Fun

U.S. CFPB flags risks in virtual worlds’ crypto economy

News Feed - 2024-04-06 05:04:13

Amaka Nwaokocha54 minutes agoU.S. CFPB flags risks in virtual worlds’ crypto economyThe agency noted that crypto assets in virtual environments like Decentraland and The Sandbox can be exchanged for fiat currency on other cryptocurrency platforms.234 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe Consumer Financial Protection Bureau (CFBC) has targeted crypto-centric gaming in its report, cautioning against scams and decreased consumer safeguards in video games and virtual realms.


The CFPB’s report titled “Banking in Video Games and Virtual Worlds,” released on Thursday, April 4, highlights rising interest among gaming creators in bridging virtual items to reality. While crypto’s presence in virtual gaming is limited, it’s gaining traction.


Despite their lower popularity compared to mainstream gaming platforms like Roblox or Fortnite, the agency emphasized the significance of crypto-asset virtual worlds. Third-party trading platforms enable users to convert virtual assets into fiat currency, enhancing their liquidity beyond conventional gaming markets. The agency’s report said:“Notably, some of the largest virtual gaming world publishers have expressed growing interest in positioning their virtual items as crypto-assets that have the ability to be traded outside of the game’s economy.”


The agency noted that crypto assets in virtual environments like Decentraland and The Sandbox can be exchanged for fiat currency on other cryptocurrency platforms.


Alexander Grieve, government affairs lead at Paradigm, noted that reports such as the one published by the CFPB on Thursday could signal upcoming regulatory actions. He suggested that the CFPB, like many federal agencies, is seeking its regulatory role in the cryptosphere, with this report potentially serving as one avenue, mainly if adjustments are made to their Larger Participants wallet rule.Source: Alexander Grieve


The CFPB noted that online video games and virtual worlds are becoming akin to traditional banking but lack expected federal protections. The agency received complaints regarding hacking attempts, account theft, and asset loss within games, with consumers expressing dissatisfaction over the lack of support from gaming companies.


Related:Crypto-focused lawmaker wants to lead House Financial Services Committee in 2025


CFPB Director Rohit Chopra highlighted the increasing trend of Americans converting billions into digital currencies for gaming. With banking and payments shifting to virtual realms, the CFPB aims to safeguard consumers from fraud and scams.


The CFPB has shifted its focus toward cryptocurrencies, introducing a proposed rule titled “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications.” This rule grants the agency oversight over “larger nonbank firms” providing digital wallet and payment app services.


It mandates nonbank financial entities processing over five million transactions annually to adhere to regulations akin to those imposed on major banks and credit unions. Although the 62-page rule references cryptocurrency sparingly, criticscontend that it “asserts authority over cryptocurrency”in an inappropriate manner.


Magazine:Lawmakers’ fear and doubt drives proposed crypto regulations in US# Bitcoin# Cryptocurrencies# Government# Web3# RegulationAdd reactionRead moreGenesis purchases $2.1B of Bitcoin following GBTC sell-offZachXBT claims he is being ‘borderline harassed’ by US law enforcementBinance trading volumes hit yearly high at $1.12T in March

News Feed

Federal Reserve, FDIC, OCC Discuss Allowing Banks to Hold Crypto on Balance Sheets
Federal Reserve, FDIC, OCC Discuss Allowing Banks to Hold Crypto on Balance Sheets A group of U.S. banking regulators is working on how banks can be allowed to offer crypto service
BTC price suddenly drops 5% as Bitcoin rejects low CPI print
William Suberg9 hours agoBTC price suddenly drops 5% as Bitcoin rejects low CPI printBitcoin shrugs off notionally good news on US inflation with a BTC price plunge below $59,000.9777 Total views13 Total sharesListen to
Dogecoin Repeating History? This Setup Led To 150% Gains
Este artículo también está disponible en español. A new technical chart shared by crypto analyst Cas Abbé (@cas_abbe) on X is showing a recurring bullish pattern in Doge
Crypto Exchange LBank and ETHDubai Partner for an Exclusive Meet-Up
Crypto Exchange LBank and ETHDubai Partner for an Exclusive Meet-Up press release PRESS RELEASE.Venture capitalists, founders, and eminent crypto investors graced the event to meet
Stablecoins Swelled by $13B in 30 Days, Captured 67% of Today’s Crypto Trade Volume
Stablecoins Swelled by $13B in 30 Days, Captured 67% of Today"s Crypto Trade Volume Over the last few weeks, cryptocurrency markets have fallen in value as most
PayPal enables business accounts to buy, sell, and trade crypto
Vince Quill3 hours agoPayPal enables business accounts to buy, sell, and trade cryptoIn 2020, PayPal began allowing individual retail customers to buy, sell, and hold crypto directly from their PayPal and Venmo accounts.
Publicly-Listed Bitcoin Miner Argo Blockchain Suspends Nasdaq Trading
Publicly-Listed Bitcoin Miner Argo Blockchain Suspends Nasdaq Trading Bitcoin miner Argo Blockchain announced that it requested the suspension of trading its company shares on Dec.
AMC Confirms Plan to Accept Bitcoin, Ethereum, Litecoin, and Bitcoin Cash
AMC Confirms Plan to Accept Bitcoin, Ethereum, Litecoin, and Bitcoin Cash The world’s largest movie exhibition company, AMC Entertainment, has announced its plan to accept c
Crypto Self Custody Is the Future, and People Say Best Wallet Leads the Way
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Shiba Inu Whale Activity Plunges 79% In Three Months — What’s Happening?
Este artículo también está disponible en español. The meme coin market has seen a remarkable transformation in the past year, large-cap tokens like Dogecoin (DOGE) and Sh
Jesse Coghlan5 hours agoUS consumer watchdog mulls applying e-banking laws to cryptoThe head of the U.S. financial consumer watchdog says it’s looking to issue guidance on how crypto could fall into electronic fund tra
Bitcoin Support Sits At $90,6K Short-Term Holder Realized Price – Expert Reveals Key Resistance Level
Este artículo también está disponible en español. Bitcoin has been struggling to reclaim the $100K mark, facing intense volatility and selling pressure since the weekend.