Crypto regulation
Market strategist claims the crypto crash might be ‘good’ for the sector in the long term
The unprecedented fall of Terra (LUNA) and the algorithmic stable coin UST sent shockwaves across the whole crypto market The crash has given more voice to calls for regulation and investor protection The past few weeks have been turbulent for investors in the crypto space, with market movements creating margins never seen before. Investors have had to cut losses, not to mention being caught in fixes, unable to predict how the cryptocurrencies they track might perform upon trading. The heavy downturn has opened up discussions on the utility and market performance among industry experts. Bitcoin may hit a bottom of $12,000 during this current cycle In an interview with Stanberry Research, Gareth Soloway, the President of InTheMoneyStocks.com, dismissed the popular belief that Bitcoin f...
German BaFin official calls for ‘innovative’ EU-wide DeFi regulation
Birgit Rodolphe, an executive director at Germany’s Federal Financial Supervisory Authority (BaFin) has called for innovative and uniform regulation of the decentralized finance (DeFi) space throughout the European Union (EU). BaFin is Germany’s financial regulatory body responsible for regulating banks, insurance firms, and financial institutions including cryptocurrency companies. BaFin is the issuer of “crypto custody licenses,” a permit required for firms wanting to offer cryptocurrency services within Germany. In an article on BaFin’s website Rodolphe warned of the risks to consumers of the unregulated DeFi space and called for standardized regulatory considerations across EU member countries. Birgit Rodolphe, Executive Director Processing and Prevention of Money Laundering at B...
Weekly Report: Flamingo Casino Club shuts down, Talos becomes a unicorn, HIVE Blockchain consolidates its shares, and more
Flamingo Casino Club, which offered users fraudulent NFTs, has been asked by five US states to cease operations Crypto trading firm Talos became a unicorn at $1.25 billion after raising $105 million, it said Tuesday Bitcoin miner HIVE Blockchain to enact share consolidation, aiming to enhance institutional visibility IOSCO predicts the crypto sector could get a regulator within the next year Chile to ponder further before issuing a digital peso, central bank says Virtual casino parading metaverse-linked NFTs asked to cease operations in five states The states of New Jersey, Kentucky, Wisconsin, Alabama and Texas have alleged that the Flamingo Casino Club is running a scam by offering NFTs linked to a metaverse casino. In effect, regulators in the respective states issued emergency orders o...
SEC’s Hester Peirce says new stablecoin regs need to allow room for failure
Commissioner Hester Peirce — also known as the Securities and Exchange Commission’s (SECs) “crypto mom” — has backed a regulatory framework for stablecoins that allows “room for there to be failure.” Speaking at an online panel on May 12 hosted by financial think-tank the Official Monetary and Financial Institutions Forum (OMFIF) Peirce, who has long been an advocate for crypto, was asked to shed light on the actions being taken by U.S. regulatory bodies in regard to cryptocurrency. “One place we might see some movement is around stablecoins,” Peirce answered, “that’s an area that has gotten a lot of attention this week.” “It’s been one area within crypto that’s really had quite a moment and there’s a lot of stablecoin use and therefore people are thinki...
Senator Tommy Tuberville proposes a bill in support of crypto retirement plans
The Alabama senator says the government shouldn’t interfere with how users invest their retirement savings He plans to introduce the Financial Freedom Act to this effect The DoL and Senator Elizabeth Warren already took moves opposing Fidelity Investments’ plan to offer crypto investments for retirement plans At the end of April, Fidelity Investments announced the launch of a new service that would allow employees in the 23,000 companies it serves to complete Bitcoin investment of up to 20% of the 401(k) pension plan. With the provision, users would be able to invest in crypto without the involvement of crypto exchanges The DOL had warned against such an offering The recent move by Fidelity meant that the retirement plan provider had directly contravened guidance issued by the Department o...
Cynthia Lummis’ crypto bill won’t address NFTs or environmental concerns
Wyoming Senator Cynthia Lummis has said the bill she’s preparing intends to regulate cryptocurrencies in the same categories as traditional assets She said NFTs are hard to categorise, hence will not be covered in the coming bill Wyoming Senator Cynthia Lummis has revealed more details about the planned pro-crypto regulatory framework that she is expected to table in collaboration with New York Democrat Senator Kristin Gillibrand. Speaking to Axios in an interview published earlier this week, the US senator explained that the coming bill would regulate from an angle such that digital assets fall under the same categories in which traditional assets are regulated. Lummis explained that the bill would see the regulatory ‘wand’ split and shared between the Commodity Futures Trading Comm...
Weekly Report: New York resolute on blocking PoW mining
Planned launch of EFT Securities and Cosmos ETPs delayed Volt Capital’s Imran Khan predicts DAOs will touch $1 trillion in AUM by 2032 New York is closer to endorsing a two-year moratorium on PoW mining Ethereum layer two Optimism seeks to embrace governance structure EPL Club Liverpool reportedly eyeing a crypto shirt sponsor Launch of three crypto ETFs in Australia dealt with a delay Last week, three exchange-traded funds and the first of their kind in Australia were scheduled to list on the Cboe Australia. However, hours before going live on April 27, the securities and derivatives exchange said that products would be delayed pending prior checks. Cboe Australia held back in detailing the delay, only promising an update in the coming days. According to a report by the Australi...
Monthly Report: The Central Africa Republic follows El Salvador’s footsteps in Bitcoin adoption
Kraken exchange offers traders the first Dirham trading pairs following the recent UAE licensing Central Africa Republic follows El Salvador in adopting a Bitcoin as legal tender Fort Worth, Texas, to become the first city mining cryptocurrency. Cuba is issuing licenses to persons/organisations that want to operate digital assets Deus Finance suffers another flash loan exploit in less than two months, this time losing more than $13.4 million. Here are last month’s top headlines across the crypto regulation, adoption, mining and crime verticals Kraken approved to operate in UAE as Bybit launches crypto options trading Following the wave of licensing of crypto entities in the Middle East, Kraken revealed on April 26 that it had been approved by the Abu Dhabi Global Market (ADGM) to oper...
Bipartisan bill to give CFTC authority over exchanges and stablecoins
A bipartisan group of lawmakers in D.C. introduced an updated bill on April 28 to regulate cryptocurrency developers, dealers, exchanges, and stablecoin providers, bringing them under the regulatory control of the United States Commodity Futures Trading Commission (CFTC). The Digital Commodity Exchange Act of 2022 (DCEA) was re-introduced to Congress by Republican Representatives Glenn Thompson and Tom Emmer with support from Democrat co-sponsors Darren Soto and Ro Khanna. The updated version includes a section covering stablecoin providers, who can register as a “fixed-value digital commodity operator.” These operators would be obligated to share how the stablecoin operates, retaining records for the regulator along with providing information on the assets backing the “fixed-value digital...
The Brazilian Senate passes a Bill to regulate Crypto Transactions
Brazilian Senator, Flávio Arns, presented a bill on crypto transaction regulation to the Senate on Tuesday night and the Senate passed the bill. Now the bill will be taken to the Brazilian Chamber of Deputies for voting, however, the executive branch can turn it down if adopted. According to the legislation, crypto firms will be regarded as Virtual service providers and will have to operate within the Brazilian financial system guidelines notwithstanding strict adherence to the financial institutions against crimes. Execution of duties However, should the measure be passed, then the Brazilian Securities and Exchange Commission will be restricted from overseeing the crypto market, though it will be in charge of the Initial Coin Offerings (ICOs), but the decision to determine the body that w...
ECB official blasts the ‘lawless frenzy of risk-taking’ associated with crypto
Fabio Panetta has proposed heavier taxes and more stringent anti-money laundering requirements He argued that the continued correlation of crypto assets with the equities could be potentially destructive to the financial system Italian economist and ECB board member in charge of steering the creation of a digital Euro, Fabio Panetta, has called for coordinated efforts by global regulatory authorities to launch additional measures toward regulating the cryptocurrency sector. Regulating crypto-assets According to an extract from a published speech, Panetta argued the idea of cryptocurrencies to create a trustworthy coin remains a dream, observing that currently, crypto tokens take long periods to transfer and are a source of instability and insecurity. Labelling crypto a Ponzi sch...
ECB official blasts the ‘lawless frenzy of risk-taking’ associated with crypto
Fabio Panetta has proposed heavier taxes and more stringent anti-money laundering requirements He argued that the continued correlation of crypto assets with the equities could be potentially destructive to the financial system Italian economist and ECB board member in charge of steering the creation of a digital Euro, Fabio Panetta, has called for coordinated efforts by global regulatory authorities to launch additional measures toward regulating the cryptocurrency sector. Regulating crypto-assets According to an extract from a published speech, Panetta argued the idea of cryptocurrencies to create a trustworthy coin remains a dream, observing that currently, crypto tokens take long periods to transfer and are a source of instability and insecurity. Labelling crypto a Ponzi sch...
