FBI tokens, AI tokens and crypto wash trades: Crypto lawyers weigh in
Recent charges against 18 individuals by U.S. authorities for cryptocurrency market manipulation have raised significant legal questions regarding the application of traditional regulatory frameworks to the crypto industry. In a sting operation, the FBI created a token that allegedly led to market manipulations, highlighting potential copyright issues relating to the use of open-source code. Legal experts discussed wash trading, which is illegal across various jurisdictions, and emphasized that existing laws adequately address these practices in crypto markets. In the U.S. and Hong Kong, market manipulation laws align closely with those governing traditional securities. Regarding the FBI's use of MIT-licensed software, experts posited that while failing to provide proper attribution could be seen as a copyright infringement, it may not undermine the intent of the original license. The conversation also touched on accountability for AI agents capable of owning cryptocurrencies, wherein ownership could entail liability for transactions. The regulatory landscape remains murky, with contrasting approaches in the EU and U.S., yet a consensus emerged that the unknowns in AI and crypto demand clear regulatory frameworks moving forward.
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