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The Online Safety Bill has passed its last parliamentary hurdle in the House of Lords, meaning it will finally become law after years of delay.

The flagship piece of legislation will force social media firms to remove illegal content and protect users, especially children, from material which is legal but harmful.

The idea was conceived in a white paper in 2019 but it has been a long and rocky road to turn it into law – with delays and controversies over issues such as freedom of speech and privacy.

Perhaps most controversially, one of the proposals would force platforms like WhatsApp and Signal to undermine messaging encryption so private chats could be checked for criminal content.

Technology Secretary Michelle Donelan said: “The Online Safety Bill is a game-changing piece of legislation. Today, this government is taking an enormous step forward in our mission to make the UK the safest place in the world to be online.”

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What is the Online Safety Bill?

The bill will require social media companies to remove illegal content quickly or prevent it from appearing in the first place, including content promoting self-harm.

Other illegal content it wants to crack down on includes selling drugs and weapons, inciting or planning terrorism, sexual exploitation, hate speech, scams, and revenge porn.

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Communications regulator Ofcom will be largely responsible for enforcing the bill, with social media bosses facing fines of billions of pounds or even jail if they fail to comply.

The bill has also created new criminal offences, including cyber-flashing and the sharing of “deepfake” pornography.

The legislation has received widespread support from charities like the NSPCC, safety group the Internet Watch Foundation (IWF), bereaved parents who say harmful online content contributed to their child’s death, and sexual abuse survivors.

However, there have been concerns within the Tory Party that it is simply too far-reaching, potentially to the point of threatening free speech online.

Read more:
What is the Online Safety Bill?
Why the Online Safety Bill is proving so controversial

Online Safety Bill might not be too little, but it’s certainly too late

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Meanwhile, tech companies criticised proposed rules for regulating legal but harmful content, suggesting it would make them unfairly liable for material on their platforms.

Ms Donelan removed this measure from the bill in an amendment last year, which said that instead of platforms removing legal but harmful content, they will have to provide adults with tools to hide certain material they do not wish to see.

This includes content that does not meet the criminal threshold but could be harmful, such as the glorification of eating disorders, misogyny and some other forms of abuse.

However after backlash from parents she stressed that the bill still tasks companies with protecting children from not just illegal content, but any material which can “cause serious trauma”, like cyber-bullying, by enforcing age limits and age-checking measures.

NSPCC Chief Executive, Sir Peter Wanless said: “We are absolutely delighted to see the Online Safety Bill being passed through Parliament. It is a momentous day for children and will finally result in the ground-breaking protections they should expect online.”

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Nasdaq crypto chief pledges to ‘move as fast as we can’ on tokenized stocks

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Nasdaq crypto chief pledges to ‘move as fast as we can’ on tokenized stocks

The US Nasdaq stock exchange is making SEC approval of its proposal to offer tokenized versions of stocks listed on the exchange a top priority, according to the exchange’s crypto chief.

“We’ll just move as fast as we can,” Nasdaq’s head of digital assets strategy, Matt Savarese, said during an interview with CNBC on Thursday, when asked whether the SEC could approve the proposal this year.

“I think what we have to really evaluate where the public comments come back in and then answer and respond to the SEC questions as they come through,” Savarese said. “We hope to kind of work with them as quickly as possible,” Savarese said.

Savarese says Nasdaq isn’t “upending the system”

The proposal, submitted by Nasdaq on Sept. 8, is requesting to allow investors to buy and sell stock tokens — digital representations of shares in publicly traded companies — on the exchange.

Savarese emphasized that Nasdaq is not trying to overhaul the way stocks are invested in when asked whether he expects other major exchanges to follow suit.

Nasdaq, SEC, United States
Nasdaq’s head of digital assets, Matt Savarese, spoke to CNBC on Thursday. Source: CNBC

“We’re not looking at upending the system; we want everyone to come along for that ride and bring tokenization more into the mainstream,” he said.

“We want to do it in that responsible investor-led way first, under the SEC rules themselves,” he added.

It was only in October that Robinhood CEO Vlad Tenev said that tokenization will “eventually eat the whole financial system.”

The crypto industry is divided on tokenized equities

Savarese emphasized that Nasdaq is aiming to be an innovator in the ecosystem, noting that the exchange was the first to transition markets from paper-based trading to electronic systems.

Related: DATs bring crypto’s insider trading problem to TradFi: Shane Molidor

Tokenizing stocks has been one of the most significant talking points in the crypto industry this year.

On Sept. 3, Galaxy Digital CEO Mike Novogratz said the company became the first Nasdaq-listed company to tokenize its equity on a major blockchain following its launch on the Solana network.

The conversation around tokenized equities has also drawn skepticism from the crypto industry.

On Oct. 1, Rob Hadick, general partner at crypto venture firm Dragonfly, told Cointelegraph that tokenized equities will be a significant benefit to traditional markets, but may not be a boon to the crypto industry as others have predicted.

Hadick said that if tokenized stocks use layer-2 networks, it creates “leakage” as value and may not flow back to Ethereum or the broader crypto ecosystem as much as hoped.

Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice