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October 22, 2023

June 2023 Report: CBDC-Related Projects Witness Participation from 130 Countries

A recent study conducted by the Atlantic Council, an American think tank, reveals that as of June 2023, 130 countries globally are participating in Central Bank Digital Currency (CBDC)-related initiatives. 11 of these nations, including several Caribbean countries and Nigeria, have already introduced their own CBDCs. Sweden, leading the pack, has actively initiated trial operations for its CBDC, indicative of significant progress amongst G20 member nations in this innovative financial technology sector.

October 20, 2023

SEC Wins Default Judgment Against Thor Technologies and Founder David Chin Over Unregistered Crypto Offering

According to CoinDesk: The U.S. Securities and Exchange Commission (SEC) has scored a default judgement against Thor Technologies and its founder, David Chin, over a $2.6 million unregistered offering of cryptocurrency asset securities. This ruling comes from a San Francisco district court nearly a year after the SEC first brought charges against Thor Technologies in December 2022. A default judgment typically happens when the defensive party doesn't meet specific actions, such as attending a trial or meeting document filing deadlines. Thor Technologies and Chin were charged with selling "Thor Tokens" to raise funds for a software platform designed for gig economy workers and companies. These tokens were not registered with the SEC and were promoted as an investment opportunity. Thor announced in April 2019 that it would shut down its operations due to "many regulatory challenges" Under the court's decision, Thor and Chin are prohibited from participating in any cryptocurrency asset securities offering. They are also ordered to disgorge $744,555 with a prejudgment interest of $158,638.06. However, Chin is still allowed to buy or sell securities, including crypto-asset securities, for his personal account.

October 18, 2023

Binance FZE Head: Regulatory Certainty in Middle East Boosting Crypto Growth

As reported by Cointelegraph: According to the General Manager of Binance's local operation in Dubai, Alex Chehade, the certainty and clarity of regulatory frameworks in the Middle East immensely contribute to drawing in major cryptocurrency exchanges and businesses to the region. The area, including the UAE, Dubai, and Bahrain, has offered a friendly environment for crypto startups and established players due to its regulatory openness. Chehade argued that the Middle East, particularly Dubai with its Virtual Assets Regulatory Authority and Abu Dhabi with its Global Market framework, stands out by offering clear and specific compliance guidelines for virtual assets. Chehade also noted Bahrain's central bank's acceptance of cryptocurrencies. He further stated that many other jurisdictions struggle in this aspect due to lacking the necessary knowledge or capacity to regulate the burgeoning industry effectively. With Binance now employing approximately 600 individuals in its Dubai operation, the company sees itself as a catalyst encouraging Web3 companies to establish a presence in the region. Fostering a "healthy environment with big and small players", the platform continues to operate as a regulated exchange in Dubai segregated from its other global operations. Taking a similar stance, Akshay Chopra, Visa’s vice president, and head of innovation and design, lauded the region's forward-looking perspective on blockchain and crypto solutions. According to Chainalysis, the Middle East and North Africa (MENA) region has become the fastest-growing cryptocurrency market worldwide, with users receiving $566 billion in crypto transactions from July 2021 to June 2022.

October 16, 2023

BlackRock Denies Reports of SEC Approval for iShares Bitcoin Spot ETF; Application Still Under Review

Contrary to recent media reports, BlackRock has confirmed that its application for the iShares Bitcoin Spot ETF is still under review by the U.S. Securities and Exchange Commission (SEC). The investment management company addressed the rumors, clarifying that no approval has been granted at this time, underscoring the need for accurate information in the rapidly-evolving cryptocurrency market.

October 16, 2023

Solana Foundation Aligns with DMCC Crypto Centre as Ecosystem Partner in Dubai to Advance Web3 Innovation

According to Zawya: The reputed Solana Foundation has joined the Dubai Multi Commodities Centre (DMCC) Crypto Centre as an ecosystem partner. This partnership aims to fuel the growth of the Web3 industry in Dubai, a recognized hub for cryptocurrency innovation. The DMCC, a government-funded free zone focused on commodities trade and enterprise, expressed its excitement in welcoming Solana Foundation, an organization committed to promoting the Solana network's decentralization and security. This alliance will strengthen DMCC’s existing services by enabling its members to scale their businesses using Solana, a prominent blockchain platform in the industry. As part of the collaborative venture, the Solana Foundation will provide technical and business development support to DMCC Crypto Centre members. In addition, it will extend its existing grant program to DMCC companies and will join the DMCC Crypto Centre in delivering educational webinars and a range of courses on pertinent Web3 topics. As part of this initiative, Solana will establish a presence at the DMCC Crypto Centre to work closely with its diverse network of technology partners, exchanges, government entities, investors, and other service providers, inviting engagement with over 23,000 companies that currently exist within the DMCC’s business precinct. Ahmed Bin Sulayem, Executive Chairman and CEO of DMCC, declared that through this partnership DMCC members can gain access to Solana's world-class blockchain platform and dedicated engineering teams to elevate their businesses, while also providing business licensing and set-up support for Solana ecosystem projects on a complimentary basis. Dan Albert, Executive Director of the Solana Foundation, looks forward to exploring the abundant Web3 value in Dubai, appreciating the high density of crypto firms and the supportive environment that DMCC provides. As a one-stop destination for emerging blockchain and Web3 technology businesses, the DMCC Crypto Centre offers comprehensive support for companies looking to set up and expand their operations. The integration of Solana Foundation sets a positive trajectory for the growth of the Web3 industry, asserting Dubai's position as a global innovation hub.

October 15, 2023

Hong Kong Monetary Authority to Enhance Interbank Information Sharing

According to Odaily: Reacting to the rising fraudulent incidences within the financial sector, the Hong Kong Monetary Authority (HKMA) has taken a proactive approach. The regulator noted that it received 954 bank-associated fraud complaints within the first nine months of 2021, significantly outpacing the total of 555 cases filed in the previous year. In the wake of these reportings, the HKMA issued a notice to banks yesterday, mandating the allocation of ample resources and specialized personnel to ensure the implementation of crucial cooperative measures targeting fraud prevention. These measures span three key areas: information sharing, transaction monitoring, and customer warnings. In the coming two months, HKMA plans to integrate warnings within the Faster Payment System (FPS), designed to alert users to the possibilities of transferring funds to precarious accounts. This move underscores HKMA's commitment to bolstering sector-wide security and protecting customers' financial assets.

October 12, 2023

Hong Kong Monetary Authority and Central Bank of the UAE Form Joint Venture to Focus on Digital Financial Initiatives

According to Wu Blockchain: The Hong Kong Monetary Authority (HKMA) and the Central Bank of the United Arab Emirates (UAE) have collaborated to form a bilateral working group. This alliance aims to focus on various aspects of digital financial transformation. Among the key areas of cooperation are market interconnection, the development and supervision of central bank digital currencies, and the advancement of financial infrastructures. The partnership will also delve into issues related to central bank digitalization and the development and oversight of virtual assets. This collaboration represents a significant step towards the digitalization of financial systems in both regions. It signifies the commitment of both monetary authorities to capitalize on the potential of digital currencies and virtual assets while establishing robust and efficient financial infrastructures.

October 2, 2023

Binance Collaborates with Royal Thai Police to Dismantle High-Value Crypto Scams

According to Binance Blog, Binance has recently joined forces with the Royal Thai Police in cracking down on criminal networks involved in large-scale crypto scams. Two major operations led to the arrest of key criminals and the seizure of significant assets, fortifying Binance’s commitment to global cybersecurity and regulatory compliance. In a particularly noteworthy case, Binance and the Cyber Crime Investigation Bureau (CCIB) of the Royal Thai Police dismantled a criminal ring behind a "pig butchering" scam, affecting thousands and resulting in seized assets valued at around $277 million. In another operation, Binance aided in capturing suspects across three Thai provinces, leading to the confiscation of 16 luxury residences, 12 top-tier vehicles, and $440,000 in cash. Binance's Investigations team actively supports global law enforcement in the fight against cybercrime by supplying key intelligence and expertise. This collaboration is a key element of Binance's ongoing effort to enhance user security and uphold regulatory compliance in the digital-asset ecosystem.

September 27, 2023

SEC Officially Accepts Bitcoin ETF Applications from Franklin Templeton and Hashdex

The US Securities and Exchange Commission (SEC) has formally accepted the applications for Bitcoin Exchange-Traded Funds (ETFs) from Franklin Templeton and Hashdex, according to a Bloomberg analyst, James Seyffart. In addition to the Bitcoin ETF, Hashdex has also applied for an Ethereum ETF. The applications are now listed on the SEC's official website. Seyffart noted that the SEC's expedited acceptance, which often takes about a week, might have been influenced by concerns surrounding a potential government shutdown. These developments follow recent reports of Franklin Templeton submitting a 19b-4 document to the SEC to apply for a Bitcoin ETF, which has now triggered the commencement of an official review process for the ETF proposal.

September 27, 2023

SEC Chairman Gensler Grilled Over Crypto Custody Guidance at House Hearing

According to Cointelegraph: Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), faced intense scrutiny and criticism of the agency’s policies and actions during a House Financial Services Committee hearing on September 27. A significant portion of the session tackled the SEC’s Staff Accounting Bulletin (SAB) 121, a measure published in March 2022 regarding the accounting and disclosure of crypto assets held by public companies. Critics, including Representative Mike Flood, took issue with the SEC’s process for publishing SAB 121. Flood highlighted that neither the Financial Accounting Standards Board (FASB) nor prudential regulators were consulted before the SAB’s release. He also revealed that at the time of SAB 121’s issuance, the FASB had not addressed digital asset custody standards. Furthermore, Flood disputed Gensler’s claim that SAB 121 provided guidance based on existing SEC rules, stating there were no specific rules on custody of digital assets when the bulletin was released. This discrepancy led Flood to assert that either the SEC knew there was no strong justification for issuing the guidance and did so anyway, or the issuance was a mistake. The SAB 121 has faced opposition since its release, with adverse responses from SEC Commissioner Hester Peirce, as well as letters of concern sent to Gensler by a group of senators and the Financial Services Committee members, claiming the bulletin was a form of disguised regulation. Apart from the SAB 121 discussions, topics such as the approval of spot Bitcoin exchange-traded funds, the SEC's handling of the Grayscale case, and an alleged lack of impartiality within the financial industry were covered during the hearing. Particularly notable were discussions on the interpretation of the Howey test, a standard used by the SEC to determine if an asset qualifies as a security.

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