Regulators addressing AI extinction risk Law Decoded May 29-June 5.

There is ongoing discussion about artificial intelligence (AI), with experts including the CEOs of OpenAI, Google DeepMind, and Anthropic signing an open statement that states “Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.” Despite this statement, there are regulatory efforts in place to mitigate negative impacts of AI. For example, China is discussing the “improvement of governance” in digital data and AI, and the Australian government is seeking to understand whether any “high-risk” AI tools should be banned.

Italian Senator Marco Lombardo made a speech about cross-border workers, which was entirely composed by OpenAI’s ChatGPT-4. In Japan, the government’s AI strategy council has noted the lack of laws protecting copyright from AI, and the Personal Information Protection Commission has demanded that OpenAI minimize the sensitive data it collects for machine learning purposes. Previously, local politicians voiced support for AI, with Chief Cabinet Secretary Hirokazu Matsuno even saying Japan would consider incorporating AI technology into government systems.

CNHC stablecoin issuer detained by Chinese police

Employees of Trust Reserve, the issuer of the Chinese yuan-pegged stablecoin CNH Coin (CNHC), have been detained by Chinese police. Trust Reserve secured $10 million in funding in a round led by KuCoin Ventures in March of this year.

Binance to delist privacy tokens in France, Italy, Spain and Poland

Starting June 26, privacy tokens such as Monero (XMR) and Zcash (ZEC) will no longer be available for trading for Binance customers in France, Italy, Poland, and Spain. The new restrictions affect a total of 12 coins: Decred (DCR), Dash (DASH), ZEC, Horizen (ZEN), PIVX (PIVX), Navcoin (NAV), Secret (SCRT), Verge (XVG), Firo (FIRO), Beam (BEAM), XMR, and MobileCoin (MOB).

• Crypto compliance regulations and fines are increasing.
• JPMorgan partners with 6 Indian banks for blockchain interbank transactions, APPG gives 53 crypto recommendations to UK government, Hoskinson cautions about AI-generated frauds.
• EU officials want AI-generated content labeled.

EU officials sign MiCA into law

Sweden’s minister for rural affairs, Peter Kullgren, and European Parliament President Roberta Metsola signed the Markets in Crypto-Assets (MiCA) cryptocurrency regulatory framework into law. The framework is expected to come into effect following publication in the Official Journal of the European Union, with many of MiCA’s regulations on crypto firms likely starting sometime in 2024.

US lawmakers aim to limit the SEC’s power with a new bill

Lawmakers in the United States House Financial Services Committee and House Agriculture Committee have released a draft discussion proposing certain crypto assets be labeled digital commodities. The draft bill would prohibit the U.S. Securities and Exchange Commission (SEC) from denying digital asset trading platforms from registering as a regulated alternative trading system, allowing such firms to offer “digital commodities and payment stablecoins.” The proposed legislation would also require the SEC to provide a “detailed analysis” of any objections to a classification of a firm as decentralized.

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