Blockchain Founders Fund’s Post

🚨 Top Blockchain News of the Week: 6th January 2024 🚨 1. The SEC's acceptance of 19b-4 amendment filings from major asset managers for spot Bitcoin ETFs signals a significant step towards potential approval, hinting at increased crypto adoption in the U.S. and globally. 2. Celsius, amidst restructuring, plans to unstake $470M worth of Ethereum, stirring market concerns. This move aims to distribute assets to creditors and offset restructuring costs, impacting a significant portion of ETH awaiting withdrawal. 3. The founder of Taiwan's ACE Exchange was arrested for alleged fraud involving false crypto ads, with police seizing assets over $6.4 million. ACE clarifies the founder ceased daily operations in 2022 and is aiding the police as a witness. 4. Mango Markets, hit by a $100M heist in 2022, faces U.S. regulatory inquiries. Its governing body considers appointing a legal representative amid Avi Eisenberg's upcoming fraud trial. 5. Visa introduces a web3 loyalty platform, allowing brands to create immersive customer experiences with features like AR treasure hunts, gamified rewards, and customizable crypto wallets for tailored engagement and rewards. Check here for more information: https://lnkd.in/dh_Xfiae #web3 #blockchain #founders #vcfunding #startups #founders #crypto #technology #community #innovation

Exalted exuberance and endless enthusiasm of #cryptocamp followers about a construct of borderless and anonymous #cryptocurrency world – operating virtually under the regulatory radar - has been a cause célèbre in recent years. The complexity involved in devising a coherent global #regulatoryframework makes it a long and cumbersome exercise for international standards setting bodies. Meanwhile, regulators across jurisdictions have been exhibiting varying level of supervisory stance – determined by expediency, not essentially driven by hard #regulatoryconcerns. Thus, an unstated #laissezfaire regime prevails in most jurisdictions with occasional johnny-come-lately interventions, in cases of misconduct, manipulation and money laundering breaches by #cryptooperators. After the SEC losing the legal battle in matter of Grayscale’s application to convert its #bitcoin trust into an ETF in Aug 2023, a feeling of euphoria instantly gripped the #cryptomarkets. In recent weeks, the news of few asset managers’ seeking SEC approval to launch #spotbitcoin #spotether ETFs has been proverbially adding fuel to the fire. BlackRock – the world’s largest asset manager - initiating registration of the iShares Ethereum Trust last week for SEC’s approval is an equally dramatic affair – given public opposition to crypto sector by its CEO Larry Fink. While #cryptofutures based ETFs - Proshares Bitcoin futures ETF is already traded on NYSE since Oct 2021, #cryptomarket is now eagerly awaiting SEC’s nod– anticipated around Jan 2024 - if first #spotcryptoETF becomes a reality. As anticipation level of the crypto market has been intensifying, the news of #ChangpengZhao #CZ, the CEO of #Binance – the world's largest crypto exchange – stepping down and pleading guilty to breaking AML laws and criminal violations bring another big blow to the #cryptoworld within a short time, after #FTX saga. Besides Binance’s $4.3 bn settlement with the Justice Dept, the Treasury Dept and the CFTC, CZ is subjected fine of $50 million and a prison term of up to 18 months (or more), besides barring involvement in the company affairs. BTW, the settlement amount is one of the largest ever imposed by the US govt against a financial firm –Goldman Sachs being the closest, having paid ~$5 bn to US authorities and elsewhere in foreign bribery charges relating to #1MDBscam. Strangely, the proponents of cryptocurrency have been vehemently vouching #libertarianethos of crypto for nurturing #decentralizedtrust and #anonymity all along. Sadly, it is turning out to be concentration of power in hands of few depraved individuals, savoring maneuverings and manipulations – being cognizant of breaches of the legal boundaries, if not morality & ethics. The implosion of FTX and #SBF 's conviction on 2 Nov and Binance twist now, the shady world of crypto appears more shadowy than ever. Can we expect anything else than #scams, #scandals & #suspiciousdeals –till a #transparent and #fullyregulatedmarket is established?

What happened in the crypto industry last week (Sep 2 - 8)? Top 3 News: 1. The CFTC and Uniswap Labs reached a settlement in which Uniswap will pay a $175,000 civil penalty. The regulator accused the company of selling crypto derivatives without a license, a violation of the Commodity Exchange Act. https://lnkd.in/eCWDXnpY 2. Telegram founder Pavel Durov posted for the first time since his detention, thanking the community for their support. He revealed that he was interrogated by police for four days upon arriving in Paris and found the situation strange, as Telegram has an official representative in the EU to handle requests. https://t.me/durov/342 3. The SEC charged cryptocurrency consulting firm Galois Capital with failing to meet safeguarding requirements for assets offered and sold as securities. The firm will pay a $225,000 fine to settle the case. https://lnkd.in/eTBrqixY Other News: - Robinhood reached a $3.9 million settlement with the California Attorney General over allegations of failing to allow customers to withdraw crypto assets between 2018 and 2022. https://lnkd.in/eQbjA4Xv - Former Mt. Gox CEO plans to launch a new crypto exchange, EllipX, in Europe, focusing on transparency and user experience. https://lnkd.in/etMjiayH - The SEC warned bankrupt crypto exchange FTX about potential legal risks in repaying creditors in stablecoins or digital assets. https://lnkd.in/eKZiGJzF - The UK Financial Conduct Authority (FCA) published its 2023-24 report, noting that 87% of applications for crypto company registration were rejected due to non-compliance. https://lnkd.in/efyPcX8p - Binance has prohibited former CEO Changpeng Zhao (CZ) from managing the company, though he remains a major shareholder and will continue to have significant influence. https://lnkd.in/eQVvmdNg - Ripple co-founder Chris Larsen, PayPal CEO Dan Schulman, and former Visa VP Vasant Prabhu endorsed Kamala Harris in the 2024 US presidential race. https://lnkd.in/eMjYkWfE - The Astana Financial Services Authority granted Binance and Bybit full regulatory licenses to operate in Kazakhstan. https://lnkd.in/exWRAJtJ #CryptoRegulation #Telegram #CFTC #Uniswap #SEC #Robinhood #FTX #MtGox #FCA #Binance #Bybit #KamalaHarris #KazakhstanCrypto #Web3 #CryptoLaw

🚨 Top Blockchain News of the Week: 31st May 2024 🚨 1. #BlackRock amends its #SEC filing for a proposed spot Ethereum #ETF, indicating potential market availability as soon as June, following last week's pivotal approval of the new financial vehicle. 2. #Mastercard launches the Mastercard #CryptoCredential, a P2P network for cross-border #cryptocurrency transactions, initially supporting users in Europe and Latin America with transactions on select exchanges. 3. #Gemini announces the complete in-kind recovery of all digital assets for Gemini #Earn users, marking a 232% recovery of assets following #Genesis's operational halt that affected withdrawals. 4. Ryan Salame, former co-CEO of #FTX Digital Markets, is sentenced to 7.5 years in #prison by a U.S. District Court after pleading guilty to charges of operating an unlicensed money-transmitting business and campaign finance #fraud. 5. SEC Commissioner #HesterPeirce proposes a collaborative US-UK digital securities #sandbox that would extend the #Bank of England and FCA's joint initiative to US firms, enabling self-regulation in digital securities for two years. Check here for more information: https://lnkd.in/dYQDnsky

What happened in the crypto industry last week? Top-3 news: 1. Binance Agrees to Historic Fine: Binance Holdings Ltd. has agreed to pay a $4.3 billion fine, one of the largest in U.S. history, following a court-approved plea deal. This marks a pivotal moment for Binance as it "accepts responsibility" for past actions. The settlement could reshape the regulatory landscape for crypto exchanges globally. Full story here: https://lnkd.in/ev3V23Nv 2. UK's Forthcoming Stablecoin Regulation: The UK is set to introduce laws regulating stablecoins within the next six months. This legislative move aims to bring fiat-backed stablecoins and their issuers under existing payment laws, granting the UK's financial regulator the authority to decide which assets can back stablecoins. Details: https://lnkd.in/eSs6ZjgU 3. Lejilex Sues the SEC: In a bold move, Lejilex, alongside the Crypto Freedom Alliance of Texas, has filed a lawsuit against the SEC in a Texas federal court. The suit argues that secondary market sales of digital assets are not securities transactions and thus fall outside the SEC's jurisdiction. This argument echoes Coinbase's ongoing legal battle with the SEC and reflects a growing industry pushback against regulatory overreach. More on the lawsuit: https://lnkd.in/eKnRjMTc In Other News: - Kraken shares the "real story" behind its lawsuit against the SEC. https://lnkd.in/ePG_C3Ym - Coinbase responds to the SEC's request for comments on the Grayscale Ether Trust. https://lnkd.in/eXyEaqma - South Korea considers launching spot Bitcoin ETFs. https://lnkd.in/eA395HPi - Do Kwon's extradition to the U.S. approved by the court. https://lnkd.in/exCMZzGW - The ECB publishes a critical article on Bitcoin. https://lnkd.in/eGNj9jMG - An Australian police officer is charged with stealing over 81 BTC. https://lnkd.in/eM-cG6pW #CryptoRegulation #Binance #Stablecoins #SEC #LegalNews #BlockchainLaw #DigitalAssets #Cryptocurrency #FinTech #Compliance #UKFinance #CryptoETFs #Bitcoin #Ethereum #FinancialRegulation #TechLegal #CryptoCommunity #BlockchainTechnology

Crypto will be swallowed by the traditional finance Borg? Gillian Tett writes for the Financial Times on the aftermath of the CZ deal: "Some observers might think — or indeed hope — that this marks the demise of crypto. A year ago CZ presented himself as the clean saviour of the industry, after his ally-turned-bitter-rival Sam Bankman-Fried (“SBF”), co-founder of the FTX platform, was charged with fraud. Now, the men who were both heads of the world’s two biggest crypto exchanges are deemed criminals. This is like the moment in a spaghetti Western movie when the sheriff rides in after rival gangs have a shootout. But here is a curious thing: on Wednesday, Binance’s BNB token rallied modestly to sit 60 per cent below its 2021 peak — but 10 per cent up from last month. Meanwhile, bitcoin’s price has doubled this year, leaving the overall crypto sector valued at about half its level two years ago — but 50 per cent bigger than late 2022. Crypto may have shrunk but it is not dead. What explains this resilience?" Tett offers a few explanations. First, criminals continue to see use cases but she's doesn't seem convinced: "[W]hile crypto is widely viewed as anonymous or, more accurately, pseudonymous, consultants such as Chainalysis are now so deft at digital detective work that regulators tell me it is often easier to track crypto criminal transfers than those using bundles of cash." Except tracking something is not the same as recovering it and it still takes time. Take the Iranian example she uses. If Chainalysis was so good and fast, then those transfers should not have gotten through. Furthermore, now that you know Iran was involved, what are you going to do? Start World War III in the middle east? She also rejects the narrative of big crypto: "[A]nother is that some big investors view this not as the beginning of the end, but the end of the beginning — and they expect a better sequel." But supposedly it reflects centralised authorities looking to co-opt crypto: "[C]entral banks are seeking to displace crypto with their own digital currencies. Meanwhile, BlackRock and Grayscale have lodged requests to launch bitcoin ETFs, and JPMorgan suspects mass approval looms." Supposedly: "[T]he answer is that at the core of the crypto dream there is still an interesting idea about using tokenisation and digital ledgers to transfer value. And it need not be libertarian at all; the Chinese state, after all, is creating its own digital currency in a deeply authoritarian way." There are several problems with this narrative. First, trad-fi has been looking to co-opt blockchains since two busts ago in the many boom and bust cycles we've seen. What makes this time any different? ASX, IBM and Maersk didn't fail because they were unregulated. They failed because they were bad ideas. Secondly, the Chinese e-RMB involves no blockchain! The only thing interesting about crypto is that so many people could be so blind to so many problems for so long.

The U.S. Securities and Exchange Commission (SEC) has rejected Coinbase Global's application to establish new rules tailored to the digital asset industry. Leading cryptocurrency exchange Coinbase has argued that the current U.S. securities laws are insufficient for the crypto business and has pushed for specific regulations. However, SEC Chair Gary Gensler expressed his disapproval in a letter to Coinbase's chief legal officer, arguing that the present securities laws do not apply to the cryptocurrency sector. Gensler emphasized that current rules already apply to bitcoin securities markets in a statement posted on the SEC's website. He referred to the Supreme Court's Howey test's flexibility, pointing out that federal courts had successfully applied it to crypto assets. He refuted the idea that it is impossible to identify the "issuer" of bitcoin securities, emphasizing the need for openness and investor protection. The Chair of the SEC emphasized that the Commission is still working to develop regulations for the cryptocurrency securities markets. In contrast to Coinbase's assertion that this is the right time for government action, Gensler mentioned current programs such as the Special Purpose Broker-Dealers Release, which gives broker-dealers that deal in securities related to cryptocurrency a five-year window of time. In addition, he discussed upcoming laws and enforcement actions pertaining to digital assets, highlighting the significance of flexibility in the face of shifting market conditions. It was emphasized that maintaining the Commission's independence is essential for allocating funds effectively and establishing regulatory priorities. Gensler noted that the cryptocurrency market is a small part of the greater $110 trillion financial markets, despite its susceptibility to fraud and noncompliance. The Commission's capacity to use discretion is essential for taking a focused approach to industries that need new regulations. Gensler concluded by saying that, notwithstanding the obstacles, significant participation, registration, and rule compliance are essential for protecting investors and upholding market integrity. The SEC rejected the petition because it believes that the current securities laws adequately regulate crypto asset securities and guarantee complete transparency and fair competition for all market participants. https://lnkd.in/eHgJ36C3 . #propfirms #trading #propconnect #forex #coinbase #sec

Happy Monday, Crypto/Blockchain Enthusiasts! I am sure than many of you have seen Bloomberg/BGov's recent piece on JP. It's no secret that bitcoin is here to stay, and crypto isn't going away anytime soon. The recent enforcement actions have resulted in the US monitoring the largest crypto exchange for 5 years, giving the US a great deal of control. Since it's impossible to shut down crypto, TradFi might as well join it. The wheels are already in motion for TradFi. The decentralization of technology tied to economic incentives (DeFi) makes a great deal of sense for institutional investors with the potential for a variety of new asset classes. #Crypto #Blockchain #Bitcoin #TradFi #DeFi #wallstreet JPMorgan’s Dimon Would Cancel Crypto If He Could: Crypto in DC By Se Young Lee / December 11, 2023 08:51AM ET / Bloomberg Government JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon renewed his criticism of cryptocurrencies, telling members of the Senate Banking Committee during a Dec. 6 annual oversight hearing of big banks last week that he would shutter the industry if he had the power. “If I was the government, I’d close it down,” said Dimon, who has previously called digital currencies “decentralized Ponzi schemes.” The outspoken Wall Street executive has been subject to rumors about a potential turn to politics. In June, a JPMorgan spokesperson said Dimon has no plans to run for office in response to speculation he might run for president. The cryptocurrency industry will lose a key advocate on Capitol Hill in House Financial Services Committee Chairman Patrick McHenry, who will not seek reelection. The North Carolina Republican has backed crypto regulation and stablecoins legislation supported by the industry and challenged regulators on actions and proposed rules targeting digital assets that crypto firms found onerous. A federal judge in Seattle ruled that Binance Holdings Ltd. founder Changpeng Zhao cannot return to his home in the United Arab Emirates until he is sentenced in the US for a felony crime. The Securities and Exchange Commission asked a federal court in Washington to weigh the admissions by Binance and Zhao in a Nov. 21 settlement with the Justice Department for the agency’s separate case against them. The Internal Revenue Service crime investigation division’s chief says the unit is seeing a surge in cases involving crypto-related tax evasion. The American Institute of Certified Public Accountants issued a guide that seeks to bolster transparency around stablecoins. The organization of US accountants seeks to standardize the information token issuers disclose to token holders. The IRS urged a US bankruptcy court to reject a FTX bankruptcy plan that would wipe out a $24 billion federal tax bill. Founder of crypto exchange Bitzlato pleaded guilty to US charges that he ran a platform that masked the proceeds of illegal gambling and drug deals valued at more than $700 million.

#SEC Commissioner #Hester Peirce, dubbed 'Crypto Mom,' urges for regulatory clarity and decentralization at ETHDenver. Expressing frustration over the SEC's enforcement-centric stance, Peirce advocates for a softer approach to crypto regulation. She emphasizes the need for clear rules to foster innovation and mitigate legal risks faced by #crypto projects like Coinbase and Ripple. Peirce also discusses the benefits of decentralization in the U.S. financial system, highlighting concerns over proposed legislation targeting decentralized technologies. Read full story: https://lnkd.in/ghDpTErR

🚨 Top Blockchain News of the Week ending November 24th, 2023 🚨 1. Singapore's Monetary Authority issues final #crypto #regulations, banning financing and margin trades for retail crypto trading, along with locally issued credit card #payments. 2. #HTX, previously Huobi Global, to resume services within 24 hours following a $30 million exploit, assuring full compensation and user fund safety. 3. #JPMorgan predicts a minimum of $2.7 billion outflows from Grayscale Bitcoin Trust after its #ETF conversion, attributing it to speculative trading at a NAV discount. 4. #FTX Co-Founder Sam Bankman-Fried, jailed with Ex-Honduras President, trades mackerel for services; resolves prison hardships, including meal and medication access. 5. Changpeng "CZ" Zhao resigns as #Binance CEO in a $4 billion settlement with U.S. agencies, concluding investigations into anti-money laundering and sanctions violations Check here for more information: https://lnkd.in/dYQDnsky