New data shows that nearly half of all traditional hedge funds are now reportedly exposed to crypto assets as regulations start to become more clear. According to a new report by Bloomberg, a recent survey revealed that 47% of hedge funds in traditional markets had exposure to crypto assets, up from 29% in 2023 and […]
The post Nearly 50% of Traditional Hedge Funds Now Exposed to Crypto Assets Amid Growing Regulatory Clarity: Report appeared first on The Daily Hodl.
Crypto.com’s lawsuit against the US SEC follows the exchange’s receipt of a Wells notice from the agency.
Major cryptocurrency exchange and service provider Crypto.com is launching a legal battle against the United States Securities and Exchange Commission with the goal of protecting the future of the crypto industry in the country.
Kris Marszalek, co-founder and CEO of Crypto.com, took to X on Oct. 8 to officially announce that the company has filed a suit against the US SEC.
“This unprecedented action by our company against a federal agency is a warranted response to the SEC’s regulation by enforcement regime, which has hurt more than 50 million American crypto holders,” he wrote.
The chief legal officers at Kraken and Ripple have weighed in on the Federal Court for the Northern District of California’s recent decision in the U.S. Securities and Exchange Commission’s lawsuit against Kraken. “Another court, this time in the Kraken case, confirms there’s no such thing as a ‘crypto asset security.’ Bad news for the […]
The Securities and Exchange Commission (SEC) has decided to end its investigation into Paxos, a New York-based issuer of stablecoins, suggesting that stablecoins may not be treated as securities in most cases. This decision comes more than a year after the SEC sent Paxos a Wells Notice concerning the BUSD stablecoin, which is backed by […]
Binance CEO Richard Teng described 2024 as a “landmark year” for the cryptocurrency industry in an interview with Bloomberg on Thursday. He cited enhanced regulatory clarity, broader mainstream acceptance, and the introduction of bitcoin spot exchange-traded funds (ETFs). “The momentum continues to be very strong, which is a very encouraging sign for us … Other […]
Coinbase, Inc. has escalated its dispute with the Securities and Exchange Commission (SEC) by filing a reply brief in the Third Circuit Court of Appeals, arguing the necessity of clear rulemaking for the digital asset industry. The case underscores the ongoing tensions between regulators and the digital asset sector over compliance and operational standards. Coinbase […]
Robinhood Markets is preparing to fight the U.S. Securities and Exchange Commission (SEC) in court to defend its crypto business and establish “regulatory clarity in the United States for the benefit of our customers,” CEO Vlad Tenev said after his company received a Wells notice from the securities regulator. “The SEC’s continued attack on crypto, […]
Animoca Brands became the biggest validator of the TON blockchain in 2023, banking on the network effect of Telegram’s 800 million users to drive GameFi adoption.
Animoca Brands co-founder Yat Siu is confident that a number of investments and partnerships could prove fruitful in 2024 as mainstream institutional interest in Bitcoin (BTC) gathers steam.
Speaking exclusively to Cointelegraph at the Next Block Expo event in Berlin, the chairman of the gaming venture capital firm highlights some 70 investments made in 2023 that are expected to deliver results next year.
Related: Animoca eyes SportFi ecosystem, becomes Chiliz Chain validator
Chief among these is a high-profile partnership with The Open Network (TON) blockchain, which was announced on Nov.
“We actually think that’s a tool for mass onboarding with TON wallet. What’s not to be excited about?”
Siu also said that Animoca’s acquisition of the social casual gaming platform Gamee in July 2020 is set to capitalize on its growing presence as a gaming platform on Telegram.
“There were no advertising and in-app purchases, and nothing was allowed in Telegram until recently with the integration of TON.
The Coinbase CEO has been hugely critical of the U.S. failure to provide the crypto industry with regulatory clarity and has long argued it will push firms offshore.
“Adversary nations” like China could ultimately benefit from restrictive crypto policies in the United States, warns Coinbase CEO Brian Armstrong.
In a May 30 op-ed for MarketWatch, Armstrong again warned that while recent turbulence in crypto markets might tempt U.S. policymakers “to write it off as an unstable asset class,” doing so could see the U.S. cede its status as a financial leader and innovation hub.
In today's @MarketWatch I'm sharing an op-ed encouraging policymakers to see the big picture with crypto. It's important for American technology leadership and national security that this industry be built (at least in part) in America. https://t.co/I1702aHDGf
— Brian Armstrong ️ (@brian_armstrong) May 30, 2023
Armstrong urged policymakers to see that crypto is “about much more than individual transactions,” but represents a “transformative technology” that can revolutionize a variety of sectors — highlighting its ability to provide creators with royalties for secondary market transactions as an example and adding:
“Crypto, like the internet before it, has the potential to modernize finance and numerous other sectors, from supply chains to social media, by offering a faster, cheaper, more private, and accessible platform.”
Through his status as a public figure and head of Coinbase, Armstrong has long been pushing for U.S. policymakers to provide the crypto industry with regulatory clarity that can help realize crypto’s potential whilst protecting consumers.
Coinbase has continued to ask for clarity from the U.S. Securities and Exchange Commission around which digital assets qualify as securities and has argued against the agency’s “regulation by enforcement” approach. SEC chair Gary Gensler has previously argued that digital assets already fall under existing securities regulations.
Related: SEC settles case against Wahi brothers for Coinbase insider trading
In the op-ed, Armstrong added it was unsurprising that Hong Kong is positioning itself to be a global crypto hub, as China looks to challenge the U.S.’s role as the global financial leader in a variety of ways — such as the recent launch of the digital yuan and Belt and Road Initiatives.
Xi calls for deep alignment between Belt and Road Initiative and Eurasian Economic Union #BRI #China
— Zhang Heqing (@zhang_heqing) May 25, 2023
Chinese President Xi Jinping on Wednesday called for a deeper synergy between the Belt and Road Initiative (BRI) and the Eurasian Economic Union (EAEU) as China looks to enhance… pic.twitter.com/bwFcXIvgk4
He warned that failing to pass comprehensive crypto legislation would result in the U.S. needing to play catch-up and spend billions to bring innovation back to the U.S., but noted that even with a “colossal and sustained effort” it might be too late by then.
While many countries have sped up their efforts to regulate cryptocurrencies following a crisis-filled 2022, most still lack a clear framework for the industry to build around.
As cryptocurrencies continue to become a bigger part of the global economy, more and more governments are exploring ways to regulate the industry and construct rules for firms operating in the space.
There have been some significant regulatory developments in recent weeks, with the European Parliament approving the Markets in Crypto-Assets (MiCA) regulations on April 20, Ukraine announcing it would adopt the same set of rules, and South Korea making progress with its proposed regulations.
While US regulators have been busy infighting and refusing to provide the most basic of clarity for the crypto industry, the European Union just approved the MiCA regulation, which provides a comprehensive regulatory framework for crypto in Europe. It's sad to see the US being…
— Tyler Winklevoss (@tyler) April 20, 2023
The collapse of crypto exchange FTX has led to calls for fast-tracked regulations in numerous countries, with its bankruptcy resulting in a contagion that contributed to the downfall of many firms it associated with.
Speaking to Cointelegraph, chairman and co-founder of Animoca Brands Yat Siu noted that his firm is “very pro-regulation, as that provides a framework that legitimizes the industry.” Sui said that a lack of regulatory clarity could have the opposite effect and create uncertainty, adding:
“Broadly speaking, regulation has seen a much more positive direction in places like Hong Kong, Japan, UAE, and even parts of Europe compared to the U.S., which has attracted capital, talent and jobs in those places.”
Below is a breakdown of crypto regulations in different countries worldwide and whether they provide clear rules for a cryptocurrency industry to be built around, if they are hostile toward crypto firms, or if they lack clear regulations.
This is not a definitive list but aims to cover many of the largest countries by gross domestic product and those with unique rules. Most European Union member states are not included, with many likely to adopt the incoming MiCA regulations.
Regulations can be highly nuanced, so attempts to categorize different countries’ regulations may be an oversimplification.
Bahamas: The Bahamas has become desirable for crypto firms’ headquarters due to its friendly tax policies and transparent regulatory framework. FTX was headquartered there, and Coinbase is reportedly set to create a derivatives exchange there.
Brazil: Former Brazilian President Jair Bolsonaro signed a crypto bill into law on Dec. 22, 2022, which legalized using crypto as a payment method and established a licensing regime for virtual asset service providers.
Canada: The first country to approve a Bitcoin (BTC) exchange-traded fund; Canada requires all crypto trading platforms to register with regulators and, for the most part, has clear regulations that individuals and businesses must follow.
Cayman Islands: Similar to the Bahamas, the Cayman Islands has a clear regulatory framework and friendly tax policies, making it a preferred location for many crypto firms.
El Salvador: The first country to recognize Bitcoin (BTC) as legal tender; it has fully embraced crypto and plans to create a “Bitcoin City,” which will provide residents with tax benefits. The country has even paved the way for Bitcoin-backed bonds.
Japan: Japan’s clear regulatory framework places strict standards on crypto exchanges, including a requirement to segregate exchange and customer assets, which meant that customers of FTX Japan could fully withdraw all their funds following the collapse of its parent company.
Mexico: Mexico’s central bank has broad powers enabling it to regulate virtual assets following laws passed in 2018 outlining the requirements for firms operating in the crypto industry.
Switzerland: While Switzerland has strict laws regarding Anti-Money Laundering (AML) and Know Your Customer requirements, its regulatory framework is clear and provides its crypto industry with clear guidelines on how it must operate.
Afghanistan: After the Taliban came to power, it banned cryptocurrency trading in August 2022.
Algeria: The purchase, use, sale and holding of crypto has been prohibited in Algeria since 2017.
Bangladesh: Although Bangladesh has indicated a desire to become a “Blockchain-enabled Nation,” transacting with crypto is illegal.
Bolivia: The Central Bank of Bolivia issued a resolution to ban the use of crypto in 2014.
China: China banned local crypto exchanges in 2017, progressing to a blanket ban on mining and cryptocurrency use in 2021.
Egypt: Crypto transactions in Egypt have been prohibited since 2018, but the nation appears to be warming to crypto following reports earlier this year that it was looking at creating its own regulatory framework for crypto.
Morocco: Transacting with crypto has been illegal in Morocco since 2017.
Nepal: Nepal has outright banned any use of crypto in the country and, earlier this year, told internet service providers and email service providers to prevent access to “websites, apps, or online networks” related to crypto.
Australia: Australia’s lack of clear regulations has left consumers heavily exposed to industry-wide events such as the collapse of FTX, but it is currently making progress on establishing broad regulations as it engages in a public consultation on how to classify crypto and firms operating in the space.
Hong Kong: Hong Kong has been quickly progressing in its efforts to regulate crypto and become a crypto hub but still lacks clear regulations. It is set to release crypto exchange licensing guidelines next month, with its courts also recently recognizing crypto assets as property.
India: While India has imposed AML rules on crypto, it lacks clear regulations for the crypto industry and recorded huge drops in crypto exchange activity after putting in place hefty taxation laws in 2022. The Reserve Bank of India banned cryptocurrency in 2018, but the supreme court lifted the ban in 2020.
Magazine: Whatever happened to EOS? Community shoots for unlikely comeback
Russia: While there are reports that Russia may adopt crypto regulations as early as June, it currently does not have a clear regulatory framework and has previously banned using cryptocurrencies for commerce.
South Korea: South Korea has some crypto regulations and is close to passing its own sweeping crypto bill, which would require crypto exchanges and service providers to segregate customer and business funds, among other measures.
United Kingdom: While the U.K.’s financial regulator — the Financial Conduct Authority — has recently called upon the crypto industry to work with it as it develops its own regulatory framework, it currently has limited powers to regulate the sector and has said that firms will have four months to implement changes required by the rules when they come into force.
United States: Although the U.S. still has the most crypto-related development and a high proportion of crypto users, it lacks a clear regulatory framework that some argue drives firms offshore.
