UK Finance Minister announces laws to boost digital asset industry
On November 23rd, the UK's digital asset industry received a boost as announced in the Chancellor's Autumn Statement outlining 110 measures for national economic growth. This includes a government initiative aimed at promoting the expansion of the digital asset industry. The UK government will legislate the Digital Securities Sandbox (DSS) to promote the adoption of digital assets in financial markets. The budget statement states: "The government will introduce a legislative framework to establish a DSS and plans to implement a financial market infrastructure sandbox by 2023."
UK Finance Minister announces legislation to promote the development of the country’s digital asset industry
UK Treasury's mini-budget released on Wednesday includes a clause to promote the growth of the digital asset industry. The UK government will legislate to implement the Digital Securities Sandbox (DSS), aimed at promoting the adoption of digital assets in the financial market. The budget statement said, "The government will develop statutory documentation to implement the Digital Securities Sandbox, fulfilling the Edinburgh Reforms announcement, and implementing the financial market infrastructure sandbox by 2023." The DSS plan is expected to start in the first quarter of 2024. The UK government also plans to release a response to the DSS consultation launched in July.
Senator Cynthia Lummis Criticizes SEC for Kraken Lawsuit, Calls for Regulatory Framework
The US Securities and Exchange Commission (SEC) has accused Kraken, a San Francisco-based crypto exchange, of operating its trading platform as an unregistered securities exchange, broker, dealer, and clearing agency. The SEC alleges that Kraken has made hundreds of millions of dollars "unlawfully facilitating the buying and selling of crypto asset securities." Wyoming Senator Cynthia Lummis, a noted crypto supporter, criticized the SEC's action, calling it an example of "ruling by enforcement." Lummis has previously called for a federal digital asset regulation bill to pass in the US early next year.
Binance Lianchuang He Yi: There are no accusations of improper use of user funds and market manipulation, and will strengthen compliance construction
In response to Binance's historic settlement with US regulators, Binance co-founder He Yi made a statement emphasizing that US regulators did not accuse Binance of misappropriating user funds or participating in market manipulation. He Yi stated that Binance will continue to strengthen its compliance measures and continue to build and develop its platform.
Coinbase CEO: Binance incident will open a new chapter for the industry
Coinbase CEO Brian Armstrong posted on X platform that today's news (Binance's settlement with US regulators) once again proves that making difficult decisions is the right thing to do. We now have the opportunity to start a new chapter in this industry. Due to the lack of clear regulation, we have encountered many difficulties in our operations in the United States. We hope that today's news can be a catalyst to finally achieve this goal. Americans should not have to go to unregulated offshore exchanges to benefit from this technology. This industry should be established in compliance with US laws on American soil, and we will stay in the United States because we believe in economic freedom, and the democratic system in the United States will ultimately achieve this.
Bloomberg: U.S. Department of Justice seeks more than $4 billion from Binance to settle related criminal charges
According to Bloomberg, insiders revealed that the US Department of Justice is seeking over $4 billion from Binance Holdings Ltd. as part of a proposed settlement to a years-long investigation. Insiders revealed that the news could be released as early as the end of this month, but it is still uncertain. The specific timing and structure of the proposed resolution, as well as the specific fees, are not yet clear. Three insiders said the agreement aims to strike a balance that allows Binance to continue operating without risking a collapse that could have a negative impact on the market and cryptocurrency holders.
Canada’s Office of the Superintendent of Financial Institutions seeks feedback on cryptocurrency disclosures
The Office of the Superintendent of Financial Institutions (OSFI) in Canada announced on Monday that it is seeking feedback on the public disclosure of cryptocurrency assets by federally regulated financial institutions, in order to strengthen scrutiny of the volatile industry alongside global regulators. OSFI proposed new guidance for cryptocurrencies in July on the basis of risk environment, followed by consultations. OSFI's consultation will run concurrently with another consultation by the Basel Committee on Banking Supervision (BCBS), a global regulator, which is also seeking feedback from banks on disclosing risks related to cryptocurrency assets.
Former U.S. SEC General Counsel: There is no regulatory inconsistency between the SEC and CFTC in terms of encryption supervision
Dan M. Berkovitz, former SEC general counsel and CFTC commissioner, stated in an interview that it is necessary to further revise securities or commodity laws related to the regulation of the cryptocurrency market. Existing commodity and securities laws are sufficient to regulate derivative and securities markets. These laws are flexible enough to adapt to new technologies such as cryptocurrency and blockchain trading assets. Berkovitz does not believe that there is a "difference" between the CFTC and SEC in regulating digital assets. The former SEC general counsel claims that Congress urgently needs to provide additional powers for non-security digital assets in the spot market, and the coordination between the CFTC and SEC on cryptocurrency issues is the same as the coordination on other overlapping issues. These two agencies do not always have the same views on issues, and considering their respective jurisdictions, it is normal for there to be some differences, but I do not think that any such differences in cryptocurrency will rise to the level of a "crack".
ECB President: Europe should establish a European institution corresponding to the U.S. SEC
European Central Bank President Christine Lagarde recently proposed a groundbreaking idea that could completely change Europe's financial regulatory framework. Lagarde advocates for the establishment of a European institution that corresponds to the United States Securities and Exchange Commission (SEC). This move aims to enhance Europe's financial capabilities in order to effectively respond to urgent challenges in the region. The establishment of a European Securities and Exchange Commission, which replaces the current piecemeal national regulatory agencies, is considered crucial for raising the large amount of funds needed to address these challenges. This new regulatory agency will not only simplify regulation, but also improve the efficiency of the entire European capital market. In addition, Lagarde emphasized the need for integration between European national financial exchanges.
CFTC Commissioner: Rules governing cryptocurrencies could come in coming weeks
Christy Goldsmith Romero and Kristin Johnson, commissioners of the US Commodity Futures Trading Commission (CFTC), are urging the agency to issue rules or guidance to address conflicts of interest in the cryptocurrency space and protect consumers. Johnson stated at a meeting at the Atlanta Federal Reserve Bank that the collapse of FTX, Binance, Celsius, and Voyager demonstrate the need to protect cryptocurrency assets through the segregation of customer deposits, and the CFTC should "immediately develop regulatory guidance on asset custody." Johnson added that rules governing cryptocurrency management may be issued in the coming weeks.
