In today’s crypto news, Donald Trump has confirmed a meeting with China’s President Xi Jinping, while Japan’s Financial Services Agency is considering reforms that might allow banks to hold cryptocurrencies like Bitcoin. Additionally, Tornado Cash developer Roman Storm is warning open-source developers about the potential for retroactive prosecution.
Trump confirms meeting with China’s president, causing crypto market surge
On Sunday, United States President Donald Trump announced his upcoming meeting with China’s President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in Seoul, South Korea, scheduled for October 31. This marks a reversal from his earlier statements that suggested there was “no reason” to attend the meeting.
“We’re going to meet in a couple of weeks. We’re going to meet in South Korea, with President Xi and other leaders,” Trump told Fox News’ Maria Bartiromo. He elaborated:
“[Xi Jinping] is a very strong leader, a very amazing man. You can look at what he’s done, where he is in his life. It is an amazing story. It’s a story for a great movie. I think we’re gonna be fine with China, but we have to have a fair deal. It’s going to be fair.”
The announcement had a positive impact on crypto markets, as any news that alleviates geopolitical and trade tensions typically boosts assets considered riskier by investors.
Japan’s FSA considers allowing banks to hold Bitcoin and other cryptocurrencies
Reports indicate that Japan’s Financial Services Agency (FSA) is set to review regulations that could permit banks to acquire and hold cryptocurrencies such as Bitcoin for investment purposes.
This initiative represents a significant policy shift, as current supervisory guidelines, updated in 2020, essentially prevent banks from holding crypto due to the associated volatility risks, according to a Sunday report by Livedoor News.
The FSA intends to discuss this reform at an upcoming Financial Services Council meeting, which serves as an advisory body to the Prime Minister. The goal is to align crypto asset management with traditional financial products like stocks and government bonds.
Regulators are anticipated to examine a framework for managing crypto-related risks, including significant price fluctuations that might affect a bank’s financial stability. If approved, the FSA is likely to impose capital and risk-management requirements prior to allowing banks to hold digital assets.
Roman Storm cautions open-source developers about potential retroactive prosecution
Tornado Cash developer Roman Storm has raised alarms for open-source software developers, particularly those involved in decentralized finance (DeFi) protocols, regarding the possibility of retroactive prosecution by the United States Department of Justice (DOJ).
In a Saturday X post, Storm questioned DeFi developers: “How can you be so sure you won’t be charged by the DOJ as a money service business (MSB) for building a non-custodial protocol?”
He added, “If the Southern District of New York (SDNY) can charge a developer for creating a non-custodial protocol, who is truly safe? My case is still ongoing,” he remarked.
The outcome of Roman Storm’s case could have significant legal ramifications for open-source software development in the United States, establishing a precarious legal precedent for developers who currently lack protections against prosecution.
