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On 26 July 2024, the Swiss Financial Market Supervisory Authority (FINMA) released its latest guidance, “FINMA Guidance 06/2024,” addressing the burgeoning field of stablecoins. As these digital assets gain prominence, FINMA’s guidelines underscore the legal, financial, and reputational considerations for issuers and banking institutions. This guidance represents a forward-thinking approach, poised to significantly enhance the landscape of stablecoin regulation and cryptocurrency engagement in Switzerland. The guidance builds on FINMA’s 2019 supplement to the ICO guidelines, elucidating the regulatory nuances for stablecoin issuers. Stablecoins, designed to provide price stability through linkage to underlying assets such as national currencies, fall under banking law or collective investment schemes depending on asset management practices. These digital currencies must comply with the Anti-Money Laundering Act (AMLA), reinforcing the need for robust verification processes to...

On July 27, 2024, former U.S. President Donald Trump delivered the keynote address at the Bitcoin 2024 conference in Nashville, Tennessee, sending ripples through the cryptocurrency community and igniting a wave of bullish sentiment. With a packed audience and millions watching online, Trump passionately declared his ambition to transform the United States into the “crypto capital of the world.” His speech, filled with bold promises and visionary statements, significantly influenced social media and market reactions, positioning Bitcoin (BTC) as the focal point of positive speculation and optimism. By outlining a strategic plan that includes creating a national Bitcoin reserve and appointing a dedicated advisory council for cryptocurrency regulation, Trump vowed his commitment to integrating digital assets into the national economic framework, further solidifying Bitcoin's role in the financial landscape. Furthermore, declaring that Bitcoin would one day overtake gold, he highlighted...

As of 26 July 2024,  Japan is set to join the global trend of Bitcoin exchange-traded funds (ETFs) following the partnership between Japanese financial giant SBI Holdings and American investment powerhouse Franklin Templeton. According to a recent report by Nikkei Asia, the two firms are gearing up to introduce cryptocurrency management services to the world's third-largest economy, pending regulatory approval. On 25 July 2024, it was revealed that SBI Holdings and Franklin Templeton will establish a digital asset management company as early as this year. This joint venture, with SBI holding a 51% stake and Franklin Templeton the remaining 49%, is strategically positioned to launch a Bitcoin ETF in Japan once the Financial Services Agency (FSA) grants approval. Franklin Templeton, managing approximately $1.6 trillion in assets, has been a pioneer in digital assets, having been one of the first to introduce spot Bitcoin ETFs in the U.S. The timeline for launching Bitcoin ETFs in Japan...

On 25 July 2024, the Securities and Futures Commission (SFC) issued a stern warning to the public regarding an unlicensed virtual asset trading platform known as CoinUnited.io. The platform, which claims to provide trading services across a range of assets including cryptocurrency, stocks, indices, forex, and commodities, has also previously advertised having a flagship store in Hong Kong and being active in local hiring. Despite these claims, CoinUnited.io has neither obtained a license from the SFC nor applied for one, rendering its operations illegal under the Securities and Futures Ordinance (SFO) and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. The SFC's action against CoinUnited.io is driven by several critical factors such as the platform's lack of licensing, its false claims about having a physical presence and recruitment efforts in Hong Kong, and the overarching need to protect investors. By operating without a license, CoinUnited.io is evading...

Revolut announced on 20 July 2023 that it has received a preliminary banking license from the UK’s Prudential Regulation Authority (PRA), marking a significant milestone in the fintech firm’s journey. This approval, which follows a rigorous three-year application process, represents a crucial step towards Revolut’s ambition to become a leading bank in the UK. "We are incredibly proud to reach this important milestone in the journey of the company and we will ensure we deliver on making Revolut the bank of choice for UK customers," said CEO Nik Storonsky in a statement. The approval from the PRA comes with certain restrictions during a "mobilization" stage before Revolut can obtain a full banking license. During this period, the fintech firm is limited to a £50,000 ($64,000) cap on total customer deposits. Revolut informed its UK-based customers, stating, "We are now entering a 'mobilization' period, a common regulatory stage for many new banks. During this period, we will complete...

On 24 July 2024, the Bank of Ghana (BoG) and the Monetary Authority of Singapore have completed a groundbreaking proof of concept (POC) demonstrating the viability of Ghana's central bank digital currency (CBDC), the e-cedi, for cross-border payments. This successful experiment has shown that many intermediaries and associated costs typically involved in international transactions can be eliminated, thus streamlining the process. Giesecke+Devrient (G+D), the technology partner for the Ghanaian central bank, announced that the POC confirmed the effectiveness of utilizing digital credentials for international trade and cross-border payments. The initiative is part of the Project Digital Economy Semi-Fungible Token (DESFT) and has proven that the e-cedi can be instrumental not only for domestic transactions but also for transforming cross-border payments. Earlier this year, in April, the Ghanaian and Singaporean central banks completed their first cross-border transaction using the...

CSOP Asset Management on 22 July 2024 announced the launch of Asia's first inverse Bitcoin exchange-traded fund (ETF), the CSOP Bitcoin Futures Daily (-1x) Inverse Product, set to debut on Hong Kong’s stock exchange on Tuesday. This innovative financial product allows investors to profit from declines in the value of Bitcoin, offering a new strategic option for those looking to navigate the volatile cryptocurrency market. Ding Chen, CEO of CSOP Asset Management, highlighted the potential of this product to attract investors seeking to capitalize on Bitcoin’s downside movements. "The first futures-based inverse bitcoin product listed in Hong Kong creates opportunities for investors to gain from downside movements in bitcoin," Chen stated. Bitcoin, known for its significant volatility, experienced a 12% drop in the second quarter following the debut of the first batch of spot crypto ETFs in Hong Kong in April. Despite recent rebounds driven by political developments in the U.S.,...

The Securities and Exchange Commission, on 22 July 2024, announced that Richard Best, the Director of the Division of Examinations, will take leave from the agency to focus on his health, effective immediately. In response to this, Keith E. Cassidy, the Division’s Deputy Director, will serve as its interim Acting Director. Cassidy brings a wealth of experience to the role, having previously served as the National Associate Director of the Division’s Technology Controls Program (TCP), overseeing technology-focused examinations, the SEC’s CyberWatch program, and the Cybersecurity Program Office. Additionally, Cassidy is an infantry officer in the United States Marine Corps Reserve and has held various significant positions, including Director of the SEC’s Office of Legislative and Intergovernmental Affairs and Chief of Staff and Counsel at the Department of Justice’s Office of Legislative Affairs. “I wish Rich well as he takes time to focus on his health,” said SEC Chair Gary Gensler....

According to a judgment dated July 19, 2024, a federal court jury in Los Angeles has awarded Michael Ho $138 million after finding Marathon Digital Holdings Inc., the largest Bitcoin mining company by market capitalization, guilty of breaching a Non-Disclosure/Non-Circumvention Agreement. Ho, the co-founder of US Bitcoin Corp and Chief Strategy Officer of Hut 8, had shared proprietary information about a large-scale energy supplier with Marathon, under the agreement that the firm would not bypass him. However, Marathon circumvented Ho and engaged directly with the supplier without compensating him for the proprietary information, leading to this substantial legal verdict. The lawsuit, initiated by Ho, detailed how Marathon Digital had agreed to utilize his strategy for developing a large-scale Bitcoin mining facility in North America but failed to honor the compensation terms. Despite the breach, Marathon Digital continues to lead the Bitcoin mining industry by market capitalization,...

The much-anticipated launch of Ethereum exchange-traded funds (ETFs) in the United States will take place tomorrow, following the Securities and Exchange Commission's (SEC) final approval for trading on July 22, 2024. This event marks the introduction of Ethereum ETFs on major stock exchanges, including Nasdaq, the New York Stock Exchange (NYSE), and the Chicago Board Options Exchange (CBOE). Following the success of Bitcoin ETFs since their debut in January, there is significant interest in how Ethereum ETFs will perform. These funds offer a straightforward way for traditional investors to gain exposure to Ethereum through conventional stock exchanges, simplifying the process for those who might find the crypto market complex. However, experts advise caution in expecting immediate, overwhelming inflows. Greg Magadini, derivatives director at blockchain data provider Amberdata, noted the current lack of enthusiasm for Ethereum futures, suggesting that demand for Ethereum ETFs might...

On July 19, 2024, the Japan Blockchain Association (JBA), an influential body representing leading Japanese crypto exchanges and blockchain companies, formally petitioned the government to implement significant tax reforms related to cryptocurrencies. The JBA aims for these changes to be in place ahead of the Financial Year 2025. The JBA emphasized that Japan's high tax rates on cryptocurrency profits are stifling citizens' ability to accumulate valuable digital assets. The association has urged Tokyo to align the tax rates on crypto profits with those applied to conventional financial assets like stock exchange-listed stocks. The JBA, which includes top blockchain firms and crypto projects such as bitFlyer, highlighted the urgency of reforming the nation's stringent tax laws. The organization has been vocal about the need to introduce new tax measures, pointing out that the current rules for crypto-related transactions are excessively complex and discourage investment. Under...