European Union Approves First Legislation to Regulate Artificial Intelligence

AI coin

The European Union has enacted the world’s first law to regulate the artificial intelligence business. The founder of Bitcoin Fog, Roman Sterlingov, was convicted on money laundering charges. Meanwhile, major financial institutions have completed a pilot test using the Canton Network blockchain. Here are three key events that have impacted the bitcoin market over the last 24 hours.

EU Takes a Step in Artificial Intelligence Regulation

On March 13, the European Parliament gave final approval to the EU Artificial Intelligence Act, which is one of the world’s first comprehensive AI rules. According to the EU Parliament’s website, the EU Artificial Intelligence Act would regulate the 27-member bloc by ensuring AI is trustworthy and safe and respects EU basic rights while encouraging innovation.

The legislation divides machine learning models into four categories depending on the risk they represent to society, with the highest-risk models subject to the most stringent regulations. According to the EU’s website, the top category will prohibit any AI systems deemed an obvious threat to people’s safety, livelihoods, and rights, including government social scores and toys that use voice assistance to promote risky conduct.

Verdict Reached in Bitcoin Fog Case

Roman Sterlingov, the inventor of the cryptocurrency mixing service Bitcoin Fog, was convicted in the United States of money laundering, money laundering conspiracy, running an unregistered money transmitting company, and violating the DC Money Transmitters Act. The accusations carry a potential punishment of 50 years in jail, and the decision will be given on July 15. Sterlingov’s lawyer, Tok Ekeland, said in a March 12 post that his team will appeal the ruling.

According to the Department of Justice (DOJ), evidence in the lawsuit revealed that Sterlingov ran Bitcoin Fog from October 2011 to April 2021 as a money laundering business for criminals looking to conceal their illegal profits from law enforcement. During this time, the business handled over 1.2 million Bitcoin worth $400 million in transactions. According to the DOJ, a major part of the cryptocurrency was tied to darknet marketplaces that dealt with narcotics, computer fraud, and identity theft.

The jury voted to take assets associated with the confiscated Bitcoin Fog money, including about $350,000 kept in a Kraken account and 1,354 Bitcoin in a Bitcoin Fog wallet.

Canton Network and the Finance Sector

The integration of traditional banking with blockchain technology appears to be heating up, with 155 participants from 45 large institutions joining a pilot program on the Canton Network. Participants included Cboe Global Markets, Goldman Sachs, and BNY Mellon. According to Bloomberg, institutional investors took part in more than 350 simulated transactions on the Canton blockchain network, including tokenized assets, fund registration, crypto assets, securities lending, and margin management.

Digital Asset Holdings introduced Canton, an interoperable blockchain network, in May 2023. The development comes as more financial institutions are likely to invest in blockchain and cryptocurrency technology in the future. In February, Swiss bank UBS’s Hong Kong affiliate tokenized the option call warrant for Chinese smartphone firm Xiaomi’s shares in Ethereum.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.