Schlagwort: crypto news

• SEC charged US-based media company Impact Theory with offering and touting investment potential of their Founder’s Key NFTs.
• Impact Theory did not deny nor agree to the charges, but accepted a $6.1 million fine.

The US Securities and Exchange Commission (SEC) has charged Los Angeles-based media and entertainment company Impact Theory, LLC for allegedly offering unregistered securities in the form of NFTs.

SEC says Impact Theory violated securities laws

In a press release on Monday, the US securities regulator pointed out that Impact Theory had raised over $30 million in the process, including from investors in the United States.

“Among other things, Impact Theory emphasized that it was “trying to build the next Disney,” and, if successful, it would deliver “tremendous value” to Founder’s Key purchasers,” the SEC said.

As such, it meant the NFTs were sold to investors as investment contracts, which makes them securities. Impact Theory therefore violated federal securities laws. Per the SEC order, the LA-based company has agreed to pay a fine of over $6.1 million as well comply with a cease-and-desist order. The company will also refund affected investors and destroy all the NFTs.

The SEC said: “Impact Theory agreed to destroy all Founder’s Keys in its possession or control, publish notice of the order on its websites and social media channels, and eliminate any royalty that Impact Theory might otherwise receive from future secondary market transactions involving the Founder’s Keys.”

SEC’s action against Impact Theory is a first in the NFTs space, but continues a series of enforcement actions and settlements seen in recent months. These include lawsuits against leading crypto exchanges Binance and Coinbase.

However, the regulator suffered a significant blow in July when US Judge Analisa Torres delivered a ruling that stated the cryptocurrency XRP is not a security. The SEC recently filed a motion seeking an interlocutory appeal, a step many legal experts and industry leaders say will see the agency embarrassed once again.

The post SEC charges Impact Theory with unregistered offering of NFTs appeared first on CoinJournal.

Key takeaway

• Cryptocurrency exchange Bitstamp has halted its staking service in the United States.

• The crypto exchange cited regulatory challenges as the reason behind its decision.

Bitstamp to halt crypto staking in the US

Luxembourg-based cryptocurrency exchange Bitstamp has revealed that it is shutting down its staking service in the United States. 

Bitstamp said it would stop offering staking services to its users in the United States as of September 25 due to the regulatory environment in the country.

This latest cryptocurrency news comes as the United States Securities and Exchange Commission (SEC) continues to clamp down on crypto exchanges and some of their services. 

The SEC has been against staking, alleging that the service meets the criteria of investment contracts under the Howey Test. 

Bitstamp is not the first crypto exchange to end crypto staking in the United States. In February, Kraken agreed to shut down its staking operations in the United States to settle SEC charges for offering unregistered securities. 

Kraken also agreed to pay a $30 million fine to the US SEC as a settlement for its charges. 

Cryptocurrency staking has become an important investment vehicle in the space as it allows investors to earn extra rewards for holding their coins and providing liquidity to the ecosystem. 

The post Bitstamp halts Ether staking in the US, cites regulatory challenges appeared first on CoinJournal.

• SEC announced the delay today, publishing a letter calling for more information from the public.
• A decision on Ark Invest spot Bitcoin ETF could come towards the end of the year.
• BlackRock and Fidelity are two of the leading firms seeking approval for a spot Bitcoin ETF.

Today’s top crypto regulation news revolves around the move by the US Securities and Exchange Commission (SEC) to delay a decision on one of the several spot Bitcoin exchange-traded funds (ETFs) before it.  

SEC has yet to approve a spot Bitcoin ETF for the US market, despite allowing multiple futures-based ones.

ETF delay largely expected

A lot of exuberance permeated the industry when global asset management and investment behemoths BlackRock and Fidelity filed proposals to offer spot Bitcoin ETFs for the US market.

With the SEC now calling for more public input for the Ark 21Shares spot Bitcoin ETF, the reaction across the crypto industry has largely been one of muted disappointment. This is because as Bloomberg ETFs expert James Seyffart highlighted on Thursday, the market had largely priced in a delay.

TIMELINE: I’ve had questions in DMs and mentions over the last few days. The next SEC deadline for #Bitcoin ETFs is @ARKInvest/@21co__’s on 8/13. That’s a Sunday so we should see a decision by tomorrow. My bet is after market close tomorrow. We are fully expecting a DELAY. pic.twitter.com/meejrBZaQp

— James Seyffart (@JSeyff) August 10, 2023

As has been the case with previous applications to face a similar trend, the regulator’s consideration for the Ark Invest ETF will now encompass further comments and review for up to 60 days. A decision could come much later in the year, with the third deadline for the Ark ETF in the second week of November and the final deadline in January 2024.

Meanwhile, the first deadline for the applications by BlackRock, Fidelity, Invesco, Valkyrie, Bitwise and WisdomTree is early next month. 

The expectation is that these will also be pushed, although as Ark Invest CEO Cathie Wood noted earlier this, the SEC may decide to approve more than one Bitcoin ETF all at once. 

The post SEC delays decision on Ark Invest spot Bitcoin ETF appeared first on CoinJournal.

• HKVAX has moved closer to becoming only the third platform to receive a VATP licence in Hong Kong.
• This is after it obtained an approval-in-principle from the Hong Kong Securities and Futures Commission (SFC)
• The SFC website lists OSL and Hashkey as only two VATP licensed companies.

Hong Kong Virtual Asset Exchange (HKVAX) has received a notice of approval-in-principle from the Hong Kong Securities and Futures Commission (SFC).

A press release from HKVAX noted that the approval will see the platform become only the third virtual asset trading platform (VATP) to be licensed by the SFC.

“We are delighted to have received approval-in-principle from the SFC and look forward to creating a safe and trusted environment for investors in one of the world’s largest and most dynamic financial centres,” said Dr. Anthony Ng, co-founder and CEO of HKVAX.

According to HKVAX, a final approval from the regulator will allow the company to provide regulated activities identified as Type 1 (securities offerings) and Type 7 (automated trading services) to customers. HKVAX will offer three core products to users once the regulatory process is done – an OTC brokerage, an institutional-grade exchange platform, and custody solution.

HKVAX to join OSL and Hashkey as third VATP licence

 HKVAX’s approval-in-principle could see it join OSL and Hashkey as the third licensed VATP in Hong Kong. Details on the SFC website show that OSL received the first digital assets broker licence in December 2020, while Hashkey was licensed in November 2022. 

The path to approval for HKVAX comes on the back of the Hong Kong government’s push to bring into operation a new crypto framework for the virtual asset industry.

Among the changes has been the requirement that registered institutions and banks extend services to SFC-licensed crypto platforms. Firms seeking to offer virtual assets are also obligated to apply for appropriate licences before providing these services.

Sam Fok, co-founder and COO at HKVAX said they welcome the new changes meant to provide regulatory clarity for the industry in Hong Kong. He added:

“Over the last two years, we have worked very closely with the government and other stakeholders to strengthen regulations. We welcome the changes proposed recently by the SFC that open up virtual assets to a wider community while providing investors of all types with the transparency, reliability and protection they expect. The changes also signal Hong Kong’s intent to become a global virtual asset hub.”

On August 7, the SFC published a warning to VATPs that are yet to get properly licensed not to mislead users, particularly through statements published in relation to “their intention to apply for licences.” 

According to the regulator, such announcements are likely to “give the public a false sense of assurance” that the VATP is compliant with SFC regulations.

The post Hong Kong crypto platform HKVAX receives approval-in-principle from SFC appeared first on CoinJournal.

Key takeaways

• Bitstamp has halted trading of AXS, CHZ, MANA, MATIC, NEAR, SAND and SOL for traders in the United States.

• The exchange made the decision as the tokens are flagged by the US SEC as securities.

Bitstamp halts trading of MATIC, six others 

Luxembourg-based Bitstamp announced on Tuesday that it is halting trade in the US for seven cryptocurrencies classified as securities by the United States Securities and Exchange Commission (SEC). 

According to the cryptocurrency exchange, the trading of AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL will no longer be supported on its platform starting August 29th. 

The tokens are the native cryptocurrencies of Axie Infinity, Chiliz, Decentraland, Polygon, Near Protocol, The Sandbox, and Solana. 

This latest cryptocurrency news comes after the SEC asserted that these tokens, among others, met the standards of a security in its legal actions against Coinbase and Binance. 

Bitstamp wrote that;

“To ensure a smooth transition during the trade halt, we kindly request our users to promptly execute any desired buy or sell orders involving the affected assets before August 29, 2023. After this deadline, trading activities related to AXS, CHZ, MANA, MATIC, NEAR, SAND, and SOL will be permanently disabled on the Bitstamp platform.”

Bitstamp follows Binance.US’s footsteps

By halting the trading of these tokens for US traders, Bitstamp follows the footsteps of Binance.US and eToro. 

These exchanges delisted these tokens due to regulatory oversight, potential legal liabilities, and regulatory complexities. 

Bitstamp’s users in the United States will need to complete all buy and sell transactions before the deadline. 

According to Bitstamp, the suspension of these tokens was due to the ever-changing regulatory environments and the corresponding obligations they entail.

After removing these seven cryptocurrencies, Bitstamp still offers trade in 30 other cryptos, including BTC, ETH and XRP. 

This latest development comes shortly after Bitstamp revealed that it was raising funds to expand its operations in Asia and Europe. The crypto exchange wants to launch its derivatives trading service in Europe by 2023 and will also expand the number of markets it serves in Asia.

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