Schlagwort: blockchain regulation

Key takeaways

• A Binance executive has warned that the exchange could delist multiple stablecoins soon.

• The delisting will be fueled by the EU’s MiCA regulation taking effect next year.

Binance to delist  multiple stablecoins

A Binance executive has warned that the cryptocurrency exchange could delist multiple stablecoins from its platform. 

The delisting could happen as the cryptocurrency exchange attempts to decipher the implications of the EU’s Markets in Crypto Assets (MiCA) regulation.

At the moment, it is still unclear how MiCA will apply to decentralized stablecoins and other foreign stablecoin issuers. However, officials from the European Banking Authority (EBA) have pointed out that the regulation immediately applies to coins already on the market.

MiCA was approved last June and will make the EU the first major region in the world to roll out a comprehensive crypto regulation. The regulation would allow crypto exchange and wallet providers to operate across the EU using a single license. 

MiCA’s regulation on stablecoins is set to come into effect in June 2024. Marina Parthuisot, Head of Legal at Binance France, told an online public hearing hosted by the EBA that

“We are heading to a delisting of all stablecoins in Europe on June 30, given that no project has yet been approved. This could have a significant impact on the market in Europe compared to the rest of the world.”

Binance continues to face regulatory pressure

This latest cryptocurrency news comes as Binance continues to face regulatory pressure in the US and other parts of the world. The company’s CEO, Changpeng “CZ” Zhao, hailed MiCA’s clear rules. However, the exchange has exited some European countries, including the Netherlands, Cyprus and Germany, due to regulatory challenges. 

The crypto exchange is still locked in a court case with the United States Securities and Exchange Commission (SEC). Earlier this week, a US court denied the SEC’s request to look into Binance.US’s documents. 

The case continues to affect Binance.US’s performance, with its daily trading volume significantly down in recent months. 

The post Binance could delist multiple stablecoins as MiCA takes effect next year appeared first on CoinJournal.

Key takeaways

• The UK House of Lords has passed a bill to seize stolen cryptocurrencies.

• The bill targets monetary proceeds from fraud or other financial crimes.

The UK government could seize stolen cryptocurrencies

A bill that seeks to expand the ability of UK authorities to target illicit cryptocurrency usage has been passed for approval by the House of Lords. 

The bill, dubbed the Economic Crime and Corporate Transparency Bill, was introduced a year ago. The bill seeks to tackle crypto-related financial crimes. Since the introduction of the bill, it has gone from the House of Commons to the House of Lords and is now at the final stage of approval. 

Per the bill, the authorities will target monetary proceeds from fraud or other financial crimes. Furthermore, the bill also seeks to introduce provisions for corporate transparency and overseas business registrations.

Now that the bill is at its final stage, the House of Commons will vote to accept the proposed amendments or recommend changes to the bill. If approval is obtained, the bill will be signed into law via royal assent (the monarch approvals the bill as an act of legislature). 

The U.K.’s financial regulator, the Financial Conduct Authority (FCA), recently pointed out that it is willing to work with crypto companies to introduce a regulatory framework for the cryptocurrency industry. 

The regulatory agency, via Executive Director Sarah Pritchard, made this known while speaking at the London’s City Week conference. She stated that;

“Let’s work together to shape our rules and regulations to benefit markets, consumers and firms as crypto goes from niche to mainstream.”

She added that the FCA’s responsibilities also include ensuring that crypto firms operating in the country comply with Anti-Money Laundering and Counter-Terrorist Financing legislation.

The FCA has been expanding its base within the crypto industry. In July, the regulatory agency launched a permanent digital sandbox to serve as a testing environment for crypto companies and others to see how their products would perform at an early stage of development.

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• Hong Kong warns crypto firms against using the word “bank”
• The Hong Kong Monetary Authority (HKMA) says only licensed banks can take “deposits.”
• Using terms such as digital bank, crypto bank and crypto asset bank contravenes the Banking Ordinance.

The Hong Kong Monetary Authority (HKMA) has warned crypto firms that it’s against the law for any unauthorised company or platform to refer themselves as a “bank”, or deposit-taking businesses. 

Hong Kong regulation prohibits this, HKMA noted.

Only licenced banks can take deposits

HKMA’s warning noted that firms taking such an approach to their marketing to the public are contravening the Banking Ordinance. The regulator notified the public to be aware of this fact, while crypto firms were reminded that only HKMA-licensed providers can use the term bank or take deposits from the public.

“Under the Banking Ordinance, only licensed banks, restricted licence banks and deposit-taking companies (collectively known as “authorised institutions”), which have been granted a licence by the HKMA can carry out banking or deposit-taking business in Hong Kong,” the regulator warned via a press release published on Friday.

Among terms the Hong Kong financial markets watchdog cautioned crypto firms not to use or describe themselves include digital bank, crypto bank, crypto asset bank, digital trading bank and digital asset bank. Unlicenced firms should also not claim to offer banking accounts or banking services, as well as describing funds sent to accounts with the companies as “deposits.”

Such terms as “savings plans” or “low risk” and “high return” are also not allowed under the law for such unauthorised platforms. 

“These descriptions may mislead members of the public into believing that those crypto firms are banks authorised in Hong Kong, to which they can entrust their savings,” HKMA noted.

According to the regulatory authority, crypto firms are not approved and regulated as banks in Hong Kong. HKMA does not also supervise these platforms, which means funds that people place with these entities do not benefit from the Hong Kong Deposit Protection Scheme.

Exchanges warned against illegal services

Hong Kong is one of the fastest-growing crypto hubs in the world and many crypto companies, including exchanges, have looked to secure regulatory approval to offer products and services there. 

The Hong Kong government’s recent unveiling of a crypto framework aimed at transforming the crypto sector has been lauded by many crypto industry players.

But while the jurisdiction opens up the financial hub to crypto, Hong Kong’s Securities and Futures Commission (SFC) recently warned exchanges and other providers against misrepresenting their regulatory status. The regulator also asked exchanges not to offer services and products to investors before completing the process, or extending services not allowed under the law.

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• Japan eyes support for crypto startups in new regulation on startup financing.
• According to reports, the new rules means startups can raise funds from investors by offering stocks and crypto.

Japan is looking to relax restrictions on how startups raise funds with a view to revamping the sector amid growth in venture capital funding.

According to a report from local outlet Nikkei, the government plans to have startups access financing from VCs by offering crypto. As such, the new regulation will allow investors to receive traditional stocks as well as crypto when extending funding to startups.

Blockchain reporter Colin Wu shared the news via X.

According to nikkei, the Japanese government will relax regulations on startup financing. When start-ups receive financial support from investment funds, they can choose to deliver crypto assets instead of just stocks. The new rules apply to funds investing in limited…

— Wu Blockchain (@WuBlockchain) September 15, 2023

The country’s regulatory approach will however apply to funds that invest in limited partnerships (LPs), the report stated. Japan’s growing support for crypto comes as several countries look to boost the investment space to accommodate a burgeoning crypto sector.

But regulators have in recent months also stepped up their crackdown on compliance, including the enforcement of the Travel Rule that mandates the sharing of customer transaction details between crypto exchanges. The rules are aimed at bolstering the fight against potential money laundering.

Japanese-based crypto exchange bitFlyer announced the implementation of the travel rule in May this year.

The post Japan eases regulations on startup financing to allow for crypto appeared first on CoinJournal.

• SEC says Stoner Cats 2 LLC raised $8 million from investors by offering unregistered securities of NFTs.
• Stoner Cats will refund the money to investors and pay a $1 million fine.
• SEC recently charged Impact Theory over allegations of similar violations.

The Securities and Exchange Commission (SEC) has charged Stoner Cats 2 LLC over an unregistered offering of NFTs.

According to the regulator, the NFTs creator raised $8 million from investors in a project that financed the animated web series show dubbed Stoner Cats. Among notable personalities to feature in the show (via voiceovers) were Ashton Kutcher, Chris Rock, Jane Fonda, Mila Kunis and Ethereum co-founder Vitalik Buterin.

NFTs were offered as securities

In its order, the SEC said the charge shows that it’s not about what the NFTs are based on or underlying asset, but rather the “economic reality of the offering.”

The SEC’s complaint noted that Stoner Cats wasn’t exempt from registration and thus the offering violated the US securities laws.

“Regardless of whether your offering involves beavers, chinchillas or animal-based NFTs, under the federal securities laws, it’s the economic reality of the offering – not the labels you put on it or the underlying objects – that guides the determination of what’s an investment contract and therefore a security,” Gurbir S. Grewal, SEC’s director of Enforcement, said in a press release.

According to the SEC, Stoner Cats’ fire sale that saw the entire collection sold within minutes was a result of the hype generated after the company touted the NFTs’ potential as an investment to buyers. Investors were therefore led to believe they could profit from secondary sales of the NFTs.

Stoner Cats 2 has been ordered to refund investors and pay a $1 million civil penalty. The platform is also to destroy their NFT collection and although it didn’t admit or deny the SEC’s charges, agreed to a cease-and-desist order.

Industry reacts to SEC charges against Stoner Cats

The action against Stoner Cats follows a similar charge against Impact Theory, a Los Angeles-based company also charged with offering unregistered securities in NFTs. As CoinJournal reported, the company neither admitted nor denied the charges. However, they agreed to a $6.1 million fine.

Observers and market experts have reacted to the latest SEC action, with many saying Impact Theory’s charges were “clear” and that could present a worry for other NFT projects. But the charges against Stoner Cats are a little vague. 

The Gorilla Labs founder posted these sentiments on X.

The SECs latest strike on Stoner Cats is worrisome for all NFT collections.

While Impact Theory’s violations were clear, this time around is quite vague.

Here’s what Stoner Cats was flagged for:
– Allowing buyers to resell NFTs on secondary markets
– Promoting their team as… pic.twitter.com/ePnlTynxCC

— Gorilla (@CryptoGorillaYT) September 13, 2023

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