DIRS.INFO The most relevant business & tech news

☆ Stablecoins Attract Scrutiny in SEC’s Drive to Control Crypto
▼ + stars: | 2023-02-22 | by ( Dave Michaels | ) www.wsj.com time to read: 1 min

A stablecoins lawsuit might be difficult for the Securities and Exchange Commission to win because stablecoin users don’t expect profits from owning the tokens. Washington’s battle to rein in crypto has a new front: stablecoins. The Securities and Exchange Commission is investigating whether stablecoins, cryptocurrencies that maintain a price of $1, are among the products that were issued in violation of investor-protection laws. SEC enforcement lawyers have told Paxos Trust Co. that regulators plan to take enforcement action over its stablecoin, BUSD, although that decision isn’t final.

☆ Crypto Company Circle Focuses on Growth After Canceled SPAC Merger
▼ + stars: | 2023-02-22 | by ( Mark Maurer | ) www.wsj.com time to read: +6 min

Circle is still hiring even as many crypto companies are laying off staff and some have filed for bankruptcy following the run on the stablecoin TerraUSD last spring. The crypto company had been preparing to go public via a merger with a special-purpose acquisition company, a move to access the capital market, enhance its transparency and further expand operations internationally. A SPAC typically has as long as two years to find its merger partner, clear the SEC’s review process and complete the deal. Circle, which was founded in 2013, intends to make another bid to go public, though likely not this year, Mr. Fox-Geen said. Circle in 2021 said that Poloniex LLC, its discontinued crypto exchange business, paid $10.4 million to settle a case brought by the SEC.

☆ Analysis: Stablecoin regulatory crackdown sends warning to industry
▼ + stars: | 2023-02-22 | by ( Hannah Lang | ) www.reuters.com time to read: +5 min

But usage is raising questions from regulators who have expressed concern about the disclosures stablecoin issuers provide, as well as the tokens' potential instability during periods of stress. While the crypto industry has criticized the SEC's broad industry crackdown, the move against Binance USD, the third-biggest stablecoin with about $16 billion in circulation, could lend some guidelines for which stablecoin activities may get scrutinized. SEC Chairman Gary Gensler has previously said he believes some stablecoins are in fact securities, which require registration and additional regulatory oversight. The New York Department of Financial Services also ordered Paxos last week to stop minting Binance USD. But the specific features of tokens like Binance USD have some stablecoin issuers keen to highlight their differences.

REUTERS/Benoit Tessier/File PhotoFeb 21 (Reuters) - The world of stablecoins is suddenly looking shaky. "There's way too much demand for dollar-based stablecoins for them to go away," said Alex Miller, CEO at bitcoin developer network Hiro. Market leader tether (USDT) has been a big beneficiary, adding $1.9 billion to its market capitalization to hit $70.3 billion since the news. It now commands 52.6% of the stablecoin market, up from just over 51%. Traders also use these tokens to hedge their positions, and hence dwindling market value is associated with falling liquidity and leverage in the broader crypto market.

☆ EU calls for fast-track crypto capital rules for banks
▼ + stars: | 2023-02-20 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Feb 20 (Reuters) - Tough capital rules for banks holding cryptoassets must be fast-tracked in the European Union's pending banking law if Europe wants to avoid missing a globally-agreed deadline, the bloc's executive has said. The global Basel Committee of banking regulators from the world's main financial centres has set a January 2025 deadline for implementing capital requirements for banks' exposures to cryptoassets such as stablecoins and bitcoin. "Banks have expressed interest in trading crypto-assets on behalf of their clients and to provide crypto-assets-related services." Basel's standards are applied in the EU with a law, and a delay could mean that banks have to wait longer to enter the cryptomarket as separate EU rules for trading cryptoassets come into force in 2024. To enforce Basel's crypto rules, the EU could either propose a new law, or expand the banking law it is now finalising as called for by the European Parliament.

☆ The SEC has a stablecoin firm in its sights — and it could shake up the whole $137 billion market
▼ + stars: | 2023-02-20 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +4 min

Paxos has been ordered by New York regulators to stop issuing the Binance USD (BUSD) stablecoin. The move will have major implications for the $137 billion market, experts told CNBC. Are stablecoins securities? Renato Mariotti partner, BCLPIf BUSD is deemed a security by the SEC then the regulator would have oversight over the stablecoin. "Absent a successful fight, it is most likely BUSD will no longer be sold into the U.S. or be available on U.S.-based digital asset exchanges," Lansing said.

☆ Bitcoin surges 11% despite U.S. crackdown, as crypto market gains $84 billion in value
▼ + stars: | 2023-02-16 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +1 min

Jakub Porzycki | Nurphoto | Getty ImagesCrypto markets rallied on Thursday, shrugging off a tougher regulatory stance from the U.S. government. The value of the entire cryptocurrency market rose more than $84.8 billion in the 24 hours before 3:39 a.m. Crypto markets were on edge earlier this week following increased regulatory scrutiny from U.S. authorities on digital currencies. On Monday, the New York State Department of Financial Services told Paxos to stop minting new Binance USD, or BUSD, stablecoins. A stablecoin is a type of cryptocurrency pegged to a real-world asset and some are backed by assets such as bonds or cash.

☆ The crypto comeback: Here's what's driving it, according to Bernstein
▼ + stars: | 2023-02-16 | by ( Hakyung Kim | ) www.cnbc.com time to read: +3 min

A flurry of factors have come together recently to spark a big comeback for crypto . Those gains come after a difficult 2022 for the crypto market. Bernstein analyst Gautam Chhugani said that recent regulatory actions may not be as bad as people think, helping push crypto prices upwards. Short covering occurs when a short seller buys back shares in order to close out an open short position — returning borrowed shares — in an attempt to limit losses. But there's more than just short covering — there's fresh buying going on which is forcing prices to squeeze up, the firm said.

☆ SEC charges Do Kwon, Terraform with fraud in connection with Terra collapse
▼ + stars: | 2023-02-16 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

Do Kwon, co-founder and chief executive officer of Terraform Labs, insists that he is not on the run from South Korean authorities. Terraform Labs, the company that Kwon founded, is behind the collapsed cryptocurrencies terraUSD and luna, which combined were worth $60 billion before they crashed. The Securities and Exchange Commission charged Terraform Labs and its CEO, Do Kwon, with fraud, alleging that they orchestrated a multibillion dollar "crypto asset securities fraud," the SEC said Thursday. The SEC alleges that Kwon marketed those assets, including those mAsset swaps and Terra, as profit-bearing securities, "repeatedly claiming" the tokens would increase in value. Kwon is wanted in South Korea for his involvement in the collapse of TerraUSD.

☆ Here are Thursday's biggest analyst calls: Apple, Tesla, Generac, Coinbase, Meta, Roku, Roblox & more
▼ + stars: | 2023-02-16 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Here are Thursday's biggest calls on Wall Street: Bernstein reiterates Tesla as underperform Bernstein said Tesla sharers remain overvalued. Loop reiterates Apple as buy Loop said it sees attractive iPhone revenue upside for Apple. Canaccord upgrades Generac to buy from hold Canaccord said it sees "storm clouds breaking" for shares of Generac. JPMorgan reiterates Roku as overweight JPMorgan said it's standing by shares of Roku after the company's earnings results on Wednesday. " Bernstein reiterates Meta as outperform Bernstein kept its outperform rating on the social media giant and says it likes the company's "clear cost takeout plan."

☆ BUSD: US regulator orders Paxos to halt new issues of Binance-branded stablecoin
▼ + stars: | 2023-02-14 | by ( Michelle Toh | ) edition.cnn.com time to read: +4 min

Hong Kong CNN —New York’s top financial regulator has ordered a crypto company to stop minting a major stablecoin, widening a clampdown on the embattled digital assets sector. Paxos also said it would “end its relationship” with Binance, the world’s largest crypto exchange. It did not say why the regulator had ordered it to stop issuing BUSD. Last week, the US Securities and Exchange Commission said overseeing crypto assets was a key priority for 2023. According to crypto advocates, the growing global clampdown could undermine the ecosystem for digital assets.

☆ Crypto: Regulators are cracking down as FTX fallout casts a shadow over digital assets
▼ + stars: | 2023-02-14 | by ( Allison Morrow | ) edition.cnn.com time to read: +5 min

New York CNN —When FTX collapsed in November, it was a seismic event for the crypto industry. On Monday, New York regulators ordered blockchain firm Paxos to stop issuing BUSD, aka Binance USD, citing “several unresolved issues” related to Paxos’ oversight of its relationship with crypto exchange Binance. Investors typically buy them to store money and facilitate deals within the cryptocurrency infrastructure, making them a bedrock of the crypto ecosystem. “Regulation by enforcement is puzzling for crypto enthusiasts,” said Marcus Sotiriou, market analyst at digital asset broker GlobalBlock, in a note. In January, regulators warned US banks and other market participants about the risks of fraud, volatility, and shoddy risk management in the crypto world.

☆ Ark Invest's Cathie Wood buys Coinbase shares for a second straight day
▼ + stars: | 2023-02-14 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

Ark Invest's Cathie Wood continued to add to her Coinbase holding despite the increased regulatory crackdown on the crypto industry. Wood snapped up 102,281 shares of the crypto exchange for her flagship ARK Innovation ETF on Monday, and another 16,414 shares for ARK Next Generation Internet ETF . Wood also bought 139,105 shares of Coinbase for the Innovation ETF on Friday. COIN YTD mountain Coinbase Shares of Coinbase rebounded sharply in January with a 65% return, becoming one of ARKK's biggest winners for the month. Wood has been standing by her bold call on bitcoin even amid the fallout in the crypto industry.

☆ Crypto markets on edge as U.S. regulatory crackdown on industry intensifies
▼ + stars: | 2023-02-14 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +3 min

Paxos has been ordered by New York regulators to stop issuing the Binance USD (BUSD) stablecoin. On Monday, the New York State Department of Financial Services told Paxos to stop minting new Binance USD, or BUSD, stablecoins . Investors are digesting a number of major regulatory actions in the U.S., as authorities look to rein in the once free-wheeling cryptocurrency industry. Digital currency markets are on edge after a flurry of aggressive regulatory actions from U.S. authorities over the past few days. There is no official SEC action against Paxos currently.

☆ Paxos ordered to cease minting Binance stablecoin by New York regulator
▼ + stars: | 2023-02-13 | by ( Rohan Goswami | ) www.cnbc.com time to read: +3 min

Cryptocurrency firm Paxos will cease issuing new Binance USD, or BUSD , stablecoins under the direction of New York state's financial regulator, Binance founder Changpeng Zhao said Monday. "We were informed by Paxos they have been directed to cease minting new BUSD by the New York Department of Financial Services," Zhao said on Twitter. Paxos' BUSD product is related to, but separate from, Binance's self-issued Binance-pegged BUSD. "The Department has not authorized Binance-Peg BUSD on any blockchain, and Binance-Peg BUSD is not issued by Paxos," NYDFS said. Last week, the Securities and Exchange Commission settled with crypto exchange Kraken over allegations of unregistered offering and sale, in connection with Kraken's crypto staking platform.

REUTERS/Dado Ruvic/IllustrationLONDON, Feb 13 (Reuters) - New York's chief financial regulator has ordered Paxos, the company behind the stablecoin of major crypto exchange Binance, to stop issuing the token, Paxos said in a statement on Monday. The Binance USD (BUSD) stablecoin, one of the world's biggest, is issued and redeemed by New York-based Paxos Trust Company, both of which are regulated by the New York Department of Financial Services. Paxos said it would stop issuing new BUSD as of Feb. 21 "as directed by and working in close coordination with the New York Department of Financial Services". Binance USD is the seventh-largest cryptocurrency, with more than $16 billion in circulation, according to market tracker CoinGecko. Zhao said Binance would "continue to support BUSD for the foreseeable future" and that he saw users "migrating to other stablecoins over time."

☆ Crypto exchange C3 aims to fix a big flaw exposed in the collapse of FTX. Its cofounders just raised $6 million from hedge fund Two Sigma's venture arm.
▼ + stars: | 2023-02-10 | by ( April Joyner | ) www.businessinsider.com time to read: +4 min

The crypto exchange C3 has raised $6 million in seed funding led by Two Sigma Ventures. A series of bankruptcies — FTX, BlockFi, Celsius, Voyager, Genesis — has exposed major flaws within several crypto financial institutions. Michel Dahdah believes his company, the crypto exchange C3, can fix one big challenge these crypto companies face: the custody question. C3 has raised $6 million in seed funding led by Two Sigma Ventures, the venture-capital arm of the hedge fund Two Sigma Investments. In the traditional finance world, custody and exchange are separate functions, and crypto needs to follow suit, he said.

☆ Tether records surprise profit as stablecoin giant aims to put reserve controversy behind it
▼ + stars: | 2023-02-09 | by ( Ryan Browne | ) www.cnbc.com time to read: +1 min

Tether on Thursday published its latest quarterly financials, with the world's top stablecoin issuer stating publicly for the first time that it generated a profit. "Tether is not disclosing any financial information other than those reported in the CRR [Consolidated Reserves Report]," Tether told CNBC in emailed comments. Tether is the issuer of USDT , the world's largest stablecoin by market capitalization. Stablecoins are tokens that are meant to always be fully backed by an equivalent value of reserve assets. But Tether has long been dogged by concerns that its token isn't completely backed one-to-one by an equivalent value of reserves.

☆ Central bank test lab to trial 'stablecoin' monitoring system
▼ + stars: | 2023-02-07 | by ( Marc Jones | ) www.reuters.com time to read: +2 min

LONDON, Feb 7 (Reuters) - A global central bank test lab run out of London is designing a 'stablecoin' monitoring system aimed at giving authorities a clearer picture on how they work and how to regulate them in future. Stablecoins are a type of cryptocurrency which aim to maintain a 1:1 peg with a fiat currency such as the dollar. The collapse last year of a widely-used stablecoin pair, Luna and TerraUSD, sparked widespread turmoil in crypto markets. In a bid to ensure there is more oversight going forward, the Bank for International Settlements (BIS), often dubbed the central bank for the world's central banks, is to begin work in its London 'innovation hub' on a tool to keep tabs on them. "Most central banks lack tools to systemically monitor stablecoins and avoid asset-liability mismatches," the BIS said.

Binance, the world's largest crypto exchange, will suspend U.S. dollar deposits and withdrawals, the company said Monday, without providing a reason for the decision. "We are temporarily suspending USD bank transfers as of February 8th," a Binance spokesperson told CNBC. The company said "0.01% of our monthly active users leverage USD bank transfers," and added that "we are working hard to restart service as soon as possible." Binance's net U.S. dollar outflow was over $172 million for the day, based on data from DefiLlama. That represents a tiny amount of money for a company that has $42.2 billion worth of crypto assets, according to Arkham.

☆ New look CBDCs and cryptomarket to emerge from turmoil, top BIS official says
▼ + stars: | 2023-02-06 | by ( Marc Jones | ) www.reuters.com time to read: +4 min

LONDON, Feb 6 (Reuters) - Cryptomarkets have not been killed off by last year's turmoil, while the new wave of central bank digital currencies will face geopolitical limits, the Bank for International Settlements' new innovation head has predicted. Dubbed the central bank to the world's central bank, the BIS has long been critical of cryptocurrencies, likening bitcoin to both a ponzi scheme and market bubble in the past. Since the start of 2023, however, there has been something of a rebound, including a 40% recovery in bitcoin's price. The European Central Bank should get the go-ahead for full-scale tests. "We will never have full interconnectedness," Skingsley said, adding though that the BIS' work aimed to make CBDCs as versatile as possible.

☆ This startup founded by a former Getir CTO enables users to hold stablecoins pegged to the US dollar. Check out the 11-slide pitch deck Cenoa used to raise $7 million.
▼ + stars: | 2023-02-06 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +2 min

Cenoa, a fintech startup cofounded by the former CTO of Getir, has raised $7 million in funding. The startup enables customers to access USDC, a digital asset tied to the US dollar. We got an exclusive look at the 11-slide pitch deck used to raise the fresh funds. A startup that has developed a digital wallet where users can hold a stablecoin pegged to the US dollar has raised $7 million in seed funding. In the UK, for example, Cenoa works with FCA-registered Transak so that users can deposit and withdraw funds using local banking networks.

☆ Ray Dalio warns 'money as we know it is in jeopardy' and favors an inflation-linked cryptocurrency over bitcoin
▼ + stars: | 2023-02-02 | by ( Brian Evans | ) www.businessinsider.com time to read: +3 min

"We are in a world where money as we know it is in jeopardy," Dalio told CNBC. "It's not going to be an effective money. It's not an effective store holder of wealth. "We are in a world in which money as we know it is in jeopardy," Dalio said. I don't think bitcoin is it."

☆ Britain's finance ministry sets out draft rules to regulate cryptoassets
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +2 min

LONDON, Feb 1 (Reuters) - Britain's finance ministry set out draft rules to regulate cryptoassets on Wednesday, saying ongoing turbulence in the sector and the collapse of exchange FTX highlighted risks that need addressing. "Our view is that this reinforces the case for clear, effective, timely regulation and proactive engagement with industry," Financial Services Minister Andrew Griffith said in proposals put out to public consultation. "This includes a proposal to bring centralised cryptoasset exchanges into financial services regulation for the first time, as well as other core activities like custody and lending," Griffith added. After the three-month consultation, there will be secondary legislation later this year along with detailed rule proposals for public consultation from the Financial Conduct Authority. HMT crypto graphicReporting by Huw Jones; editing by Jason Neely and Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.

☆ Irish central bank chief calls for ban on crypto advertising
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Dado Ruvic/IllustrationDUBLIN, Jan 25 (Reuters) - Ireland's central bank governor urged lawmakers on Wednesday to ban the advertising of crypto assets targetted at young adults, likening crypto not linked to any underlying assets to a Ponzi scheme. A long-time critic of crypto assets, Gabriel Makhlouf said that while they presented minimal financial stability risk for now, the Irish regulator was very concerned about the impact on retail customers. "There's a reasonable number of young adults who have put their money into crypto and there is an uncomfortable level of advertising that is targeted at that cohort. If you could find a way, I would recommend that adverts to that cohort are banned," Makhlouf told an Irish parliamentary committee. "Unbacked crypto is essentially a Ponzi scheme... People who put their money into unbacked crypo, and most of the significant stock of crypto out there is unbacked, they are essentially gambling."

Search resuls for: "STABLECOINS"

25 mentions found