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The Chamber of Digital Commerce (CDC) has stepped into the legal fray between the 12-year-old crypto exchange Kraken and the U.S. Securities and Exchange Commission (SEC), filing an amicus curiae brief in support of Kraken. As the world's largest digital asset and blockchain trade association, the CDC's involvement holds significant implications for the future trajectory of the digital asset industry. Founded in 2014, the CDC's intervention in the SEC v. Kraken case challenges the SEC's regulatory overreach and its attempt to categorize all digital asset transactions as securities transactions. The CDC contends that such an approach is legally flawed and poses a threat to the adoption and advancement of blockchain technology, underscoring the need for clarity and restraint in regulatory actions. In its amicus brief filed on February 27th, the CDC presents compelling arguments against the SEC's stance, emphasizing that digital assets are not inherently "investment contracts" subject...

The CBDC Anti-Surveillance State Act has been reintroduced in the Senate with bipartisan support from U.S. Senators Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd, and Mike Braun. Aimed at curbing the Biden administration's efforts to issue a central bank digital currency (CBDC), the bill seeks to prevent potential infringements on citizens' financial privacy and freedoms. Cruz, who initially introduced the legislation in 2022 and again in 2023, emphasized the need to clarify that the Federal Reserve lacks authority to implement a CBDC, voicing concerns over government surveillance of personal spending habits. The proposed legislation prohibits the Federal Reserve from issuing a CBDC directly to individuals or indirectly through financial institutions, as well as from utilizing a CBDC for monetary policy purposes without congressional authorization. Endorsed by various organizations including Heritage Action for America, the Blockchain Association, and the American Bankers Association,...

Matrixport, a prominent cryptocurrency platform, submitted an application for a virtual asset (VA) trading license with Hong Kong's securities regulator on February 26. Operating under the name Flying Hippo Technologies in its Hong Kong branch, Matrixport joins a growing list of firms seeking licensing approval in the region. Currently, 21 companies, including Crypto.com, Bixin, and HTX (formerly Huobi Global), have applied for VA trading licenses, while only two platforms—OSL Digital Securities and Hash Blockchain—have been granted licenses by the Securities and Futures Commission (SFC). The move by Matrixport comes as Hong Kong-based VA trading platforms face a looming deadline to file license applications by February 29, with non-compliance leading to mandatory cessation of operations by the end of May. Failure to obtain a license could result in fines, imprisonment, and criminal charges, underlining the SFC's stringent regulatory measures. Last year, the SFC introduced stricter...

In a significant move, the Lima Stock Exchange (BVL), a prominent Peruvian exchange, has announced the inclusion of three distinct bitcoin spot exchange-traded funds (ETFs) on its trading platform. The exchange revealed that Ishares Bitcoin Trust (IBIT), Vaneck Bitcoin Trust (HODL), and Invesco Galaxy Bitcoin (BTCO) will now be accessible to Peruvian investors, diversifying investment opportunities for traditional market participants. These ETFs, backed by globally renowned asset management firms such as Blackrock, Vaneck, and Invesco, signify a notable entry into the cryptocurrency space for the Peruvian market. The BVL emphasized the significance of these investment products while cautioning investors about the potential volatility of the underlying asset. Stressing adherence to existing regulations, the exchange provided access to prospectuses and relevant documents for investor awareness. Julio Cesar Placido, head of the BVL, highlighted the transformative impact of these...

The SEC's decision to postpone briefing deadlines in the ongoing legal battle with Ripple sheds light on the evolving dynamics of the case. This move is seen as a crucial step towards establishing a new schedule, highlighting the importance of regulatory compliance and legal management for Ripple's future trajectory. Notably, the impact of these developments on XRP's price is significant, with today's rise prompting investors to reassess their positions. XRP's approach to the $0.60 target is indicative of market sentiment and activity. Technical analysis reveals key insights into XRP's potential trajectory. The $0.60 resistance level and the 78.6% Fibonacci retracement level are pivotal points to monitor, as surpassing them could signal further price gains. Metrics such as the Moving Average Convergence Divergence (MACD) and Awesome Oscillator (AO) support the bullish trend, but a close below certain levels could invalidate the bullish scenario, potentially leading to a retracement....

The House Financial Services Committee is making significant strides in advancing US Rep Mike Flood's bill aimed at nullifying the Staff Accounting Bulletin (SAB) 121 rule, a move seen as pivotal for fostering institutional crypto adoption. This development follows concerns voiced by Senator Lummis regarding the rule's implications, stressing the need for comprehensive feedback from federal banking regulators and the public prior to its implementation. Congressmen Flood and Wiley Nickel are leading efforts to introduce a resolution under the Congressional Review Act to assert the rule's lack of effect, alongside advocating for the Uniform Treatment of Custodial Assets Act, aimed at exempting banks from treating custodied assets as liabilities, thus mitigating additional capital requirements for offering custody services for crypto-assets. The American Bankers Association has also raised alarms over SAB 121, warning of its potential impact on the banking industry's ability to provide...

Javier Milei, the libertarian president of Argentina, is spearheading efforts to curb the issuance of Argentine pesos by the country's central bank. Milei intends to introduce a bill to Congress that would penalize money issuance with jail time, aiming to prevent central bank officials from authorizing such operations. The proposed law aims to stabilize the money supply while Milei's administration works towards revitalizing the economy. This initiative precedes Milei's campaign promise of dollarizing the country, although implementation is not expected in the near term. In an interview with a local TV channel, Milei outlined the project, which defines seigniorage as a criminal offense. Under the proposed legislation, central bank officials involved in financing the treasury, directly or indirectly, would face imprisonment, including the bank's president, board members, and government officials endorsing such actions. However, the bill must undergo deliberation and approval in the...

Authorities in South Korea have apprehended individuals allegedly involved in an over-the-counter (OTC) crypto scam, shedding light on a concerning trend of illicit activities within the cryptocurrency sphere. According to reports, a multinational gang orchestrated a fraudulent OTC crypto transaction, resulting in the confinement and theft of cash from a Vietnamese woman. The incident, which occurred in Seoul's Gasan District on December 3, 2023, saw the gang lure the victim into a purported crypto transaction before locking her in a vehicle and stealing approximately $127,630 in cash along with her cell phone. Prompt police intervention led to the apprehension of six suspects, including a South Korean man in his 30s and an Egyptian man in his 20s, on charges of illegal confinement and aggravated theft. While the accused maintain that they were themselves victims of a cryptocurrency scam and assert that the victim was associated with the scam organizers, authorities have proceeded...

The Hong Kong Securities and Futures Commission (SFC) has been consistently advising investors to exercise due diligence when dealing with cryptocurrency platforms, a message reiterated on its website. Recently, Huobi HK, a prominent crypto exchange, withdrew its license application just three days after submission on February 23, under its local entity HBHL Hong Kong Limited. This move follows similar actions by two other exchanges, Amber and BitHarbour, while Meex had its application returned on February 7 for undisclosed reasons. As of February 29, all crypto exchanges in Hong Kong are required to either obtain or apply for a Virtual Asset Trading Platform (VATP) license. The SFC underscores the significance of trading through licensed exchanges, urging investors to verify the regulatory status of their platforms. The commission emphasized the importance of checking the "List of licensed virtual asset trading platforms" or the "List of virtual asset trading platform applicants"...

In a recent ruling by the United States Court of Appeals for the First Circuit, the fraud conviction of Randall Crater, the founder of cryptocurrency project My Big Coin, has been upheld. Crater was sentenced to over eight years in prison following a jury's verdict of guilt on multiple counts including wire fraud, unlawful monetary transactions, and operating an unlicensed money-transmitting business. The appellate panel, consisting of Judges Gustavo Gelpí, Jeffrey Howard, and Julie Rikelman, dismissed Crater's appeal for a new trial, rejecting arguments made by his legal team regarding Sixth Amendment rights violations and the credibility of expert testimony from Pamela Clegg of CipherTrace. The court's decision reaffirmed findings that My Big Coin was falsely marketed as a cryptocurrency payment service, resulting in substantial financial losses for victims. Despite claims of token backing by gold and partnerships with major financial entities, evidence revealed substantial...

Klaas Knot, Chair of the Financial Stability Board (FSB), recently addressed G20 finance ministers and central bankers, highlighting the persistent global financial instability and emphasizing the need for vigilance, particularly in the context of evolving digital finance. The FSB's strategic focus includes asset tokenization, with plans to assess its financial implications by 2024, alongside broader efforts to navigate the complexities of digital innovation within the financial sector. Last year, the G20 endorsed a global regulatory framework for crypto-assets, developed in collaboration with the International Monetary Fund (IMF), signaling a significant step towards regulatory coherence. Looking ahead, the FSB aims to provide an update on the implementation of this framework in October, with proposals for enhanced incident reporting exchange mechanisms to strengthen information-sharing among financial entities and regulatory authorities, thereby bolstering systemic resilience....

An Australian crypto exchange, OTCPro, owned by Rhino Trading, finds itself embroiled in a legal battle to recover approximately $328,000 mistakenly deposited into a user's account. The error occurred when $653,000 was credited to the user's account in January, instead of the intended $65,300. Following the realization of the mistake on February 4th, the exchange alleges that the user, Kow Seng Chai, failed to respond to emails requesting the return of the funds. Court documents reveal that Chai purportedly used a portion of the mistakenly sent funds to purchase Tether and withdrew approximately $626,700 in daily maximum lots of $100,000 within 10 days. Moreover, Rhino Trading claims that the phone number linked to the account did not belong to Chai, who also did not appear in court. Consequently, on February 9th, the Victoria State Supreme Court froze Chai's assets and issued an injunction on February 21st, preventing him from leaving the country, citing concerns about the disposal...