Day: June 22, 2023

Crypto custodian Prime Trust is reportedly “critically deficient,” facing a cease and desist order from the Nevada Department of Business and Industry, due to a “shortfall of customer funds.” The firm’s financial situation has “considerably deteriorated,” leading to inability to honor customer withdrawals and raising concerns for customers’ assets and investments.

Valkyrie Funds has filed an application with the SEC for a Bitcoin ETF, joining other companies like BlackRock, Invesco, and WisdomTree. The proposed Valkyrie Bitcoin Fund aims to provide investors a cost-effective way to invest in Bitcoin, using the CME CF Bitcoin Reference Rate Variant as a benchmark.

SEC Chair Gary Gensler faces criticism for his broad approach to cryptocurrencies, causing venture capital investment in the U.S. crypto industry to decline compared to the European Union. The EU’s MiCA legislation acknowledges utility tokens, providing a clear framework for digital assets. New legislation is needed in the U.S. to address the definition of securities and digital asset regulation.

The digital euro, or “Cash+,” is considered a necessary step for central banks in an increasingly digital society. Central and commercial banks are encouraged to collaborate for better e-commerce by adopting a digital euro, bridging the gap between traditional central bank money and electronic transactions.

Large institutions express interest in decentralized finance (DeFi), but need to address digital identity infrastructure for regulatory compliance. BlackRock’s recent crypto ventures may influence industry rules as they aim to balance identity confirmation, privacy principles, and regulatory requirements, fostering collaboration among institutions and regulators.

A Singapore court will soon decide the fate of crypto lender Hodlnaut, which faces potential dissolution following massive losses of $317 million. The company’s downfall highlights growing concern over the stability and safety of the crypto lending industry and emphasizes the need for robust regulation and oversight.

The IMF report on Latin America and the Caribbean emphasizes varying approaches to crypto adoption, praising countries like Brazil and Argentina for fostering financial inclusion, while questioning the effectiveness of outright bans or restrictions on digital currencies.

Binance has launched a regulated cryptocurrency exchange in Kazakhstan, offering users various crypto and fiat-focused services. Amid growing regulatory troubles for Binance in the West, this move raises questions about whether established crypto players will continue seeking crypto-friendly jurisdictions or if regulatory bodies will adapt to accommodate the rapidly evolving industry.

CACEIS Bank, the asset servicing subsidiary of Crédit Agricole and Santander, acquires crypto custody license in France to store users’ private keys and increase institutional clients’ security. With a €2.4 trillion AUM, CACEIS avoids France’s impending stricter regulations while adhering to the EU’s MiCA legislation next year.

Surveillance-sharing agreements are crucial in evaluating proposed bitcoin ETFs to prevent fraud and manipulation. Exchanges must demonstrate such agreements with regulated markets related to the underlying bitcoin assets. However, adequate surveillance systems remain unestablished, and regulatory bodies remain cautious in approving ETF proposals.

The crypto industry’s growth and regulatory efforts open discussions with the SEC, while financial advisors strive to balance clients’ autonomy and guidance. Utilizing blockchain technology, tools are developed for better analysis, promoting diversification, understanding custodianship, and evolving regulations to empower digital asset investors.