Schlagwort: crypto business

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Cboe Seeks SEC’s Approval After Filing to List Solana ETFs

  • The Chicago Board Options Exchange (Cboe) has submitted two applications to list spot Solana ETFs on its platform
  • The exchange has asked the SEC to approve the listing of the 21Shares and VanEck spot Solana ETFs
  • The SEC needs to decide by March 2025
  • One analyst believes that the ETF approval depends on whether Donald Trump is re-elected as US President in November

The Chicago Board Options Exchange (Choe) has filed applications with the US Securities and Exchange Commission (SEC) to list 21Shares and VanEck spot Solana exchange-traded funds (ETFs), requiring the regulator to decide by March 2025.

Cboe filed two 19b-4 form applications on July 8: 21Shares Core Solana and the VanEck Solana Trust. Now that the SEC has received the filings, and under its rules, it must decide within 240 days.

The Cboe  filings come a few weeks after VanEck filed an S-1 for a spot Solana ETF with the SEC, making it the first company in the US to file for one. Following the news, the trading volume of Solana increased 26% to more than $2.8bn.

21Shares also filed its own S-1 application with the SEC in June, stating on X that they “believe this is a necessary step for the crypto industry.”

According to the Cboe, a potential Solana ETF is similar to spot Bitcoin and spot Ethereum funds, adding “much like bitcoin and ETH, the Exchange believes that SOL is resistant to price manipulation and that “other means to prevent fraudulent and manipulative acts and practices” exist to justify dispensing with the requisite surveillance sharing agreement.”

Outcome of a Solana ETF

Cboe already lists six of the 10 spot Bitcoin ETFs available: ARK/21Shares, Fidelity Wise, Franklin, Invesco Galaxy, VanEck, and Wisdom Tree. If, and when spot Ethereum ETFs are approved by the SEC, Cboe would list five.

It remains to be seen whether or not spot Solana ETFs receive the green light.

However, according to senior Bloomberg ETF analyst Eric Balchunas, the possibility of a Solana ETF depends on whether Donald Trump is re-elected as the US President. Balchunas believes that if Biden wins, the applications are likely “dead on arrival.”

This was a view he shared in June following 21Shares application for a Solana ETF when he said “the odds of a Solana ETF being approved” in the next 12 months may improve significantly if Trump wins this year’s election.

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Paxful co-founder agrees to plea deal, faces up to 5 years in jail

  • Paxful’s lack of AML led to regulatory breaches, prompting leadership changes.
  • Artur Schaback pled guilty to failing to maintain AML and KYC programs at Paxful.
  • Schaback faces up to 5 years in jail and a $5 million fine, payable in installments.

Artur Schaback, co-founder and former Chief Technology Officer of the cryptocurrency exchange Paxful, has entered into a plea agreement with US prosecutors. This plea deal could result in Schaback serving up to five years in prison.

The charges against Schaback stem from failures to implement essential Anti-Money Laundering (AML) and Know Your Customer (KYC) programs, which are crucial for preventing illegal activities within financial platforms.

Details of Schaback’s plea agreement

On July 8, 2024, the United States Justice Department announced that Schaback had pled guilty to conspiring to neglect the implementation of an effective AML program at Paxful.

As part of his plea deal, Schaback has agreed to pay a $5 million fine, which will be paid in three installments: $1 million upon his guilty plea, $3 million by his sentencing date on November 4, 2024, and the final $1 million within the subsequent two years.

In addition to the financial penalty, Schaback will resign from Paxful’s board.

According to court filings, Schaback and an unnamed co-conspirator, referred to as Paxful’s “President and Chief Executive Officer,” failed to establish effective AML and KYC programs within 90 days of starting the business, as required by the Bank Secrecy Act.

This failure allowed users to create accounts and trade on Paxful without providing sufficient identifying information, making the platform a conduit for various illegal activities, including money laundering, sanctions violations, fraud, romance scams, extortion schemes, and prostitution.

The consequences of non-compliance

The lack of proper AML and KYC protocols at Paxful led to significant regulatory breaches. Undercover law enforcement officers were able to conduct trades on the platform without undergoing KYC verification.

When third parties inquired about Paxful’s AML policies, Schaback and his co-conspirator allegedly presented a policy plagiarized from another institution, knowing it was neither implemented nor enforced.

They also reportedly made exceptions to AML and KYC policies based on the trading volumes and personal relationships of certain customers.

Paxful internal disputes and leadership changes

The legal troubles of Paxful’s leadership have been compounded by internal disputes. In March 2023, Schaback sued his co-founder, Mohamad (Ray) Youssef, over control of the exchange, accusing him of misappropriation of company funds, money laundering, and sanctions evasions.

As a result, Srinivas Raju, a director at the law firm Richards, Layton, and Finger, was appointed as the exchange’s custodian.

Subsequently, in May 2023, Paxful appointed Roshan Dharia as Interim CEO to steer the company through its turbulent period.

The plea deal and impending sentencing of Artur Schaback underscore the critical importance of robust AML and KYC programs in the cryptocurrency industry.

Paxful’s case serves as a cautionary tale about the severe consequences of regulatory non-compliance, both for individuals and the companies they represent.

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Blackrock’s BUIDL Fund Surpasses $500 Million

  • Blackrock’s tokenised US TReasury fund, BUIDL, surpassed a market value of $500 million.
  • The overall market of tokenized US Treasury products has risen to $1.8 billion, signalling growth in the RWA space.

Blackrock’s tokenised fund, the BlackRock USD Institutional Digital Liquidity Fund, has seen significant growth within the first four months of its launch as its market value surpassed $500 million, making it the first tokenized US Treasury product to achieve such a milestone.

This development comes on the back of growth in tokenised funds across the board as the overall market for tokenised US Treasuries stands at $1.8 billion. At a $500 million value, Blackrock controls 27% of that market and much of this dominance is on the backs of other protocols, like Ondo, that use BUIDL to back their yield-bearing products.

RWA keeps growing

According to data provider, rwa.xyz, the on-chain Treasuries market has doubled in size to $1.8 billion this year as institutional investors seek US Treasuries as low-risk investments.

However, the most popular RWA asset remains tokenised private credit with $12 billion in total loans originated by all protocols, with the lion’s share originating from protocols like Figure ($8.3 billion), Maple ($1.9 billion), and TrueFi ($1.7 billion)

Much of the RWA market still resides on the Ethereum network.

Blackrock is in good company

Blackrock isn’t the only firm with a tokenised fund. Franklin Templeton, a US-based asset manager, offers a tokenised US Treasury fund with a market value of around $400 million. Hashnote also runs a fund with a $118.86 million market value. Other protocols include Ondo, Maple, TrueFi, Superstate, and Open Eden, all of which have recorded significant growth this year.

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Germany still holds $2.2B worth of Bitcoin as Tequila (JULIO) presale draws closer

Key takeaways

  • Germany still holds more than $2 billion worth of bitcoins.
  • Tequila’s presale will commence soon as the project looks to become a leading Solana meme coin.

German government still holds over $2 billion worth of bitcoins

The cryptocurrency market has underperformed over the last seven days, thanks to the movement of bitcoins by the German government and the now-defunct Mt.Gox crypto exchange.

The potential selling pressure saw Bitcoin lose roughly 9% of its value over the last seven days. However, data obtained from Arkham Intelligence revealed that Germany still holds 29,286 BTC worth $2.2 billion.

Germany has been running down its coin stash since mid-June. Further dumping of its bitcoins into the market could negatively affect Bitcoin’s price in the short term. 

Tequila (JULIO) to debut as a Solana meme coin

Solana has become home to some of the leading meme coins in the world thanks to the blockchain’s speed, transparency, and other unique qualities.

Tequila is set to become the latest Solana-based meme coin and looks to provide unique utility to investors and traders. 

Tequila is Mexico’s gift to the world from the agave fields of Jalisco. Its native token, $JULIO harmonises the unending fun of tequila-fueled nights with the upside of a memecoin.

$JULIO is set to launch on July 10 on the Solana blockchain and distinguishes itself by combining the allure of tequila, one of the world’s most popular distilled liquors, with the excitement of meme coins.

According to their roadmap, there are various stages to the project, including Agave Plating, Distillation, Aging, and Bottling. Each phase contains milestones that the team intends to achieve. 

JULIO tokenomics

Tequila is presenting investors with a unique tokenomics. The project seeks to establish a strong foundation within the crypto community and get listed on CoinMarketCap and CoinGecko. 

In the distillation stage, $JULIO will be listed on centralised cryptocurrency exchanges. However, the team is yet to reveal the crypto exchanges its token will initially launch. Tequila has a total supply of 100 million tokens, with the project emphasising fairness through a fair launch model. In this model, 90% of tokens are available for public acquisition, with only 10% allocated to marketing. The initial liquidity and starting price will be decided at a later date. 

The Aging phase of Tequila’s roadmap includes listing on tier-1 centralised exchanges and its Tequila-themed parties. Finally, the Bottling phase comprises its Meme utility, the launch of $JULIO on Layer-3, and the creation of Tequila spirit with payments exclusively made in $JULIO. 

Tequila seeks to leverage the high interest in meme coins at the moment to launch an exciting project. Thanks to its unique value proposition, Tequila could quickly become one of the leading meme coins on the Solana blockchain. 

Read more about the Tequila project here. 

Should you buy $JULIO during presale?

The Tequila presale could be the perfect opportunity to buy $JULIO tokens at a discount price. The project is leveraging the high interest in meme coins to become a favourite amongst investors. 

Tequila is set to introduce a fresh perspective with its thematic approach and this could gain massive adoption in the market. If it does, early investors would be amongst the top winners in the current bull cycle.

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LiquiTrade faces sanctions as Canada cracks down on unregistered crypto exchanges

  • LiquiTrade faces sanctions for illegal operations under Canada’s Securities Act.
  • BCSC found LiquiTrade enabled unregistered trading of crypto derivatives.
  • Four exchanges have been banned amid the heightened Canada’s crackdown.

LiquiTrade, operator of the Latoken crypto exchange, faces impending sanctions for violating the Canada’s Securities Act.

The British Columbia Securities Commission (BCSC) has found LiquiTrade guilty of operating an illegal exchange, highlighting ongoing efforts to enforce compliance within the burgeoning digital asset sector.

LiquiTrade not registered in Canada despite having a 1.5M users

LiquiTrade came under scrutiny after processing an estimated $300 million in daily transactions for its 1.5 million user base, despite never registering under Canada’s Securities Act.

The BCSC panel determined that LiquiTrade facilitated trading of contractual rights related to crypto assets, which are classified as derivatives investments under Canadian law. This classification mandates registration with the BCSC before engaging in such activities, a requirement LiquiTrade failed to meet.

The investigation revealed that LiquiTrade operated as an unauthorized exchange in British Columbia, where no recognized exchange or clearing agency operated under its name.

This finding underscores the commission’s commitment to maintaining regulatory oversight and protecting investors from potential risks associated with unregistered trading platforms.

Four crypto exchanges already banned in Canada

Canada’s regulatory approach towards cryptocurrencies has been increasingly stringent, with four crypto exchanges already banned, including Catalyx, KuCoin, Poloniex, and xt.com.

Meanwhile, fifteen licensed trading platforms, such as Bitbuy, Coinbase, and Fidelity, are authorized to operate within the region, complying with stringent regulatory requirements.

The upcoming sanctions against LiquiTrade, set to be finalized by August 14, 2024, could range from monetary penalties to a complete ban on its services.

LiquiTrade’s enforcement action serves as a stark reminder of the consequences for non-compliance with securities laws.

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