Cryptofinance: Key Players in Crypto Industry Face Legal Challenges
Scrolling through the list of crypto’s who’s who is more like a rundown of who was. In just the last month, the industry’s two biggest names — FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao — have been prosecuted by US authorities. Terraform Labs’ Do Kwon is facing extradition to either the US or South Korea.
Stablecoin Providers: The Next Target for US Law Enforcement?
Cryptofinance: The outlook for crypto exchanges, lenders, or hedge funds has been irrevocably changed in 2023. But there is one crypto subsector that US law enforcement has so far bypassed: stablecoin providers.
Warnings from Deputy Secretary of the US Treasury
Cryptofinance: Speaking at the 2023 Blockchain Association’s Policy Summit in Washington this week, Deputy Secretary of the US Treasury Wally Adeyemo appeared to put stablecoin providers on notice. “We cannot allow dollar-backed stablecoin providers outside the United States to have the privilege of using our currency without the responsibility of putting in place procedures to prevent terrorists from abusing their platform,” Adeyemo said.
Tether in the Spotlight
Adeyemo did not mention any company by name, but Tether is clearly the one that jumps out. Doubts over how the company manages those billions of dollars of assets have dogged it for years.
Potential Regulatory Focus on Stablecoin Providers
But maybe the US will turn to them next year. Stablecoin providers that offer a dollar alternative are going to have to “work with regulators to make sure their business doesn’t enable money laundering or the financing of terrorists,” warns John Christensen, an economist specializing in offshore finance.
Regulatory Warnings and Legal Challenges for Binance
Weekly highlights:
- Binance faces regulatory warnings from the Philippine Securities and Exchange Commission.
- Former Binance CEO Changpeng Zhao’s stay in the US is extended pending court decisions.
- Cristiano Ronaldo served with a lawsuit over his alleged involvement with Binance.
Data Mining: CME Overtakes Binance in Bitcoin Futures
Cryptofinance: Data mining reveals that for the first time, open interest for bitcoin futures at CME Group has surpassed the total on Binance.
Institutional Interest Shift: CME Overtakes Binance in Bitcoin Futures
Last month, open interest for bitcoin futures at CME Group rose to $4.1bn, surpassing Binance’s $3.7bn. This suggests a potential power shift as traditional giants compete with crypto exchanges.
One Comment