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The Swiss Financial Market Supervisory Authority (FINMA) on 13 June, 2024, announced the commencement of bankruptcy proceedings against FlowBank. The decision came after FlowBank was found to lack the minimum capital required for its business operations. FINMA also expressed concerns over potential over-indebtedness. “The bankruptcy proceedings aim to protect depositors. According to current calculations, the privileged deposits can be repaid in full out of the bank’s available funds,” said FINMA. CoinShares, which owns approximately 30% of FlowBank, acquired an additional 20.8% stake in 2022, bringing its total holding to 29.3%, with voting rights equal to 32.06%. The acquisition was valued at CHF 24,740,000 at the time. A spokesperson from CoinShares told CryptoNews, “We don’t plan to comment on FlowBank’s news.” FlowBank, launched in 2020 and founded by Charles-Henri Sabet, announced on its website that it had lost its FINMA license. “Commercial activities of the bank stopped at...

The Open Network (TON) is emerging as a beacon of promise in the blockchain world. Initially built to enhance Telegram, one of the world's most popular messaging apps, TON has evolved significantly. Despite Telegram stepping back due to regulatory issues, an independent community has championed its development and adoption, breathing new life into this layer-1 network. TON is now enabling users to interact with cryptocurrencies seamlessly, often without even realizing it. This innovation is a significant step toward mainstream crypto adoption, making digital assets more accessible and user-friendly. TON’s importance is magnified as it diversifies beyond messaging. Inspired by WeChat, Telegram is transforming into a "super app" offering a wide range of services. Restaurants can now create "mini apps" within Telegram, replacing their websites and providing easy access to services. Developers in various industries benefit from unparalleled flexibility thanks to JavaScript integration....

On June 12, 2024, Terraform Labs, the firm behind the defunct LUNA and TerraUSD, along with co-founder Do Kwon, reached a monumental settlement agreement with the U.S. Securities and Exchange Commission (SEC). This settlement, a culmination of a civil fraud lawsuit, requires the company to pay a staggering $4.47 billion, including a $3.58 billion disgorgement fee and a $420 million civil penalty. The settlement terms include disgorgement of $3.5 billion and pre-judgment interest of $466 million, summing up to $4.47 billion. Additionally, Do Kwon faces a separate settlement fee of $204 million. This deal also restricts Kwon and Terraform Labs from selling or acquiring cryptocurrency assets, particularly those within the Terra ecosystem. The SEC’s case, which dates back to February 2023, accused Terraform Labs and Do Kwon of unregistered securities sales and investor fraud related to their stablecoin project sets a precedent for how future crypto-related disputes might be resolved....

In a recent event, CleanSpark Inc.'s Executive Chairman Matthew Schultz shared insights on Donald Trump's evolving stance on cryptocurrency. Trump, joined by Riot Platforms CEO Jason Les and head of public policy Brian Morgenstern, voiced strong support for the crypto sector. “President Trump will protect your right to own Bitcoin, to mine Bitcoin, to transact with Bitcoin, and for many of us, to work in the Bitcoin industry,” stated Morgenstern, reflecting Trump’s commitment to safeguarding crypto interests. Trump underscored the role of Bitcoin mining in stabilizing the energy grid, aligning this with his vision for energy dominance. “We want all the remaining Bitcoin to be made in the USA. It will help us be energy-dominant,” Trump emphasized, signaling robust support for the sector if he returns to the White House. These developments come amidst growing scrutiny over crypto mining’s environmental impact. The US Energy Information Administration (EIA) had started collecting data...

The leading industry association formerly known as Blockchain Australia has rebranded as the Digital Economic Council of Australia (DECA). This strategic move signals a "transformative leap" towards a more inclusive vision of digital economic activities, extending beyond blockchain technology. With Amy-Rose Goodey stepping in as the new CEO, succeeding Simon Callaghan, DECA aims to reflect the evolving tech landscape. This rebranding marks a "deliberate move" to incorporate sectors such as digital ID, artificial intelligence, and cybersecurity alongside blockchain technology. Goodey, previously COO of Blockchain Australia, emphasized the necessity of this evolution to encompass the expanding digital landscape. DECA’s mission now includes catering to a diverse membership spanning crypto and Web3 companies, governmental bodies, charities, and sectors involved in tokenization, payments, and banking. “We’ve expanded significantly,” Goodey noted, highlighting the inclusion of digital ID,...

An employee at South Korea’s Woori Bank has confessed to embezzling $7.3 million from company funds to invest in cryptocurrency. The unnamed employee, aged in their thirties, voluntarily visited the West Gimhae Police Station on June 10 to admit to the crime, according to reports from News1 and Hanguk Kyungjae.  The bank had detected the missing funds through internal monitoring, but the employee preemptively confessed, revealing that most of the crypto investments had failed, resulting in a loss of approximately $4.35 million. The police are conducting further investigations and collecting related data in conjunction with Woori Bank, with expectations to apply for an arrest warrant. Woori Bank has announced an intensive audit to understand how the employee was able to siphon off the funds from loan-related accounts. A spokesperson for the bank stated, “We will identify the problems via a thorough investigation and will prevent similar cases from recurring.” As one of South Korea’s...

The United States Securities and Exchange Commission (SEC) has added a spot Ether (ETH) exchange-traded fund (ETF) application from asset manager ProShares. This move comes roughly three weeks after the commission approved similar applications from eight other investment firms. In a filing dated June 10, the SEC announced that the New York Stock Exchange (NYSE) Arca had proposed a rule change to list and trade shares of the ProShares Ethereum ETF. The SEC is now soliciting public comments on this application for a 21-day period following its publication in the Federal Register. The commission will then have 45 days to approve, disapprove, or extend the decision timeline. This follows the SEC's May 23 approval of 19b-4 filings from eight asset management firms seeking to list and trade spot Ether ETFs on U.S. exchanges for the first time. These approvals are contingent on the SEC signing off on the S-1 registration statements for the spot Ether ETFs, a process expected to conclude by...

Investors in South Korea’s booming cryptocurrency market are facing a digital dust storm after a shocking revelation by financial regulators. A joint study by the Financial Supervisory Service (FSS) and the Korea Financial Intelligence Unit (FIU) found that a staggering 70% of shuttered crypto exchanges failed to return invested funds to their customers. This news comes as a gut punch to over 6 million Koreans, roughly 10% of the population, who have dipped their toes into the crypto pool. Unlike their global counterparts, Korean investors are known to dabble in riskier, lesser-known cryptocurrencies in addition to established names like Bitcoin. The report paints a grim picture of the industry’s practices. Many of these defunct exchanges didn’t even bother to warn users before pulling the plug, leaving them scrambling to salvage their investments. Even in cases where some form of notification was issued, the withdrawal process was described as an “extreme inconvenience” with a...

The African Development Bank and global technology company Intel have formalized their cooperation to transform the African digital ecosystem. The partnership, announced on June 7, 2024, aims to equip 3 million Africans and 30,000 government officials with AI skills. This collaboration will help create a critical mass of Africans proficient in Fourth Industrial Revolution (4IR) skills. The initiative is set to accelerate growth and productivity, positioning Africans as contributors, not just consumers, of 4IR technologies. The training will address socio-economic challenges and boost productivity in key growth sectors such as agriculture, health, and education, thereby disrupting traditional growth cycles. Bienvenu Agbokponto Soglo, Director of Government Affairs Africa and IGA CTO Liaison at Intel, remarked, “Intel looks forward to furthering its collaboration with African governments to make advanced technologies such as AI accessible to all, breaking down barriers related to...

The Reserve Bank of India (RBI) on 30th May 2024 unveiled a Draft Framework for Self-Regulatory Organization(s) (SROs) in the FinTech sector, aiming to bolster risk management, client protection, cybersecurity, and the integrity of the financial system. Released for public consultation, this framework marks a significant step toward structured self-regulation within the rapidly growing FinTech industry. The guidelines, issued on June 5, 2024, propose a comprehensive structure for self-regulation, allowing FinTech companies to align with industry standards and best practices. The framework seeks to balance the innovative potential of FinTechs with the necessity of minimizing their unique risks to the financial system. The draft framework emphasizes the importance of a culture of self-governance within the FinTech sector, encouraging entities to proactively set and adhere to industry standards while demonstrating a commitment to responsible conduct and innovation. Key areas covered in...

The Central Bank of the Republic of Peru (BCRP) is set to develop a payment system modeled after India’s Unified Payments Interface (UPI) through an collaboration agreement with National Payments Corporation of India International Payments (NIPL) dated 07th June, 2024. The collaboration, supported by the Reserve Bank of India (RBI), aims to promote financial inclusion in Peru by enabling offline transactions and enhancing interoperability among domestic and international payment systems. BCRP Governor Julio Velarde emphasized that the new system will foster more payment options for Peruvians and allow new participants to enter the Peruvian financial ecosystem, complementing the existing payments industry. However, no specific launch date has been announced. An official statement from the BCRP highlighted the objective to promote greater access, security, redundancy, and efficiency in digital payments, along with facilitating the introduction of new use cases. Established in 2020,...

The Securities and Exchange Commission (SEC) on June 5, 2024  initiated its biennial collection of Diversity Self-Assessment Submissions from regulated entities, including those in the crypto sector. This initiative provides organizations the opportunity to thoroughly review their diversity and inclusion policies, identifying strengths, opportunities, risks, and vulnerabilities. The SEC leverages the data from these submissions to evaluate and report on progress and trends in diversity-related activities among regulated entities. According to Nathaniel H. Benjamin, Director of the Office of Minority and Women Inclusion (OMWI), “The participation of regulated entities in submitting diversity self-assessments is critical for a more comprehensive understanding of the diversity practices and policies that are being implemented as well as to share information on practices and identify opportunities.” Submitting a diversity self-assessment is voluntary and is not part of the SEC’s...