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Nevada regulators are taking steps to close cryptocurrency custodian Prime Trust due to the company’s deteriorating financial condition. The Nevada Financial Institutions Division (FID) has submitted a court filing demanding cessation of all Prime Trust’s business activities and the appointment of receiver. The filing cites the debt issues arising from the company’s failure to access “legacy wallets”. According to the FID, the company then misappropriated customer funds to meet the withdrawal demands. The investigation further reveals that Prime Trust currently owes clients more than $154.5 million in fiat and cryptocurrency. Source: https://decrypt.co

Web3 firms in Hong Kong are reportedly making substantial investments, ranging from HKD 20 million to HKD 200 million to secure Virtual Asset Service Provider (VASP) licenses, as reported by Foresight News. This comes after the introduction of the new VASP licensing regime for crypto exchanges by the Securities and Futures Commission on 1 June, requiring applicants to make proper disclosures on aspects such as user statistics and company financials. Subsidiaries of exchanges such as OKX, BitgetX, HashKey Pro, OSL and Gate.io have already begun operations under the new regime. Source: https://cointelegraph.com

Asset management firm Fidelity is reportedly gearing up to file for a spot bitcoin exchange-traded fund (ETF), following similar filings by BlackRock, WisdomTree, Invesco, VanEck, and Bitwise. This series of applications pushed Bitcoin to a one-year high of over $31,000 on 23 June. Though the US Securities and Exchange Commission (SEC) has historically dismissed applications for spot Bitcoin ETFs over market manipulation fears, there is optimism among market analysts due to recent filings by leading industry players. Market analyst Edward Moya suggested that if the bitcoin ETF is approved, it could lead to increased institutional and high-net-worth retail investment in crypto. Source: https://www.reuters.com

HSBC has reportedly begun offering its first local cryptocurrency services. These services will allow customers to buy and sell Bitcoin and Ether-based exchange-traded funds (ETFs) listed on the Hong Kong Stock Exchange, which currently includes CSOP Bitcoin Futures ETF, CSOP Ethereum Futures ETF and Samsung Bitcoin Futures Active ETF. This move follows the news reports in mid-June revealing the Hong Kong Monetary Authority’s push for major banks in Hong Kong to accommodate cryptocurrency exchanges as clients. Source: https://cointelegraph.com

The European Union is preparing to release draft rules to provide a legal foundation for a digital euro. The digital euro is expected for retail uses from around 2026 at the earliest if it is approved by the European Central Bank (ECB) in October. The draft rules suggest the digital euro, while not programmable, will offer greater efficiency of retail payment and a high level of privacy. The digital euro would initially serve residents and visitors in the euro area. The ECB may also limit digital holdings for each individual between €3,000 and €4,000. If enacted, the digital euro is expected to reduce EU’s reliance on non-EU payment firms like Mastercard and Visa. Source: https://www.reuters.com

The Swiss National Bank (SNB) will reportedly launch a pilot program of a wholesale Central Bank Digital Currency (CBDC) on the SIX digital exchange. Speaking at the Point Zero Forum in Zurich, SNB Chairman Thomas Jordan confirmed that the digital currency will be on par with bank reserves and is aimed at testing real transactions with market participants. Jordan revealed that he was cautious about the risks of retail CBDC, though he did not rule out the possibility of launching it in the future. SNB Governor Andrea Maechler reiterated that despite the launch of the pilot, cash remains an integral part of the country’s financial landscape. Source: https://www.reuters.com

Bitcoin experienced a surge of about 25% to reach a high not seen in over a year on 23 June, hitting $31,458. The rise of Bitcoin price has been partially driven by BlackRock’s recent announcement of its intent to introduce a Bitcoin exchange-traded fund (ETF). As the world’s largest asset manager, BlackRock’s proposed iShares Bitcoin Trust, with Coinbase as its custodian, is set to provide institutional investors with Bitcoin exposure. This news, coupled with EDX Markets’ announcement of allowing trading on some crypto, has reignited investor interest in cryptocurrencies. Source: https://www.reuters.com

Crypto.com, the Singapore-based crypto exchange, has reportedly gained a virtual asset service provider registration from the Spain’s central bank. The news is closely followed by the licence approval for the company to conduct digital payment token (DPT) services in Singapore in early June. To gain the approval, Crypto.com needed to prove its compliance with the Anti-Money Laundering Directive and other financial crimes laws. CEO Kris Marszalek stated the firm’s entrance into Spain’s market affirms its commitment to compliance. The company now has regulatory consent in different countries, including Singapore, France, the United Kingdom, Dubai, South Korea, Australia, Italy, etc. Source: https://cointelegraph.com

Amid rising global regulatory scrutiny, Binance, the world’s largest cryptocurrency exchange, was instructed by Belgium's Financial Services and Markets Authority (FSMA) on 23 June to immediately halt its crypto operations in the country. According to the FSMA, Binance has been providing crypto exchange services in Belgium and custody wallet services, from countries that are not members of the European Economic Area. This news comes after Binance’s agreement to safeguard US customer assets until its lawsuit in the US is resolved and its decision to withdraw from the Dutch market due to compliance hurdles. Source: https://www.reuters.com

Melanion Capital, a French investment firm, has reportedly launched the Bitcoin Equities ETF on the Euronext Amsterdam Stock Exchange. This new fund offers investors an opportunity to gain exposure to Bitcoin-related company stocks. The ETF, which follows the Melanion Bitcoin Exposure Index, includes stocks from MicroStrategy, Coinbase, and Robinhood. CEO Jad Comair describes the launch as a “regulated and transparent solution” for the investors in the country to gain exposure to the Bitcoin ecosystems. The Bitcoin Equities ETF is also listed on the Euronext stock exchanges in Paris and Milan. Source: https://cointelegraph.com

The Japan Virtual and Crypto Assets Exchange Association (JVCEA), a self-regulated body of crypto exchanges in the country, is calling for a relaxation of current margin trading rules on cryptocurrencies. In early 2022, leverage was capped at twice the principal capital, leading to a significant drop in trading volumes. The JVCEA now advocates for an increase in leverage limits to a minimum of 10 times the principal, despite inherent market risks. The association maintains that such changes could boost market growth and enhance market liquidity. Source: https://www.coindesk.com

Credit Agricole and Santander’s asset servicing branch CACEIS has reportedly registered with the French market’s regulator AMF as a Digital Asset Service Provider (DASP) on 20 June. With $4.51 trillion in assets under its management as of the end of 2022, CACEIS could now offer custody services for digital assets, in particular, cryptocurrencies. France, known for its progressive stance on crypto, was the first major European country to grant Binance approval. Other prominent French finance institutions, including Societe Generale and AXA, have already been listed as DASPs with the AMF. Source: https://www.reuters.com