US Senators Propose AI Legislation with Mandatory Licensing for AI Firms
Last week, Senators Richard Blumenthal and Josh Hawley introduced a bipartisan blueprint for artificial intelligence (AI) legislation. The framework suggests that AI firms should be required to obtain licenses and emphasizes that technology liability protections will not shield these companies from legal action.
The proposed framework recommends the establishment of a licensing system overseen by an independent regulatory body. It also mandates that AI model developers register with this oversight entity, which would have the authority to conduct audits of these licensing applicants. Additionally, the framework suggests that Section 230 of the Communications Decency Act, which provides legal protections to tech firms for third-party content, should not extend to AI applications.
Blumenthal and Hawley plan to hold a hearing on this issue, featuring testimony from industry figures such as Microsoft’s Brad Smith and Nvidia’s William Dally.
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Australian Lawmakers Reject Crypto Bill
The Senate Committee on Economics Legislation in Australia has advised against passing the cryptocurrency bill introduced by Senator Andrew Bragg. The committee recommends that the government continue researching the topic instead. Senator Bragg’s Digital Assets (Market Regulation) Bill 2023, which aims to protect consumers and promote investors, provides regulatory recommendations for stablecoins, licensing of exchanges, and custody requirements.
China Shuts Down 80 Crypto Influencers’ Accounts
Sina Weibo, a popular Chinese social media app with millions of daily active users, has removed 80 influencer accounts that were promoting cryptocurrency activities. These accounts, with a combined total of over 8 million followers, were accused of violating regulations related to telecommunications, finance, banking, online marketing, securities, exchanges, and internet safety. China has been cracking down on private crypto-related activities to combat capital flight, money laundering, and protect its state-run crypto efforts.
Taiwan to Restrict Unregistered Foreign Crypto Exchanges
Taiwan is planning to impose restrictions on unregistered overseas crypto exchanges operating within its jurisdiction. The upcoming guidelines for virtual asset service providers (VASPs) in Taiwan will require operators to enhance information disclosure and establish standards for reviewing listings and delistings. The guidelines also emphasize the need for separate custody of customer and platform assets and the implementation of anti-money laundering measures.
The Financial Supervisory Commission (FSC) has set ten principles, one of which prohibits foreign VASPs from illegally soliciting business in Taiwan. The FSC proposes that overseas crypto platforms without a company registration in Taiwan and non-compliance with its anti-money laundering laws should not solicit business from Taiwanese citizens.
Hot Take: Stricter Regulations on AI and Cryptocurrency
The recent proposals and actions from policymakers around the world indicate a growing interest in regulating emerging technologies like artificial intelligence (AI) and cryptocurrency. The US senators’ blueprint for AI legislation aims to establish mandatory licensing for AI firms and ensure that technology liability protections do not shield them from legal accountability.
In Australia, the rejection of the cryptocurrency bill suggests a need for further research and consideration of regulatory measures to protect consumers and promote investor confidence in the crypto market.
China’s crackdown on crypto influencers’ accounts highlights the government’s efforts to combat illicit activities and maintain control over its state-run crypto initiatives.
Taiwan’s plans to restrict unregistered foreign crypto exchanges demonstrate its commitment to preventing money laundering and enforcing compliance with anti-money laundering laws.
Overall, these developments indicate a global push for stricter regulations to address potential risks and ensure responsible development and use of AI and cryptocurrency technologies.
