Schlagwort: blockchain regulation

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Embattled crypto lender Celsius wants to start repaying customers by year-end

Key takeaways

  • Celsius is seeking court approval to start repaying customers in the coming weeks. 

  • The company will repay its creditors using Bitcoin and Ethereum and stock in the new company.

Celsius seeks to start repaying customers soon

Embattled crypto lender Celsius Network is seeking court approval to start repaying its customers by the end of the year. The company informed a judge during an October 2 heading for its reorganisation plan. 

Celsius’ legal counsel, Christopher Koenig, told the court that the new company, called NewCo, is set to emerge from the proceedings with $450 million in seed funding.

The cryptocurrency lender is now looking to partially repay its creditors using $2.03 billion in Bitcoin and Ethereum and stock in the new company. So far, NewCo has received backing from a consortium called Fahrenheit LLC. The consortium is set to manage the mining and staking business of the company. 

The judge, Martin Glenn, is currently considering the possibility of approving Celsius’s restructuring plan. However, the plan will need to be approved by security regulators in the US. 

While the majority of creditors have approved the reorganisation plan, some are not in favour of it. Celsius said,

“The Debtors arrive at Confirmation with a Plan that has the support of over 95% of voting Account Holders by both number and dollar amount.” 

Celsius could soon be resurrected after filing for bankruptcy

Celsius declared bankruptcy more than a year ago and has been under fire by security regulators. In July, the US Federal Trade Commission slapped Celsius Network with a $4.7B fine for squandering billions in user deposits. 

Its founder, Alex Mashinsky, is still in court after pleading not guilty to fraud charges filed against him by the US Department of Justice.

If the Celsius plan is approved, it would become one of the first failed crypto platforms from last year to be resurrected after filing for a Chapter 11 bankruptcy. 

The company halted withdrawals in June 2022 following the collapse of the Terra/Luna project, and investors have been waiting since then to access their funds. 

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Nomura Bank’s Laser Digital receives approval for operations in Abu Dhabi

Key takeaways

  • Laser Digital has become the latest digital asset firm to receive approval to operate in Abu Dhabi.

  • The firm is owned by Japanese banking giant Nomura Bank. 

Laser Digital can now operate in Abu Dhabi

Laser Digital, the digital assets arm of Japan’s Nomura Bank, has received in-principal approval to provide broker-dealer services and asset/fund management services in Abu Dhabi.

The approval was granted by the Abu Dhabi Global Market (ADGM), allowing Laser Digital to offer numerous services to users in the region. 

This latest cryptocurrency news means that Laser Digital stands a chance to receive full Financial Services Permission to operate in the region upon meeting the conditions specified in the current approval. However, the conditions to be met were not specified in the announcement.

While commenting on this latest development, Laser Digital CEO Jez Mohideen said of the ADGM said;

“Their comprehensive and clear regulatory framework is creating a global hub for digital assets that we are delighted to be joining.”

The ADGM continues to attract more companies around the world as it is an international financial free zone within Abu Dhabi, the capital of the United Arab Emirates (UAE).

The financial free zone occupies nearly 15 square kilometres across two islands and comprises a registration authority, regulatory authority and a court. 

Crypto companies continue to gain approval in Abu Dhabi

Laser Digital’s approval comes roughly three weeks after Standard Chartered-backed Zodia Markets received its approval to serve as a crypto broker in Abu Dhabi.

In June last year, Binance received in-principal approval to operate in the ADGM. the cryptocurrency exchange also received Financial Services Permission in November. Other companies that have received ADGM approval include Kraken, UAE-based M2 and Bahrain-based Rain. 

Laser Digital’s approval came after the firm received an operating license from Dubai’s Virtual Asset Regulatory Authority (VARA). The firm also launched its Bitcoin Adoption Fund last month. 

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SEC delays decision on ARK Invest Bitcoin ETF

  • The SEC has delayed its decision on the ARK 21Shares Bitcoin ETF decision to early 2024.
  • Also delayed is the Global X Bitcoin Trust application.
  • Analysts expect the regulator to delay other proposals amid the likelihood of a US government shutdown.

The Securities and Exchange Commission (SEC) has yet again delayed a decision on the ARK 21Shares Bitcoin ETF application, pushing this to early 2024. The SEC also delayed the Global X Bitcoin Trust application to November 21.

News of the delays has elicited various reactions from the crypto industry, with many observing that the regulator will now likely delay all the other applications to next year. Bloomberg ETF analyst James Seyffart shared news of the SEC’s decision on X.

Other spot ETF applications could be delayed

In a filing detailing the delay, the SEC notes that it needs “sufficient time to consider the proposed rule change.”

But what’s notable about the Commission’s action is that the decision to delay has come much earlier than anticipated – this was not due until November 11. A host of other proposals, including those of BlackRock and Fidelity were due for a decision in mid-October, and the agency’s move appears to suggest they could postpone these too. 

“This may put the hammer down for any hopes of an ETF approval this year? If they went on Ark/21 shares already, we may see delays on all the other filings today too? BlackRock, Bitwise, VanEck, Invesco, Wisdomtree, Fidelity & Valkyrie [were] all due in mid Oct,” Seyffart opined in a post on X.

A looming US government shutdown makes the likelihood of this scenario unfolding highly possible. It’s one of the things SEC Chair Gary Gensler might have to elaborate on when he appears before the House Committee on Financial Services later today.

No spot Bitcoin ETF yet

The SEC’s notice came a few hours after a group of US lawmakers urged the regulator to “immediately” allow a spot bitcoin ETF. It follows last month’s delay on all the spot bitcoin ETF proposals, and a US court’s decision quashing the regulator’s rejection of the Grayscale Investments’ application to convert its Bitcoin Trust (GBTC) fund to a spot bitcoin ETF.

As CoinJournal highlighted here, August’s decision by the US Court of Appeals for the District of Columbia Circuit granted Grayscale’s petition for a review, with the SEC ordered to reconsider Grayscale’s application.  SEC had 45 days to seek an “en banc” appeal, which puts the deadline for such a move to October 13.

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Taiwan releases new guidelines for crypto exchanges

  • Taiwan’s regulator, the Financial Supervisory Commission (FSC) has announced new guidelines for virtual asset service providers (VASPs).
  • The agency published the VASP guidelines on Tuesday, which includes exchange registration, segregation of customer funds and prohibition of certain products.

Taiwan’s financial regulator, the Financial Supervisory Commission, has released new guidelines aimed at streamlining the crypto exchange space in the country. Specifically, the watchdog has outlined guidelines for virtual asset services providers (VASPs) as it looks to bolster its crypto regulation.

The new guidelines were highlighted in a new report the FSC published Tuesday, September 26, 2023. Wu Blockchain shared news of the development via X, including a link to the Financial Supervisory Commission’s publication.

Foreign exchanges must register before offering services

Per the guidelines, crypto platforms must integrate and make public mechanisms for listing and delisting assets, segregation of customer funds from exchange assets and having a security management system in place. Information disclosures are also emphasised, with details on internal audits and other procedures a requirement.

More than that, the FSC says any offshore crypto exchange seeking to offer products and services must register before offering services to Taiwan customers.

“Overseas virtual asset platform operators are not allowed to solicit business within the territory of Taiwan or from Taiwan citizens, unless they have been registered in accordance with the Company Law, submitted to the Financial Supervisory Commission and completed a declaration of compliance with money laundering prevention laws,” a translation of the guidelines reads in part.

According to the FSC, VASPs will be allowed to form or join self-regulatory standards organisations. 

The goal is to promote self-discipline within the industry, with relevant VASP associations outlining the standards and norms based that crypto platforms will need to embrace to enhance customer protection.

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Coinbase secures registration with the Bank of Spain

  • Coinbase’s registration with the Bank of Spain marks a significant stride in its mission to provide secure and compliant crypto services to users worldwide.
  • The registration allows Coinbase to offer our full suite of products and services to retail and institutional users in Spain.
  • Spain is a member of the EU which recently adopted the Markets in Crypto Assets (MiCA) regulations.

Coinbase, a leading cryptocurrency exchange and custodian wallet provider, on September 22 announced that it had achieved a significant milestone in its global expansion strategy by securing Anti-Money Laundering (AML) registration with the Bank of Spain.

This registration enables Coinbase to offer its full range of cryptocurrency services to both retail and institutional users in Spain while complying with the country’s regulatory framework.

Coinbase in Spain

Users from Spain can now access a comprehensive suite of services provided by Coinbase, including the secure custody of crypto assets, seamless buying and selling of crypto assets in legal tender, and the trading of various cryptocurrencies against one another.

Nana Murugesan, the Vice President of International and Business Development at Coinbase, expressed enthusiasm about this achievement, highlighting its importance in supporting and growing their user base in Spain.

Coinbase’s commitment to regulatory compliance is evident in its recent accomplishments, including VASP registrations in Italy, Ireland, and the Netherlands, along with approvals and launches in Singapore, Brazil, and Canada. Collaborating with regulators worldwide is a pivotal element of Coinbase’s international growth strategy.

Coinbase’s global expansion strategy

Coinbase’s Phase II international expansion strategy focuses on obtaining licenses and registrations, customizing the user experience to meet local requirements, establishing strategic local partnerships, and strengthening operations in markets that prioritize regulatory clarity, as exemplified by Spain.

Spain has exhibited a growing interest in cryptocurrencies, with 29% of adults believing in their potential as the future of finance. Cryptocurrencies have gained popularity as a payment method, surpassing traditional bank transfers. A study by Bitnovo revealed that a significant portion of Spanish citizens view cryptocurrencies as long-term investments and a means of making payments. Furthermore, Spain boasts a thriving blockchain ecosystem, with numerous startups and a high demand for blockchain-related skills.

The adoption of the Markets in Crypto Assets (MiCA) regulations by the European Union is a pivotal moment for the cryptocurrency industry in the region. MiCA offers much-needed regulatory clarity, demonstrating the EU’s recognition of the transformative potential of emerging technologies. In contrast, many other jurisdictions are grappling with the challenge of establishing coherent regulatory frameworks for the rapidly evolving crypto industry.

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