BlackRock and MSCI are facing congressional probes over facilitating investments

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Quote from: joniboini on August 10, 2023, 06:22:28 AM

Quote from: Zoomic on August 09, 2023, 09:35:00 AM

It is already at the point. Very soon we will witness the migration happening. It may start from moving offices and branches and lead to total exit of the US market. We all understand how formidable the US market is, but immediately one discovers how to do without the market, others will follow.

I'm not sure I get it. You say it is already happening but then the migration is yet to happen. Do you happen to know which business is leaving the US completely that was based in the US from the beginning? I can only recall Bitrexx and other exchanges that were based overseas like Binance. Personally, I don't think a business like Blackrock will do that.

I guess we'll just wait and see if the US crypto market will be dead completely or if will it stay with stricter regulations in the future.

The only reason why most crypto firms might not consider leaving the US is because of the market size. The US has not also been very stringent as it is today. But if these regulations persist and these crypto firms have other options, they will have to leave the US. China thought the cryptosystem will collapse without their support, but the market grew more resistant and stronger. Coinbase co-founder Brian Armstrong once threatened to relocate overseas if the SEC under Gary Gensler keep intensifying the scrutiny on the exchange (although he later assured Coinbase customers that the firm is not leaving the market).

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@dansus021. It does not have a connection with the ETF. This might only be some politicians in the American congress trying to get some attention on Blackrock and MSCI's business with the Chinese and to make them stop providing investment inflows of American dollars in China.

America and China have not been very friendly recently because the Biden administration supports Ukraine in the war and China under president Xi has been in support of Russia.

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What so Blackrock like to invest in China companies but the article said it is through an index fund meaning it is through a public company right? Not directly to the company right?

and the other hand it is connected with current ETF program ?

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Quote from: joniboini on August 10, 2023, 06:22:28 AM

Quote from: Zoomic on August 09, 2023, 09:35:00 AM

It is already at the point. Very soon we will witness the migration happening. It may start from moving offices and branches and lead to total exit of the US market. We all understand how formidable the US market is, but immediately one discovers how to do without the market, others will follow.

I'm not sure I get it. You say it is already happening but then the migration is yet to happen. Do you happen to know which business is leaving the US completely that was based in the US from the beginning? I can only recall Bitrexx and other exchanges that were based overseas like Binance. Personally, I don't think a business like Blackrock will do that.

I guess we'll just wait and see if the US crypto market will be dead completely or if will it stay with stricter regulations in the future.

Can a crypto casino die in the US?
Tax legislation in the United States works great in the field of cryptocurrencies, which means that after regulation there will be a new entry of crypto companies into this market. Therefore, new crypto exchanges will soon appear on the US market, and unnecessary competitors will be kicked out.

joniboini

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Quote from: Zoomic on August 09, 2023, 09:35:00 AM

It is already at the point. Very soon we will witness the migration happening. It may start from moving offices and branches and lead to total exit of the US market. We all understand how formidable the US market is, but immediately one discovers how to do without the market, others will follow.

I'm not sure I get it. You say it is already happening but then the migration is yet to happen. Do you happen to know which business is leaving the US completely that was based in the US from the beginning? I can only recall Bitrexx and other exchanges that were based overseas like Binance. Personally, I don't think a business like Blackrock will do that.

I guess we'll just wait and see if the US crypto market will be dead completely or if will it stay with stricter regulations in the future.

zasad@

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Quote from: joniboini on August 09, 2023, 05:28:59 AM

Quote from: Fiatless on August 06, 2023, 05:44:33 AM

But the consequence is that many viable businesses will have to leave the US to other countries. It's also good news to other nations that these businesses will move to.

I honestly doubt it will go to that point, especially if the business is based in the US, to begin with. It is likely that they will move some offices to other countries or use other means to bypass the regulation that slows down their business, but unlikely to move outside the US completely unless they can go to Europe or China. Paying a fine once in a while is probably more profitable for the business involved compared to losing access to the US market altogether. CMIIW.

All crypto companies open business in other countries and try to make sure that there are no legal ties between related companies, because these are big risks for the whole business. Now in this business there is a lot of regulation and a very expensive threshold for entering such a business, so there will be few newcomers.

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Quote from: joniboini on August 09, 2023, 05:28:59 AM

Quote from: Fiatless on August 06, 2023, 05:44:33 AM

But the consequence is that many viable businesses will have to leave the US to other countries. It's also good news to other nations that these businesses will move to.

I honestly doubt it will go to that point, especially if the business is based in the US, to begin with. It is likely that they will move some offices to other countries or use other means to bypass the regulation that slows down their business, but unlikely to move outside the US completely unless they can go to Europe or China.

It is already at the point. Very soon we will witness the migration happening. It may start from moving offices and branches and lead to total exit of the US market. We all understand how formidable the US market is, but immediately one discovers how to do without the market, others will follow.

Quote

Paying a fine once in a while is probably more profitable for the business involved compared to losing access to the US market altogether. CMIIW.

Paying a fine once a while wi probably be more profitable, but you cannot control the while. Once your start paying, the will also be another law to compel you pay often.

joniboini

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Quote from: Fiatless on August 06, 2023, 05:44:33 AM

But the consequence is that many viable businesses will have to leave the US to other countries. It's also good news to other nations that these businesses will move to.

I honestly doubt it will go to that point, especially if the business is based in the US, to begin with. It is likely that they will move some offices to other countries or use other means to bypass the regulation that slows down their business, but unlikely to move outside the US completely unless they can go to Europe or China. Paying a fine once in a while is probably more profitable for the business involved compared to losing access to the US market altogether. CMIIW.

zasad@

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Quote from: Fiatless on August 06, 2023, 05:44:33 AM

Quote from: Baofeng on August 05, 2023, 05:41:16 PM

Chinese + Blackrock doesn't sound good to US authorities, hehehe. Specially that the government of US seems to be anti crypto and Blackrock involving themselves into bitcoin could be a giveaway as to why they are going on a witch hunt.

And Lo and behold, after further digging, they could have found a connection between them and the Chinese, hence as quick as they snap their fingers, there is going to be a congressional probes. And for sure those who are going to probe are included in the memo.

(https://twitter.com/EleanorTerrett/status/1656362002577772544?s=20)

This probe will definitely have an adverse effect to their proposal for the approval of Spot Bitcoin ETF. It might be a well-planned plot to deny BlackRock's request. If they are indicted, it will become a ground for the ETF denial. The public will support because it will be seen that the company is anti-US and working against national interest.

Futures Bitcoin ETF is already running and Spot Bitcoin ETF will also be approved. But the company has to seek these permits in the US through the courts. And another point, what to do with a dozen other requests for the Spot Bitcoin ETF? Accuse each company of violating the law, and then refuse on this basis?

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Quote from: avikz on August 04, 2023, 09:37:02 AM

Lol! Is US government facing a cash crunch due to not being actively involved in war and horrendous human right violation? Or it seems a new oil source is not found in any other location of middle East! Don't know! But such kind of probes usually end with a billion dollar penalty which helps no one but the government.

But I love the way US is cracking down on various businesses. Slowly it will push the big corporates out of US. Not anytime soon but definitely in the future when big corporates will consider new businesses.

Many Chinese businesses are leaving the US because of the crackdown on businesses connected to China. The trade war started by Donald Trump has been sustained by the present regime. Although this policy is reducing the influence of China on the US economy. But the consequence is that many viable businesses will have to leave the US to other countries. It's also good news to other nations that these businesses will move to.

Quote from: Baofeng on August 05, 2023, 05:41:16 PM

Chinese + Blackrock doesn't sound good to US authorities, hehehe. Specially that the government of US seems to be anti crypto and Blackrock involving themselves into bitcoin could be a giveaway as to why they are going on a witch hunt.

And Lo and behold, after further digging, they could have found a connection between them and the Chinese, hence as quick as they snap their fingers, there is going to be a congressional probes. And for sure those who are going to probe are included in the memo.

(https://twitter.com/EleanorTerrett/status/1656362002577772544?s=20)

This probe will definitely have an adverse effect to their proposal for the approval of Spot Bitcoin ETF. It might be a well-planned plot to deny BlackRock's request. If they are indicted, it will become a ground for the ETF denial. The public will support because it will be seen that the company is anti-US and working against national interest.

Baofeng

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Quote from: avikz on August 04, 2023, 09:37:02 AM

Lol! Is US government facing a cash crunch due to not being actively involved in war and horrendous human right violation? Or it seems a new oil source is not found in any other location of middle East! Don't know! But such kind of probes usually end with a billion dollar penalty which helps no one but the government.

But I love the way US is cracking down on various businesses. Slowly it will push the big corporates out of US. Not anytime soon but definitely in the future when big corporates will consider new businesses.

Chinese + Blackrock doesn't sound good to US authorities, hehehe. Specially that the government of US seems to be anti crypto and Blackrock involving themselves into bitcoin could be a giveaway as to why they are going on a witch hunt.

And Lo and behold, after further digging, they could have found a connection between them and the Chinese, hence as quick as they snap their fingers, there is going to be a congressional probes. And for sure those who are going to probe are included in the memo.

(https://twitter.com/EleanorTerrett/status/1656362002577772544?s=20)

zasad@

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Quote from: joniboini on August 04, 2023, 06:49:30 AM

Quote from: zasad@ on August 02, 2023, 08:34:16 AM

The investigation seeks to determine facts that would inform US policy on China, per the Journal."

So, If I get this right, congress claims that Blackrock is sharing confidential data with their China partners which might worsen the US-China relationship even further. That is some serious allegations. Although I'm sure Blackrock will just get away by paying some fine and then continue their business as usual.

Relations between the US and China are not the best, because they are competitors. The USA concentrates on its territory the best technological productions and entices manufacturers from Europe. In the long run, China will win because their system of governance is better, although not at all democratic.

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Lol! Is US government facing a cash crunch due to not being actively involved in war and horrendous human right violation? Or it seems a new oil source is not found in any other location of middle East! Don't know! But such kind of probes usually end with a billion dollar penalty which helps no one but the government.

But I love the way US is cracking down on various businesses. Slowly it will push the big corporates out of US. Not anytime soon but definitely in the future when big corporates will consider new businesses.

joniboini

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Quote from: zasad@ on August 02, 2023, 08:34:16 AM

The investigation seeks to determine facts that would inform US policy on China, per the Journal."

So, If I get this right, congress claims that Blackrock is sharing confidential data with their China partners which might worsen the US-China relationship even further. That is some serious allegations. Although I'm sure Blackrock will just get away by paying some fine and then continue their business as usual.

zasad@

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Quote from: yhiaali3 on August 03, 2023, 11:34:41 PM

Quote from: zasad@ on August 03, 2023, 06:44:43 AM

More globally, Blackrock owns a huge number of companies that invest in bitcoin and other cryptocurrency projects. So why is this happening right now, when cryptocurrency legislation is beginning to take shape in the US?
I think that everything here is much more complicated than the formal accusations of investing in Chinese companies.

Yes, it is very interesting. As soon as I read the title, I immediately thought, Why now? What irony!!!

This is really laughable, the actions of the US government often seem childish, Blackrock is a giant company with a long history of investment, but the government did not discover that the company was "facilitating investments in Chinese companies" until now!!! After Blackrock decided to invest in Bitcoin??!!! Come on man!!!

It seems clear that they want to cause trouble for the company just because it decided to invest in Bitcoin, perhaps it is a message to the company that they should reverse their decision.

The legal case between the Securities and Exchange Commission and Ripple lasted more than 2 years, and how long will such a process with BlackRock last? As far as I know, this company does not make direct investments, but creates various funds that then make investments. And the companies that BlackRock has invested in have been seen to promote the development of other cryptocurrencies, not just bitcoin.

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Quote from: zasad@ on August 03, 2023, 06:44:43 AM

More globally, Blackrock owns a huge number of companies that invest in bitcoin and other cryptocurrency projects. So why is this happening right now, when cryptocurrency legislation is beginning to take shape in the US?
I think that everything here is much more complicated than the formal accusations of investing in Chinese companies.

Yes, it is very interesting. As soon as I read the title, I immediately thought, Why now? What irony!!!

This is really laughable, the actions of the US government often seem childish, Blackrock is a giant company with a long history of investment, but the government did not discover that the company was "facilitating investments in Chinese companies" until now!!! After Blackrock decided to invest in Bitcoin??!!! Come on man!!!

It seems clear that they want to cause trouble for the company just because it decided to invest in Bitcoin, perhaps it is a message to the company that they should reverse their decision.

zasad@

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Quote from: goldkingcoiner on August 02, 2023, 08:40:08 AM

Quote from: zasad@ on August 02, 2023, 08:34:16 AM

https://www.aol.com/blackrock-msci-facing-congressional-probes-151539050.html
"BlackRock and MSCI are facing probes by lawmakers for facilitating investments in Chinese firms, the WSJ reported.

The probes are related to investments in companies flagged by the US over security risks or human rights violations.

The investigation seeks to determine facts that would inform US policy on China, per the Journal."
___
And this is interesting. Who decided to start an investigation into the activities of the largest financial giant in the world?

Lol, AOL?

The only Bitcoin-related thing in this topic is Blackrock being invested in Bitcoin. But that has nothing to do with the news headline.

I have no idea whether Blackrock is going to get charged for facilitating Chinese investments, but even so, I fail to see how exactly it will have an effect on Bitcoin. Worst case, they are forced to pay a fine that they can easily afford without having to sell their Bitcoin. So there is no point in panicking about this having an effect on Bitcoin. So unless this has some effect on Bitcoin, I don't think this topic is worth discussing.

More globally, Blackrock owns a huge number of companies that invest in bitcoin and other cryptocurrency projects. So why is this happening right now, when cryptocurrency legislation is beginning to take shape in the US?
I think that everything here is much more complicated than the formal accusations of investing in Chinese companies.

goldkingcoiner

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Quote from: zasad@ on August 02, 2023, 08:34:16 AM

https://www.aol.com/blackrock-msci-facing-congressional-probes-151539050.html
"BlackRock and MSCI are facing probes by lawmakers for facilitating investments in Chinese firms, the WSJ reported.

The probes are related to investments in companies flagged by the US over security risks or human rights violations.

The investigation seeks to determine facts that would inform US policy on China, per the Journal."
___
And this is interesting. Who decided to start an investigation into the activities of the largest financial giant in the world?

Lol, AOL?

The only Bitcoin-related thing in this topic is Blackrock being invested in Bitcoin. But that has nothing to do with the news headline.

I have no idea whether Blackrock is going to get charged for facilitating Chinese investments, but even so, I fail to see how exactly it will have an effect on Bitcoin. Worst case, they are forced to pay a fine that they can easily afford without having to sell their Bitcoin. So there is no point in panicking about this having an effect on Bitcoin. So unless this has some effect on Bitcoin, I don't think this topic is worth discussing.

zasad@

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https://www.aol.com/blackrock-msci-facing-congressional-probes-151539050.html
"BlackRock and MSCI are facing probes by lawmakers for facilitating investments in Chinese firms, the WSJ reported.

The probes are related to investments in companies flagged by the US over security risks or human rights violations.

The investigation seeks to determine facts that would inform US policy on China, per the Journal."
___
And this is interesting. Who decided to start an investigation into the activities of the largest financial giant in the world?

Topic: BlackRock and MSCI are facing congressional probes over facilitating investments (Read 186 times)