Kategorie: Crypto Markets

• Dubai’s Virtual Assets Regulatory Authority has warned of memecoin risks and high volatility
• Compliance with VARA regulations is mandatory for memecoins
• VARA may restrict memecoin platforms without notice

Dubai’s Virtual Assets Regulatory Authority (VARA) has sounded the alarm on the burgeoning trend of memecoins, highlighting the significant risks these volatile digital assets pose to investors.

In an alert issued on February 13, 2025, VARA cautioned consumers and investors about the speculative nature and potential for financial loss associated with these digital currencies.

Memecoins, which have gained notoriety for their rapid price fluctuations driven by social media trends and speculative hype, are now under the regulatory microscope in Dubai.

VARA describes these assets as lacking intrinsic value, often manipulated by market forces or misleading promotional strategies. The authority warns that the allure of quick, unrealistic returns is a red flag often associated with fraudulent schemes, urging investors to tread carefully.

The regulatory body emphasizes that the landscape of memecoins is fraught with dangers such as liquidity shortages, price collapses, and outright scams. The potential for significant financial loss is high, and the speed at which these events can occur is alarming.

Investors are reminded that the vibrant community and social media buzz around a memecoin might not translate into sustainable investment value.

Memecoins issued within Dubai must comply with regulations

VARA has made it clear that any memecoin issued within Dubai must comply with its established regulations. This includes the stringent marketing rules designed to protect consumers from deceptive advertising.

The promotion, advertisement, or solicitation of memecoins must adhere to VARA’s guidelines, or face the possibility of enforcement actions. The authority has the power to impose fines, with penalties reaching up to $135,000 for those who flout these rules.

Moreover, VARA has the authority to restrict access to memecoin platforms without prior notice, a measure intended to safeguard the market and protect investors. This capability underscores the regulator’s commitment to maintaining market integrity and ensuring consumer safety in the volatile world of digital assets.

The push for crypto regulatory oversight worldwide

The warning from VARA is part of a broader push for regulatory oversight in the cryptocurrency market, not just in Dubai but globally.

The United Kingdom’s Financial Conduct Authority (FCA), for instance, has also been scrutinizing memecoins. It recently issued warnings against specific projects like Retardio on the Solana blockchain, highlighting the lack of investor protections in such ventures.

VARA’s alert serves as a reminder that while the digital asset space offers innovation and potential, it also harbours significant risks. The authority’s proactive stance in Dubai aims to ensure that the excitement around new forms of digital currency does not overshadow the need for due diligence and regulatory compliance.

The post Dubai’s VARA issues warning about the risks associated with memecoins appeared first on CoinJournal.

• If approved, the Dogecoin and XRP ETFs will trade on the NYSE Arca exchange
• The SEC has 240 days to approve or reject the filings once they have been submitted to the SEC’s federal register
• Last week, the Cboe filed four XRP ETFs on behalf of 21Shares, Bitwise, Canary Capital, and WisdomTree

The US Securities and Exchange Commission (SEC) has acknowledged 19b-4 filings from Grayscale to list spot Dogecoin and XRP exchange-traded funds (ETFs).

The SEC announced the acknowledgements of the Grayscale Dogecoin Trust and the Grayscale XRP Trust on February 13. If approved, NYSE Arca will list the shares of the two trusts.

The 240-day window countdown will only begin once both filings have been submitted to the SEC’s federal register.

Multiple ETFs

Over the last few weeks, various organizations have submitted 19b-4 forms to the SEC to list and trade crypto ETFs.

Last week, the Chicago Board Options Exchange (Cboe) filed four separate filings on behalf of issuers to launch spot XRP exchange-traded funds (ETFs). These were filed for 21Shares, Bitwise, Canary Capital, and WisdomTree.

In October, Bitwise filed an S-1 form with the SEC for an XRP ETF. Similarly, Canary Capital filed for an XRP ETF last year, reflecting its broader strategy of bringing multiple crypto ETFs to the market.

This round of ETF forms comes as the SEC is undergoing a major shift, which could see a more crypto-friendly approach. Crypto-friendly Mark Uyeda is currently the acting chair of the SEC.

The odds are on a Litecoin ETF

Despite a push for XRP ETFs, Bloomberg analysts believe that a Litecoin ETF has a 90% chance of being approved in 2025.

James Seyffart and Eric Balchunas looked at the spot crypto ETFs, mainly focusing on Dogecoin, Litecoin, Solana, and XRP. In their opinion – after Litecoin – a Dogecoin ETF has a 75% chance of approval, a Solana ETF has a 70% chance, and an XRP ETF has a 65% approval rating.

Seyffart added that it’s unlikely the market will see an XRP ETF until the whole Ripple/XRP/SEC case is settled, finished, or has some sort of outcome.

“The SEC needs to untangle that mess,” he said.

Nasdaq filed two 19b-4 forms with the US Securities and Exchange Commission (SEC) on behalf of CoinShares for Litecoin and XRP exchange-traded funds (ETFs).

Nasdaq is seeking approval to list and trade a CoinShares Litecoin ETF and XRP ETF after CoinShares submitted its S-1 filings in January.

The post SEC acknowledges Grayscale’s Dogecoin and XRP ETF filings appeared first on CoinJournal.

• South Korea lifts crypto ban for companies.
• The ban lift has been structured in a two-phase plan.
• The move coincides with the enactment and enforcement of South Korea’s Virtual Asset User Protection Act.

South Korea’s Financial Services Commission (FSC) has announced plans to gradually lift the ban on corporations trading virtual assets, signaling a new era for the country’s crypto market.

The decision comes after years of strict regulations that prohibited institutions from engaging in cryptocurrency trading, initially set to curb speculation, money laundering, and market manipulation since 2017.

A phased approach to integration

The FSC’s strategy to integrate corporations into the virtual asset market is structured in phases. Initially, in the first half of 2025, entities such as law enforcement agencies, non-profit organizations, school corporations, and universities will be allowed to sell cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

This move is primarily aimed at enabling these institutions to cash out their holdings, providing them access to virtual asset exchanges for this purpose.

Following this, a pilot program is slated for the second half of 2025, where approximately 3,500 listed companies and corporations, alongside professional investors registered under South Korea’s Capital Market Act, will be permitted to both buy and sell digital currencies. This is expected to introduce a new layer of professional investment into the crypto market, potentially stabilizing and growing the market further.

South Korea’s Virtual Asset User Protection Act

The lifting of the ban coincides with the enactment and enforcement of South Korea’s Virtual Asset User Protection Act, which introduces significant protections for users in the digital asset space. This legal framework is part of a broader effort to ensure that the market operates under stringent oversight, reducing risks associated with virtual asset trading.

Globally, there’s a noticeable trend towards accepting and integrating cryptocurrencies into traditional finance.

The FSC acknowledges this shift, noting that the demand for blockchain-related investments and services necessitates a change in local market dynamics.

To support the transition, the FSC plans to establish a task force involving various stakeholders such as the Financial Supervisory Service, the Korea Federation of Banks, and the Digital Asset eXchange Alliance (DAXA). This collaboration aims at developing a comprehensive regulatory framework, including internal control standards for corporate crypto trading.

The involvement of market participants like crypto exchanges and industry experts is also critical for crafting guidelines that are both practical and effective.

The approach appears to be cautious yet progressive, aiming to balance innovation with investor protection in the dynamic world of virtual assets.

The post South Korea reviews ban on corporations trading virtual assets appeared first on CoinJournal.