Kevin Ross on LinkedIn: PayPal partners with crypto platform Anchorage Digital to offer stablecoin… (2024)

ASIC wins first court outcome regarding a non-cash payment facility involving crypto assetsThe Federal Court has found BPS Financial Pty Ltd (BPS) engaged in unlicensed conduct when offering the ‘Qoin Wallet’, a non-cash payment facility which used a crypto-asset token called ‘Qoin.’ In delivering judgment for proceedings brought by ASIC, Justice Downes found that BPS, since January 2020 - and save for a 10-month period - contravened the Corporations Act as it did not hold an Australian Financial Services Licence, nor was authorised by a licence holder, to issue or provide financial advice about the Qoin Wallet. Justice Downes also found BPS engaged in misleading or deceptive conduct and made false or misleading representations concerning the Qoin Wallet, including that:* the Qoin Wallet was officially registered or officially approved when it was not,* the Qoin Wallet could be used to purchase goods and services from an increasing number of Qoin merchants, when in fact it was declining, and* consumers who purchased Qoin tokens could be confident that they would be able to exchange them for other crypto-assets, or currency such as Australian dollars, through independent exchanges.The Court found the only digital currency exchange that accepted Qoin prior to November 2021 was BTX Exchange, which was not independent of BPS and did not permit crypto assets to be exchanged with each other. ASIC Chair Joe Longo said this was a significant ruling as the first court outcome against a non-cash payment facility involving crypto.‘ASIC has taken a number of enforcement actions against crypto asset businesses with the intention of clarifying what is a regulated product and when the provider needs a licence,’ Mr Longo said. ‘Crypto assets are highly volatile, inherently risky, and complex. This makes it critically important that providers have the appropriate licences and authorisations, and that investors are provided with clear and accurate information. This case is an important reminder that many crypto products are financial products and that providers need to hold a licence. ‘These proceedings should send a message to the crypto industry that their products will continue to be scrutinised by ASIC to ensure consumers are protected and that they comply with regulatory obligations. Entities should not be making claims about features, or the regulatory status of their offerings, that are false or misleading.' https://lnkd.in/gSnvDC33 The judgement also provides a detailed analysis of the Qoin Facility, including the wallet, tokens and blockchain, and how ch 7 of the Act applies to them. See https://lnkd.in/gPkHe_PB

55

4 Comments

Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) introduced the Payment Stablecoin Act of 2024 on April 17Gillibrand described it as “historic bipartisan legislation that preserves the dual banking system while protecting consumers, enabling innovation, and promoting U.S. dollar dominance through establishing a transparent regulatory framework for payment stablecoins.”The $150 billion stablecoin industry could be subject to more excellent supervision and transparency under the proposed law, which could be the first significant crypto legislation passed in the United States. Additionally, it would streamline the process for banks subject to state and federal regulation to assume guardianship of digital assets on their client’s behalf.The legislation would allow nondepository trust corporations (nonbanks) to issue stablecoins—tokens designed to maintain a fixed value, typically $1—if the nominal value of all their tokens is less than $10 billion. The text specifies that a depository institution must be authorized as a national payment stablecoin issuer to qualify as a giant issuer. If this bill were to become law, companies such as Circle ($135 million PAXD) and Paxos ($33 billion USDC) would have two options to continue issuing stablecoins: a state nonbank pathway or becoming national payment stablecoin providers as depository institutions at the federal or state level. Other forms of stablecoin issuance, such as algorithmic payment stablecoins like TerraUSD, which depreciated by $50 billion in 2022, are strictly prohibited.In addition, the measure contains an “extraterritorial clause,” which means that these laws apply to companies such as Tether, the controversial stablecoin industry leader whose token is currently valued at approximately $110 billion, outside the United States.Basically, adding a section at the end that talks about how to account for custodial assets would get around the rules set out in Staff Accounting Bulletin 121 of the Securities and Exchange Commission. That rule says that cryptocurrency held in custody must be listed as an asset on the balance sheet of the financial institution. SAB 121 has garnered widespread industry criticism since its debut in March 2022. It imposes the costly requirement that institutions maintain cash reserves equivalent to the total value of their digital asset holdings.Numerous endeavours to enact crypto legislation have been documented in recent years. While specific bills seek to establish regulations for stablecoins, others endeavour to distinguish between digital assets that qualify as securities and commodities to develop the superior regulatory authority—the SEC or the Commodity Futures Trading Commission (CFTC)—in this regard. Last year, the House Financial Services Committee approved two measures of this nature; however, none have been… #Crypto #Blockchain #coinbase

Exploring the Consumer Financial Protection Bureau's Crypto Oversight ProposalThe ever-evolving landscape of cryptocurrency regulation in the United States has taken a new turn with the Consumer Financial Protection Bureau (CFPB) proposing expanded examination authority over the country's largest payments companies. In a move that has caught the attention of both the crypto community and major tech players, the Bureau's proposal could potentially reshape the regulatory framework for digital assets.The proposal, which targets 17 of the largest digital consumer payments companies, aims to cover a staggering 88% of known consumer transactions in the nonbank market. Notably, the list includes tech giants such as Amazon, Apple, Facebook, Google, PayPal, and Square. The CFPB's assertion that these companies are "too big to ignore" underlines the growing significance of crypto in mainstream financial services.One of the most noteworthy aspects of the proposal is the Bureau's intention to gain unprecedented access to the financial records and communication logs of nonbank financial institutions dealing with digital assets. This move could potentially provide federal examiners with the tools to scrutinize transactions for instances of consumer harm.While the proposal stops short of introducing new prescriptive rules or enforcement authority, it does raise concerns within the crypto community. The inclusion of digital assets within the scope of Regulation E, historically focused on electronic funds transfers, suggests a potential shift in how the Bureau views and regulates cryptocurrency transactions. This interpretation could have far-reaching implications for crypto exchanges, bringing them under the purview of existing financial regulations.Interestingly, the CFPB's enforcement authority to prevent unfair, deceptive, or abusive acts or practices adds an additional layer of scrutiny. This broad authority allows the Bureau to penalize a range of business practices it deems unfavorable for consumers, further emphasizing the need for compliance among crypto exchanges.As the crypto industry continues to mature, regulatory bodies are grappling with the challenge of striking the right balance between fostering innovation and protecting consumers. The CFPB's proposal invites stakeholders to voice their opinions, with a comment period open until January 8, 2024. This period presents an opportunity for the crypto community, financial institutions, and the public to shape the regulatory landscape surrounding digital assets.

2

TheFinRate - Rating Service Provider for Global Financial Businesses- Transak.😍Transak: Revolutionizing Fiat-to-Crypto Transactions Worldwide🔥Exciting developments are underway in the realm of cryptocurrencies, and at the forefront of this revolution stands Transak. If you haven't yet encountered this innovative platform, you're in for a treat. Transak is not just another cryptocurrency gateway; it's a game-changer in the way we engage with digital assets.💯Unlocking AccessibilityOne of the standout features of Transak is its commitment to accessibility. With support for over 170 cryptocurrencies across more than 75 blockchains, it's a one-stop destination for users looking to navigate the diverse landscape of digital currencies. Whether you're a seasoned crypto investor or just dipping your toes into the world of blockchain technology, Transak's user-friendly interface and comprehensive support ensure a seamless experience for all.😍Global ReachTransak isn't bound by geographical limitations. Operating in 169 countries, it transcends borders to empower users worldwide. No matter where you are on the map, Transak is there to facilitate your fiat-to-crypto transactions. This global availability opens up new avenues for financial inclusion and economic empowerment, fostering a truly interconnected digital economy.🔥Diverse Payment MethodsFlexibility is key when it comes to financial transactions, and Transak understands this implicitly. Offering multiple payment methods, including bank transfers, credit/debit cards, and popular payment platforms, it caters to diverse user preferences. Whether you prefer traditional banking channels or embrace the convenience of digital wallets, Transak has you covered.💯Security and ComplianceIn the ever-evolving landscape of cryptocurrencies, security is paramount. Transak prioritizes the safety of its users' assets with robust security measures and adherence to regulatory standards. By implementing industry best practices and partnering with trusted financial authorities, Transak provides a secure and compliant environment for all transactions, instilling confidence in users and stakeholders alike.🙌Explore MoreCurious to learn more about Transak and its groundbreaking solutions? Visit the official website here to dive deeper into the world of fiat-to-crypto transactions. Stay updated on the latest developments, explore the extensive range of supported cryptocurrencies, and experience the future of digital finance firsthand.✌️Website:transak.comMail:support@transak.comFollow TheFinRate - Rating Service Provider for Global Financial Businesses - for the latest updates l✌️Join TheFinRate - Rating Service Provider for Global Financial Businesses - Today:https://thefinrate.com.transak.com

100

45 Comments

TheFinRate - Rating Service Provider for Global Financial Businesses - Transak🔥🔥.Transak: Revolutionizing Fiat-to-Crypto Transactions Worldwide💯Exciting developments are underway in the realm of cryptocurrencies, and at the forefront of this revolution stands Transak. If you haven't yet encountered this innovative platform, you're in for a treat. Transak is not just another cryptocurrency gateway; it's a game-changer in the way we engage with digital assets.Unlocking AccessibilityOne of the standout features of Transak is its commitment to accessibility. With support for over 170 cryptocurrencies across more than 75 blockchains, it's a one-stop destination for users looking to navigate the diverse landscape of digital currencies. Whether you're a seasoned crypto investor or just dipping your toes into the world of blockchain technology, Transak's user-friendly interface and comprehensive support ensure a seamless experience for all.✅Global ReachTransak isn't bound by geographical limitations. Operating in 169 countries, it transcends borders to empower users worldwide. No matter where you are on the map, Transak is there to facilitate your fiat-to-crypto transactions. This global availability opens up new avenues for financial inclusion and economic empowerment, fostering a truly interconnected digital economy.😍Diverse Payment MethodsFlexibility is key when it comes to financial transactions, and Transak understands this implicitly. Offering multiple payment methods, including bank transfers, credit/debit cards, and popular payment platforms, it caters to diverse user preferences. Whether you prefer traditional banking channels or embrace the convenience of digital wallets, Transak has you covered.🔥Security and ComplianceIn the ever-evolving landscape of cryptocurrencies, security is paramount. Transak prioritizes the safety of its users' assets with robust security measures and adherence to regulatory standards. By implementing industry best practices and partnering with trusted financial authorities, Transak provides a secure and compliant environment for all transactions, instilling confidence in users and stakeholders alike.👍Explore MoreCurious to learn more about Transak and its groundbreaking solutions? Visit the official website here to dive deeper into the world of fiat-to-crypto transactions. Stay updated on the latest developments, explore the extensive range of supported cryptocurrencies, and experience the future of digital finance firsthand.🙌Website:transak.comMail:support@transak.comFollow TheFinRate - Rating Service Provider for Global Financial Businesses- for the latest updates l✌️Join TheFinRate - Rating Service Provider for Global Financial Businesses - Today:https://thefinrate.com.transak.com

99

51 Comments

Integrating cryptocurrency exchanges within the regulatory framework of trusted banks, particularly the largest public sector banks (PSU banks), is a prudent and strategic move. Being cautious about the mainstream acceptance of crypto with other financial instruments is important. Through a layered approach, giving licenses to certain banks to act as official custodians of crypto exchanges, especially the largest PSU banks, will provide a regulatory screening approach to crypto exchanges and protect citizens from fraud and Ponzi scheme-based crypto exchanges.Banks can offer additional services by dealing with international crypto exchanges, and international transactions within crypto exchanges should go through licensed banks. The final settlement of a transaction for the transfer of money from India to a foreign territory should only happen if a recognized bank offers a letter of security equivalent to an e-rupee for the transaction amount. Transactions on unrecognized crypto exchanges from India to abroad should be declared outright illegal and fraudulent.For crypto transactions from abroad to India, the recognized bank must extend a letter of security in dollars or e-rupees. All inbound crypto transactions from abroad to India should pass through recognized licensed banks or PSU banks. The letter of security should be recognized in an internationally recognized country by India, and that country should recognize the letter of security given by an Indian custodian bank as equivalent to fiat currencies. Only countries recognizing Indian recognized banks' letters of security for crypto assets as rightful custodians and guarantors should be allowed to let their citizens transact with Indian crypto traders or holders of crypto assets.Although this might take some time for international recognition, it is important to distinguish between recognized crypto exchanges and unrecognized Ponzi scheme-based crypto exchanges. Letters of security should be tokenized for ease of access and transaction settlement. India must align with internationally recognized and acceptable practices to curb crypto fraudsters. This move will help to align and tokenize international transactions in local currencies with or without the dollar as an acceptable medium of exchange for international trade.Based on the gold standard of a specific country, India's apex bank must sign an MoU with that country after scrutinizing its monetary health to determine whether the letter of security given by a recognized custodian bank will be accepted by the Indian bank acting as the custodian of crypto assets. Crypto assets will be tokenized, and each cryptocurrency with a certain threshold, after scrutinizing its digital audited accounts, shall be recognized by Indian authorities if global transactions in that cryptocurrency surpass certain metrics.

2

Singapore Bank DBS Forges Stablecoin Custody Pact With PaxosSingapore’s DBS Bank is reportedly set to begin a custody service for stablecoin reserves.It’s part of a collaboration between the city-state’s largest lender and a local unit of cryptocurrency issuer Paxos Trust, Bloomberg News reported Tuesday (July 2), with the partnership also including cash management services.An official from the bank told Bloomberg this move will deepen its ties to the digital asset space, with the announcement coming after Paxos received a license from the Monetary Authority of Singapore.“We look forward to partnering leading stablecoin issuers for their cash management and reserve custody needs if they meet the regulatory requirements,” said Evy Theunis, head of digital assets at the institutional banking group at DBS.Bloomberg notes that Singapore is trying to promote the use of crypto’s blockchain technology to strengthen its status as a world financial hub.Stablecoins proponents argue they will make inroads into traditional finance because they make payments easier, faster and cheaper, though the report argues this is a claim that hasn’t been proven at scale.Singapore last year emerged as something of an oasis for crypto companies that began looking overseas as regulators in countries like the U.S. increased pressure on the industry.“It’s super frustrating that you see markets like we have here in Singapore … where the governments are partnering with the industry, and you’re seeing leadership providing clear rules, and you’re seeing growth,” Ripple CEO Brad Garlinghouse said during a conference there last summer. “And frankly that’s why Ripple is hiring there.”As PYMNTS wrote earlier this week, crypto companies had been asking for regulatory clarity for years. Now, it appears as though they could be getting it, as the industry’s “wild west” days could be coming to an end with the advent of the European Union’s landmark Markets in Crypto-Assets Act (MiCA) regulatory requirements for stablecoin issuers.“After all, the digital asset and cryptocurrency industry shows no sign of fading as we near the 21st century’s second quarter,” that report said.“Having stricter disclosure requirements, regular audits of crypto firms and more robust capital reserve requirements will help build trust and transparency across the marketplace — and the EU’s implantation of MiCA’s provision for stablecoins puts the EU at the forefront of crypto regulation.”Already, stablecoin issuer Circle announced on Monday (July 1) that it had obtained an Electronic Money Institution (EMI) license, becoming the first global stablecoin issuer to receive a license to issue dollar- and euro-pegged stablecoin tokens within the EU’s boundaries under the MiCA regulations.#news #fintech #fintechnews #finance #financenews #USDT #Buysellcrypto #onramp #offramp

1

New Post: Tether Strengthens Transparency in Collaboration with U.S. Legislators - Soucer: VectorsTether intensifies fight against illicit transactions, collaborating with U.S. authorities and sharing letters with Senate and House committees.Implements Chainalysis reactor tool to track suspicious activity, freezing 326 wallets and strengthening security in the secondary cryptocurrency market.Tether, the stablecoin issuer, is stepping up its commitment to transparency and collaboration with U.S. authorities. It has recently shared letters with members of the U.S. House Financial Services Committee and the U.S. Senate Banking, Housing and Urban Affairs Committee. These letters reflect its focus on stepping up the fight against illicit crypto transactions.Tether: A Financial Pillar in CryptoAs the creators of the industry’s largest, most transparent and liquid first stablecoin, Tether has laid the financial foundation for the U.S. dollar in the crypto world. They are bent on building a sustainable and resilient infrastructure for the cryptocurrency ecosystem. But how are they doing this?Combating the Financing of Terrorism and Illicit ActivitiesRecent letters from Tether reaffirm the company’s ongoing effort to assist U. S. law enforcement and regulatory authorities in their fight against terrorist financing and other illicit activities. The November 16 letter details Tether’s Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards, and describes its proactive and extensive cooperation with law enforcement agencies worldwide.Freezing Wallets for SecurityOn December 1, 2023, Tether launched a wallet freezing policy , marking a security and compliance milestone within the cryptocurrency ecosystem. Freezing wallets associated with OFAC’s Specially Designated Nationals (SDN) List is a strong measure to protect users and maintain the integrity of the stablecoin ecosystem.Active Collaboration with Law Enforcement AgenciesTether plays an active role in assisting law enforcement agencies, including partnerships with the U.S. Department of Justice and the Secret Service. This collaboration seeks to combat illegal activities and assist in the recovery of funds.U.S. Department of JusticeSetting New Industry StandardsTether aims to set new standards in the industry through their commitment to safety, regulatory compliance and support for law enforcement. They want these practices to become the norm within the cryptocurrency industry.A World Class PartnerPaolo Ardoino, CEO of Tether, expressed: “Tether is grateful for the opportunity to address the concerns raised by U.S. lawmakers and we are committed to continuing Tether’s close work with law enforcement in the U.S. and globally.” Ardoino also emphasized Tether’s desire to be a world-class partner to the U.S. by continuing to assis

The CFPB's Crypto Oversight Proposal – What It Means for the IndustryThe Consumer Financial Protection Bureau's recent proposal to expand its examination authority over major payments companies has sent ripples through the cryptocurrency industry, raising questions about the future regulatory landscape for digital assets. In an era where crypto is no longer on the fringes but embedded in mainstream financial services, the CFPB's move underscores the government's keen interest in ensuring consumer protection and market stability.The proposal targets 17 of the largest digital consumer payments companies, including tech behemoths like Amazon, Apple, Facebook, Google, PayPal, and Square. The rationale behind this move is the assertion that these companies are handling a substantial majority of consumer transactions in the nonbank market, indicating the need for increased oversight.One of the key elements of the proposal is the Bureau's desire for unprecedented access to the financial records and communication logs of nonbank financial institutions involved in digital assets. This could potentially empower federal examiners to delve deep into transactions, seeking out instances of consumer harm and ensuring compliance with existing regulations.While the proposal refrains from introducing new rules or enforcement authority, it introduces a potentially groundbreaking interpretation of Regulation E. This regulation, historically focused on electronic funds transfers, could now encompass digital assets with monetary value. Such a shift in perspective could subject virtual currency transactions to the regulatory framework of Regulation E, a move that might have significant implications for the largest crypto exchanges.Perhaps the most expansive power granted to the CFPB lies in its enforcement authority to prevent unfair, deceptive, or abusive acts or practices. This authority gives the Bureau the flexibility to penalize a wide range of business practices that may be deemed detrimental to consumers, further emphasizing the need for vigilance and compliance within the crypto industry.As the crypto community grapples with these potential changes, the proposal opens a window for public input until January 8, 2024. This period provides an opportunity for stakeholders, including crypto companies, financial institutions, and the general public, to voice their concerns, suggestions, and perspectives on the proposed regulatory measures. The outcome of this engagement will likely shape the future regulatory landscape for the crypto industry, determining how it can coexist with traditional financial systems while ensuring consumer protection and market integrity.

TheUK Financial Conduct Authority(FCA) hasfined cryptocurrency platform Coinbase subsidiary CB Payments$4.5 millionfortaking on 13,416 new high-risk customers with 31%of thecustomers depositing $24.9 million.Coinbase subsidiary CB Payments hadagreed not to take on high-risk customersin a voluntary requirement in 2020 October to improve the financial crime control framework.Read - https://lnkd.in/gkHppPnu follow Caproasia | Driving the future of AsiaTheUK Financial Conduct Authority(FCA) hasfined cryptocurrency platform Coinbase subsidiary CB Payments$4.5 millionfortaking on 13,416 new high-risk customers with 31%of thecustomers depositing $24.9 million. Coinbase subsidiary CB Payments hadagreed not to take on high-risk customersin a voluntary requirement in 2020 October to improve the financial crime control framework. UK FCA(25/7/24): “CB Payments Limited (CBPL) has been fined £3,503,546 by the Financial Conduct Authority (FCA) for repeatedly breaching a requirement that prevented the firm from offering services to high-risk customers. CBPL is part of the Coinbase Group, which operates a prominent cryptoasset trading platform that is accessible globally. CBPL does not undertake cryptoasset transactions for customers but it acts as a gateway for customers to trade cryptoassets via other entities within the Coinbase Group. CBPL is not currently registered to undertake cryptoasset activities in the UK.The firm entered into a voluntary requirement (the VREQ) in October 2020, which followed significant engagement with the FCA relating to concerns about the effectiveness of CBPL’s financial crime control framework. The VREQ prevented CBPL from taking on new high-risk customers while it addressed issues with its framework.Despite the restrictions in place, CBPL onboarded and/or provided e-money services to 13,416 high-risk customers. Approximately 31 per cent of these customers deposited around USD $24.9 million. These funds were used to make withdrawals and then execute multiple cryptoasset transactions via other Coinbase Group entities, totalling approximately USD $226 million ... ...