The Scenius State of Regulation (Issue #11)
Crypto Policy & Regulation: June 2023
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U.S. Commodities Agency May Change Risk Rules to Consider Crypto (June 1)
The CFTC has proposed an overhaul of its rules for risk management, and Commissioner Christy Goldsmith Romero said the changes should insist firms prepare themselves for crypto volatility and the risks from holding customers’ digital assets.
U.S. House Republicans Push for Crypto Oversight With Bill to Make SEC Play Ball (Jun 2)
In the most significant crypto oversight proposal Congress has come up with this year, the proposed legislation would check a lot of boxes the digital assets sector is clamoring for. But the draft bill released Friday by the leaders of the House Financial Services Commission and Agriculture Committee hasn’t yet drawn Democratic support and comes with caveats, including the SEC’s ongoing power to determine which assets are securities that would remain under that agency’s authority.
The Blockchain Association has filed an amicus brief in an ongoing lawsuit by think tank Coin Center against the Treasury Department and its sanctions watchdog, the Office of Foreign Asset Control. In the suit, filed last October, Coin Center has alleged that the U.S. Treasury Department’s sweeping sanctions against crypto mixer Tornado Cash harmed Americans and their ability to transact privately using the Ethereum network.
Defunct Crypto Hedge Fund 3AC Insists on Taking Part in Genesis Mediation (June 5)
The defunct crypto hedge fund has claimed over $1 billion against Genesis, which itself filed for bankruptcy in January.
New York’s Met Museum Agrees to Return $550K in FTX Donations (June 5)
The museum has agreed to return the payments, made in March and May last year by FTX’s U.S. entity West Realm Shires Services, in full and without further litigation, said the court document.
SEC Sues Crypto Exchange Binance and CEO Changpeng Zhao, Alleging Multiple Securities Violations (June 5)
Binance, Binance.US and CZ offered unregistered securities to the general public in the form of the BNB token and Binance-linked BUSD stablecoin, said the suit, which also alleges that Binance's staking service violated securities law. There are similar charges against BAM Trading – the operating company for Binance.US – and Binance itself, including failure to register as a clearing agency, failure to register as a broker and failure to register as an exchange. The SEC also alleged that Binance allowed for commingling of customer funds, that CZ was "secretly" controlling Binance.US and that a CZ-owned and operated entity was inflating Binance.US's trading volume. The company already faces a suit from the Commodity Futures Trading Commission.
SEC Labels 10 Tokens Securities in Binance Lawsuit (June 5)
In the SEC’s charges against Binance on Monday, the regulator advanced its constraints against cryptocurrencies, claiming 10 additional tokens were in violation of securities law. In federal court documents, the SEC deemed the following tokens securities: SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS and COTI. The SEC refers to these ten tokens and others as “crypto asset securities” in its complaint.
SEC Sues Coinbase on Unregistered Securities Exchange Allegations (June 6)
The suit comes a day after the SEC sued Binance. According to the SEC, Coinbase has operated as an unregistered broker, exchange and clearing agency simultaneously, arguing that it solicited customers, handled orders, allowed for bids and acted as an intermediary all at once. The suit named Coinbase, Inc. and Coinbase Global, Inc. as defendants, but did not name founder and CEO Brian Armstrong or any other executive.
US States Are Going After Coinbase Following SEC Lawsuit — Here’s How (June 6)
A collection of states are going after Coinbase for alleged securities violations, yet another blow to the American crypto exchange after the Tuesday SEC lawsuit. Securities regulators from Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin are part of a task force aimed at Coinbase’s trading and staking services.
U.S. Doesn't 'Need More Digital Currency' Because It Has the Dollar, Says SEC's Gensler (June 6)
The U.S. doesn’t need any more digital currency, said the SEC chief Gary Gensler, as his agency sues Binance and Coinbase for operating unregistered securities exchanges.
Genesis Bankruptcy Judge Extends Mediation Period Between Genesis, Creditors (June 6)
The insolvent lender will now have until August 2 to submit a plan to emerge from bankruptcy.
The SEC Says These Crypto Assets Are Securities: Their Reasoning Is Wrong (June 7)
Over the last few months, the SEC has taken to unilaterally labeling certain crypto assets as securities in unrelated lawsuits. But some industry participants say the agency doesn’t understand the technology behind these tokens well enough to make this claim.
Yellen ‘Very Supportive’ of SEC, CFTC Crypto Enforcement (June 7)
US Treasury Secretary Janet Yellen said Wednesday morning that in light of the recent SEC lawsuits against Coinbase and Binance, she supports American financial regulators’ attempts to “protect consumers and investors” who are involved in crypto. Despite giving a thumbs up to the SEC and the CFTC,Yellen declined to comment on the individual cases against Coinbase and Binance.
SEC Seeks Temporary Restraining Order to Freeze Binance.US Assets (June 7)
The filing comes a day after the SEC sued Binance.
U.S. Court Tells SEC to Respond to Coinbase's Rulemaking Petition Within a Week (June 7)
A U.S. judge has ordered the SEC to respond to Coinbase’s rulemaking petition or explain why it shouldn’t.
SEC’s Binance.US Probe Started in 2020, Court Filings Show (June 7)
The U.S. Securities and Exchange Commission (SEC) has been investigating Binance.US since at least 2020, court filings published late Tuesday show. In the filings, the regulator detailed evidence hundreds of millions of dollars in profiteering by the crypto exchange.
U.S. Lawmakers Urge IRS, Treasury to Hurry Crypto Tax Rules (June 7)
Congressmen Brad Sherman and Stephen Lynch called the industry "a major source of tax evasion" in a letter asking for the prompt release of proposed regulations on reporting requirements.
Kim Kardashian EMAX Suit to Proceed as Court Considers Updated Complaint (June 7)
A California judge backtracked on a tentative ruling to dismiss the allegations against the reality TV star after receiving a more detailed complaint.
Robinhood Joins Coinbase in Saying It Tried to 'Come In and Register' Like SEC Wanted (June 7)
With Coinbase (COIN) and Binance accused of running illegal exchanges by the SEC, the latest industry testimony in the U.S. House of Representatives this week revealed that companies had desperately sought the agency’s help to properly register but were turned away. Robinhood Markets' chief compliance lawyer told lawmakers that the popular trading firm was trying to register as a special-purpose broker for digital assets, but couldn’t get the agency to guide Robinhood into crypto compliance, though he said the staff seemed to want to help.
Binance Says Gensler Once Offered to Be an 'Informal Advisor' (June 7)
A letter from Binance’s counsel says that SEC Chair Gary Gensler should be recused from the case, given his history with the exchange and its founder.
Tuberville bill would block Chinese ownership of US crypto companies (June 8)
Sen. Tommy Tuberville, R-Ala., introduced a bill Wednesday alongside Sen. Kirsten Gillibrand, D-N.Y., that will ban companies established in China from acquiring a stake in American digital asset firms. The bill is an attempt to rid the influence of the Chinese Communist Party on American crypto companies, according to Tuberville.
Binance Redirected $12B to Firms Controlled by CEO Changpeng Zhao, SEC Says (June 8)
SEC says billions in customer funds were directed to Zhao’s firm Merit Peak via a holding company called Key Vision Development Limited.
Crypto Exchange Bittrex’s Customer-Repayment Plan Faces U.S. Government Objection (June 8)
A proposal by bankrupt crypto exchange Bittrex for returning customer cash and crypto faces a legal challenge from the U.S., which is still owed millions for sanctions violations, according to a Wednesday court filing.
U.S. Senators Tell DOJ to Investigate Binance for Potentially Lying to Lawmakers (June 8)
Two senate democrats, including Sen. Elizabeth Warren, allege in a letter that the platform may have lied about Binance.US being an independent entity.
SEC’s Gensler Rebuffs Crypto Complaints, Says Gave Ample Warning Heat Was Coming (June 8)
SEC Chair Gary Gensler argued Thursday there’s nothing special about the assets or exchanges in the crypto sector, and their backers can’t hide behind claims that their tokens provide utility. “Some additional utility does not remove a crypto asset security from the definition of an investment contract,” Gensler said, though he added that tokens built for exclusive use in their blockchain ecosystems can be exempted from such accusations. “The investing public generally buys these crypto assets, at least in part, anticipating profit based on the efforts of those token issuers.”
Solana Foundation: SOL Is 'Not a Security' (June 8)
The Solana Foundation is disputing the U.S. Security and Exchange Commission’s (SEC) classification of its SOL token as an unregistered security. “The Solana Foundation strongly believes that SOL is not a security,” the Solana Foundation told CoinDesk in a statement. “SOL is the native token to the Solana blockchain, a robust, open-source, community-based software project that relies on decentralized user and developer engagement to expand and evolve.”
FTX Bankruptcy Judge Says U.S. Courts Should Have Full Control Over $7.3B in Disputed Assets (June 8)
A federal judge has shot down a request to relinquish control over embattled crypto exchange FTX's $7.3 billion in disputed assets during a Thursday bankruptcy hearing, dashing Bahamian liquidators' hopes that the island nation's judicial system could stake a claim to some of the assets.
New Stablecoin Bill Drafted by House Republicans as Compromise With Democrats (June 9)
The House Financial Services Committee has released this year’s third draft of a stablecoin bill, meant to combine ideas from both parties in advance of a hearing next week.
Cardano Developer Rejects SEC Claim Its ADA Token Is a Security (June 9)
Cardano development company IOG dismissed U.S. Securities and Exchange Commission (SEC) claims that ada (ADA), the blockchain's native token, can be viewed as a security.“Under no circumstances is ADA a security under U.S. securities laws. It never has been,” IOG said. “Understanding how decentralized blockchains operate is a fundamental component in creating responsible legislation.”
Curve Finance CEO Egorov Sued by 3 DeFi-Focused Venture Capital Firms (June 9)
Michael Egorov, the CEO of decentralized finance (DeFi) firm Curve Finance, is being sued for fraud by venture capital firms ParaFi Capital, Framework Ventures and 1kx in the U.S. A complaint filed in the Superior Court of California, San Francisco, alleges Egorov misappropriated trade secrets of the three VC firms, and defrauded the firms out of close to $1 million in funds while dangling the false promise of a possible stake in Curve to gain the investors’ trust and support.
Mt. Gox's Hackers Are 2 Russian Nationals, U.S. DOJ Alleges in Indictment (June 9)
The U.S. Department of Justice charged Russian nationals Alexey Bilyuchenko and Aleksandr Verner with the 2014 Mt. Gox hack, at the time one of the biggest thefts in crypto history.
CFTC Wins Lawsuit Against Ooki DAO (June 9)
The regulator's victory serves as proof decentralized entities can face legal consequences for their dealings, contrary to popular beliefs.
Dems press Treasury, IRS to crackdown on crypto wash trading (June 11)
Reps. Brad Sherman and Stephen Lynch earlier this week asked the Treasury and IRS to “promptly” issue regulations to address tax evasion in crypto.
House Republicans try to oust Gensler with new bill (June 12)
Two House Republicans have partnered on a bill to kick Gary Gensler to the curb and restructure the Securities and Exchange Commission. Rep. Warren Davidson, R-Ohio, and House Majority Whip Tom Emmer, R-Minn., introduced the SEC Stabilization Act Monday. The bill suggests that the SEC remove the chair position, which Gary Gensler currently holds, and instead appoint an “executive director” to oversee operations.
SEC Crypto Crackdown Adds Urgency for U.S. Lawmakers to Produce Regulatory Framework This Year (June 12)
The SEC’s lawsuits against Binance and Coinbase highlight the need for U.S. lawmakers to come up with “a comprehensive framework on how to regulate the crypto industries and the relative responsibilities of SEC vs the Commodity Futures Trading Commission (CFTC),” JPMorgan (JPM) said in a Thursday research report.
BitGo's Suit Against Galaxy Digital Over Canceled $1.2B Purchase Dismissed by Delaware Judge (June 12)
A federal judge has sided with Galaxy Digital – the crypto merchant bank led by Mike Novogratz – in its decision to terminate its $1.2 billion acquisition of crypto custodian BitGo.
House Republicans push back on SEC proposal to alter exchange definition (June 13)
In a letter sent to the securities regulator Tuesday ahead of the committee’s crypto-focused hearing, Republicans argued the proposed rule exceeds “statutory authority” granted to the SEC.
Investing Platform eToro to Delist 4 Cryptocurrencies for U.S. Users Next Month (June 13)
Social investing platform eToro will delist a selection of crypto token for its U.S. customers in a month's time in response to recent legal action by the SEC. From July 12, U.S. customers will no longer be able to open new positions in the tokens of Algorand (ALGO), Decentraland (MANA), Dash (DASH) and Polygon (MATIC).
U.S. SEC Out-of-Bounds in Dragging DeFi Into Proposed Exchange Rule, Industry Says (June 13)
The SEC wants to stretch how it identifies exchanges it needs to regulate, and the agency’s inbox is jammed with crypto industry letters accusing it of reaching well beyond its legal powers and potentially forcing rules on services the platforms need, such as electric companies.
Hinman Emails Reveal 2018 Speech on Ether Drew Input From Multiple SEC Officials (June 13)
A number of emails tied to the one-time Director of Corporation Finance William Hinman’s 2018 speech saying Ether did not look like a security were published Tuesday by Ripple in its ongoing defense against an SEC lawsuit alleging the company illegally sold XRP tokens as an unregistered security for over seven years. The emails were published alongside an updated motion for summary judgment.
Crypto Lender Genesis Amends Reorganization Plan as Mediated Talks Continue (June 13)
The updated plan from mediated discussions with parent company DCG reflects “substantial agreement” on several key issues.
U.S. Treasury Examining How Using Digital Dollars Could Be Kept Private (June 13)
The U.S. Treasury Department has been studying how it might keep retail transactions in a potential digital dollar as private and anonymous as possible, said Graham Steele, the assistant secretary for financial institutions, though he said the U.S. hasn’t yet decided whether to move forward on a central bank digital currency (CBDC).
U.S. Judge Rebuffs SEC Request for Binance.US Asset Freeze for Now (June 13)
The federal judge overseeing the SEC's case against Binance and Binance.US declined to order a temporary restraining order freezing the U.S. trading platform's assets.
SEC Says It May Make a Recommendation on Coinbase Petition Within 4 Months (June 13)
The SEC hasn't made a decision on whether it will respond to Coinbase's petition for rulemaking and its enforcement action against the crypto trading platform isn't inconsistent with any decision on rulemaking, the regulator said Tuesday.
Bankrupt Crypto Exchange Bittrex U.S. Set to Allow Withdrawals Starting Thursday (June 14)
The U.S. arm of crypto exchange Bittrex is set to open for customer withdrawals Thursday following a ruling by a Delaware bankruptcy court.
Binance.US, SEC Ordered to Start Negotiations Wednesday Amid Asset Freeze Tussle (June 14)
A U.S. federal judge has ordered crypto exchange Binance, its local affiliate Binance.US and the SEC to attend a mediation conference on Wednesday to hash out restrictions on operations as the regulator's case against the companies continue.
Bitcoin Friendly Miami Mayor Francis Suarez Jumps Into Presidential Race (June 14)
Suarez joins an increasingly crowded field as a longshot candidate for the Republican nomination. The mayor has accepted his salary in bitcoin.
Hong Kong-based CoinEx to exit New York, pay $1.7M in NYAG settlement (June 15)
CoinEx agreed to settle with the New York Attorney General’s office after being accused of failing to register as a securities and commodities broker-dealer. Of the $1.7 million sum, $1.1 million will go toward refunds for nearly 4,700 New Yorkers. The other $600,000 will go to pay state penalties.
3AC Seeks Contempt of Court Ruling on Founder Kyle Davies for Failing to Respond (June 15)
The filing urges a New York court to impose a fine of $10,000 per day for wilfully ignoring previous requests, citing Davies’ lavish lifestyle and handsome profits from having run the company, whose bankruptcy in the middle of last year soon sent shockwaves across the crypto sector.
Crypto Lender Celsius Updates Bankruptcy Plan After Fahrenheit Deal (June 15)
Defunct crypto lender Celsius has filed an updated bankruptcy plan to reflect a successful bid for assets by the Fahrenheit consortium. The plan, filed early Thursday, must be agreed by the New York bankruptcy court overseeing the wind-up, and is already set to see creditor pushback.
The judge overseeing Sam Bankman-Fried's criminal trial will allow the government to treat some of the charges against him as part of a separate criminal trial for the moment.
Ripple, SEC Seem to Agree About Not Taking Hinman Speech Seriously (June 15)
Despite the rush of attention this week on the insider deliberations that went into writing a five-year-old speech from William Hinman - the former head of the SEC’s corporation finance division - the agency’s past uncertainty over the status of ether (ETH) never amounted to formal commission-approved rules or guidance. So the dialogue over the ex-official’s one-time remarks may offer some insights, but it's unlikely to move the needle on the agency's crypto policy.
Crypto Lender Abra Has Been Insolvent for Months, State Regulators Say (June 15)
In an emergency cease-and-desist order, the Texas State Securities Board alleged that Abra (otherwise known as Plutus Financial), Abra Boost, Plutus Lending and Abra founder William Barhydt misled the public, committed securities fraud and the company has been insolvent for months.
U.S. Court Will Rule on Terraform Labs' Push to Dismiss SEC Lawsuit Within a Month (June 15)
The question of what exactly an "investment contract" is and whether that phrase applies to TerraUSD (UST) became the heart of the Thursday night hearing on Terraform Labs' motion to dismiss a lawsuit brought by the U.S. Securities and Exchange Commission.
OKCoin Accused by FDIC of Making False Claims About Customer Protections (June 15)
OKCoin must scrub misleading statements that suggest its customers’ accounts are protected by the U.S. Federal Deposit Insurance Corp. (FDIC), the U.S. banking regulator ordered late Thursday, complaining the company is making false claims.
U.S. Banking Watchdog Makes Case for Tokenization, Just Not on Public Blockchains (June 16)
Self-styled crypto skeptic Michael Hsu, the acting head of the U.S. Office of the Comptroller of the Currency (OCC), said tokenization of assets is a serious advance into the future of finance, but decentralized blockchains may be too problematic to handle that movement.
CFTC to Review Prediction Market Kalshi’s Contracts to Bet on Control of Congress (June 16)
The CFTC will decide on June 26 whether to start a formal 90-day review of prediction market provider KalshiEX’s contract that allows users to bet on which party takes control of the U.S. Congress.
A federal judge signed off on a temporary agreement between the SEC, global crypto exchange Binance and its U.S. affiliate to have Binance.US take steps to ensure only local employees can access customer funds as the regulator and companies work through an SEC lawsuit.
Hinman Documents Release in SEC-Ripple Case Is a Boost to Ether (June 19)
Emails tied to former Director of Corporation Finance William Hinman’s 2018 speech saying ether did not look like a security were published last Tuesday by Ripple in its defense against an SEC lawsuit. The release of the Hinman papers is a boost to ether (ETH), and is likely to trigger a move to more decentralization in the crypto market, JPMorgan (JPM) said in a research report Thursday.
FTX’s Bankruptcy Fees Already Topped $200M, Court Examiner Says (June 21)
The wind-up of crypto exchange FTX is set to be “very expensive by any measure” with professional fees already amounting to over $200 million, a court-appointed examiner said in a filing made on Tuesday.
Fed Chair Powell Says Central Bank Needs ‘Robust’ Role Overseeing U.S. Stablecoins (June 21)
"We do see payment stablecoins as a form of money, and in all advanced economies, the ultimate source of credibility in money is the central bank," Powell said in testimony at a twice-yearly hearing on monetary policy. "We believe it would be appropriate to have quite a robust federal role.”
Prime Trust Has 'Shortfall of Customer Funds,' Nevada Regulator Says (June 22)
The Department's Financial Institutions Division (FID), which oversees state-regulated trust companies, ordered Prime Trust to cease all activities which violate Nevada regulations, alleging that the company's "overall financial condition ... has considerably deteriorated to a critically deficient level."
How ‘surveillance-sharing’ is designed to deter bitcoin ETF manipulation (June 22)
The listing exchanges of proposed ETFs must show the SEC it is able to detect fraud and manipulation via these agreements, which has proven difficult
RFK Jr outlines pro-bitcoin stance that's light on crypto regulations: NY Post (June 23)
Speaking Thursday to The New York Post, Kennedy said he would introduce policies that "support bitcoin and the freedom to transact and that allow individuals to manage their own bitcoin wallets, nodes, and passwords."
CFTC Takes Action Against New York Resident for $21M Crypto Pooling Scam (June 23)
The CFTC has filed an enforcement action against a New York city resident, William Koo Ichioka, for fraudulently misappropriating over $21 million from over 100 commodity pool participants' funds, according to a statement.
SEC Relinquishes $30M BlockFi Penalty Until Investors Are Repaid (June 23)
The regulator agreed to forego the payment, owed as part of a settlement of charges against BlockFi, to maximize and speed up payments to investors.
Alameda Seeks Return of $700M Paid to ‘Super Networkers’ for Celebrity, Political Access (June 23)
The billions promised to “super networkers” Michael Kives and Bryan Baum show Bankman-Fried’s disregard for formalities in spending money from companies he treated as a “slush fund,” lawyers for FTX’s new management said in the Thursday court filing.
Coinbase Wins Supreme Court Ruling in Arbitration Lawsuit (June 23)
The ruling, which won a 5-4 majority, allows Coinbase to continue its effort to compel arbitration against the putative class action lawsuit, halting the lawsuit's progress through the federal court system in the meantime. While this marks a win for Coinbase, it has little direct effect on the crypto industry.
Leveraged Bitcoin Futures ETF to Start Trading Tuesday, Sponsor Says (June 23)
Volatility Shares’ 2x Bitcoin Strategy ETF (BITX) will become the first leveraged crypto ETF available in the United States after the U.S. Securities and Exchange Commission (SEC) let it go effective on Friday, an executive at the company told CoinDesk. A leveraged 2x ETF allows customers to gain bitcoin exposure by only putting up half the value of the bitcoin.
Sam Bankman-Fried Can't Subpoena Law Firm Fenwick & West for Documents, U.S. Judge Rules (June 23)
A U.S. judge has shot down FTX founder Sam Bankman-Fried's attempt to subpoena law firm Fenwick & West as part of his criminal defense, a court order from Friday shows.
2020 Twitter Hacker Sentenced to 5 Years on Crypto Theft, SIM Swapping Scheme (June 23)
A British man who made roughly $900,000 in an elaborate Twitter hack and a separate crypto-related SIM-swapping scheme received a 5-year sentence from a federal judge on Friday, Inner City Press reported.
CFTC Kicks Off Review of Kalshi's Congressional Control Prediction Markets (June 23)
The U.S. CFTC began a formal review and public comment period to evaluate prediction market Kalshi's proposed contracts to bet on who will control Congress late Friday, while also canceling a public meeting to discuss the issue.
Hermès Cements Trademark Win Over 'MetaBirkin' NFTs with Permanent Ban (June 25)
A federal judge in Manhattan on Friday issued an order that permanently bars Mason Rothschild from selling his controversial MetaBirkins NFTs, granting one final request from the French luxury goods maker Hermés after the firm’s legal victory over Rothschild earlier this year.
Crypto PAC hit with lawsuit for robocalls supporting pro-crypto candidates (June 26)
The Crypto Freedom PAC is facing a lawsuit alleging it violated the Telephone Consumer Protection Act, or TCPA.
Dogecoin Investors Decry 'Dirty Tactics' by Elon Musk Lawyers in Insider Trading Case (June 26)
Lawyers representing a group of Dogecoin investors who are suing Tesla CEO Elon Musk want the billionaire's lawyers thrown out for misconduct, according to a new court filing in the case.
Leading Democrat asks Gensler, Yellen for thoughts on Republican-led crypto bill (June 26)
House Financial Services Committee leading Democrat Maxine Waters sent letters to both Treasury Secretary Janet Yellen and Securities and Exchange Commission Chair Gary Gensler, seeking comment on a digital asset market structure bill which could be voted on in the coming weeks. Committee Chair Patrick McHenry, R-N.C., has said he wants to hold a hold a session to vote on the legislation in the second week of July.
U.S. Judge Rejects Binance.US Complaint Over SEC Press Release (June 26)
A federal judge has rebuffed Binance’s request to curtail the SEC’s use of language pertaining to Binance.US’ management of customer funds in press releases, which the company had argued could hurt it at trial.
Judge Rejects FTX Founder Sam Bankman-Fried's Motions to Dismiss Criminal Charges (June 27)
The federal judge overseeing FTX founder Sam Bankman-Fried's criminal trial denied his pretrial motions to dismiss criminal charges against him, writing that the exchange's founder did not have standing to dismiss many of these charges and didn't meet the "extraordinary" circumstances for a dismissal.
Nevada Files to Place Crypto Custodian Prime Trust Into Receivership (June 27)
The move comes mere days after fellow custodian BitGo called off its bid to acquire Prime Trust, and follows a Nevada cease-and-desist order which alleged Prime Trust was near insolvency. Tuesday's request for receivership states that Prime Trust owes its clients north of $85 million in fiat, and has about $3 million in fiat currency on hand. The company owes a further $69.5 million in crypto, and has $68.6 million in crypto on hand, the filing said.
FTX Begins Talks on Reboot Amid Regulatory Crackdown on Crypto Exchanges (June 28)
FTX is moving ahead with plans to restart its flagship international cryptocurrency exchange, an effort that will face major challenges as regulators ratchet up their oversight of the industry and the company works its way through bankruptcy proceedings.
‘End the Extortion:’ BlockFi Creditors File to Liquidate Estate (June 28)
Creditors of defunct crypto lender BlockFi have filed to liquidate the company, accusing management, including CEO Zac Prince, of “fraud,” “extortion” and “mischief” in delaying resolution of bankruptcy proceedings.
Former NYSE Broker to Pay $54M to Settle CFTC Crypto Fraud Charges (June 28)
A former New York Stock Exchange (NYSE) broker has been ordered to pay $54 million in damages and penalties by a federal court for operating a fraudulent crypto trading scheme, according to a notice from the U.S. commodities watchdog.
Ex-FTX Compliance Officer Sued for Allegedly Paying Off Would-Be Whistleblowers (June 28)
FTX's lawyers allege Daniel Friedberg allowed its executives' criminal activities to fly under the radar for years.
Blockchain Association says legally, Gensler has to step back (June 29)
Gensler has displayed clear bias against the crypto space, plus his agency has failed to do its job, crypto advocacy group says.
SEC Has No Jurisdiction Over Cryptos on Coinbase, Exchange Says in Lawsuit Response (June 29)
Coinbase filed an answer to the SEC's lawsuit early Thursday, arguing the regulator violated its due process and is reaching beyond its jurisdiction.
Canadian Lawmakers Call for National Blockchain, Crypto Strategy (June 29)
A committee of lawmakers in Canada is calling for the government to set up a national blockchain strategy that clarifies the country's regulatory approach and "demonstrates support for the industry," according to a set of policy recommendations published in June.
North Carolina closer to holding crypto on its balance sheet (June 29)
The North Carolina House has successfully passed a bill to initiate a study regarding the potential inclusion of cryptocurrencies within the state treasury. The bill, House Bill 721, advanced to the Senate Thursday after passing the House with 73 votes in favor and 40 votes against on Wednesday, according to the North Carolina General Assembly.
SEC vs Coinbase Case Set for July 13 After Exchange’s ‘Creative' Opening Response (June 30)
The date for the court hearing is much earlier than expected, prompted by a "creative" defense tactic by Coinbase – it filed its response 40 days before the deadline of August 7, 2023.
Bankrupt Celsius Can Convert Altcoins to BTC, ETH Starting July 1 Following SEC Talks (June 30)
Celsius was granted permission on Friday to start liquidating its altcoins, as the bankrupt crypto lender prepares a distribution to creditors that will take place solely in the two most widely used cryptocurrencies, bitcoin (BTC) and ether (ETH).
SEC Says Spot Bitcoin ETF Filings Are Inadequate (June 30)
The agency informed exchanges Nasdaq and Cboe Global Markets, which filed the applications on behalf of asset managers including BlackRock and Fidelity Investments, that they aren’t sufficiently clear and comprehensive, the people said. The exchanges or asset managers can update them to address the regulator’s feedback and refile.
Cboe updates filings for spot bitcoin ETFs, names Coinbase as SSA partner (June 30)
Cboe on Friday submitted updated 19b-4 filings for spot bitcoin ETFs, according to its website. The updated filings were submitted for Invesco Galaxy Bitcoin ETF, VanEck Bitcoin Trust, WisdomTree Bitcoin Trust and Wise Origin Bitcoin Trust. The move followed an earlier report from the Wall Street Journal that said the SEC told the Nasdaq and Cboe exchanges that recent filings from BlackRock, Fidelity and others for spot bitcoin ETF funds weren't "clear and comprehensive."
Franklin Templeton, BNY Mellon execs to co-chair CFTC digital asset panel (June 30)
The U.S. derivatives and commodities regulator added new crypto industry market participants to a committee focused on digital assets, according to an agency announcement Friday.
Kraken ordered to turn over customer information to the IRS (June 30)
A U.S. judge ordered cryptocurrency exchange Kraken to fork over certain personal information about its users as part of an Internal Revenue Service investigation. The IRS wants Kraken to identify accounts that had at least $20,000 in annual crypto trading in the period from 2016 to 2020, according to the order. Kraken has previously refused to comply with the IRS’ summons citing concerns, in part, that it would be a heavy burden and was overly broad.
Latin America 🌎
Brazil Appoints Central Bank and Securities Commission as Crypto Market Regulators (June 14)
Brazil’s executive branch has designated the country’s Central Bank and its Securities Commission as responsible for overseeing the crypto market, according to a decree published on Wednesday. The Securities Commission will exercise control over assets considered securities, while the Central Bank will determine the rules that exchanges must follow, including licensing requirements to operate.
Colombia’s Central Bank Partners with Ripple to Explore Blockchain Use Cases (June 15)
According to Ripple, Banco de la República, in conjunction with the Ministry for the Information and Communications Technologies (MinTIC), will pilot Ripple's CBDC platform to improve its high-value payments system. The initiative is part of a blockchain experimentation phase conducted by MinTIC.
Brazilian Central Bank Adds Crypto Exchange Mercado Bitcoin in CBDC Pilot Including Mastercard (June 23)
Brazil’s central bank authorized on Thursday the largest local crypto exchange, Mercado Bitcoin, to participate in the pilot of the digital real, the South American country’s central bank digital currency (CBDC). The consortium led by Mercado Bitcoin counts Mastercard, broker Genial, registrar Cerc and financial software fintech Sinqia as partners.
Stablecoin Wallet Rpay Secures License from OFAC to Continue Operating in Venezuela (June 29)
Stablecoin wallet Rpay has secured a license from the U.S. Office of Foreign Asset Control (OFAC) allowing it to continue operating in Venezuela without breaking sanctions on the Latin American country.
Middle East & Africa 🌍
Qatar Didn’t Properly Enforce Its Crypto Ban, Global Money Laundering Watchdog Says (June 1)
Qatar has taken little action against crypto companies breaching a ban announced in 2019, a global anti-money laundering watchdog said in a Wednesday report. The Financial Action Task Force (FATF) urged the Qatar Central Bank (QCB) to be more proactive in identifying and sanctioning virtual asset service providers (VASPs) that breached its crypto prohibition in a report, which accused the country of being too lax on terrorist fundraising.
Kenya Central Bank Takes Ambivalent Stance on Digital Currency (June 2)
The Central Bank of Kenya said "pain points" in the country's payments systems can be addressed by innovations structured around the existing ecosystem and that a central bank digital currency (CBDC) "may not be a compelling priority."
Binance Nigeria Ordered to Halt 'Illegal' Operations by Securities Watchdog (June 10)
A company called Binance Nigeria Limited was ordered to immediately halt operations in the West African nation by the local Securities and Exchange Commission (SEC), according to a Friday circular. A spokesperson for Binance, which faces U.S. SEC allegations that include operating an unregistered exchange, said the Nigerian company is not affiliated with the firm.
Crypto Exchange OKX Wins Preparatory License in Dubai, Set to Boost Staff (June 15)
Once the so-called MVP license becomes operational, OKX Middle East will offer spot, derivatives and fiat services including U.S. dollar and UAE dirham deposits and withdrawals.
Crypto exchange KuCoin is introducing mandatory KYC for all users (June 28)
KuCoin is introducing compulsory know-your-customer procedures for all clients starting July 15. The move is to “better comply with the applicable regulatory requirements,” KuCoin CEO Johnny Lyu told The Block.
Israel Seized $1.7M in Crypto From Iranian Military and Hezbollah With Chainalysis' Aid (June 28)
The Israeli government has seized $1.7 million in crypto from wallets linked to the Iranian military and the Iran-backed Hezbollah militant group in Lebanon with the aide of Chainalysis, according to the Defence Minister announced and the crypto investigations firm.
Julius Baer Eyes Expansion to Dubai for Crypto Services (June 29)
Swiss private bank Julius Baer (BAER) is expanding its crypto services to Dubai, Bloomberg reported on Wednesday. The Zurich-based bank will apply for a "digital assets license variation" to supplement its existing regulatory permissions in the emirate.
Europe 🌍
Britcoin Has UK Lords All a Flutter Over ‘Stealth’ CBDC (June 1)
Two lords are pushing for the government to ensure that the Bank of England could not implement “Britcoin” without legislative backing
Treat Crypto as Securities by Default, European Parliament Study Says (June 1)
Landmark new crypto laws under MiCA may have few short-term benefits without further steps, the report commissioned by EU lawmakers says.
Do Kwon's $428K Bail Request in Fake Passport Case Approved by Montenegro Court (June 5)
A previous approval was annulled by a higher court after it was determined the Terra founder's finances were not sufficiently assessed in the first decision.
UK Lawmakers Call for a Dedicated Government Role to Oversee Crypto Regulation (June 5)
In a report published Monday, the Crypto and Digital Assets All Parliamentary Group (APPG) said cryptocurrency is here to stay and needs immediate regulation. The group, which includes lawmakers from different political parties and both houses of parliament, made 53 recommendations for regulating crypto in the country.
Luxembourg Antitrust Authority to Probe Blockchain, Web3 Competition (June 6)
The Luxembourg competition authority is opening a market study into blockchain technology, according to a Tuesday announcement. The study potentially represents the first probe of its kind into the economics of Web3.
UK FCA Proposes Ban on Crypto Incentives in Tough New Marketing Rules (June 7)
Under the new rules, crypto will be classified as “restricted mass market investments,” which will require any advertisements or promotions to contain “clear risk warnings,” and bans incentives to invest such as “refer a friend” or “new joiner bonuses,” the regulator said.
Stablecoin Regulation Is a Sticking Point Between the G7 and G20 (June 8)
Advanced economies that make up the Group of Seven (G7) appear more open to allowing and regulating stablecoins, which are tied to the value of other assets such as fiat currencies. But emerging economies represented in the wider grouping G20 are calling for tougher restrictions, or even prohibitions, over concerns that widespread stablecoin use could present a relatively greater threat to monetary policy in these jurisdictions.
UK Lawmakers Clash Over Government Plans to Regulate Crypto as Financial Services (June 8)
U.K. lawmakers appear to be divided on how crypto should be treated by the country's regulators. While some are suggesting crypto is akin to gambling, others support the government’s efforts to bring digital assets into the scope of existing financial services regulation.
Social Media Targeted in EU Consumer Group Complaint About Crypto Ads (June 8)
BEUC, an umbrella group of European consumer organizations, filed a complaint with European Union consumer protection bodies calling for Instagram, YouTube, TikTok and Twitter to toughen their crypto advertising rules. National regulators should require social media networks to tighten their policies and ban influencers from promoting crypto, the complaint said.
EU’s Landmark Crypto Law MiCA Published in Official Journal (June 9)
The European Union’s Markets in Crypto Assets law (MiCA) was published in the Official Journal of the European Union (OJEU) on Friday, starting the clock ticking for landmark crypto licensing rules to take effect. The full law, published alongside related legislation requires crypto wallet providers to identify their customers when they transfer funds, offers crypto companies, such as exchanges and wallet providers, a license to operate across the bloc, and introduces new governance and financial requirements for stablecoin issuers.
EU Governments Friendly to Tough Crypto Bank-Capital Restrictions, Negotiator Says (June 9)
European Union governments appear to support new bank-capital standards, which could see unbacked crypto treated as the riskiest kind of asset for lenders to hold, according to an official leading talks on new legislation.
UK Has No Plans for 'Crypto Tsar' Proposed by Some Lawmakers, Minister Says (June 13)
Andrew Griffith, economic secretary to the U.K. Treasury, told lawmakers that the government had no plans to appoint a 'crypto tsar' during a Tuesday debate.
Bitstamp, Interactive Brokers Join UK Crypto Register as First Additions in 6 Months (June 13)
The register is the Financial Conduct Authority's list of crypto firms that have met its anti-money laundering and terror financing regulations. The two additions bring the total number of approved firms to 42.
Binance Seeks to Withdraw Cyprus' Unit Crypto Service Registration (June 14)
Binance said it asked for its Cyprus unit's registration as a crypto service provider to be rescinded so it can focus on meeting the requirements of the European Union's Markets in Crypto Assets (MiCA) legislation.
EU’s Leaked Digital Euro Bill Outlaws Interest, Large Holdings, Programmability (June 15)
Paying interest on or surcharges for using a digital euro would be banned under a draft law seen by CoinDesk, and set to be proposed by the European Commission on June 28. The proposed central bank digital currency (CBDC) would have to be available for cash-style offline payments from day one, and users shouldn’t be able to program it to limit onward use, the leaked bill said.
EU to Consult on Crypto Complaints, Conflict of Interest Rules in July (June 15)
The European Union’s securities market agency ESMA will consult in July on proposed new complaint handling and conflict-of-interest rules that crypto companies within the bloc will have to follow, according to a notice on the regulator’s website.
Central Banks Successfully Test Over 30 CBDC Use Cases, Including Offline Payments (June 16)
The experiment saw the London Innovation hub of the Bank for International Settlements – which groups the world’s central banks – and the Bank of England develop 33 application programming interface (API) functionalities to test more than 30 central bank digital currency (CBDC) use cases, including offline payments.
Binance Under Investigation in France for 'Aggravated' Money Laundering (June 16)
Binance's French unit is under investigation by local authorities for the "illegal" provision of digital asset services and "acts of aggravated money laundering," the Paris public prosecutor's office told CoinDesk.
Blockchain Anti-Counterfeiting Trials ‘Promising,’ EU Agency Says (June 16)
Blockchain-based anti-counterfeiting tools show promise, the European Union Intellectual Property Office (EUIPO) said in a Monday post, after a trial involving brands, border control and logistics operators.
France's Markets Regulator Backs Global Rules for DeFi (June 19)
France's top markets regulator, the Autorité des Marchés Financiers (AMF), said it supports globally coordinated rules for DeFi. In a discussion paper published Monday, the AMF, which issues licenses to crypto exchanges looking to operate in the country, shared its "preliminary thinking on the regulatory issues" raised by the decentralized and "disintermediated" protocols that make up the DeFi ecosystem.
IMF Official Presents Blueprint for Cross-Border CBDCs (June 19)
New platforms for cross-border central bank digital currencies (CBDCs) could be more efficient and safe, while still ensuring countries can impose compliance checks and capital controls, an official from the International Monetary Fund said on Monday.
UK Financial Watchdog Cancels Binance Permissions on Firm's Request (June 19)
"As these permissions were unlikely to be required in the future, Binance Markets Limited decided that it would be prudent to cancel them in line with the FCA’s recommendations to keep these updated," the spokesperson for Binance said. "This decision has no impact on Binance.com, which does not own or operate any crypto services in the U.K. and is only available to U.K. consumers on a reverse solicitation basis."
Do Kwon Sentenced to 4 Months Jail in Montenegro Document Forgery Case (June 19)
Terraform Labs founder Do Kwon has been sentenced to four months in jail by a Montenegro court after being found guilty of document forgery.
EU Legislation for Digital Euro Is Put on Hold (June 19)
The move follows the leaking of the draft bill, which covers privacy and technical issues for the central bank digital currency (CBDC), and a statement by finance ministers that appeared to question the motivation for the plan last week.
UK Crypto, Stablecoin Laws Approved by Parliament's Upper House (June 19)
The approval of the Financial Services and Markets Bill (FSMB) on Monday by Parliament’s upper chamber, the House of Lords, means the bill is going to enter the final stages before it is put into law.
EU Commission Brushes Off 'Data Act' Fears by Crypto Industry (June 20)
The industry fears that the Data Act, an EU bill now being deliberated, imposes unworkable requirements that smart contracts should withstand manipulation, safely reset, and control access – but officials say there’s nothing to worry about for Web3 entrepreneurs.
Digital Euro: The Bill Is Ready but Politicians Aren’t Convinced (June 21)
The European Central Bank (ECB) and European Commission are beavering away at the technical details for a digital euro – but among political decision-makers it appears hard to muster much enthusiasm for the putative central bank digital currency (CBDC).
Digital Pound Should Be Interoperable With Crypto, UK Lobbyists Say (June 22)
Lobby groups and crypto companies in the U.K. are generally welcoming of the government's plans for a digital pound, but some of them believe the currency should be interoperable with crypto in order to be suitable for the future.
Crédit Agricole’s CACEIS Gains Crypto Custody Registration in France (June 22)
CACEIS, the asset servicing arm of banking giants Crédit Agricole and Santander, has been registered by French regulators to provide crypto custody services.
SAP Using Circle USDC to Test Cross-Border Payments (June 23)
The massive German software company, SAP, is reportedly using Circle’s USDC stablecoin to test cross-border payments.
Crypto.com Approved to Operate in Spain (June 23)
The registration, approved after what the company said was a "comprehensive review of its compliance with Anti-Money Laundering Directive (AMLD) and other financial crimes laws," will allow Crypto.com to offer a "suite of its products and services to users in Spain." Bank of Spain opened a registry for crypto service providers in 2021, and since then, firms like Binance, Bitstamp and banking platform BVNK have registered with the regulator.
Crypto Ban May Not Be Best Approach to Balance Risk, Demand: IMF (June 23)
Banning crypto may not be the best way of mitigating the associated risks, the International Monetary Fund said Thursday, just months after suggesting that approach as an option, because it would also prevent countries gaining the associated benefits.
Three Quarters of Jurisdictions Not Complying With Global Crypto Laundering Norms, FATF Says (June 23)
“Almost three quarters of jurisdictions are only partially compliant or not compliant with the FATF’s requirements” for virtual assets, according to a statement issued following a regular plenary meeting of the watchdog, chaired by Singapore's T. Raja Kumar.
Binance Ordered to Halt Offering Crypto Services in Belgium by Markets Regulator (June 23)
The crypto exchange is accused of serving Belgian customers from countries outside the European Economic Area in violation of the law, the Financial Services and Markets Authority said.
Bybit Gains Crypto License in Cyprus (June 26)
The Dubai-headquartered firm said the move shows its commitment to compliance with local rules. The license strengthens the exchange's presence in the European Union (EU) after it faced regulatory scrutiny in Japan and exited Canada, and the U.K.
'Not just an experiment': Swiss central bank to carry out CBDC pilot (June 26)
The Swiss National Bank (SNB) plans to pilot a wholesale central bank digital currency (CBDC) on the nation's SIX digital exchange. "This is not just an experiment, it will be real money equivalent to bank reserves and the objective is to test real transactions with market participants," the central bank's chairman said at a conference in Zurich on Monday.
Binance withdraws license application in Austria (June 26)
Binance is longer applying to be licensed in Austria, as it cuts down its EU entities. The company recently also moved to exit the Netherlands, Cyprus, and the U.K. A Binance spokesperson stated "Our current focus in Europe is on ensuring that we will be in full compliance with the requirements of MiCA [Markets in Cryptoassets] when it is implemented at the end of next year."
Binance reverses decision on privacy coin trading in EU (June 26)
The firm told The Block that it would change how it classified privacy coins, sparing seven coins from delisting in France, Italy, Poland and Spain: Decred, Dash, Zcash, PIVX, Navcoin, Secret and Verge. "Beam, Monero, MobileCoin, Firo and Horizen are still included in the restrictions," Binance said.
Swiss Authorities Freeze $26M Worth of Do Kwon, Terraform Labs Crypto Assets (June 26)
Swiss authorities have reportedly frozen approximately $26 million in Bitcoin and other cryptos tied to Terraform Labs, its founder Kwon Do-hyeong, and other key figures within the company.
Spain gives Ripio greenlight to offer crypto products (June 27)
After the Markets in Crypto Assets bill was passed in April, Spain has moved to set itself up as a hub for digital asset companies. The Bank of Spain most recently granted Crypto.com a Virtual Asset Service Provider (VASP) license.
EU Seals Deal on Crypto Bank-Capital Rules (June 27)
The European Union (EU) on Tuesday secured a political deal on new bank-capital legislation, including for cryptoassets, after lawmakers sought “prohibitive” rules to keep unbacked crypto out of the traditional financial system.
UK Needs Bespoke Legal Framework for Using Crypto as Collateral: Law Commission (June 27)
The Commission, funded by the Ministry of Justice, also pushed for legislation to treat crypto as a new type of property in its latest set of recommendations.
Tether, the company operating the blockchain-enabled platform tether.to that powers the first and most widely used stablecoin announced today the signing of a Memorandum of Understanding (MOU) with the Government of Georgia. This strategic collaboration aims to position Georgia as a central hub for peer-to-peer and blockchain technology, igniting a revolution of innovation and economic growth. It also highlights Tether’s commitment to advancing its global strategy of building resilient cities and nations worldwide.
Wales, English laws ‘sufficiently resilient’ for crypto — with a few tweaks (June 28)
The Law Commission’s recent paper on digital assets was intended to enhance the legal framework in England and Wales and “secure UK’s position as global crypto hub”
EU’s Controversial Smart Contract Kill-Switch Rules Finalized by Negotiators (June 28)
“With the adjustments made to the text we are no longer addressing smart contracts in general but make this regulation applicable specifically to the execution of contractual clauses in the context of data sharing,” Damian Boeselager, a lawmaker who led negotiations for the European Parliament’s Green grouping, told CoinDesk.
EU Publishes Digital Euro Bill Featuring Privacy Controls, Offline Guarantee (June 28)
The text, a version of which was seen by CoinDesk two weeks ago, includes safeguards for privacy and financial stability, but many stakeholders are already questioning the benefits of the potential new central bank digital currency (CBDC).
Binance's Euro Banking Partner to Halt Support of the Crypto Exchange in September (June 28)
Binance’s euros banking partner, Paysafe Payment Solutions, will stop supporting the crypto exchange after Sept. 25. “Binance will be changing the provider for EUR deposits and withdrawals via Bank Transfer (SEPA). Our current partner, Paysafe, will no longer be providing these services to Binance users from 25th September 2023,” a spokesperson for the exchange told CoinDesk in an email.
ECB to Start Wholesale CBDC Settlement Trials in 2024 (June 29)
The European Central Bank will start exploratory work for financial market settlement based on distributed ledger technology (DLT) starting in 2024, according to minutes published Thursday.
Binance Crypto Custody License Application Denied by German Regulator BaFin: Report (June 29)
Germany's financial watchdog has decided not to grant crypto exchange Binance a custody license, news publication Finance Forward reported on Thursday. The report added that it's unclear if the denial was a formal decision from the Federal Financial Supervisory Authority (BaFin) or an intention expressed in ongoing discussions.
Slovakian Crypto Tax-Cutting Bill Passes National Parliament (June 29)
Slovakian lawmakers on Wednesday voted 112-2 in favor of a law intended to cut taxes on the sale of digital currency. The income tax bill aims to “to reduce the tax burden in connection with the sale of virtual currencies, thereby simplifying their use in everyday life,” said an explanatory document issued by a grouping of members of the Slovak National Council.
UK Crypto, Stablecoin Rules Receive Royal Assent, Passing Into Law (June 29)
A U.K. bill giving regulators the power to supervise crypto and stablecoins was approved by King Charles Thursday, marking the last formal stage that makes the bill law.
Asia 🌏
Crypto.com Receives Digital Token License in Singapore (June 1)
Crypto.com has now received its Major Payment Institution (MPI) licence for Digital Payment Token (DPT) services from the Monetary Authority of Singapore (MAS).
Stablecoin Issuer Circle Receives Digital Token License in Singapore (June 7)
The license issued by the Monetary Authority of Singapore (MAS) allows Circle Singapore to offer digital payment token services, cross-border money transfer services and domestic money transfer services in the city-state, the firm announced on Wednesday.
Hong Kong Monetary Authority to Prepare for Retail CBDC (June 9)
The regulator will start conducting in-depth studies and pilots on the implementation of a future e-HKD, according to a Friday report.
Bank of China investment arm issues tokenized notes on Ethereum (June 12)
BOCI, an investment arm of the Bank of China, issued tokenized notes in Hong Kong, marking the first time that a financial institution in China has issued a digital note in the region. UBS partnered with BOCI to issue the notes, which were tokenized on the Ethereum blockchain.
Hong Kong Lawmaker Invites Coinbase to Apply to Operate in Region Amid U.S. SEC Crackdown (June 13)
A Hong Kong lawmaker invited global virtual asset trading operators, including crypto exchange Coinbase, to come and register in the region. Hong Kong's Securities and Futures Commission (SFC) began accepting applications for crypto trading platform licenses on June 1. Crypto firms which get registered under this license will be able to serve retail customers in the country and will need to comply with rules that prohibit crypto incentives like airdrops.
Hong Kong Put Pressure on 3 Major Banks to Take On Crypto Exchanges as Clients (June 15)
The Hong Kong Monetary Authority (HKMA) is putting pressure on HSBC, Standard Chartered and Bank of China to take on crypto exchanges as clients, the Financial Times reported on Thursday. "Due diligence on potential customers should not “create undue burden”, particularly “for those setting up an office in Hong Kong to look for the opportunities here,” said the April 27 letter from the HKMA to banks, according to the Financial Times.
Central Banks Propose CBDC, Stablecoin Standards With Amazon, Grab Running Trials (June 21)
The Monetary Authority of Singapore (MAS), in collaboration with the IMF and other central banks, is proposing common conditions for retail payments with digital money on a distributed ledger.
Japan’s Biggest Bank MUFG Is in Talks to Issue Global Stablecoins (June 22)
Mitsubishi UFJ Financial Group Inc. is in talks with companies behind popular global stablecoins as well as other firms about issuing such tokens via the Japanese banking giant’s blockchain platform. Japan’s stablecoin law, one of the first among major economies, became operative on June 1 and in effect means that only the nation’s licensed banks, registered money transfer agents and trust companies can issue the tokens.
Ripple Obtains In-Principle Approval for Major Payments Institution License in Singapore (June 22)
Ripple said that the license will allow its Singapore branch to offer regulated digital payment token products and services as well as further scale its customers' use of its crypto-enabled On-Demand Liquidity (ODL) platform – which saw a 5x growth in the country year-on-year.
Japanese Crypto Issuers Won't Pay Taxes on Unrealized Gains, Govt. Clarifies (June 26)
Japan's National Tax Agency has clarified that crypto issuers in the country will not have to pay capital gains taxes on unrealized gains, in a June 20 notice. The country's ruling Liberal Democratic Party (LDP) tax committee approved a proposal to exempt crypto startups that issue their own tokens from paying corporate taxes on unrealized gains last December.
Singapore's MAS Proposes Design Framework for Interoperable Digital Asset Networks (June 26)
The initiative, Project Guardian, has enlisted 11 institutions to test asset tokenization across financial asset classes. Pilot studies across wealth management, fixed income and foreign exchange will be carried out by banking giants such as HSBC, Standard Chartered, DBS and Citi, according to the announcement.
South Korea passes crypto legislation to crack down on ‘illegal trading practices’ (June 30)
South Korea’s parliament passed the Virtual Asset Protection Act on Friday in a plenary session. The legislation makes market manipulation illegal, and aims to crack down on insider trading — or trading using undisclosed information.
Australia 🇦🇺 & New Zealand 🇳🇿
Australia's Commonwealth Bank Will Partially Restrict Payments to Crypto Exchanges (June 8)
The Australian bank announced on Thursday that it will decline "certain payments" to crypto exchanges or hold them for a period of 24 hours, a time period which it said could vary. The bank also plans to introduce a limit of payments to crypto exchanges of 10,000 Australian dollars ($6,700) per calendar month in the months ahead.
Australia's Crypto Industry Body Denounces Recent Banking Restrictions (June 14)
Blockchain industry stakeholders in Australia are taking a stand against recent restrictions by local banks on crypto payments. Australia has seen a string of instances in which banking partners have blocked payments to cryptocurrency exchanges. Last week, Commonwealth Bank (CBA) applied partial restrictions citing "scams and the amount of money lost by customers." And earlier this month, Binance Australia halted Australian dollar (AUD) deposits and withdrawals by bank transfer "due to a decision made" by a third-party payment service provider.
Australian Payment Provider Cuscal Imposes New Restrictions on Crypto; Industry Body Criticizes Move (June 20)
Payments provider Cuscal, through its partner Zepto, has brought new banking restrictions on cryptocurrency exchanges in Australia, according to a statement criticizing the move from Blockchain Australia, the nation's industry body.
Australia Acts on De-Banking of Crypto Entities, Supports Policy Recommendations to Tackle Issue (June 28)
Australia's Treasury said on Wednesday it recognises the seriousness of de-banking and that it understands inaction could drive business underground after instances of banking partners cutting-off crypto platforms in the nation.
New Zealand Is Not Exploring Crypto Regulation, but Recommends Increased Vigilance (June 30)
The Reserve Bank of New Zealand (RBNZ) has said it won't propose a regulatory approach towards stablecoins and cryptocurrencies, but would recommend increased vigilance, the central bank announced on Friday.