The European Union has approved the world’s first legislation aimed at regulating the artificial intelligence sector. Bitcoin Fog‘s founder Roman Sterlingov was convicted of money laundering charges. Meanwhile, major financial institutions have completed a pilot test on the Canton Network blockchain. Here are three significant developments that have marked the cryptocurrency market in the last 24 hours.
EU Takes a Step in Artificial Intelligence Regulation
The European Parliament gave its final approval to the EU Artificial Intelligence Act on March 14, marking one of the world’s first comprehensive AI regulations. According to the EU Parliament’s website, the EU Artificial Intelligence Act will govern the 27-member bloc to ensure AI is trustworthy, safe, and respects EU fundamental rights while supporting innovation.
The law categorizes machine learning models into four categories based on the risk they pose to society, with high-risk models subject to the most restrictive rules. According to the EU’s website, the top category will ban all AI systems considered a clear threat to people’s safety, livelihoods, and rights, ranging from government social scoring to toys using voice assistance to encourage dangerous behavior.
Verdict Reached in Bitcoin Fog Case
Roman Sterlingov, the founder of the cryptocurrency mixing service Bitcoin Fog, was found guilty in the United States of money laundering, money laundering conspiracy, operating an unlicensed money transmitting business, and violating the DC Money Transmitters Act. The charges carry a maximum sentence of 50 years in prison, with the verdict to be delivered on July 15. Sterlingov’s lawyer Tok Ekeland stated in a March 12 post that his team would appeal the decision.
According to the Department of Justice (DOJ), evidence in the case showed that Sterlingov operated Bitcoin Fog from October 2011 to April 2021 as a money laundering service for criminals wanting to hide their illicit proceeds from law enforcement. During this time, the service moved over 1.2 million Bitcoin, valued at $400 million during the transactions. The DOJ stated that a large portion of the cryptocurrencies was linked to darknet marketplaces associated with drugs, computer fraud, and identity theft.
The jury decided to seize assets related to the confiscated Bitcoin Fog funds, including approximately $350,000 held in a Kraken account and 1,354 Bitcoin in a Bitcoin Fog wallet.
Canton Network and the Finance Sector
The convergence of traditional finance with blockchain technology seems to be heating up as 155 participants from 45 major institutions joined a pilot program on the Canton Network. Participants included Cboe Global Markets, Goldman Sachs, and BNY Mellon. According to Bloomberg, institutional investors participated in over 350 simulated transactions on the Canton blockchain network in areas such as tokenized assets, fund registration, crypto assets, securities lending, and margin management.
Canton is an interoperable blockchain network launched by Digital Asset Holdings in May 2023. The news comes as more financial institutions are expected to step into blockchain and crypto technology in the future. In February, the Swiss bank UBS’s Hong Kong subsidiary tokenized the option call warrant of Chinese smartphone company Xiaomi’s shares on Ethereum.
