Kategorie: Crypto Markets

• Jersey City Mayor Steven Fulop plans to invest pension funds in Bitcoin ETFs.
• Fulop likens the investment to Wisconsin Pension Fund’s 2% crypto allocation.
• SEC-approved Bitcoin ETFs see minimal adoption by major financial institutions.

Jersey City Mayor Steven Fulop has announced plans to invest a portion of the city’s pension fund into Bitcoin ETFs.

Fulop, who has held office since 2013, revealed on July 25 that the city’s pension fund is in the process of updating its paperwork with the US Securities and Exchange Commission (SEC) to include this new investment strategy.

Mayor Fulop believes in the potential of blockchain and crypto

In a statement shared on X, Mayor Fulop expressed his long-standing belief in the potential of cryptocurrency and blockchain technology. He did not specify the exact percentage of the fund to be allocated to Bitcoin ETFs but indicated that it would be comparable to the 2% allocation made by the Wisconsin Pension Fund.

Fulop emphasized his confidence in the transformative power of blockchain, describing it as one of the most significant technological innovations since the internet.

Not my normal subject matter in a post but I’ll share anyway – the question on whether Crypto/Bitcoin is here to stay is largely over + crypto/Bitcoin won. The #JerseyCity pension fund is in process of updating paperwork to the SEC to allocate % of the fund to Bitcoin ETFs… https://t.co/5iNEqRqHGM

— Steven Fulop (@StevenFulop) July 25, 2024

Jersey City to join State of Wisconsin in investing in Bitcoin ETFs

Fulop’s move aligns Jersey City with the State of Wisconsin Investment Board, which reported exposure to spot Bitcoin ETFs issued by Grayscale and BlackRock in May. At that time, Wisconsin’s crypto investments amounted to $164 million out of its approximately $156 billion in assets.

The SEC’s approval in January for listing and trading spot Bitcoin ETFs on US exchanges has paved the way for such investments.

However, publicly-run pension funds have been slow to adopt this strategy, with only Wisconsin and Jersey City currently considering crypto ETFs.

Interestingly, Mayor Fulop did not mention any plans to invest in spot Ether ETFs, which began trading in the US on July 23.

Major financial institutions like Wells Fargo and JPMorgan Chase have made only minimal investments in spot Bitcoin ETFs, amounting to less than $1 million combined — a negligible fraction of their vast asset portfolios.

This initiative by Mayor Fulop marks a significant step for Jersey City, potentially setting a precedent for other municipalities to explore similar investments in the burgeoning field of cryptocurrency.

The post Jersey City mayor to invest pension fund in Bitcoin ETFs appeared first on CoinJournal.

• Trump campaign raised $3M in crypto in Q2 2024, led by Winklevoss and Powell donations.
• Trump 47 Committee reported over $118M raised in crypto and fiat for Q2 2024.
• Kamala Harris raised $100M in 24 hours after Biden announced he won’t seek reelection.

Former President Donald Trump reelection campaign has garnered $3 million in digital asset donations for the second quarter of 2024 according to the published campaign financial data.

This development marks a notable change from Trump’s previous characterization of Bitcoin as a “scam” in 2021.

The fundraising boost comes as Donald Trump positions himself for another run at the White House, with the Trump 47 Committee reporting substantial contributions from high-profile figures in the cryptocurrency industry.

Winklevoss twins, Kraken co-founder, and former Messari CEO among donors

Leading the list of donors are Cameron and Tyler Winklevoss, co-founders of the cryptocurrency exchange Gemini. The twins collectively pledged $2 million in Bitcoin on June 20.

Kraken co-founder Jesse Powell followed suit with a commitment of $1 million in Ether (ETH) on June 28.

However, Federal Election Commission (FEC) guidelines necessitated partial refunds for donations exceeding the maximum individual contribution limit of $844,600. Consequently, the Winklevoss twins’ donation was partially refunded, and Powell’s contribution exceeded $844,000.

Among other notable contributors, Ryan Selkis, the former CEO of Messari, donated $50,000 in USD Coin. Selkis stepped down from his role on July 19 after a series of controversial tweets.

Stuart Alderoy, Ripple’s chief legal officer, also contributed $300,000 in XRP. While Alderoy has not publicly endorsed Trump, he has been a vocal critic of the Securities and Exchange Commission (SEC) under President Biden’s administration.

In addition to these significant contributions, smaller donations also played a role. These included $500 in Bitcoin from a homemaker in Alabama and various smaller amounts from retirees and self-employed individuals. Michael Belshe, CEO of BitGo, added $50,000 in BTC to the campaign’s coffers.

Donald Trump campaign committee raised $118M in Q2 2024

The Trump 47 Committee reported a total of $118 million raised in both cryptocurrency and fiat for Q2 2024, bringing the campaign’s total fundraising to over $142 million for the year.

The influx of funds comes at a crucial time as Donald Trump seeks to solidify his position within the Republican Party. His campaign has announced his participation in the upcoming Bitcoin Conference in Nashville on July 27, signaling his growing engagement with the crypto community.

Meanwhile, the political landscape saw a major shift as President Joe Biden announced he would not seek reelection, endorsing Vice President Kamala Harris as the presumptive Democratic nominee. Harris’s campaign received a staggering $100 million in donations within 24 hours of Biden’s announcement.

As the 2024 election cycle intensifies, the influence of cryptocurrency donations is becoming increasingly apparent. Notably, the political action committee (PAC) Fairshake, funded by industry giants like Coinbase and Ripple, has raised approximately $169 million since its inception, supporting candidates and targeting anti-crypto politicians.

With Trump’s campaign gaining momentum and Harris emerging as a formidable contender, the role of digital assets in American politics continues to evolve, reflecting broader trends in financial and technological integration.

The post Donald Trump raises $3 million in crypto in Q2 for his reelection campaign appeared first on CoinJournal.

• CB Payments Limited (CBPL) a subsidiary the Coinbase Group fined $4.5 million by FCA for onboarding high-risk customers.
• Breaches occurred despite a 2020 agreement to halt onboarding high-risk customers.
• This is FCA’s first action under Electronic Money Regulations 2011 against a crypto firm.

In a landmark decision, the Financial Conduct Authority (FCA) has fined the UK’s Coinbase subsidiary, CB Payments Limited (CBPL), £3.5 million ($4.5 million) for repeated breaches of anti-money laundering regulations.

This enforcement marks the first action taken by the FCA under the Electronic Money Regulations 2011 against a cryptocurrency firm.

CBPL had agreed with the FCA not to onboard high-risk customers

In October 2020, CB Payments Limited (CBPL), part of the Coinbase Group, entered a voluntary agreement with the FCA to halt the onboarding of high-risk customers.

This agreement aimed to bolster the firm’s financial crime controls, which had significant weaknesses as per the FCA’s assessment.

However, despite the restrictions, CBPL proceeded to onboard 13,416 high-risk customers. These customers deposited approximately $24.9 million, which was used for withdrawals and crypto transactions amounting to $226 million through other Coinbase entities.

The FCA’s investigation revealed that CBPL failed to exercise due skill, care, and diligence in designing, testing, implementing, and monitoring controls to comply with the voluntary requirement (VREQ).

The firm did not adequately consider all potential customer onboarding methods, leading to substantial breaches that went undetected for nearly two years.

The Joint Executive Director of Enforcement and Market Oversight at the FCA, Therese Chambers, in a statement issued on July 25, highlighted the severity of the situation stating that CBPL’s controls had significant weaknesses, and the FCA told it so, which is why the requirements were needed.

According to the statement, CBPL, however, repeatedly breached those requirements. This increased the risk that criminals could use CBPL to launder the proceeds of crime. We will not tolerate such laxity, which jeopardizes the integrity of our markets.

The Coinbase subsidiary received a 30% discount on the fine

Coinbase responded to the FCA’s findings, stating that it takes regulatory compliance very seriously and is actively enhancing its controls to ensure adherence to regulatory obligations.

The FCA acknowledged CBPL’s cooperation in the investigation and noted that the firm received a 30% discount on the fine for agreeing to resolve the matter early.

Warning to crypto firms with no financial crime controls

The FCA’s action reflects a broader intent to hold cryptocurrency firms accountable for their anti-money laundering obligations.

Kate Gee, a partner and crypto disputes specialist at Signature Litigation in London, said that the fine against CBPL should be considered a warning to firms to consider their financial crime controls as hugely important, particularly in the crypto sector where there are increased money laundering risks.

Gee went ahead to state that firms that do not do enough to protect against financial crime and who fail to comply with operational restrictions in place will face scrutiny and enforcement action.

This fine not only underscores the importance of robust financial crime controls but also signals potential increased scrutiny for other cryptocurrency exchanges operating in the UK.

The FCA’s decisive action may prompt other platforms to reassess their compliance frameworks to avoid similar penalties.

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• Crypto-friendly fintech platform Revolut has secured a banking license in the UK.
• The digital bank has 9 million UK customers and 45 million globally.

After a three-year wait, crypto-friendly fintech firm Revolut has finally secured a banking license from United Kingdom’s banking regulator Prudential Regulation Authority (PRA).

Revolut announced the milestone in a news release on Thursday, July 25, noting that the next step is the “mobilization” stage. Also known as ‘Authorisation with Restrictions’, this is a step in the licensing process that many new banks have to complete as part of building out operations before launching in the market.

“We are incredibly proud to reach this important milestone in the journey of the company and we will ensure we deliver on making Revolut the bank of choice for UK customers” Nik Storonsky, CEO of Revolut, said in a statement.

UK customers not impacted

According to Revolut, the restricted period covering the “mobilization” stage will not impact UK customers. The bank, which has over 9 million customers in the UK and more than 45 million worldwide, has assured its UK customers that use of the Revolut e-money account will continue as normal.

Commenting on the development, Francesca Carlesi, UK CEO of Revolut, said:

“Today’s announcement is a significant step forward for Revolut and for our customers. It is a tremendous responsibility to be a bank in the UK and we will work relentlessly to offer products and services that improve the financial lives of everyone who uses Revolut.

Revolut first applied for the UK license from PRA in 2021.

In May this year, Revolut announced the launch of a new crypto exchange platform dubbed Revolut X.

The stand-alone crypto platform is for professional crypto traders and offers access to on and off ramps and low fees. These features, the fintech said at the time, will see Revolut X compete with leading exchanges in the market.

The post Revolut secures UK banking license appeared first on CoinJournal.

• HSBC Australia will block all customer payments to crypto exchanges as from July 24, 2024.
• The bank told customers in an email that the decision is due to rising cases of crypto related investment scams.
• A recent report suggested Australians lost $171 millin to such crypto scams in 2023.

HSBC Australia has begun blocking payments to crypto exchanges, citing rising cases of scams.

The bank told its customers that the new measure took effect on July 24, with all bank accounts and credit card payments to cryptocurrency exchanges blocked. At least six major banks in Australia currently block payments to crypto exchanges, Cointelegraph noted in a report.

Customer protection

HSBC Australia, like other major banks to take the step in the country, say the objective is to protect its customers.

Clients looking to make payments to crypto platforms will have to find alternative means, the bank wrote in the email.

“From 24 July 2024, HSBC will block payments from bank accounts and credit cards that we reasonably believe are being made to cryptocurrency exchanges, for your protection,” the banking giant wrote.

The bank pointed to a recent report by the Australian competition and consumer regulator, ACCC, for its decision. According to the report, investment scams accounted for up to $171 million in losses for Australians in 2023.

HSBC Australia’s notification to its customers wasn’t the only major setback for crypto in the county on the day. Shortly after the bank’s move, another firm, Bendigo Bank, notified its clients of a similar move. Bendigo Bank also cited investment scams in crypto, asserting that its decision is in the best interest of customers and for their protection.

While HSBC Australia has blocked payments to crypto platforms, the bank will still process customers’ cryptocurrency payments from exchanges.

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