt Gox cryptocurrency exchange being hacked in both 2011 and 2014. This incident led the country to take proactive measures and introduce legislation for crypto asset exchange service providers (CAESPs) in 2017. This legislation covers a wide range of activities related to cryptocurrencies, including the sale and purchase of crypto, acting as a broker, managing money related to these services, and providing custody. However, there are many so-called introducers in the market who do not operate crypto exchanges but are not considered CAESPs under the existing regulations. 2: These introducers often provide access to third-party crypto trading services through apps or self-hosted wallets. For example, a games app might offer access to a crypto trading service and then switch back to the original app. In such cases, the FSA is faced with the challenge of determining whether the app operator is acting as an intermediary and thus needs to register as a crypto exchange. This is a complex issue as some introducers may only be facilitating access without actually handling any money.

The Need for Lightweight Proposals

The FSA recognizes that the existing regulations for crypto exchanges can be quite onerous for organizations that are purely acting as introducers and do not handle any money. As a result, it is considering lighter proposals that would require these intermediaries to register and fulfill certain obligations. The introducers would be obligated to provide information to users, ensuring transparency in the process. They would also be subject to advertising restrictions to prevent misleading or false advertising related to cryptocurrencies. Additionally, they could potentially be held liable for damages if something goes wrong during the crypto trading activities facilitated by them. 2: The FSA is carefully mulling over how to deal with damages in this context. Currently, regulations for other financial services intermediaries that are not part of a larger group require a security deposit to cover potential damages. However, when the intermediary is affiliated with a cryptocurrency exchange, the burden of damages could be borne by the exchange. This raises important questions about the allocation of responsibilities and the need for clear guidelines in case of any disputes or issues.

Implications and Future Outlook

The proposed lightweight legislation for non-exchange cryptocurrency intermediaries has the potential to bring more clarity and regulation to the market. It aims to address the gaps in the existing regulations and ensure that all entities involved in the cryptocurrency ecosystem are held accountable. This could lead to increased investor confidence and a more stable cryptocurrency market in Japan. However, there are also concerns about the potential impact on innovation and the ease of doing business for legitimate introducers. The FSA will need to strike a balance between regulation and innovation to ensure the continued growth and development of the cryptocurrency industry in the country. 2: As Japan moves forward with these legislative proposals, it will be closely watched by other countries and the global cryptocurrency community. The success or failure of these measures could set a precedent for future regulatory approaches in the cryptocurrency space. It remains to be seen how the industry will adapt and evolve in response to these changes and what impact they will have on the overall landscape of cryptocurrencies in Japan and beyond.

The Federal Communications Commission (FCC) has given the green light to direct-to-smartphone satellite communications by SpaceX, but with certain conditions. This permission is specifically for US consumers using T-Mobile's services. On November 26th, the approval was bestowed, covering 7,500 of SpaceX's Second generation Starlink satellites. These satellites will operate at lower orbits, such as Very Low Earth Orbits (VLEO), with some reaching as low as 340 kms, which is significantly lower than the usual 525-535 kms orbital height.Now, SpaceX can commence its initial text-based services using the 320 suitable satellites already in orbit. However, they must ensure that these services do not cause any interference to ground-based cellular services. These 320 satellites will provide limited global coverage before the full constellation is implemented. The service will be on par with 4G technology, and SpaceX has stated that voice and data connections will follow.Nevertheless, the FCC has "deferred" SpaceX's application to provide the service for an additional 22,488 satellites as well as SpaceX's usage of 'out of band power flux density limits'. SpaceX already has more than 4,100 first-generation Starlinks in orbit.The new FCC rules, known as 'Supplemental Coverage from Space', come with strict limitations. Any interference with ground-based cellular operations will lead to an immediate cessation of satellite services. The ground operators have the primary rights to the frequencies being used and must ensure their full operationality.FCC chair Jessica Rosenworcel expressed her excitement in the FCC statement, stating, "This first-of-its-kind authorisation is an exciting new development for the future of combined satellite and wireless communications. And it won't be the last. Thanks to the bipartisan framework we adopted earlier this year, the FCC is actively promoting competition in the space economy by supporting more partnerships between terrestrial mobile carriers and satellite operators to deliver on a Single Network Future that will put an end to mobile dead zones."

Initial Service with 320 Satellites

The 320 satellites already in orbit play a crucial role in providing the initial text-based services. These satellites are strategically positioned to offer limited global coverage, allowing US consumers using T-Mobile's services to access satellite communication. The fact that they operate at lower orbits gives them an advantage in terms of latency and signal strength. This initial service is a significant step towards the full implementation of the Starlink constellation and the realization of seamless satellite and wireless communication. 1: The 320 satellites have been carefully selected and calibrated to ensure optimal performance. They are equipped with advanced communication technologies that enable efficient data transfer and reliable connections. This allows users to send and receive text messages, access basic information, and stay connected even in areas with limited or no terrestrial network coverage. 2: The limited global coverage provided by these 320 satellites is a starting point for SpaceX's expansion. As more satellites are launched and the constellation is completed, the coverage will expand significantly, reaching even the most remote corners of the world. This will revolutionize the way people communicate and access information, especially in areas where traditional communication infrastructure is lacking.

Deferred Applications and Existing Satellites

While SpaceX has received approval for the initial 7,500 satellites and the 320 in orbit, their applications for an additional 22,488 satellites and the usage of 'out of band power flux density limits' have been deferred. This indicates the cautious approach taken by the FCC to ensure the smooth operation and compatibility of satellite services with existing ground-based cellular operations. 1: SpaceX's existing fleet of more than 4,100 first-generation Starlinks in orbit also plays a significant role in their overall satellite communication ecosystem. These satellites have been providing valuable services and have contributed to the development and testing of satellite communication technologies. The deferred applications will allow SpaceX to further refine and optimize their satellite systems before expanding further. 2: The deferment of these applications is not a setback but a necessary step to ensure the long-term success and sustainability of satellite services. It gives SpaceX the time to address any potential issues and work closely with the FCC and other regulatory bodies to ensure compliance with all regulations and standards.

New FCC Rules and Limitations

The new FCC rules, 'Supplemental Coverage from Space', bring with them tough limitations to ensure the harmonious coexistence of satellite and ground-based cellular services. These rules emphasize the importance of maintaining the primary rights of ground-based cellular operators and preventing any interference. 1: The strict limitations imposed by these rules are a testament to the FCC's commitment to safeguarding the existing cellular infrastructure and ensuring the seamless operation of both satellite and terrestrial networks. It requires SpaceX to constantly monitor and manage their satellite services to avoid any potential interference incidents. 2: These limitations also drive innovation and technological advancements in the satellite communication industry. SpaceX and other satellite operators are constantly working on improving their systems to meet the strict requirements set by the FCC. This leads to the development of more efficient and reliable satellite technologies that benefit both consumers and the industry as a whole.

Peter Mudge, the Pittsburgh producer who prefers to stay out of the limelight, has made significant contributions to the music world. His work can be heard on tracks from national acts like Wiz Khalifa, the late Mac Miller, and J.I.D, as well as local talents. His unique musical journey started in the late '90s and has evolved over the years.

Discover the Hidden Gems of Pittsburgh's Music Scene

Early Influences and Musical Beginnings

Peter Mudge was inspired by the likes of The Notorious B.I.G. and Nas. He bought his first CD, "The Chronic," and began teaching himself to use turntables and records. As a teenager, he explored various aspects of hip hop, including graffiti, breakdancing, and rapping. But he eventually settled on DJing, realizing it was his true passion.His love for DJ culture led him to dive into the scene without formal training. During his teens at the University of Pittsburgh, he started experimenting with beat-making using a pirated version of FruityLoops (now FL Studio). He collected vintage keyboards and synthesizers to expand his sound-creating abilities. His local music scene connections also grew, shaping his approach to music composition.

From Solo to Collaborative Work

Initially, Mudge adhered to a "do-it-alone" philosophy. But he later embraced working with others. He started making short song ideas that were a minute long and giving them to other producers to finish. This shift opened up new opportunities and led to some of his biggest contributions.He credits peers like DJ Bonix and E. Dan for helping him land his first credit on "No Limit" on Wiz Khalifa's album. Since then, he has built a worldwide network of artists through mutual acquaintances and communal studio spaces.

Notable Collaborations

One of his notable collaborations was on Mac Miller's 2018 album "Swimming." Through E. Dan, Miller and Mudge connected. Mudge added dynamic synthesizer lines and background vocals to "Self Care" and "Ladders." He didn't expect these songs to become favorites, but they did.Another track, "151 Rum" by J.I.D, was created with Christo at a rented house in L.A. It has been featured in hit shows and films.Mudge also works with independent Pittsburgh musicians like Mars Jackson and Cam Chambers, producing entire albums for them.

Future Aspirations and Inspirations

Looking ahead, Mudge is excited about upcoming collaborations with Pittsburgh artists like My Favorite Color. He is also working on a unique folk album with musician Jessica Pratt, showcasing his versatility.Beyond his professional aspirations, he hopes to inspire the next generation of musicians. He encourages them to embrace their ideas and not compare themselves to others.Mudge's story represents the heart of Pittsburgh's musical landscape and the unyielding spirit of artists who push boundaries and share their voices.