New Guidelines for Decentralized Assets
In an unprecedented move, a wave of financial regulators has laid down the law regarding decentralized assets. Both the European Banking Authority and the European Securities and Markets Authority (ESMA) have unveiled guidelines that assess the suitability of management members in crypto firms. Think of this as a report card for crypto bosses, with standardized criteria to evaluate their expertise, integrity, and their ability to actually show up for work.
BIS and the Capital Crunch
The Basel Committee on Banking Supervision is diving into the nitty-gritty, proposing that banks disclose both quantitative and qualitative data regarding their crypto assets. This is set to curb the ‘mystery shrouded in secrecy’ effect that has long haunted market participants. By adopting a uniform disclosure format, the BIS aims to encourage market discipline—basically, they want to shine a light on whether banks are playing nice with their crypto holdings.
The U.S. Takes Action on Crypto Mixers
In the wake of serious global events, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) is striking the hammer down, declaring cryptocurrency mixing to be a primary money laundering concern. Following the Hamas attacks on Israel, they’re pushing for stricter recordkeeping and reporting requirements for those involved in crypto mixers. In layman’s terms, they want to track the money trail, like a dog with a bone.
Investment Products for Professionals Only
The Hong Kong Securities and Futures Commission is playing it safe with digital currency products, declaring them “complex products” only available to professional investors. This means that if you’re just a curious investor, you might be better off watching from the sidelines—as they want to ensure only the seasoned pros are dabbling in potentially risky assets like crypto exchange-traded funds.
FTX Updates: The Legal Rollercoaster
Meanwhile in the courtroom, drama unfolds as FTX’s former general counsel Can Sun testified about the company’s financial practices—specifically its unfortunate habit of co-mingling funds with Alameda Research. Sun claimed ignorance regarding these dubious practices, which could put the entire operation in the hot seat. Also, accounting professor Peter Easton’s breakdown revealed a staggering $9 billion gap between FTX and Alameda. I’m no accountant, but that’s one spicy meatball!
Politics Meets Crypto Mining Regulation
In Pennsylvania, the political landscape just got murkier with a proposed two-year crypto mining moratorium getting axed due to pressure from trade labor unions. Rep. Greg Vitali indicated that the unions’ influence was key to the bill’s revision. Seems like in the world of politics, sometimes you have to roll over if you want a chance at getting anything done—moratorium or not.
Big Names in Hot Water Over Fraud Claims
Lastly, a lawsuit filed against Gemini, Genesis, and Digital Currency Group by New York’s Attorney General Letitia James is shaking the crypto world. The allegations? A whopping $1 billion fraud through the Gemini Earn investment program. Apparently, Gemini touted their offering as a low-risk investment while knowing full well that Genesis was swimming in risky waters. Plot twist alert!
+ There are no comments
Add yours