Learning the friendly way

Navigating the world of cryptocurrency can be both exciting and incredibly overwhelming, especially when it comes to understanding the regulatory landscape in the United States. As the adoption of digital assets continues to grow, it's important to grasp the crypto regulation framework that governs it. 

In this article, we'll break down the key players and government agencies responsible for overseeing crypto markets in the US. Whether you're a beginner or someone looking to expand your knowledge, we aim to provide you with a clear understanding of how cryptocurrency, and crypto exchanges, are regulated in the United States.

The 4 main government agencies

These government agencies collectively contribute to establishing regulatory frameworks, protecting investors, preventing financial crimes, and ensuring tax compliance within the crypto exchanges and greater cryptocurrency landscape. Understanding their roles is vital for individuals and businesses engaging in cryptocurrency activities to navigate the regulatory landscape effectively.

Let's dive into the responsibilities and functions of some key agencies:

The Securities and Exchange Commission (SEC)

You’ve likely heard of the SEC, the Securities and Exchange Commission is one of the primary regulatory bodies when it comes to cryptocurrency. The SEC's main objective is to protect investors and maintain fair and orderly markets. 

In the context of cryptocurrencies, the SEC focuses on determining whether a particular digital asset qualifies as a security. This determination is vital, as securities fall under the agency's jurisdiction, subjecting them to stringent regulations. The SEC also takes action against fraudulent initial coin offerings (ICOs) and ensures compliance with securities laws.

The Commodity Futures Trading Commission (CFTC)

The Commodity Futures Trading Commission (CFTC) is responsible for overseeing the derivatives and futures markets, including those involving cryptocurrencies. The CFTC considers virtual currencies as commodities, thus granting the agency regulatory authority over cryptocurrency derivatives and trading platforms. By monitoring these markets, the CFTC aims to prevent manipulation, fraud, and other illicit activities.

The Financial Crimes Enforcement Network (FinCEN)

The Financial Crimes Enforcement Network (FinCEN) focuses on combating money laundering, terrorist financing, and other financial crimes. In the context of cryptocurrencies, FinCEN requires certain cryptocurrency businesses to register as Money Services Businesses (MSBs) and comply with anti-money laundering (AML) regulations. This helps ensure that illicit activities, such as money laundering through cryptocurrencies, are detected and prevented.

The Internal Revenue Service (IRS)

And lastly, the Internal Revenue Service (IRS) comes into play regarding the taxation of cryptocurrencies. The IRS treats virtual currencies as property, subjecting them to taxation. Cryptocurrency holders and traders are required to report their transactions and pay taxes accordingly.

The IRS has provided guidance on how to report cryptocurrency-related activities and is actively pursuing tax compliance in the crypto space. Remember, the onus lies on you to honestly and properly report any gains or losses made from the trading of cryptocurrencies. 

How does the SEC determine whether crypto is a security?

When determining whether a cryptocurrency qualifies as a security, the Securities and Exchange Commission examines factors such as whether the investment of money in a common enterprise holds the expectation of profits primarily from the efforts of others. If a cryptocurrency meets this definition, it falls under the SEC's jurisdiction and is subject to securities regulations. 

The SEC also plays a role in regulating initial coin offerings (ICOs) and has taken legal action against fraudulent ICOs that violated securities laws, aiming to protect investors from deceptive practices.

Additionally, the SEC has issued guidelines to provide clarity on compliance obligations, registration requirements, and disclosure standards for ICOs, emphasizing the importance of transparency and investor protection in the digital assets space. 

Understanding the SEC's role and its criteria for determining securities status is crucial for individuals and businesses operating in the cryptocurrency industry to ensure compliance and mitigate legal risks.

How individual states govern digital assets

While these four main federal agencies are responsible for building legal frameworks around these digital currencies, individual states in the US have started implementing their own rules and guidelines when it comes to cryptocurrencies. 

These regulations are designed to address specific concerns and tailor requirements to the unique needs of their jurisdictions. Noteworthy state-level initiatives include the introduction of licensing frameworks for cryptocurrency businesses, the establishment of regulatory sandboxes to promote innovation and the development of consumer protection measures. 

For example, states like New York have implemented the BitLicense, a regulatory framework for virtual currency businesses. Other states, such as Wyoming, have enacted laws to provide legal clarity and attract cryptocurrency companies. 

These state-level regulations add an additional layer to the overall regulatory landscape, highlighting the importance of understanding the specific requirements and compliance obligations within each state where cryptocurrency activities are conducted.

While some argue whether the federal government should regulate crypto assets, many in the industry are for the implementation of a regulatory framework as this will provide greater adoption and a broader understanding of digital assets.

Who regulates central bank digital currency?

In the United States, the Federal Reserve is currently looking into how a central bank digital currency (CBDC) could impact and fit into its domestic payments system. A central bank digital currency is a digital currency pegged to the local currency utilizing blockchain technology or digital ledger technology and operated by the country's central bank.

These digital assets are subject to different cryptocurrency regulations as the "companies" operating them are within the government's organization.

In conclusion

In summary, dealing with the multifaceted regulatory environment surrounding cryptocurrencies in the United States requires keen attention and ongoing awareness, given the involvement of major governmental agencies like the SEC, CFTC, FinCEN, and IRS. Whether operating within specific states or broader financial arenas, it's crucial for players in the crypto industry to stay up-to-date with these regulations and compliance demands.

Understanding the crypto regulation landscape not only safeguards investors but also helps with protection, preventing financial crimes, ensuring tax compliance, and promote transparency within this ever-evolving sector.

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In an era of rapid digitization, we at Tap prioritize the security of our users above all else. Our continuous aim is to improve our security measures, addressing new threats as they emerge. Today, we are delighted to unveil our latest effort in this ongoing commitment: the Anti-Scam Protection Feature.

The internet has revolutionized many aspects of our lives, not least banking. But with this convenience come certain risks. We've noticed a rise in scams involving remote access tools like Teamviewer or Anydesk. While these apps have legitimate uses, they are being increasingly exploited by scammers to gain unauthorized access to users' mobile devices and their financial accounts.

Seeing the need for an additional line of defense, we've developed the Anti-Scam Protection Feature. This tool proactively scans all the installed applications on a user's device during startup. If it detects potentially harmful apps like Teamviewer or Anydesk, it immediately triggers an unskippable alert. This alert informs users about the potential security risk and instructs them to remove these apps.

Furthermore, we urge users to reach out to our dedicated support team for further guidance. Our team is always ready to assist our users at every step, ensuring they can navigate the online financial landscape safely and confidently.

This feature is not just another update to our app - it is a testament to our unwavering commitment to user safety. By proactively identifying potential threats, our Anti-Scam Protection Feature helps us enhance account security and promote safe digital practices.

The digital landscape is constantly evolving, and so are the threats that lurk within. But with innovative features like our Anti-Scam Protection Feature, we aim to stay a step ahead, ensuring that Tap continues to be a secure platform for all your financial needs.

We highly encourage you to ensure that your Tap app is always updated to the latest version, allowing you to fully leverage our newly introduced security features as we continue to release them. Together, let's continue to create a safer financial environment.

Whether you’re part of the big screen brigade or prefer to use a smartphone, if you’re looking for a way to add the British unit of currency (£) to your documents, emails, or messages, look no further. In this useful guide, we'll walk you through the simple steps to quickly insert the pound symbol on your relevant device: Mac, PC, or smartphone.

But first, if you need to send pounds overseas, Tap, a regulated and reliable fintech platform, has got you covered with low fees and excellent exchange rates. Send funds from anywhere to anywhere, and for free between Tap users. Simply load either GBP or Euro onto the app and seamlessly send, spend or exchange your funds wherever you are.

Where did the British Pound sign come from?

The British Pound Sterling, symbol £, boasts a rich history dating back over 1,200 years. It began as a weight of silver in Anglo-Saxon England and became the official currency in 1694 under William III. 

With the growth of the British Empire, it gained global prominence. Despite challenges such as wartime disruptions and the 1967 devaluation, it remained strong. The pound left the gold standard in 1971. Through shifts like Brexit, it endures as a significant global currency, shaped by the UK's economic journey and historical impact on finance and trade.

According to the Bank of England, the symbol originates from the letter L, which is the first letter of the Latin word for 'libra', meaning a pound of money. Although the exact time when the horizontal line was added is uncertain, it can be traced back to a 1660 cheque in the Bank of England's collection.

Typically, the British pound sign is placed before the number. So, if you want to write ten pounds, it would be represented as £10. Fun fact: in 1970 a new £20 banknote featuring William Shakespeare was issued by the Bank of England sparking the tradition of including characters that have shaped the country on coins and notes.

Simple ways to insert £ into a document

Now that we're familiar with the British pound sign, let's delve into how to type it on both Mac and PC keyboards, as well as a smartphone.

For Mac users

If you're using a Mac, the quickest way is to use a keyboard shortcut. Simply hold down

the Shift key (Option key on US keyboards) and simultaneously press the number 3.

For Windows users

On a Windows PC or laptop, you can use the same shortcut. Hold down the Shift key and press the number 3, which is usually located on the top row of your keyboard. However, if you're using a full keyboard with a number pad, it may be positioned to the side.

To make things even easier, some keyboards have the £ symbol printed above the number 3 key, providing a visual reminder. Just keep in mind that American keyboards may not include the British pound sign.

If you prefer a simpler method, you can always copy and paste the pound symbol from here: £

For smartphone users

Now, let's move on to inserting the British pound sign on your mobile device, whether it's an iOS or Android.

Using your smartphone or tablet, simply switch to the numbers and symbols keyboard on your device, and you'll find the £ symbol as one of the character options. In case you can't locate it, try long-pressing the dollar sign ($) to access more currency symbols.

Keyboard-free? No problem

What if you don't have access to a keyboard? Don't worry! There's a way to insert the British pound sign in popular word processors without typing.

If you're using applications like Microsoft Word or Google Docs, follow these steps:

1. In Microsoft Word, go to the "Insert" tab at the top and select "Symbol." In Google Docs, choose "Special Characters" from the drop-down menu.

2. Look for the pound symbol (£) in the list of characters. In Google Docs, you may need to select "Symbol" first and then navigate to the "Currency" category.

3. Click on the pound symbol to insert it into your document.

That's all there is to it! Now you know how to effortlessly type the British pound sign (£) on your Mac, PC, or mobile device. Feel free to use these methods whenever you need to add this symbol to your content.

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In the complex world of economics, recessions are a common concern, and knowing what they are matters. But what exactly is a recession, and why is it important to understand? A recession is a significant economic downturn that affects individuals, businesses, and entire nations. It's more than a financial term; it's a real-life event that can impact us all.

In a world where economic stability matters to us all, this knowledge is essential. In this article, we'll explain what a recession is and why it's important for everyone, whether you're an economist or just someone trying to navigate the modern world. Let's unpack what a recession is and explore why it matters.

The economic aspects of a recession

To grasp the significance of a recession, let's take a look at its economic aspects. We'll begin by looking at key economic indicators, like Gross Domestic Product (GDP).

GDP is like an economic health check. It measures the total value of goods and services produced in a country. When GDP shrinks, it's often a sign of a looming recession. By monitoring GDP, economists gain a better understanding of economic ups and downs.

Economic growth, measured by GDP, plays a vital role in preventing recessions. It creates jobs, helps businesses grow, and boosts consumer confidence. It goes without saying that a strong economy is better at handling tough times.

How recessions affect businesses and industries

When a recession hits, it affects businesses and industries in various ways:

Decreased consumer spending

In a recession, people usually cut back on non-essential spending. This hurts businesses that rely on such purchases.

Decline in production and sales

Less spending leads to less production and fewer sales. Businesses may end up with too much inventory and unused equipment.

Job losses and unemployment

Businesses struggling in a recession often have to lay off workers. This leads to more people without jobs, which is tough for families and communities.

Bankruptcies and closures

Some businesses can't survive a recession's pressures and go bankrupt or close. This can affect entire industries.

The COVID-19 pandemic showed how a global recession can be triggered. Lockdowns, travel restrictions, and supply chain problems disrupted businesses worldwide, requiring governments to step in and help.

Identifying the causes and indicators of a recession

By understanding these causes and economic indicators, people and policymakers can take timely action to prevent or deal with recessions and highlight the value of informed decision-making in our connected global economy.

Causes of a recession

Recessions are not random occurrences, they often stem from a combination of economic factors, financial market fluctuations, and global events. By understanding these causes, people are often better able to anticipate a looming recession and mitigate its effects. 

First and foremost, recessions often have roots in economic imbalances, such as excessive debt, inflationary pressures, or overproduction. When these imbalances become unsustainable, they can trigger a recession.

On that note, the health of financial markets and the housing sector is closely tied to the overall economy. The bursting of housing bubbles and disruptions in financial markets, like banking crises, can set the stage for economic downturns.

And lastly, events like geopolitical conflicts, natural disasters, or global health crises, as witnessed during the COVID-19 pandemic, can have ripple effects that lead to recessions. After all, the global economy is interconnected. 

Economic indicators that signal a recession

Economic indicators act as early warning signals, helping us identify the onset of a recession. These act as data points that provide insights into the state of an economy and serve as barometers for assessing economic health.

Below are several examples of key indicators:

Yield curve inversion

This occurs when short-term interest rates surpass long-term rates, often signalling an impending recession.

Unemployment rate

A rising unemployment rate can indicate economic distress as businesses cut jobs in response to slowing growth.

Consumer confidence index

A drop in consumer confidence can foreshadow reduced spending, which can lead to economic contraction.

Stock market performance

Plummeting stock market indices can signal investor pessimism about future economic prospects.

Recessions vs depressions

We’ve all heard of The Great Depression in the 1930s, but was this a recession or a depression? 

A depression is a severe and long-lasting economic downturn. It's marked by extensive declines in various economic sectors, often lasting for years or even decades. Much like recessions, depressions bring widespread unemployment, significant drops in consumer spending and business investments, and a massive decrease in GDP.

However, they differ in a number of ways, namely the magnitude and duration, the impact it has on business, jobs, and the GDP, and, typically, how the government responds. 

The key difference between a recession and a depression is how bad and how long they last. Recessions are shorter and less severe, typically lasting a few months to a couple of years. Depressions, on the other hand, are much more extreme and can drag on for years or even a decade or more.

Depressions also hit businesses, jobs, and GDP much harder than recessions. In a depression, businesses struggle to survive, unemployment soars and GDP takes a nosedive to historic lows. While recessions hurt, their effects are usually less severe.

Governments respond differently to recessions and depressions. Depressions often lead to major government intervention, including big stimulus packages, bank rescues, and public projects to kickstart the economy. Recessions may also prompt government action, but it's usually not as extensive or urgent.

How to prepare for a recession

Unfortunately, recessions form an integral part of economic cycles and are inevitable. Fortunately, there are some steps individuals can take to better buffer themselves against the harsh effects of an impending recession. 

Here are two of the most important steps:

Build an emergency fund

Start by creating a sturdy emergency fund. This fund should cover at least three to six months' worth of living expenses and acts as a safety net in case of unexpected job loss or financial crises.

Minimize debt

Simplify your finances by reducing debt and cutting non-essential expenses. Clearing high-interest debts and trimming unnecessary spending can free up resources to tackle more essential needs.

Securing income and job stability becomes equally important as the economy faces uncertainty. Here are several strategies to ensure you maintain job security. 

Upskilling 

Invest in your skills and stay adaptable to changing job demands. Continuous learning and gaining skills in demand boost your employability and resilience in a shifting job market.

Networking 

Cultivate a robust professional network. It can provide job leads, referrals, and opportunities when times are uncertain. Networking increases your chances of finding new employment or additional income sources.

Diversifying sources of income

Explore multiple income streams beyond your primary job. Consider part-time work, freelance opportunities, or passive income ventures. These can help soften the blow of a recession.

In an unpredictable economic world, these steps give individuals and households financial preparedness and adaptable income strategies and can provide a sense of security and resilience in tough economic times.

Closing thoughts

Understanding recessions, its indicators, and its real-world impact is essential. Key points include recognising economic aspects like GDP and understanding how recessions affect businesses. 

Identifying causes and signals empowers proactive responses while distinguishing recessions from depressions clarifies their severity and the need for government intervention. Practical steps, like building emergency funds and upskilling, boost resilience. In an uncertain economic world, knowledge and preparedness are our reliable allies for navigating recessions successfully.

Father's Day is a special occasion to celebrate and appreciate the fathers and father figures in our lives. Whether you're looking to surprise your dad with a token of gratitude or spend some memorable moments with him, you don't need to break the bank or travel far. Here are some cost-friendly and heartwarming ideas for managing celebrating Father's Day.

Host a games night

Set up the mother of all games night with classic board games, video games, or outdoor yard games. If your family gets wildly competitive, consider games that won’t ruin people’s lives (Uno we’re looking at you). Keep it light and make it a fun, interactive way to bond and create memories, you can even include the kids. You could also take it up a notch with some games-themed snacks and drinks.

Organise a DIY car wash and detailing session

If your dad takes pride in his ride, gather the family and take the time to wash and detail his car together. It's a great way to show appreciation and leaves him with a spotless ride ready to hit the streets. You can even consider upgrading his car gadgets, like a new air freshener or car mats, as an added gift. This activity can turn into a riot of fun whether you're in the bustling city or out in the serene country. And, if you're feeling adventurous, arranging transport to a ridiculously scenic spot can turn the car wash into a full-blown family adventure. 

Plan a sports day with his favourite activities

Get everyone together for a day of sports, featuring your dad's favourite activities. It could include a friendly game of basketball, soccer, or even a round of golf. Spending quality time outdoors while engaging in friendly competition can make for an unforgettable Father's Day. This activity could also include some natural attractions like a scenic hike or a nearby lake.

Plan a DIY workshop or project day

If your dad enjoys DIY projects, photography or woodworking, plan a day where you can work on a project together. From fixing up an old piece of furniture to creating something new for the home, collaborating on a hands-on venture will not only strengthen your bond but also result in a memorable keepsake. Take a look around his house for inspiration and bear in mind the money your looking to spend (or save) and the stores that are worth frequenting.

Organise a barbeque-off

Think you can out-barbeque your dad? Pick a theme and get every person to make some food dish in line with it. Ready for the ultimate rib challenge? Or how about an Argentinian asado? Or, more simply, an English breakfast. Once everyone’s done cooking, you can all sit together and enjoy the feast you’ve prepared, with some Come Dine With Me-inspired ratings, of course. 

Volunteer together

Bond with your dad while contributing to your community by volunteering together. Find a cause that resonates with him, like serving meals at a local soup kitchen, helping out at an animal shelter, or participating in a neighbourhood clean-up initiative. Today's the day to let him school you in anything he desires while you spend quality time together helping others out.

Plan a movie marathon 

If the weather is cosy, why not get everyone together for a movie marathon celebrating none other than your father figure? We’re thinking Die Hard marathons, or Lord of the Rings, just make sure it’s something that Dad enjoys! Popcorn, cinema-themed snacks and large sodas are strongly recommended. 

Help out with something he’s been meaning to do (but just hasn’t got around to yet)

It might sound cheesy but there’s nothing quite like ticking off an item on your to-do list with the help (and big nudge) from a loved one. Offer to help with chores or tasks he's been meaning to get done, like a big DIY project, florals or yard work, or home organisation. This practical gift of time and assistance can be truly meaningful, and bonus he gets to spend it with you. 

Final thoughts

Celebrating Father's Day doesn't have to be an expensive affair. The important thing is to show your dad genuine appreciation and create memorable moments together. By choosing budget-friendly yet thoughtful and authentic ways to commemorate the day, it becomes a beautiful reminder that the true value of fatherhood lies in the love, connection, and life experiences shared with those who mean the most (if only some birthday or wedding planners could take this approach). And with these options above, you're spoiled with choice as to how to create the perfect celebration.

So let this Father's Day be a heartfelt and unforgettable tribute to your dad, whose presence and guidance make all the difference in your world.

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Welcome to this week's Crypto Update, your go-to destination for the latest news in the exciting world of cryptocurrencies. Let's dive right into the highlights of the past week in the dynamic crypto market.

Etherscan's AI Tool for Smart Contracts: 

Etherscan has launched Code Reader, an advanced tool that utilizes AI to retrieve and interpret source code from specific Ethereum contract addresses. Code Reader leverages OpenAI's powerful language model to generate comprehensive insights into contract source code files. The tool allows users to gain a deeper understanding of contract code, access comprehensive lists of smart contract functions, and explore contract interactions with decentralized applications. To access and utilize Code Reader, users need a valid OpenAI API Key and sufficient OpenAI usage limits. However, researchers caution about the challenges posed by current AI models, including computing power limitations, data synchronization, network optimization, and privacy concerns.

SEC's increased scrutiny on cryptocurrencies sparks debate: 

The U.S. Securities and Exchange Commission's (SEC) increased scrutiny has led to a prominent debate concerning the future of XRP and Ethereum. Max Keiser, a well-known Bitcoin advocate, predicts the downfall of XRP and Ethereum due to regulatory overreach. In contrast, John Deaton, representing XRP holders, opposes this view, arguing for a more balanced regulatory approach. The cryptocurrency community is now anxiously awaiting regulatory clarity, as the SEC's actions remain unpredictable​.

​​It's important to note that the regulatory environment is constantly evolving and can have significant impacts on the cryptocurrency market, including Ethereum. Therefore, it is advisable to stay informed about the latest developments.

A Call for Clarity: Federal reserve governor advocates for clearer crypto regulations:

Michelle Bowman, a Federal Reserve Governor, has urged global regulators to establish clearer regulations for emerging banking activities, particularly banking as a service and digital assets. She emphasized the need for a well-defined regulatory framework to address the supervisory void and uncertainties that financial institutions currently face. Bowman's call aligns with the growing demand for enhanced regulation of digital assets. A robust and comprehensive regulatory framework is crucial for ensuring the stability and integrity of the banking sector, mitigating risks, protecting consumers, and fostering innovation​. 

Turkish lira hit a record low against the US dollar

The Turkish lira hit a historic low, trading at 25.74 per US dollar, following Turkey's central bank decision to raise interest rates by 650 basis points to 15%. While the hike was expected, it fell short of the anticipated 21%, and analysts believe a larger increase was needed to show the government's resolve to fight inflation. The lira's devaluation has been part of a larger trend, prompting citizens to invest in alternative assets like digital currencies and gold. The central bank, now under new leadership, has adopted a more gradual approach to rate adjustments, seeking to stabilize the economy. However, the uncertainty surrounding Turkey's economic future persists​.

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