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In his farewell address as Deputy Governor of the Bank of England (BOE), Sir Jon Cunliffe delved into the evolution of payment solutions, both past and future. Meanwhile, Vice Chair Michael Barr of the Federal Reserve Board spoke on October 27 about the ongoing research into a central bank digital currency (CBDC) or related technologies. These discussions took place at the Economics of Payments XII Conference, where both Sir Jon Cunliffe and Vice Chair Barr shared their insights. Vice Chair Barr shed light on the Federal Reserve’s current focus, which revolves around the “end-to-end system architecture,” encompassing ledgers, tokenization, and custody models for an intermediated CBDC. He emphasized the necessity of a congressional mandate before a digital dollar could become a reality, but he also highlighted the importance of learning from domestic and international experiments to guide responsible innovation. While Vice Chair Barr’s remarks may seem uncontrov...

Stablecoin activity has been increasingly occurring through entities that aren’t licensed in the United States, according to Chainalysis. The United States government may be losing regulatory oversight of the stablecoin market , according to a new report by the blockchain research firm Chainalysis. Stablecoin activity has been increasingly occurring through entities that aren’t licensed in the United States, Chainalysis stated in its latest North America cryptocurrency report released on Oct. 23. According to Chainalysis’ findings, the majority of stablecoin inflows to the 50 biggest cryptocurrency services have shifted from U.S. licensed services to non-U.S. licensed services since spring of 2023. As of June 2023, about 55% of stablecoin inflows to top 50 services were going to non-U.S. licensed exchanges, the report stated. Share of stablecoin inflows to U.S. licensed vs. non-U.S. licensed exchanges between July 2022 and June 2023. Source: Chainalysis The study suggested that the ...

The U.S. Securities and Exchange Commission (SEC) has slapped Thor Technologies and its CEO, David Chin, with a $1.05m fine for promoting securities without the required license . The SEC found Thor Technologies and its CEO, David Chin, guilty in absentia of promoting securities without a license . The regulator fined the company $1.05m. However, such a decision is made if the defendant does not provide the necessary documents on time or ignores the hearing. According to the regulator, from March to May 2018, the company distributed project tokens to clients. The total amount raised was $2.6m. The SEC believes Thor Technologies and Chin promoted these assets by positioning them as investments. This makes them securities under the Howey test. “The court granted default judgment for the SEC on all charges. The court permanently enjoined Thor and Chin from violating the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933 and from partici...

The Eurosystem has published a survey on its plans for trials and experiments on new technologies for wholesale central bank money settlement.  The survey aims to gather feedback from market participants and stakeholders on the potential benefits, challenges, and use cases of a wholesale central bank digital currency (CBDC) that would facilitate cross-border payments and financial market infrastructures. You might also like: ECB executive Fabio Panetta aims for digital euro expansion The survey , which is open until Nov. 15, covers four main topics: The current state of play and challenges in cross-border payments and financial market infrastructures. The possible features and design options of a wholesale CBDC. The potential impact and implications of a wholesale CBDC on the financial system and the economy. The possible scenarios and use cases for testing and experimenting with a wholesale CBDC. The survey is part of the Eurosystem’s ongoing work explor...

According to CoinGecko, nearly $85 billion worth of crypto falls under the category of “alleged SEC securities.” CoinGecko launched a new index tracking the biggest crypto tokens viewed as likely securities by the United States Securities and Exchange Commission (SEC).  The ‘Top Alleged Securities Coins’ page sorts the selection of crypto assets by market capitalization, placing Binance Coin (BNB) at the top of the list — followed by Cardano (ADA), Solana (SOL) and TRON (TRX). The top 10 alleged securities tokens by market cap. Source: CoinGecko A CoinGecko spokesperson told Cointelegraph that the index was launched in the first week of August and was constructed by compiling a selection of the most notable tokens which had been deemed securities by the SEC in past lawsuits. In its most recent lawsuits against crypto exchange giants Coinbase and Binance, the financial regulator brought the number of tokens it views as securities up a grand total of 68 — while CoinGecko only lists...

While some champion CBDCs as a financial revolution, many view them as a threat to privacy and freedom. Crypto.news spoke with experts to shed light on this complex debate. Digital currencies backed by central banks, or CBDCs, could completely change how we use money. They could make payments quicker, less costly, and more effective both within countries and across borders. By cutting down on the expenses tied to making, sharing, and protecting physical cash, CBDCs could help economies work better and greatly improve how banking systems operate. However, many experts believe that the advantages of such a system are eclipsed by potential misuse and societal consequences. Read more: Exploring the early CBDC adoption results beyond the hype Are the benefits worth it? Neel Kashkari, the president of the Federal Reserve Bank of Minneapolis, questioned the need for CBDCs, failing to identify the unique problem this innovation claims to solve.  “I keep asking anybody...

The government of Shanghai has implemented its strategic plan for the development of its urban blockchain digital infrastructure system between the years 2023-2025. The government in the Chinese city of Shanghai issued an implementation plan on July 31 for promoting the development of its urban blockchain digital infrastructure system in the time frame of 2023-2025, according to an update on the government’s webpage.  The update says that the plans have been formulated in order to serve the “strategic goal” of Shanghai’s urban digital transformation, along with strengthening the application of blockchain in the economy, public service and urban governance. It reads that, "breakthroughs in blockchain core technology and standard system construction have been made, leading to the formation of an industrial ecology with strong innovation momentum, and nurturing a group of leading and innovative companies with industry influence.” When the urban blockchain digital infrastructure...

Publishing the ETF applications in the official journal of the U.S. government gives the SEC up to 240 days for final approval or denial — until March 2024. Spot Bitcoin (BTC) exchange-traded fund applications from several firms have been published on the Federal Register, moving them one step along in the United States Securities and Exchange Commission’s (SEC) process. According to records updated July 19, the Federal Register received notices of proposed rule changes allowing BTC exchange-traded fund (ETF) applications from BlackRock, Fidelity, Invesco Galaxy, VanEck, and WisdomTree. Publishing the applications in the official journal of the U.S. government gives the SEC a window of opportunity to accept or reject the request, extend the time allowed, or open the application for public comment. UPDATE: Not much of one though... As predicted and as expected those #Bitcoin ETF applications all hit the federal register today. BlackRock, VanEck, WisdomTree, Fidelity, and Invesco/Galaxy...

The Financial Stability Board (FSB) has completed its global regulatory framework for crypto asset activities, aiming to enhance the consistency and comprehensiveness of regulatory and supervisory practices on an international scale.  Built on the principle of ‘same activity, same risk, same regulation,’ this framework establishes a solid foundation for enforcing consistent and comprehensive regulations for crypto asset activities and stablecoins, taking into account the associated risks and fostering responsible developments. Avoiding conflicts of interest On July 17, the Financial Stability Board (FSB), the world’s most known global financial watchdog group, released a public note along with two guideline documents, focusing on the regulation of crypto currencies and global stablecoins. The guidelines, which were initially suggested to be released in early 2023, encompass high-level recommendations for crypto regulation in general, as well as revised high-level reco...

MAS is also working to restrict crypto service providers from facilitating lending or staking for retail customers, but not for institutional ones. Singapore’s central bank is introducing new measures to improve investor protection and market integrity in the cryptocurrency industry. On July 3, the Monetary Authority of Singapore (MAS) announced new requirements for crypto service providers to hold customer assets into a statutory trust by year-end. “This will mitigate the risk of loss or misuse of customers’ assets, and facilitate the recovery of customers’ assets in the event of a DPT service provider’s insolvency,” the regulator said. The new custody measures follow a public consultation on regulatory measures to reduce risks to consumers from crypto trading which was launched in October 2022. According to the MAS, the consultation received “significant interest” from a wide range of respondents. In the official response to the public consultation, Singapore’s central bank noted t...

MiCA, which comes into effect by the end of 2024, aims to create a consistent regulatory framework for crypto assets among European Union member states. Publication of the European Union’s crypto law MiCA in its official journal signals the start of the official process of bringing licencing, stablecoin and anti-money laundering regulations into effect by the end of 2024. The European Union’s Markets in Crypto Assets (MiCA) legislation was published June 9 in the Official Journal of the European Union (OJEU). This move triggers the countdown for the law to come into effect from December 30, 2024. The Bill was signed into law on May 31, after having first been introduced in 2020, with the aim of creating a consistent regulatory framework for crypto assets among European Union member states. While the rules officially come into force within 20 days, the rules will begin to apply on December 30, 2024, with some parts of the legislation coming effect six months earlier, on June 30, 2...

Meanwhile, total liquidations have topped $280M in the last 12 hours as crypto market sentiment has turned more fearful. The Crypto Fear and Greed Index — a tool that measures broader market sentiment towards Bitcoin and the broader crypto market — has dipped to a level of “fear” not witnessed since March 11 this year, when Circle’s USD coin (USDC) briefly lost its dollar-peg.  The stumble in market sentiment comes in the wake of the United States Securities and Exchange Commission (SEC) filing a lawsuit against Binance, its U.S. arm of operations and its CEO Changpeng Zhao. The SEC pressed a total of 13 charges against the exchange and its affiliates for failing to register as a securities exchange and operating illegally in the United States. The Bitcoin Fear and Greed Index. Source: Alternative.me . The index works by aggregating a mixture of indicators to gauge market sentiment . It combines metrics including price volatility, momentum, trading volume with data from social medi...

A public-private partnership with blockchain analytics firm Chainalysis has played a key role in helping the Internal Revenue Service solve cryptocurrency-related crimes. Block chain Analysis has been key in helping the United States Internal Revenue Service (IRS) seize an estimated $10 billion worth of crypto currency since it began investigating a broad body of crimes involving digital assets. This was a key point raised by IRS Criminal Investigations (IRS-CI) Chief Jim Lee in a wide-ranging, exclusive interview with Cointelegraph in Amsterdam. Lee was among a variety of delegates from public and private institutions sharing knowledge and insights at blockchain analytics firm Chainalysis’ Links conference held in the Netherlands. Lee, alongwith with a cohort from the IRS-CI, gave an inside look at how the enforcement agency has tackled the use of cryptocurrency and digital assets in a wide variety of financial crimes that fall under its purview. Hacks of prominent exchanges, De...

The firms were cited anonymously in the CFTC's complaint describing Binance’s alleged facilitation of U.S. clients. Trading firms Jane Street Group, Tower Research Capital and Radix Trading have been reportedly identified as Binance’s three “VIP” clients that were cited anonymously in the recent lawsuit filed against Binance by the United States commodities regulator. According to an April 5 Bloomberg report citing "people familiar with the matter,” Radix Trading is “Trading Firm A” as described in the Commodities Futures Trading Commission's (CFTC) suit while Jane Street was “Trading Firm B” and Tower Research was “Trading Firm C.” The firms on the CFTC's list were examples of U.S. clients allegedly able to access Binance. The Wall Street Journal (WSJ) first reported on March 28 that Radix Trading was “Trading Firm A.” Radix co-founder Benjamin Blander told the WSJ in a March 30 report that he believed the firm acted legally even when trading with Binance's offs...

Galaxy Digital CEO Mike Novogratz believes regulators have got it "completely upside-down" on crypto vs AI regulation. Mike Novogratz, the CEO of digital asset investment firm Galaxy Digital told investors he is shocked over the amount of regulatory attention for crypto rather than artificial intelligence (AI), a technology he believes will trigger a “deep fake” Identity crisis. The chief executive explained at the firm’s fourth-quarter conference call on March 28 that the U.S. government has it “completely upside-down” in choosing to focus so much on crypto regulation and yet turn a blind eye to AI: “When I think about AI, it shocks me that we’re talking so much about crypto regulation and nothing about AI regulation. I mean, I think the government’s got it completely upside-down.” This concern appeared to stem from Novogratz’s fear that AI will trigger a “deep fake” Identity crisis. “In lots of ways, one of the best use cases for crypto is going to be identity around AI,...

The state senator also introduced a similar bill that aims to make Bitcoin legal tender in 2022 but did not find any success. Wendy Rogers, a state senator in Arizona, United States, has launched bills concerning cryptocurrency, including one that aims to make Bitcoin (BTC) a legal tender in Arizona.  In a recent tweet, Rogers cited data from investment firm Goldman Sachs that BTC is the best-performing asset in the world and announced that she launched a set of crypto bills. “Breaking: #Bitcoin is the best performing asset in the world this year according to data from Goldman Sachs.” Launched my #Crypto bills today, as well as Photo Radar Prohibition, which included nearly all my Republican senator colleagues as cosponsors @JeffWeninger @JDMesnard pic.twitter.com/ueUeFSEybo — Wendy Rogers (@WendyRogersAZ) January 25, 2023 One of the proposed bills focuses on making BTC a legal tender in the state. If passed into law, BTC will have the same status as the USD, becoming an acc...