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The Monetary Authority of Singapore (MAS) introduced a regulatory framework for single-currency stablecoins on 15 August to enhance their stability. Non-bank issuers with stablecoins pegged to the Singapore Dollar or any G10 currencies with a circulation of over S$5 million will now fall under its regulatory framework. Key requirements include maintaining value stability, ensuring timely redemption upon request, disclosing audit results to users, and holding a reserve of low-risk assets equivalent to at least 100% of the outstanding stablecoins in circulation. Additionally, they must uphold a minimum base capital higher than S$1 million or half of annual operating expenses. Source: https://www.reuters.com

Crypto custodian Prime Trust has sought Chapter 11 bankruptcy protection in Delaware, citing a significant discrepancy between its liabilities and assets. According to the company’s filing on 15 August, the company has between 25,000 to 50,000 creditors and owes between $100 million to $500 million, while holding assets valued at just $50 million to $100 million. Four associated entities, including Prime Core Technologies Inc. and Prime Digital, LLC are also included in this bankruptcy filing. Source: https://cointelegraph.com

Cryptocurrency exchange Coinbase has announced its expansion into the Canadian market, aiming to capitalise on the country’s strong crypto awareness and regulatory framework. To attract new users, the exchange is rolling out a 30-day free access to its new service, “Coinbase One.” With a focus on staking, this subscription service features zero trading charges and priority customer support. Although a group of thirty Canadian lawmakers recently endorsed crypto and blockchain technology, Canada’s stance on crypto remains ambiguous. Canada’s Prime Minister Justin Trudeau has previously criticised the opposition leaders on their pro-crypto stance. Source: https://decrypt.co

The US Securities and Exchange Commission (SEC) has reportedly postponed its decision on Ark Investment Management’s (ARK) spot bitcoin ETF application, which was originally set to be announced by 13 August as it has decided to gather public opinions before reaching a decision. The SEC has previously turned down numerous spot bitcoin ETF applications due to concerns about potential fraud and market manipulation. ARK and 21Shares US LLC first sought approval for a spot bitcoin ETF in 2021. Notably, BlackRock, the world’s largest asset manager, submitted a bitcoin ETF application in June. Source: https://www.reuters.com

Crypto exchange FTX founder Sam Bankman-Fried has been taken into custody after Judge Lewis Kaplan of the Manhattan federal court ruled that he likely attempted witness tampering related to his fraud trial involving the collapse of the exchange. The allegations arose after The New York Times released diary excerpts from Caroline Ellison, former head of the exchange’s affiliated hedge fund Alameda Research. Bankman-Fried was accused of intentionally leaking the diary to the media as an intimidation tactic against Ellison. Additionally, Bankman-Fried is suspected of attempting to align testimonies with another potential witness. While his legal team intended to appeal the custody decision, the judge said it was unlikely to succeed. Source: https://www.ft.com

Brazilian lawmakers are set to vote on a bill to increase taxes on overseas-held cryptocurrencies on 28 August. The proposed legislation, which has already gained approval from a congressional committee, designates crypto as “financial assets” for tax purposes in foreign investments. This includes taxing profits derived from both price and foreign exchange rate fluctuations. Under the bill, earnings up to 6,000 Brazilian reais (around $1,200) would be tax-exempt. Profits ranging between 6,000 and 50,000 reais (around $10,000) will incur a 15% tax, while those surpassing this threshold will be taxed at 22.5%. The amended bill only targets crypto exchanges without a physical presence in Brazil, potentially making domestic platforms more appealing to investors. Source: https://cointelegraph.com

Following an extensive testing period with banks, Russia will commence a pilot program of its digital rouble on 15 August. The initiative is part of the country’s strategy to enhance its financial system and offer an alternative to cryptocurrencies like Bitcoin. Countries like Nigeria and several in the Caribbean are already using their own digital currencies. The pilot will involve opening digital wallets, conducting transactions using digital roubles and transferring funds between around 600 customers and 30 companies across 11 cities. The digital rouble is scheduled for mass adoption in 2025. One of its aims is to eventually facilitate cross-border transactions with countries that have their own digital currencies. Source: https://www.reuters.com

Crypto trading platform Bittrex and its former CEO, William Shihara, have reportedly settled with the US Securities and Exchange Commission (SEC) for $24 million over allegations of operating an unregistered exchange. The sum includes disgorgement, prejudgment interest, and civil penalties. In its announcement, the SEC highlighted Bittrex’s continued attempts to sidestep federal securities laws. Shihara described the settlement as a “good outcome” and stressed the importance of striking a balance between promoting innovation and ensuring consumer protection. Source: https://cointelegraph.com

The world’s largest cryptocurrency exchange Binance has reportedly received regulatory approval from El Salvador’s Central Reserve Bank and the National Commission of Digital Assets. The licences will allow Binance to introduce tailor-made crypto-related products and services in the country. Binance’s Latin American head, Min Lin, highlighted the lengthy process leading up to this approval. This move follows El Salvador’s decision in 2021 to recognise Bitcoin as a legal tender. Continuing its global expansion, Binance also recently set foot in Japan and Dubai. Source: https://cointelegraph.com

US payments giant PayPal announced on 7 August the launch of a dollar-backed stablecoin named “PayPal USD”. This launch comes despite the increasing regulatory scrutiny of the crypto sector in the US, leading some firms, like Revolut, to withdraw their crypto activities in the country. PayPal will partner with Paxos to issue PayPal USD, which is redeemable one-to-one for US dollars. PayPal users will be allowed to transfer the stablecoin between wallets, make payments, and also convert it into other digital currencies, including Bitcoin. Stablecoins, which are designed to have a stable value pegged to a fiat currency like the dollar, help bridge the gap between traditional finance and the cryptocurrency market. Source: https://www.ft.com

British fintech firm Revolut has reportedly decided to halt cryptocurrency services for its US customers due to mounting regulatory complexities and market instability. Starting 2 September, US users will no longer be able to purchase cryptocurrencies on the platform. All crypto-related activities, including buying, selling, and holding, will be fully disabled for US customers from 3 October. The company highlighted that this change impacts less than 1% of its global cryptocurrency users. Source: https://www.reuters.com

HashKey is set to become Hong Kong’s first licensed cryptocurrency exchange offering services to retail users following the licence update from the Hong Kong Securities and Futures Commission. Securing its Type 1 (dealing in securities) and a Type 7 (providing automated trading services) licence last November, HashKey is one of two licensed crypto exchanges in the region, alongside OSL. Meanwhile, the Hong Kong Monetary Authority has recently urged local banks to accommodate the business needs of licensed crypto exchanges. Source: https://www.reuters.com