Crypto payment firm Alchemy Pay wins money transmitter license in US

September 21, 2023 Coin Telegraph

Alchemy Pay

Alchemy Pay has joined the ranks of crypto firms like Coinbase and Jack Dorsey’s Block in securing a Money Transmitter License in Arkansas.

Cryptocurrency payment gateway Alchemy Pay is expanding its global presence after securing a major payment license in the United States.

Alchemy Pay has obtained a Money Transmitter License in the state of Arkansas, the firm announced to Cointelegraph on Sept. 20.

Granted by the Arkansas Securities Department, the license officially enables Alchemy Pay to operate services like selling or issuing payment instruments, stored value and prepaid access, as well as receiving money, digital currency or monetary value for transmission.

A spokesperson for Alchemy Pay said that the Arkansas license was issued on Sept. 13 and is the "very first" Money Transmitter License received by the firm in the United States.

*Alchemy Pay's Money Transmitter License. Source: NMLS*

In receiving the Money Transmitter License, Alchemy Pay joins the ranks of many cryptocurrency firms that are authorized to provide crypto-to-fiat transactions in Arkansas, including Coinbase, Jack Dorsey’s Block, MoonPay, bitFlyer exchange and others.

The license marks a significant milestone in Alchemy Pay’s efforts to secure local regulatory approvals in crucial global markets. The firm also obtained licenses in operating markets like Indonesia and Lithuania.

According to the announcement, Alchemy Pay is currently in the process of obtaining Money Transmitter Licenses in other states across the United States.

“With a strong dedication to compliance, our team had invested substantial time and effort into securing licenses across various countries and regions,” Alchemy Pay’s ecosystem lead Robert McCraken said, adding:

“The company now prepares to expand its presence, aims to expand its services to users in the United States, and further contribute to our mission, bridging the fiat and crypto global economies.“

Founded in 2018 in Singapore, Alchemy Pay operates a crypto-to-fiat payment platform allowing transactions between fiat currencies like the U.S. dollar or euro and cryptocurrencies like Bitcoin (BTC) or Ether (ETH). According to the Alchemy Pay website, the platform supports payments in 173 countries at the time of writing, including jurisdictions and regions Australia, Canada, Hong Kong, the United Arab Emirates, India and others.

The news comes shortly after Alchemy Pay became one of the compliant service providers within the Site Data Protection program by the global payment giant Mastercard in June 2023. Previously, Alchemy Pay was officially listed as an official service provider by Visa in January 2023.

Magazine: Crypto regulation — Does SEC Chair Gary Gensler have the final say?

Kansas adjourns crypto bill targeting political donations to January 2024

September 20, 2023 Coin Telegraph

bills

The bill required politicians to “immediately convert” crypto donations to U.S. dollars, with no scope of expenditures or hodling the funds.

A Kansas bill that aimed to limit and prohibit cryptocurrency donations in political campaigns has been adjourned to January 2024.

Lawmakers in the Kansas House of Representatives introduced the bill — HB 2167 — on Jan. 25, 2023. As previously reported by Cointelegraph, the bill sought to enforce a $100 limit on all political donations in the state’s primary or general election. The bill also required politicians to “immediately convert” the crypto donations to U.S. dollars — with no scope of expenditures or HODLing the funds.

*Kansas crypto bill HB 2167 has been adjourned until Jan 8, 2024. Source: kslegislature.org*

Soon after the bill was introduced and referred to the House Committee on Elections, a committee report was shared on Feb. 22, 2023 “recommending bill be passed” accompanied by certain amendments.

However, the bill was stricken from the calendar after failure to comply with the state’s Rule 1507 (Disposition of Bills Subject to Certain Deadlines), which subjects certain bills to strict deadlines. The title of the bill HB 2167 read:

“Amending the campaign finance act to regulate and limit the use of cryptocurrency and to prohibit the use of any political funds collected by a candidate or candidate committee for a candidate for federal office.”

Targeting Bitcoin (BTC) political donations in particular, the Kansas Governmental Ethics Commission said in 2017 that cryptocurrency contributions were “too secretive.” Californian authorities too had banned crypto political donations back in 2018, but later backtracked on the decision in July 2022.

Nine United States Senators joined in to support Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act.

Senator Warren’s official senate webpage named Democratic Party Senators Gary Peters, Dick Durbin, Tina Smith, Jeanne Shaheen, Bob Casey, Richard Blumenthal, Michael Bennet and Catherine Cortez Masto, along with independent Senator Angus King, as those who joined the bipartisan coalition supporting the bill.

“Our expanding coalition shows that Congress is ready to take action – our bipartisan bill is the toughest proposal on the table cracking down on crypto’s illicit use and giving regulators more tools in their toolbox,” Warren added while welcoming the new bill supporters.

Magazine: Are DAOs overhyped and unworkable? Lessons from the front lines

Chamber of Digital Commerce launches Digital Power Network miners’ coalition

September 19, 2023 Coin Telegraph

bitcoin regulation

The new advocacy group already represents over half the country’s Bitcoin hash rate and will seek to shape energy policy and champion Bitcoin and blockchain.

Cryptocurrency miners have a new voice in Washington with the launch of the Digital Power Network (DPN), a new coalition affiliated with the Chamber of Digital Commerce. The network is off to a promising start, with many of the United States’ biggest miners on board.

The DPN is the first affiliate of the Chamber, and shares many of the same team members. Its origins stretch back to the Chamber’s Mining Initiative, which “pioneering the introduction of the first pro-proof-of-work resolution in the U.S. House of Representatives.”

Rep. Pete Sessions' resolution on proof-of-work crypto mining. Source: govinfo.gov

Alena Ricci, vice present of marketing at the Chamber and head of marketing at the DPN, explained to Cointelegraph that the resolution was submitted by Texas congressman Pete Sessions in March. “Bitcoin Mining will play a critical role in rebuilding energy independence in the USA,” Sessions tweeted at the time.

The DPN is debuting with 11 members – Argo, BitDigital, BitFarms, Coinmint, Cipher Mining, DigitHost, Hive, Marathon, Riot, Sustainable Bitcoin Protocol and Terawulf. Together they represent over 50% of the U.S. Bitcoin (BTC) hash rate, the DPN said. According to a statement:

“The Digital Power Network spearheads policy advocacy for digital asset mining and shapes the future of energy policy. Its mission is to champion Bitcoin and blockchain technology to revolutionize energy markets.”

The DPN has its work cut out for it. A bill reintroduced into Congress in March, prior to Sessions’ resolution, would require the Environmental Protection Agency to investigate crypto miners. The Biden Administration included a 30% tax on electricity used by crypto miners in its FY2024 budget, although that proposal may have been dropped.

Exciting News!

Today, we're thrilled to announce the launch of @digitalpowerUS, a visionary consortium that's set to revolutionize the energy landscape! Representing over 50% of U.S. #Bitcoin Hash Rate, this initiative is a game-changer for the future of energy policy. pic.twitter.com/8wtpRy1dyD
— Perianne (@PerianneDC) September 19, 2023

The DPN will work alongside the Digital Energy Council, a lobbying group founded in August by former Chamber director of energy policy Thomas Mapes.

Magazine: Bitcoin is on a collision course with ‘Net Zero’ promises

Interest rate hikes may pause very soon — Here’s why

September 19, 2023 Coin Telegraph

Analysis

This week, The Market Report discusses Bitcoin’s recent price action and the upcoming FOMC meeting, where some speculate interest rates might be paused.

On this week’s episode of The Market Report, analyst Marcel Pechman discusses Bitcoin’s (BTC) strength ahead of the United States Federal Reserve’s Federal Open Market Committee (FOMC) meeting , with investors betting on an interest rate freeze.

Pechman expresses skepticism about the claim that recent inflation data indicated the Federal Reserve’s 2% target was within reach, citing the time lag for interest rate changes to impact inflation and previous instability caused by rate increases.

Moving on, Pechman addresses the decreasing supply of Bitcoin on exchanges, seen as a bullish signal. However, he disagrees that this alone was responsible for Bitcoin’s price surge. Marcel also ponders whether this activity was related to the FOMC meeting but considers it unlikely to be a short-term event.

The next topic covered in the show is the Securities and Exchange Commission’s request to access Binance.US’ software. Pechman explains that while it might seem like the SEC faced a loss in court, the judge expressed doubts about Binance.US’ control of its assets and requested more evidence.

Pechman speculates that Binance was seeking a delay and extension to provide documents or reorganize its operations. Pechman emphasizes the judge’s remarks against Binance and acknowledges the challenges it might encounter in dismissing the accusations, as well as the potential implications for the exchange’s future.

Listen to the full episode of The Market Report on the new Cointelegraph Markets & Research YouTube channel, and don’t forget to click “Like” and “Subscribe” to keep up-to-date with all our latest content.

Sam Bankman-Fried’s father dragged his mother into an FTX US salary dispute

September 19, 2023 Coin Telegraph

Coin Telegraph

A complaint filed in bankruptcy court claimed Joseph Bankman involved Barbara Fried when answers from neither his son or FTX US satisfied concerns around his $200,000 annual salary.

Joseph Bankman, the father of former FTX CEO Sam Bankman-Fried (SBF), complained to his son about the salary he was receiving during his employment at FTX US, turning the issue into a family matter.

In a Sept. 18 filing in United States Bankruptcy Court for the District of Delaware, FTX debtors filed a complaint against Bankman and Barbara Fried, alleging SBF’s parents misappropriated millions of dollars through their involvement in the exchange’s business. According to court documents, Bankman’s contract with FTX US should have provided a $200,000 annual salary following a leave of absence from the Stanford Law School in December 2021.

However, Bankman seemed to express ignorance about the terms of the contract, claiming to both FTX US and his son that he was expecting a $1 million annual salary. The complaint states that Bankman was “[p]utting Barbara on this”, suggesting that SBF’s mother may have been able to persuade her son to follow through with the salary change.

SBF's father was unhappy with his salary at FTX US so he emailed SBF asking for more money, and then pulled the "I'm telling your mother" Dad move and looped SBF's mom into the email thread pic.twitter.com/jJaHFqpI7Z
— Conor (@jconorgrogan) September 19, 2023

According to the complaint, “Bankman’s influence paid off”, with SBF later providing his parents $10 million from Alameda, a $16.4 million property in The Bahamas funded by FTX Trading, the ability to expense roughly $90,000 to FTX Trading in the island nation, and options to purchase company stock. Cointelegraph reached out to the legal team representing Bankman and Fried, but did not receive a response at the time of publication.

The legal action brought by the debtors was the latest in the bankruptcy case involving FTX and many of its subsidiaries, filed in November 2022. Bankman-Fried also faces 12 criminal charges, to be spread across two trials starting in October 2023 and March 2024.

Since a federal judge revoked his bail in August, Bankman-Fried has been largely confined to the Metropolitan Detention Center in Brooklyn before the start of his October trial. On Sept. 19, a three-judge panel heard an appeal from SBF’s legal team requesting the former FTX CEO be released from jail in order to prepare for trial, citing the lack of Internet access and First Amendment issues.

Magazine: Can you trust crypto exchanges after the collapse of FTX?

Rep. Tom Emmer: Digital assets will be a ‘sleeper issue’ for 2024 elections

September 18, 2023 Coin Telegraph

Coin Telegraph

Three candidates from both the Democratic and Republican parties have taken anti-CBDC positions as part of their 2024 presidential run.

Tom Emmer, majority whip of the United States House of Representatives and crypto proponent, says that digital assets have become a “sleeper issue” in U.S. politics, both at the state and federal levels.

Speaking to Cointelegraph at the Permissionless II conference in Austin, Texas on Sept. 11, Emmer said certain candidates running for office in 2024 may underestimate the impact of issues surrounding crypto and blockchain. He pointed to financial privacy concerns, specifically mentioning government oversight of central bank digital currencies, or CBDCs.

“It’s politically potent regardless of your political persuasion,” said Emmer. “Democrats, Republicans and others believe that your personal information is supposed to be yours, and you get to choose when you get to share it.”

*Rep. Tom Emmer speaking to policymakers at Permissionless II on Sept. 11. Source: Cointelegraph*

According to Emmer, there is a generational divide in the U.S. in which residents could push back on policies that potentially inhibit the digital space and, in doing so, “flush out” technologically ignorant lawmakers. At least three candidates from both major U.S. political parties have taken a public position on CBDCs for the 2024 race.

Florida Gov. Ron DeSantis, a Republican polling second behind former president Donald Trump, promised in July to ban CBDCs in the U.S. should his campaign be successful. In May, he signed a Florida bill into law aimed at largely prohibiting the use of a federally issued digital dollar in the U.S. state. Other longshot candidates who have taken positions opposing CBDCs include Republican Vivek Ramaswamy and Democrat Robert F. Kennedy Jr.

“We have a whole host of laws and regulations that say when you have to disclose, what you have to disclose, but it shouldn’t be just a blanket [statement on CBDCs],” said Emmer. “[The U.S. government] can do a central bank digital currency if it’s open, permissionless and private. It has to emulate cash.”

Emmer has reintroduced a bill aimed at limiting the Federal Reserve from issuing a CBDC in the United States. He has also backed an appropriations amendment for the Securities and Exchange Commission’s funds, which could reduce the commission’s ability to follow through with enforcement actions on crypto firms.

On Sept. 20, the House Financial Services Committee will meet in a markup session for the Digital Dollar Pilot Prevention Act — legislation that could prohibit the Fed from initiating CBDC pilot programs without approval from Congress. The committee discussed CBDCs in a Sept. 14 hearing for the first time since Congress’ August recess.

Magazine: Opinion: GOP crypto maxis almost as bad as Dems’ ‘anti-crypto army’

NYDFS calls for public feedback on proposed crypto regulatory guidance

September 18, 2023 Coin Telegraph

BitLicense

The proposals included stricter standards on risk assessments for crypto firms as well as a framework for designating token projects to the NYDFS' greenlist

The New York State Department of Financial Services, or NYDFS, has called on the public to provide feedback to a proposal aiming to strengthen regulatory requirements for crypto firms operating in the state.

In a Sept. 18 notice, the NYDFS said Superintendent Adrienne Harris had released proposals on guidance for “enhanced criteria for coin-listing and delisting procedures” in addition to a framework "for designating coins or tokens” to the regulator’s greenlist. The proposal included recommendations for heightened standards focusing on illicit finance, legal, reputational, market and liquidity, and regulatory risks.

“Since joining DFS, I have made it a priority to ensure the Department’s regulatory and operational capabilities keep pace with industry developments to protect consumers and markets,” said Harris. “In less than two years, we’ve built our team to over sixty experienced professionals, created and enhanced consumer and industry safeguards, and engaged with policymakers around the world.”

NEW: Superintendent Harris Announces Update on Two-Year Transformational Initiative to Strengthen NYDFS’ Nation Leading #VirtualCurrency Oversight.

More: https://t.co/llh9K3dM13 pic.twitter.com/nOJvfuel00
— NYDFS (@NYDFS) September 18, 2023

At the time of publication, the NYDFS greenlist for tokens included Bitcoin (BTC), Ether (ETH), and several stablecoins issued by Gemini and PayPal. The announcement also followed the adoption of rules allowing the NYDFS to assess supervisory costs from licensed crypto firms operating in New York.

Since 2015, crypto firms operating in New York have largely been required to apply for a BitLicense through the NYDFS. The regulator’s list showed trading platform eToro was the most recent to receive a license in February, making more than 30 firms licensed in the state.

Magazine: Crypto City: Guide to New York

US lawmakers advance legislation blocking the digital dollar

September 17, 2023 Coin Telegraph

CBDC

On Sep. 20 the House Financial Services Committee will mark up two bills blocking a potential digital dollar in the United States.

The United States House Financial Services Committee is moving forward with legislation aimed at preventing the issuance of a central bank digital currency.

According to an announcement from chairman Patrick McHenry, the Committee will mark up two bills about a potential digital dollar on Sep. 20. Markups are sessions in which lawmakers discuss the details of a bill. It is a crucial step before a legislation moves to the House floor.

One of the bills is the Digital Dollar Pilot Prevention Act, or H.R. 3712, that prohibits the Federal Reserve from initiating pilot programs to test CBDCs without approval from Congress. The legislation was introduced by Representative Alex Mooney in May.

The Fed recently denied any decision on whether to issue a CBDC, claiming it “would only proceed with the issuance of a CBDC with an authorizing law.” However, the Federal Reserve of San Francisco has sought to fill technical positions for a CBDC project over the past few months, indicating that the digital dollar remains on the table.

#NEW: Chairman @PatrickMcHenry announces a markup of legislation to strengthen American national security and prevent the issuance of a central bank digital currency.

Read more https://t.co/oy3oASJYkA
— Financial Services GOP (@FinancialCmte) September 16, 2023

The second legislation is an amendment to the Federal Reserve Act, prohibiting Fed banks from offering certain products or services directly to an individual, along with prohibiting the use of CBDCs for monetary policy, and for other purposes.

"A Federal reserve bank shall not offer a central bank digital currency, or any digital asset that is substantially similar under any other name or label, indirectly to an individual through a financial institution or other intermediary," reads the bill.

The prospect of a digital dollar has stirred controversy in the United States. Presidential candidates Robert F. Kennedy Jr. and Ron DeSantis have spoken out against the establishment of a CBDC in the country, citing financial privacy concerns. Supporters of CBDCs claim it would help the United States to keep the dollar's global relevance, as well as boost cryptocurrencies adoption.

Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books

BitGo, Swan unveil plans for Bitcoin-only trust company

September 15, 2023 Coin Telegraph

Coin Telegraph

The trust company targets institutional investors in the United States as asset managers line up for a spot Bitcoin ETF.

The United States may soon have a Bitcoin-only trust company, according to plans disclosed by BitGo and Swan Bitcoin on Sep. 15. The joint venture is pending regulatory approval, the companies said in a statement.

The forthcoming entity will handle similar activities of a trust company, including Bitcoin custody, administration and management on behalf of its beneficiaries. According to Cory Klippsten, CEO of Swan, the solution intends to offer Bitcoin custody without the risks of having other altcoins under the same roof.

"For years, we've heard from major clients, partners, and other Bitcoin companies that they would prefer a Bitcoin-only software and services stack that is focused strictly on the best custody that leverages Bitcoin's unique features,” Klippsten said.

The companies are in contact with state regulators about the plans, but have not yet filed for regulatory approval, Klippsten told Cointelegraph. “We are evaluating acquistion options first,” he disclosed.

As part of our long-term vision to advance Bitcoin adoption, we’re announcing a major step forward for Swan and the entire Bitcoin ecosystem:

BitGo and Swan Announce Plans for USA’s First Bitcoin-Only Trust Company
— Swan Bitcoin Adoption Team (@SwanBitcoin) September 14, 2023

BitGo offers digital assets security and custody, supporting over 30 cryptocurrencies as per its website. In contrast, Swan's business is fully dedicated to Bitcoin, allowing users to invest in Bitcoin via one-time and recurring purchases, with custody of records held at Fortress Trust and Bakkt, while BitGo acts as a cold storage custodian.

The new venture targets institutional investors, such as asset managers, pension plans, and family offices, along with governments and company treasuries. It will offer cold storage, fraud prevention, Anti-Money Laundering (AML), and Know Your Customer (KYC) protocols, among other Bitcoin-related services.

Institutional investors in the crypto space are a fast-growing market in the United States, especially as the world's biggest asset managers seek regulatory approval for a spot Bitcoin exchange-traded fund (ETF). Several large Wall Street players offer cryptocurrency custody solutions to institutional investors, including Bank of New York Mellon and Deutsche Bank.

"We believe there is a high likelihood that several ETFs are approved in 2024 and thus a new round of entrants to the Bitcoin market seeking mature, reputable, technologically proficient partners for a range of needs,” explained Swan's CEO. The Securities and Exchange Commission has delayed decisions on the spot Bitcoin product. Analysts predict the regulator may postpone a decision until early 2024 as deadlines approach.

“Our teams have worked closely together for nearly a year on stronger qualified custody models. Early in 2023, we recognized the opportunity to establish a Bitcoin-only custodian, combining the unique capabilities of each company and supporting the innovators that will be at the forefront of pushing Bitcoin adoption,” noted Mike Belshe, CEO of BitGo.

Magazine: Should you ‘orange pill’ children? The case for Bitcoin kids books

Binance.US not cooperating with investigation, US SEC says in filing

September 15, 2023 Coin Telegraph

Binance

SEC said in a court filing that Binance.US has produced only 220 documents during the discovery process many of which were “unintelligible screenshots and documents without dates or signatures.”

The United States Securities and Exchange Commission (SEC) has accused Binance.US of non-cooperation in the ongoing investigation against the crypto exchange, according to a court filing dated Sept. 14.

The SEC in its court filing noted that Binance.US’s holding company called BAM has produced only 220 documents during the discovery process. Many of the submitted documents under the Consent Order “consist of unintelligible screenshots and documents without dates or signatures.”

SEC added that BAM has refused to produce essential witnesses for deposition, instead agreeing only to four depositions of witnesses it has unilaterally deemed appropriate and said:

“It has responded to requests for relevant communications with blanket objections and has refused to produce documents kept in the ordinary course of its business, claiming those documents do not exist, only for the SEC to later receive such documents from other sources.”

The SEC also raised concerns over Binance.US's use of Ceffu, wallet custody software provided by the global entity Binance Holdings Ltd. The SEC noted that BAM made inconsistent statements about Ceffu’s and Binance’s involvement in the wallet and customer funds management.

SEC said that BAM first claimed Ceffu was BAM’s wallet custody software and services provider but later stated that Binance was BAM’s wallet custody software provider. The regulators raised concern that the crypto exchange's usage of Ceffu violates a prior agreement meant to prevent funds from being diverted abroad.

The SEC filed a lawsuit against Binance on June 5, pressing 13 charges against the crypto exchange including unregistered securities offerings, the Simple Earn and BNB Vault products, and its staking program. The SEC claimed that Binance.com, Binance.US, and BAM Trading should have registered as clearing agencies, broker-dealers, and exchanges, respectively. The unregistered offer and sale of Binance.US' staking-as-a-service programme required BAM Trading to register as a broker-dealer as well.

The latest accusations by the SEC against Binance.US come amid an internal crisis at the exchange. The Binance.US CEO Brian Shorder joined the long list of top Binance executives leaving the firm this year followed by the resignation of the head of legal and the exchange’s chief risk officer within days.

Binance.US didn’t immediately respond to requests for comments.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.

Magazine: US and China try to crush Binance, SBF’s $40M bribe claim: Asia Express

United States

Share this video