On February 16th, the US Securities and Exchange Commission (SEC) accused Terraform Labs, the Singapore-based company behind the creation of LUNA and UST – native tokens of the Terra ecosystem – and its co-founder Do Kwon of promoting a multi-billion dollar fraud by offering and selling unregistered securities through the use of crypto assets. The...Read More
Leading cryptocurrency exchange Binance had “gaps” in regulatory compliance in the first few years after its launch in 2017, the company’s Chief Strategy Officer (CSO) Patrick Hillmann told the Wall Street Journal in an interview. Hillmann revealed that Binance had missteps during the implementation of its security measures, such as the Know-Your-Customer (KYC) protocol and...Read More
The Securities and Exchange Commission (SEC) just voted to propose new amendments affecting rules around crypto asset custody in the United States – and commissioner Hester Peirce (aka “Crypto Mom”) is not a fan. Peirce believes the proposed rules could leave crypto investors more vulnerable to theft and fraud, contrary to their intent. Crypto Mom’s...Read More
Following the SEC crackdown on Kraken last week and its subsequent threat of action against BUSD issuer Paxos, rumors have been flying about Circle being next. Crypto Twitter was awash with unfounded claims that Circle had been issued a Wells notice by the SEC. A Wells notice is a threat of legal action giving the...Read More
Lee Reiners, policy director at the Duke Financial Economics Center, recommended that banking agenices restrict the crypto industry from accessing the banking system while testifying to the Senate Banking Committee on Tuesday. The professor claimed that crypto has produced nothing of benefit during the 14 years since Bitcoin’s whitepaper was published. What to Do About...Read More
The United States Securities and Exchange Commission (SEC) plans to propose new rules that would toughen the requirements for cryptocurrency firms to become qualified custodians for institutional fund managers. Although the draft proposal will be submitted on Wednesday, the affected area remains unclear, Bloomberg reported, citing people familiar with the matter. Crypto Firms to Face...Read More
Jacob Blish, the head of business development at Lido DAO, the decentralized autonomous organization behind the largest liquid staking protocol, believes the recent SEC crackdown on crypto staking services could cause new challenges for decentralized finance (DeFi). According to a Bloomberg report, Blish opined that the state of crypto staking in the U.S. depends on...Read More
Following the spectacular collapse of numerous CeFi companies last year, all regulatory eyes have been focused on the crypto industry. Joseph Lubin, the CEO of ConsenSys, also weighed in on the matter during the Building Blocks 23 event in Tel Aviv, saying his organization wants to collaborate with global watchdogs to introduce more friendly regulations....Read More
South Korea is looking to amp up regulations to prevent unfair trade in the industry. As such, the Financial Services Commission issued instructions to five major crypto exchanges in the country to delist and classify digital assets that have similar properties to that of securities. The implosion of the once-prominent Terra ecosystem tokens was the...Read More
The government of the United Kingdom is willing to strengthen the rules on the local cryptocurrency sector to prevent another adverse event like the FTX collapse. The recently-appointed Prime Minister – Rishi Sunak – is known as an advocate of blockchain technology, arguing the country should emerge as “a global cryptoasset technology hub.” People’s Protection...Read More
The New York Department of Financial Services reportedly launched an investigation against Gemini, alleging that the cryptocurrency exchange told its 340,000 Earn users they were FDIC-protected. The program, which provided clients up to 7.4% APY on their holdings, went down after the platform’s partner – Genesis – halted withdrawals and filed for bankruptcy. The NYDFS...Read More
The crypto market seems to have priced in last year’s string of crypto company bankruptcies. But the crypto firms that survived will still be paying off bank loans to cover their positions for some time. Crypto prices continue to edge upward while the market bears and bulls regroup. Even the recent bankruptcy of Genesis hasn’t...Read More
The Biden Administration announced on January 27th that it will launch a new legal framework for cryptocurrencies in the coming months to combat the multiple cryptocurrency scams that impacted the crypto market last year, causing multi-million dollar losses. According to a statement published by the White House, “2022 was a tough year for cryptocurrencies.” Hence,...Read More
A new bill introduced to the New York Senate seeks to make certain cryptocurrencies a legal form of payment for state agencies. This would include accepting crypto as payment for civil penalties, fines, taxes, and other fees charged by the state. As detailed in the legislation set forth on Thursday, accepted cryptocurrencies would include Bitcoin,...Read More
The New York State Department of Financial Services (NYDFS) urged firms to set apart customers’ cryptocurrency holdings from their own assets. The watchdog argued that co-mingling funds could trigger a significant financial loss for investors. The NYDFS’ Recommendation New York’s financial watchdog issued guidance to state-regulated companies on how they should better protect clients in...Read More
One of the poorest countries – the Central African Republic (CAR) – formed a team of 15 agencies, whose responsibility will be to draft a “comprehensive” cryptocurrency bill. The nation made the headlines last year, becoming the second after El Salvador to embrace bitcoin as a legal tender. Another Crypto Step Faustin-Archange Touadéra – President...Read More
On January 23, South Africa’s Advertising Regulatory Board (ARB) introduced new cryptocurrency-focused rules into the nation’s advertising code to protect consumers from misleading advertising. The new guidelines aim to ensure that cryptocurrency advertisements accurately state the risks involved with all cryptocurrency investments, making it clear to consumers that they stand to lose their capital due...Read More
As global influencers rubbed elbows at Davos, the IMF issued recommendations for crypto to global regulators. Depending on who you ask, crypto regulation could hurt the industry or open up vast new markets for normie investors. In a note published over the week, the International Monetary Fund wrote: “During times of stress, we’ve seen market...Read More
In a significant development that indicates that the Indian government may not fully chime with the central bank’s overly hostile stance against cryptocurrencies, a junior minister explained that such activities are fine as long as they follow existing laws. This is in sharp contrast to the Reserve Bank of India’s (RBI) ban on crypto in...Read More
The long, drawn-out battle between fintech firm Ripple and the U.S. Securities and Exchange Commission could be coming to a conclusion, according to the company CEO. Speaking to CNBC at the World Economic Forum in Davos, Switzerland, on Jan. 18, Garlinghouse said that the judges are unlikely to rush a resolution, adding: “We’re optimistic that...Read More
The EU’s landmark Markets in Crypto Assets (MiCA) crypto regulations will not see a final vote until April. The delay is also likely to stall the process of pushing the new rules through. According to European Parliament representatives, the delay has been caused by problems translating the almost 400-page file into the 24 official languages...Read More
Regulators in Hong Kong will soon decide which crypto tokens its citizens can invest in amid a raft of new digital asset policies coming this year. The move is the latest crypto regulatory step taken by Hong Kong in a market that has a long association with significant digital asset trading volume. Hong Kong to...Read More
The Securities and Exchange Commission (SEC) has filed a complaint against Genesis Global Capital and Gemini Trust Company for allegedly selling unregistered securities to retail investors in the US. The SEC is seeking permanent injunctive relief, disgorgement of ill-gotten gains, plus front-end interest and civil penalties. Both companies raised billions of dollars by offering and...Read More
The Israel Securities Authority (ISA) could amend three of its existing monetary laws to squeeze in cryptocurrencies. The regulator’s proposals seek to grant investors maximum security when dealing with digital assets, reminding about the recent collapse of FTX and the severe losses it caused to consumers. Paying Attention to Crypto Israel’s financial watchdog proposed that...Read More
In a report on Jan. 2, the international non-governmental and lobbying organization said that crypto will continue to be an integral part of the “modern economic toolkit.” The WEF acknowledged the calamitous previous year, labeling it as “terrible,” with more than $2 trillion getting wiped out. Additionally, the Switzerland-based political and economic forum fingered regulators...Read More
Japan became one of the first big countries to establish a legal framework for stablecoins in June. Six months later, it is taking yet another crucial step to tweak the existing ban as the Financial Services Agency (FSA) is looking to lift the ban on foreign-issued stablecoins. It is still unclear which tokens will be...Read More
The SEC is stepping up its scrutiny of crypto auditors as it continues to wage war against the digital asset industry. In the latest in a recent torrent of anti-crypto articles, the Wall Street Journal has reported that there will be more dissection of the work that audit firms are doing for crypto companies. According...Read More
President Jair Bolsonaro of Brazil has approved a bill of crypto industry regulations most recently passed by the nation’s Senate and Chamber of Deputies. The bill, signed into law on Thursday, will take effect in 180 days, by which time crypto companies in the region must adapt to the new rules. Having passed through Parliament...Read More
The Advertising Standards Authority (ASA) – UK’s advertising regulator – banned an NFT promotion by Crypto.com on December 21. According to the press release, ASA flagged a paid-for Facebook advertisement for the crypto platform, citing failure to illustrate the risk of investing in NFTs as well as clarify details with regard to fees. This isn’t...Read More
Coinbase founder and CEO Brian Armstrong, for one, believes that ideal crypto regulations should start with centralized actors since most of the damage to the consumers has been done by these entities. In a recently released “realistic blueprint,” Armstrong highlighted the need to pursue legislation early instead of waiting for something comprehensive and perfect. Regulations...Read More
