DSG Crypto Regulatory Roundup: December 2023

International Bodies

Crypto ETF Applications Will Be Considered in Hong Kong: The statement from the SFC and HKMA comes as expectations mount the U.S. SEC is on the verge of approving a spot bitcoin ETF. More here.

Coinbase Approved as Virtual Asset Services Provider: The third-largest crypto exchange has said it wants to become regulated in countries with clear policies for the industry while arguing with the Securities and Exchange Commission for bespoke rules in the U.S. More here.

UK to Cooperate with Crypto Industry: The government said its plans for a digital securities sandbox (DSS) were largely welcomed by respondents. More here.

 China Vows to Clarify Web3 Path: Moving forward, China’s Web3 strategy would encourage the development of new business models such as NFT and accelerate the innovative application of Web3, the Ministry of Science and Technology said. More here.

Taiwanese Authorities Investigating Blockchain Betters: The Presidential and Vice Presidential Election and Recall Act specifically prohibits gambling on elections. More here.

United States

Terraform Labs’ Tokens Are Securities, Judge Rules: A federal judge issued summary judgements siding with the SEC’s arguments that Terraform had illegally sold unregistered crypto securities. More here.

Community Responds to Gensler’s Jab Toward Crypto: Ripple CEO Brad Garlinghouse called SEC Chair Gary Gensler a “political liability” whose actions destroyed the agency’s integrity. More here.

Bitcoin ETF Approval ‘Still Happening’ By Jan. 10: The U.S. SEC might not be comfortable with BlackRock’s “prime execution agent” change in its new spot Bitcoin ETF update, but analysts still expect approvals in early January. More here.

Prometheum Earns Final Regulatory Nod: The U.S. platform, which drew industry barbs for insisting crypto can comply with SEC rules, is now approved for clearing, though it won’t begin for a few months at least. More here.

Circle Registered for Digital Asset Services in France: France has been encouraging crypto companies to set up shop within its borders and take advantage of the clearer industry regulation than in the U.S. More here.

Court Slaps Down Stock Buyback Rule Over SEC ‘Defects’: The SEC bid to force companies to disclose more details about their share buyback plans was cut down by a federal appeals court on Tuesday after the agency failed to meet the court’s deadline to fix what the judges had called “defects” in the requirement. More here.

Court Approves Order for Binance to Pay $2.7 Billion: A U.S. court entered an order against crypto exchange Binance and its former CEO, Changpeng Zhao, approving billions of dollars in fines for money laundering following a case brought by the U.S. CFTC, the agency said on Monday. More here.

CFTC Proposes New Cybersecurity Rules: The ransomware attack on Ion Trading earlier this year has prompted the CFTC to propose new cybersecurity regulations for brokerages and swap dealers. The CFTC has suggested new requirements for how companies deal with risks presented by third parties, including identifying, monitoring, and managing these for potential risks. More here.

CFTC Publishes New DCO Regulation Proposal: Derivatives clearing organizations could be required to keep their customers’ funds separate from their own after a new Commodity Futures Trading Commission proposal, with the aim of protecting customer funds. “It’s an important proposal because I think there are a lot of outstanding questions about policy risk and the law,” said CFTC Chair Rostin Behnam. More here.

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