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The explosive revelations of Caroline Ellison: Law Decoded

SBF’s former girlfriend admits to fraud during her time as CEO of Alameda Research.

Last week, the FTX court saga had elements of a TV drama, with Sam “SBF” Bankman-Fried’s former business associate and girlfriend, Caroline Ellison, sharing some shocking stories about SBF’s rule over the company. Ellison admitted to fraud during her time as CEO at Alameda under Bankman-Fried’s direction. However, she blamed the misuse of FTX user funds directly on SBF, claiming he “set up the systems” that led to Alameda taking roughly $14 billion from the exchange.

Ellison revealed that Alameda’s bad loans created market panic around FTX, causing users to withdraw their funds. FTX then paused withdrawals to contain the situation, and the exchange came crashing down within days. When one of the employees attending the meeting asked Ellison how FTX intended to pay back its customers, she said the crypto exchange was planning to raise further funds to fill the gap.

She also told the court about the SBF’s ambitions to become the president of the United States, his willingness to “flip a coin and destroy the world,” and his plans to attract investment from Saudi Crown Prince Mohammed bin Salman.

Meanwhile, former FTX chief technology officer Gary Wang, who’s also been giving his testimony in court, pleaded guilty to four charges, including conspiracy.

IRS must implement crypto reporting requirements before 2026

Seven members of the United States Senate have called on the Treasury Department and Internal Revenue Service (IRS) to advance a rule imposing certain tax reporting requirements for crypto brokers “as swiftly as possible.” A group of U.S. senators, including Elizabeth Warren and Bernie Sanders, criticized a two-year delay in implementing crypto tax reporting requirements, which are scheduled to go into effect in 2026 for transactions in 2025. The lawmakers claimed delaying implementation of the rules could cause the IRS to lose roughly $50 billion in annual tax revenue and continue policies allowing bad actors to avoid paying taxes.

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DeFi doesn’t represent a “significant risk” to financial stability in Europe yet

The European Securities and Markets Authority (ESMA) — the European Union’s financial markets supervisory authority — released an article on decentralized finance (DeFi) and the risks it poses to the EU market. In a 22-page report, the ESMA admits the promised benefits of DeFi, such as greater financial inclusion, the development of innovative financial products, and the enhancement of financial transactions’ speed, security and costs.

Warning about the risks of the technology, the regulator concludes that currently, DeFi and crypto, in general, do not represent “meaningful risks” to financial stability. That is because of their relatively small size and limited interconnectedness between crypto and traditional financial markets.

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Malaysia approves its fifth digital exchange

The Malaysia-based Hata has received in-principle approval from the Securities Commission Malaysia to register as a Recognized Market Operator as a digital asset exchange and digital broker. The approval means Hata could launch its services in six to nine months. Hata will become the fifth regulated digital asset exchange in Malaysia and the first legal entity to receive approval as a digital broker, allowing it to display trade orders from other regulated exchanges.

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Blackrock CEO Larry Fink ‘Very Bullish’ on Bitcoin — Hails IBIT ‘the Fastest Growing ETF’ Ever

Hata receives in-principle approval to be fifth Malaysian digital exchange

The new exchange was founded by an executive from Malaysian market leader Luno. It will target investors, businesses, and high-net-worth individuals.

The Malaysia-based Hata has received in-principle approval from Securities Commission Malaysia (SC) to register as a Recognized Market Operator (RMO) as a digital asset exchange and digital broker. The approval means Hata could launch its services in six to nine months.

Hata will become the fifth regulated digital asset exchange in Malaysia and the first legal entity to receiveapproval as a digital broker, allowing it to display trade orders from other regulated exchanges. Hata also received a money broker license from the Labuan Financial Services Authority in June, allowing it to exchange USD. The Labuan International Business and Financial Centre is a special economic zone.

Related: Malaysia enlists China to help end USD dependence for trade

Hata was co-founded by David Low, who left Luno, Malaysia’s largest crypto exchange by far, in April. Low oversaw Luno’s debut as Malaysia’s first digital asset exchange in 2019. Low said in a statement:

“We plan to make digital assets investing easier for institutional investors, businesses, and high-net-worth individuals in Malaysia.”

Other crypto exchanges have tried to crack the Malaysian market. SC ordered Binance to cease operations in the country in July 2020 for lack of RMO status, although the exchange did not close down there until a year later. Binance found its way back to Malaysia in March, when it bought a stake in RMO MX Global. Huobi Global (now HTX) was told to close in Malaysia in May, also for not registering with SC.

Malaysians also have the option of trading crypto on an app offered by Kenanga Investment Bank Berhad. The large private bank partnered with China’s Ant Group in August 2022 to launch a wallet and trading app.

Magazine: China expands CBDC’s tentacles, Malaysia is HK’s new crypto rival: Asia Express

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10 Southeast Asian Nations Challenge Dollar Dominance With Push for Local Currencies

10 Southeast Asian Nations Challenge Dollar Dominance With Push for Local CurrenciesThe leaders of 10 Southeast Asian nations, members of the Association of Southeast Asian Nations (ASEAN), have agreed to “encourage the use of local currencies for economic and financial transactions.” The group comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. This move will help them reduce their reliance on the U.S. […]

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China Ready to Talk Asian Monetary Fund to Cut Dollar Dependence, Malaysia Says

China Ready to Talk Asian Monetary Fund to Cut Dollar Dependence, Malaysia SaysAn idea to establish an Asian Monetary Fund has caught the attention of the Chinese leadership, the head of the Malaysian government revealed. The prime minister believes there is no reason for his country, which is hurting from a strong U.S. dollar, to remain dependent on the greenback. Malaysia Prepares to Trade With China in […]

Blackrock CEO Larry Fink ‘Very Bullish’ on Bitcoin — Hails IBIT ‘the Fastest Growing ETF’ Ever

Malaysia enlists China to help end USD dependence for trade

More proposals and currency concepts are emerging as Asia ramps up its efforts to distance itself from U.S. dollar hegemony.

China and Malaysia are considering moving forward on discussions regarding an Asian Monetary Fund as distancing from U.S. dollar hegemony becomes a greater priority in the region.

On April 4, Malaysian Prime Minister Anwar Ibrahim reportedly said China was open to a proposal to set up an Asian Monetary Fund.

The concept of the Asian-focused fund was floated at a forum on the Chinese island province of Hainan last week according to Bloomberg.

According to Ibrahim, China’s President Xi Jinping welcomed discussions on a proposed agency to help the two nations — and others in the region — distance themselves from the dollar and the International Monetary Fund (IMF).

Malaysia is among several Asian nations trying to detach itself from dollar dependence. Its central bank is working with the People’s Bank of China to conduct trade in their own respective currencies.

In late March, China and Brazil agreed to transact solely in their own currencies, cutting out the greenback completely.

An Asian Monetary Fund was originally mulled and mooted in the 1990s, but Ibrahim thinks that now is the time, stating:

“Now with the strength of the economies in China, Japan, and others, I think we should discuss this — at least consider an Asian Monetary Fund, and, secondly, the use of our respective currencies.”

Also in late March, a Russian state official spoke of a new currency for the BRICS alliance, as reported by Cointelegraph. It would be another effort to distance itself from the dollar, incorporating the burgeoning economies of Brazil, Russia, India, China, and South Africa.

In October 2022, Chinese government researchers proposed a digital currency based on a basket of Asian currencies.

On April 4, South China Morning Post Columnist Alex Lo opined there could be additional reasons for dollar distancing.

Related: ‘Surgical removal’ of crypto will only weaken USD dominance, commentators say

Lo said more countries want to move away from the U.S. dollar, not just for economic reasons, but to “escape the clutches of the gangsterism of U.S. foreign policy, which in the past two decades has weaponized its global dollar dominance with increasing abandon.”

The end of the dollar as the world’s reserve currency could have a severe impact on its value compared to other currencies and crypto assets. It could have a knock-on effect on the $133 billion stablecoin market which is dominated by dollar-pegged stablecoins.

Magazine: Unstablecoins: Depegging, bank runs and other risks loom

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India to Facilitate International Settlements in Rupees to Reduce Dependence on the US Dollar

India to Facilitate International Settlements in Rupees to Reduce Dependence on the US DollarThe government of India has announced that it will facilitate the settlement of international transactions using its national currency, the rupee. As part of its foreign trading policy framework implemented on April 1, the country introduced this measure to facilitate payments for countries experiencing a U.S. dollar crush. India to Offer Rupee-Based Settlement Options for […]

Blackrock CEO Larry Fink ‘Very Bullish’ on Bitcoin — Hails IBIT ‘the Fastest Growing ETF’ Ever

China’s Ant Group to help Malaysia launch crypto-friendly ‘super app’

Expected to launch in early 2023, Kenanga’s crypto-friendly super app will feature digital investment management, e-wallet, FX, stock trading and other services.

Malaysia continues accelerating its pace of cryptocurrency adoption as one of the major local banks is moving into cryptocurrency trading as part of its default banking offerings.

Kenanga Investment Bank Berhad, one of the largest private investment banks with more than 500,000 customers, has partnered with China’s tech giant Ant Group to launch a crypto-friendly wallet and trading app.

According to an announcement on Wednesday, Kenanga has signed a memorandum of understanding with Ant to jointly develop Malaysia’s wealth application called categorized as a super app. Under the terms of the agreement, Ant’s digital technology unit will provide Kenanga with mPaaS, a mobile development platform originating from AliPay App.

“Adopted by many businesses to build new apps and optimize the performance of existing apps, our financial-grade mPaaS mobile development platform is well-positioned to support Kenanga in integrating a wide range of products and services into its SuperApp,” At’s digital tech president Geoff Jiang noted.

The SuperApp is designed to revolutionize the way of managing wealth in Malaysia by integrating diverse financial services — like stock trading, digital investment management, crypto trading, digital wallet, foreign currency exchange and others — into a single platform. Kenanga reportedly plans to launch the app in early 2023.

“We look forward to not only unifying a broad spectrum of financial offerings under one roof, but more importantly, to make wealth creation more accessible by democratizing financial services for the millions of Malaysians,” Kenanga Group managing director Datuk Chay Wai Leong said.

He also mentioned that Kenanga started experimenting with digital financial services five years ago, and the new application would bring the company’s growth to the next level. As previously reported, Kenanga has been an active player in the crypto industry, investing in local crypto exchange operators like Tokenize Technology in 2021.

Related: Malaysian regulators add Huobi to investor alert list

Kenanga is also a known partner of the Japanese crypto-friendly retail firm Rakuten, providing Malaysia’s local online stock trading platform Rakuten Trade.

The cryptocurrency industry has seen some action in Malaysia in recent months, with local officials reportedly calling the government to legalize crypto in March 2022. While crypto investment and trading have been legal in Malaysia, the government opposed the idea of adopting crypto as legal tender.

Blackrock CEO Larry Fink ‘Very Bullish’ on Bitcoin — Hails IBIT ‘the Fastest Growing ETF’ Ever

Malaysian regulators add Huobi to investor alert list

The Securities Commission of Malaysia says Huobi is operating without official registration from local regulators.

The Securities Commission (SC) of Malaysia issued a statement on Aug. 22 regarding Huobi operations in the country. According to the statement, the crypto exchange is now on the SC’s Investor Alert List. 

Malaysian financial regulators say Huobi has been operating a digital asset exchange in the country without official registration with the SC.

In a follow-up tweet, the SC said that any operations which perform or offer capital market activities within the country require its approval. Those who aren’t granted such approval are considered unlicensed or unregistered entities. Local authorities say investors are “strongly urged” not to invest in such operations.

Additionally, the SC highlighted that anyone who does utilize such a service does so at a risk and in the case of monetary losses, they cannot be legally resolved.

Such a statement does not bode well for the exchange. Local investors responded to the tweet by saying a simple fix is to change exchanges.

In an official statement, the Huobi Group responded to Cointelegraph, stating that compliance is a core pillar of its business model in every country of its operations:

We are currently in discussions with Malaysian regulatory authorities regarding our presence in the local Malaysian market. 

This comes amid an array of developments for the global exchange.

In countries such as Australia and the United States, Huobi is making steps towards expansion. Australian regulators greenlit the exchange in early August. In the U.S., it secured a FinCEN license, which brings it one step closer to offering services to American clients.

Related: Huobi co-founder reportedly looks to sell majority stake valued at over $1B

While the exchange is making steps in the right direction in some places, in others like Thailand and New Zealand, there are road bumps. The Thailand affiliate of Huobi recently shut down because it could not fix major systematic issues, despite several extensions from local regulators.

In New Zealand, Huobi announced on Aug. 16 thatit will end derivatives trading due to compliance with local regulations. This comes only a few months after it won its initial license to operate in New Zealand.

Blackrock CEO Larry Fink ‘Very Bullish’ on Bitcoin — Hails IBIT ‘the Fastest Growing ETF’ Ever

Malaysia Detains Over 600 People for Stealing Electricity to Mine Cryptocurrency

Malaysia Detains Over 600 People for Stealing Electricity to Mine CryptocurrencyIn the past two years, law enforcement authorities in Malaysia have arrested hundreds of individuals for theft of electricity allegedly used to mint digital currencies. The country’s police force has also confiscated equipment worth millions of dollars. Malaysia Police Announce Results From Crackdown on Illegal Mining Since 2020, Malaysian authorities have detained a total of […]

Blackrock CEO Larry Fink ‘Very Bullish’ on Bitcoin — Hails IBIT ‘the Fastest Growing ETF’ Ever

Malaysia Will Not Adopt Bitcoin as Legal Tender, Government Says

Malaysia Will Not Adopt Bitcoin as Legal Tender, Government SaysMalaysia’s deputy finance minister has clarified that the government will not adopt cryptocurrency as legal tender. “Cryptocurrencies like bitcoin are not suitable for use as a payment instrument due to various limitations,” he said. Bitcoin Will Not Be Legal Tender in Malaysia, Says Deputy Finance Minister Following reports that a high-ranking government official has proposed […]

Blackrock CEO Larry Fink ‘Very Bullish’ on Bitcoin — Hails IBIT ‘the Fastest Growing ETF’ Ever