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UK’s Financial Services and Markets Act 2023, which had already been approved by the upper house of Parliament on 19 June, was officially granted Royal Assent by King Charles on 29 June. The new law recognises cryptocurrency trading as a regulated financial activity, and defines crypto assets as “cryptographically secured digital representation of value or contractual rights”. Andrew Griffith, Economic Secretary to the Treasury, believed that the new legislation could stimulate growth and boost investment. The new law will also implement the Edinburgh Reforms, covering more than 30 reforms to financial regulation. These include providing tax incentives for investment managers dealing with crypto assets. Source: https://decrypt.co

The US-based cryptocurrency exchange Coinbase has lodged a motion to dismiss a lawsuit by the Securities and Exchange Commission (SEC), challenging the regulator’s application of securities laws. Filed with the US District Court for the Southern District of New York, the motion questions the SEC’s jurisdiction. Coinbase maintained that even if the allegations are correct, the claim is not legally valid. Coinbase argues that the lawsuit oversteps on its due process rights and amounts to an extraordinary abuse of process. Coinbase further highlights that the SEC declared its registration statement effective in 2021, enabling the sale of its shares to investors. Source: https://cointelegraph.com

Asset management firm Fidelity is seeking approval once more for its Wise Origin Bitcoin Trust spot Bitcoin ETF, according to a filing by Cboe Global Markets with the US Securities and Exchange Commission (SEC). Fidelity joins a lineup of leading asset managers including BlackRock, WisdomTree, Invesco, and VanEck, which has already submitted paperwork for spot Bitcoin ETFs on multiple platforms. These traditional finance giants’ actions pushed Bitcoin to a one year high above $31,000 on 23 June. Optimism is growing for applying for spot Bitcoin ETF, fuelled by the approval of a Bitcoin futures ETF in October 2021. Source: https://www.reuters.com

The world’s largest cryptocurrency exchange, Binance, has reportedly been denied a cryptocurrency custody licence by German regulator BaFin. Binance did not disclose conversation details with the regulator, but said it would continue to work to ensure compliance with the regulator’s requirements. This incident is the latest in a series of regulatory challenges Binance faces. Previously, the US Securities and Exchange Commission (SEC) lodged a lawsuit against Binance and its CEO, Changpeng Zhao, accusing them of a “deceptive” evasion of US laws. Belgium’s FSMA has recently prohibited Binance from offering virtual currency services in the country. Source: https://www.reuters.com

A report from the Atlantic Council reveals that 130 nations, which account for 98% of the world’s economy, are considering digital versions of their currencies. Among these nations, nearly half of them are in the advanced stages of development, pilot, or launch. With Argentina as the only exception, all G20 nations are now in one of these advanced stages. A total of 11 countries, including some in the Caribbean, and Nigeria, have already introduced Central Bank Digital Currencies (CBDCs). India and Brazil also plan to introduce digital currencies in the upcoming year. Meanwhile, the US is focusing on launching a wholesale version of digital dollar, with the development of a retail version seemingly at a standstill. Source: https://www.reuters.com

Bankrupt FTX is actively pursuing a revival of its crypto exchange FTX.com. Efforts are underway to attract investors for supporting its potential relaunch, possibly by forming a joint venture. The company sought Chapter 11 bankruptcy protection in the US last year. Prior to its collapse, there was a massive outflow of customer funds from the exchange, which strained its liquidity. Its founder Sam Bankman-Fried, is currently facing a criminal lawsuit in the US for alleged fraud. Source: https://www.reuters.com

Paysafe Payment Solutions Ltd, the European banking partner of Binance, is reportedly ending its support for the cryptocurrency exchange from 25 September. Binance’s spokesperson said the exchange will seek a new service provider to handle Euro deposits and withdrawals via the Single Euro Payments Area (SEPA). The news comes in the midst of escalating regulatory scrutiny from the US Securities and Exchange Commission (SEC) against the exchange. Previously, Binance and Paysafe had partnered to provide sterling deposit services via Faster Payments. Source: https://www.reuters.com

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