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2023-10-28 10:33:47 Taiwan officially proposes crypto bill with first reading passed at parliament

Taiwan officially proposed a draft crypto act for first reading today. "After the first reading of the bill, discussions on the regulatory framework for the virtual asset industry have progressed to the next stage," Yung-Chang Chiang, a member of the Legislative Yuan who jointly proposed the special act, told The Block. A proposal to regulate crypto assets passed the first reading at the Legislative Yuan, Taiwan’s parliament, according to official records.

Taiwan’s FSC last month released guidelines for the crypto sector to form its own self-supervisory rules through a potential industry association, such measures lack legal enforceability, the lawmaker said. “In this case, under the authority of this special law, regulatory authorities can impose administrative penalties on operators who violate these self-regulation rules. Without such a special law, the regulators would lack the ability to impose penalties,” Chiang told The Block earlier this month at a parliament hearing. The special crypto law, proposed by Chiang and 16 other lawmakers, would require all crypto platforms operating in Taiwan to apply for a permit. If they failed to, regulators could order them to cease operations.

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2023-10-26 16:10:07 SEC's Gensler stays true to form, uses Wednesday speech to say crypto is full of 'fraud, scams, bankruptcies and money laundering'

Securities and Exchange Commission Chair Gary Gensler is standing firm in his long-held view that many cryptocurrencies are subject to existing securities laws, despite pushback from the industry. Gensler, who has also said that crypto firms are subject to the same rules as traditional finance, reinforced his view on Wednesday in prepared remarks at the 2023 Securities Enforcement Forum. His comments came amid a week of rabid speculation about the status of pending applications for spot bitcoin ETFs.

The agency has brought numerous cases against crypto firms over the past year, including ones against U.S.-based Coinbase and the world's largest crypto exchange, Binance. In those lawsuits, the agency often cites the Howey Test, a 1946 U.S. Supreme Court case involving citrus groves to determine whether transactions are investment contracts and thus subject to securities laws. However, that approach has garnered criticism from some, including Coinbase, which has said the SEC stretched its arguments in Howey "beyond recognition." Gensler also spoke in general about charges the SEC has brought against others, including a case involving the former CEO of McDonald's. "And don’t get me started on crypto," Gensler said. "I won’t even name all the individuals we’ve charged in this highly noncompliant field."

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2023-10-22 22:56:02 FBI Charges 6 for Allegedly Running $30M Money Transmitting Business Using Crypto

The FBI has charged six people for allegedly operating an illegal $30 million money-transmitting business using cryptocurrencies, according to court documents filed Wednesday in the Southern District of New York. The six – Shaileshkumar Goyani, Brijeshkumar Patel, Hirenkumar Patel, Naineshkumar Patel, Nileshkumar Patel and Raju Patel – operated without an appropriate money transmitting license in New York, according to the filing. The details, disclosed in the unsealed affidavit of an FBI agent seeking the individuals' arrest.

The U.S. Magistrate judge has granted the conditional release of at least one of the people named, Naineshkumar Patel, according to a court document. The filing cites an unidentified co-conspirator as saying that at least some clients "made money by selling drugs" and that the wealthiest clients "were hackers." The co-conspirator told an undercover officer that he had made approximately $30 million over three years through the exchange of cash for virtual currency. The arrested individual would later become a confidential source and for the next eight months cooperate with law enforcement in approximately 80 controlled pick-ups of cash totaling approximately $15 million.

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2023-10-21 18:38:21 Binance onboards fiat partners for Euro withdrawals and deposits following Paysafe separation

Binance penned new partnerships with fiat providers to enable Euro transactions, a month after Binance's original Euro banking partner Paysafe stopped working with the firm. "We have signed agreements with a number of new regulated and authorized fiat partners to provide a variety of fiat services to our community. Users have already started being migrated to the new services," Binance wrote in a Thursday release. Services stemming from the partnership includes EUR transactions via Open Banking.

"Being able to easily convert fiat to crypto, and back to fiat again, is a crucial part of advancing the adoption of digital assets globally. Without an easy way to buy or sell crypto, users who are new to the space can find the process of buying or selling crypto unintuitive and intimidating. Offering fiat services provides essential ease of use to all participants in the crypto ecosystem," Binance added. Binance's new partnerships come after the firm experienced another major setback in the summer, when the German financial regulator BaFin rejected Binance's custody license application. "SEPA," or Single Euro Payments Area, includes 36 countries that enable cashless Euro payments in the European Union.

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2023-10-20 09:36:34 FTX customer refund plan outlines settlement to return 90% of funds

According CoinDesk, FTX customer refund plan could return up to 90% of creditor holdings that were held at the exchange before it went bust. The debtors’ group, overseeing the bankruptcy process, plans to file the proposal with a U.S. Bankruptcy Court by December 16, 2023. FTX collapsed after CoinDesk published revelations about its balance sheet. The new CEO, John J. Ray III, criticized the company’s financial controls, and founder Sam Bankman-Fried is facing criminal charges.

The proposal suggests dividing the missing customer assets into three pools based on the circumstances at the start of the Chapter 11 cases: assets for FTX.com customers, assets for FTX.US customers, and a general pool of other assets. Customers with a preference settlement amount below $250,000 can accept the settlement without any reduction in claim or payment. Creditors would also receive a “Shortfall Claim” against the general pool, corresponding to the estimated value of the missing assets at the exchange. However, there may be obstacles to the recoveries, such as taxes, government claims, and token price fluctuations.

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2023-10-19 09:17:20 Vitalik Buterin Sold ETH: No Personal Gain from ETH Sales Since 2018!

Vitalik Buterin sold ETH recently clarified ongoing speculation surrounding his alleged ETH sales, emphasizing that any transfers to exchanges should not be misconstrued as personal divestment. In a statement addressing the public, Vitalik Buterin sold ETH emphasized that these transactions were essentially acts of philanthropy or support for various charitable causes or projects, rather than indicative of any personal financial motives. Vitalik Buterin sold ETH’s declaration comes as a response to growing speculation surrounding the motive behind his recent ETH transfers.

Buterin’s commitment to utilizing his cryptocurrency holdings to support philanthropic and developmental projects aligns with his longstanding advocacy for leveraging blockchain technology for social good. His previous contributions and involvement in various charitable initiatives have earned him widespread acclaim within the crypto community and beyond. He made it clear that the transfers were made to aid various charitable or developmental initiatives, where the recipients were compelled to convert the donated ETH into fiat currency to meet necessary operational costs. With Ethereum’s significant impact in the world of decentralized finance and the broader blockchain ecosystem, Buterin’s statement serves to dispel any doubts regarding his commitment to the principles of altruism and the transformative potential of blockchain technology for social welfare.

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2023-10-17 14:12:04 GBTC discount to NAV hits lowest level since 2021 as SEC elects not to appeal Grayscale ruling

The Grayscale Bitcoin Trust (GBTC) discount has fallen to its lowest level in nearly two years as the Securities and Exchange Commission (SEC) fails to appeal against the recent Grayscale ruling. The GBTC discount to net asset value (NAV) — meaning how much lower the market price of each share is than the value of the bitcoin it represents — is trading below 16% for the first time since December 2021, hitting 15.9% by market close on Friday, according to The Block’s data dashboard.

GBTC trades at a discount as the shares currently cannot be redeemed, so the only option is to sell them to other prospective buyers. However, it historically traded at a premium until 2021’s crypto credit crunch. The narrowing trend — seeing the discount shrink from over 40% before BlackRock and others filed spot bitcoin ETF applications in June — is likely a sign of increased optimism the SEC will approve a spot bitcoin ETF in the U.S., including the potential conversion of GBTC. However, the decision not to appeal doesn’t necessarily mean the regulator is ready to approve one. The SEC had until midnight on Friday to appeal the ruling involving Grayscale's attempt to convert its flagship GBTC fund into a spot bitcoin ETF.

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2023-10-16 00:18:02 Tether Promotes Paolo Ardoino to CEO

Stablecoin issuer Tether has appointed Paolo Ardoino as its new CEO with former CEO Jean-Louis van der Velde transitioning into an advisory role. Ardoino became Tether's CTO in 2017 after joining Bitfinex three years prior. In that time Tether's (USDT) market cap has grown from less than $100 million to $83.5 billion as it experienced exponential growth starting in 2020. Van der Velde will remain as Bitfinex's CEO whilst Ardoino has retained his role as CTO at both Bitfinex and Holepunch, according to a press release.

“Paolo is extremely well-suited to lead Tether into this exciting new era,” said Jean-Louis van der Velde. “I believe Tether is poised to continue its rapid growth, with a continued focus on emerging markets and transformative technology. I think I can speak for the entire company when I say that we eagerly anticipate Paolo’s leadership as he guides Tether toward a future where finance knows no bounds.” The press release states that Ardoino envisions Tether as a "tech powerhouse" that will "reshape the future of finance."Tether's (USDT) market cap has grown from less than $100 million. The new CEO also hopes that company will expand the influence of the USD in global trade and exchange, which will ensure its utility in emerging markets.

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2023-10-14 21:14:06 EU regulator warns of DeFi risks, pushes back against 'code as law'

The European Securities and Markets Authority published a report outlining multiple risks to investors and financial stability stemming from decentralized finance. "Although investors' exposure to DeFi remains small overall, there are serious risks to investor protection, due to the highly speculative nature of many DeFi arrangements, important operational and security vulnerabilities, and the lack of a clearly identified responsible party," the report said.

The independent EU authority warned that DeFi operates in the absence of trusted intermediaries, which "could otherwise mitigate risks pertaining to financial stability and investor protection." The report, published Wednesday, highlighted the regulator's primary concerns regarding DeFi innovations. It separated smart contracts into five categories to help regulators understand the "enormous technological complexity of these systems." "Smart contracts remain an unregulated phenomenon where the accepted principle is exemplified by the notion that 'code is law,'" the regulator asserted. It said adherence to this principle creates a tendency to accept smart contract outcomes, "regardless of any moral or legal consideration."

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2023-10-13 09:05:28 Caroline Ellison Blames FTX Collapse Caused Solely By Sam Bankman-Fried

Caroline Ellison, the chief executive officer of Alameda Research, testified in the fraud trial of FTX co-founder Sam Bankman-Fried, revealing details about Alameda and FTX Collapse Causes. Ellison described how FTX’s affiliated hedge fund had borrowed billions of dollars from the cryptocurrency exchange’s deposits, creating a massive hole in Alameda Research’s balance sheet. Bankman-Fried asked Ellison to create alternative balance sheets to conceal the debt, but Ellison felt a sense of relief when the companies eventually collapsed.

Bankman-Fried asked Ellison to create alternative balance sheets to conceal the debt, but Ellison felt a sense of relief when the companies eventually collapsed. She testified that Bankman-Fried was primarily responsible for the leveraged position that led to the collapse, despite his claims that she was in charge of Alameda’s borrowing. Added to the FTX collapse cause, Ellison detailed the growing sense of crisis in the crypto industry and the pressure she felt as Alameda borrowed billions from FTX. Bankman-Fried directed her to create false balance sheets and later blamed her for the worsening situation. She further revealed that Bankman-Fried sought the help of a foreign government in the past, mentioning a “large bribe” paid to Chinese officials to unfreeze $1 billion in Alameda funds. Ellison admitted to lying to other employees about the bribe.

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