Morning Post - October 21

headlines

▌FTX US may prohibit the listing of tokens defined as securities

The U.S. arm of cryptocurrency exchange FTX intends to begin analyzing tokens to determine whether they qualify as securities. According to SBF, if the team believes the token is a security, it will not be listed on FTX US unless there is a clear path to registration. If the legal team says after analysis that the token is not a security, it will be treated as a commodity. Unless a court or the SEC intervenes otherwise.

▌FDIC chief calls for limiting stablecoins to permissioned blockchains

The acting head of the U.S. banking regulator, the Federal Deposit Insurance Corporation (FDIC), has called for more restrictions on the issuance of stablecoins. Banking regulator suggests limiting stablecoins to permissioned blockchains. FDIC Acting Chairman Martin Gruenberg said stablecoins are safer for payments if they are transacted on a permissioned ledger system with strong governance and compliance mechanisms. The ability to understand all parties involved in paying for stablecoins, including nodes and validators, is critical to ensuring compliance with anti-money laundering and countering the financing of terrorism regulations and deterring the evasion of sanctions. Gruenberg added that innovation can be a double-edged sword.

policy

▌South African regulator: Cryptocurrency financial companies must obtain operating licenses in 2023

Cryptocurrency financial firms in South Africa will need to apply for a license between June 1 and November 20, 2023, in order to operate legally, South Africa's financial industry conduct regulator said on Thursday. Eugene Du Toit, head of the Regulatory Frameworks Division at the Financial Industry Conduct Regulatory Agency, said at a news conference that Wednesday’s announcement that crypto assets are financial products does not mean they are legal tender. According to previous reports, according to a new notice issued by South Africa’s Financial Industry Conduct Authority (FSCA), the country’s Financial Advice and Intermediary Services Act (FAIS) 2002 has been updated to cover the definition of encrypted assets and classify encrypted assets as Financial product. The notice, effective immediately, means that crypto assets will be regulated in South Africa for the first time.

▌More than 20% of the US CFTC's enforcement actions in 2022 are related to cryptocurrencies

The U.S. Commodity Futures Trading Commission (CFTC) brought 82 enforcement actions in fiscal year 2022, of which a whopping 22% were related to cryptocurrency entities. The CFTC cited enforcement actions for fiscal year 2022 in a report, including charges against Tether and Bitfinex, which were settled last October for a total of $42.5 million. In a press statement, CFTC Chairman Rostin Behnam wrote: “In the face of unprecedented financial market conditions that directly affect U.S. consumers, emerging technological disruption and growing retail investor participation, the CFTC remains steadfast in its commitment to strong A robust enforcement program that ensures the markets we regulate are open, transparent, fair and competitive."

cryptocurrency

▌Encryption custodian Prime Trust agrees to return nearly $17 million in Celsius tokens

During a bankruptcy court hearing on Thursday, crypto custodian Prime Trust agreed to return nearly $17 million in Celsius Network tokens. The assets will be sent to designated Celsius wallets pending a court order to distribute the funds, Prime Trust said. According to previous news, Celsius sued Prime Trust in August, accusing Prime Trust of withholding tokens when it terminated the contract in June 2021. filed for Chapter 11 bankruptcy protection.

▌Research: Crypto Adoption Rate Slows Down Significantly, But Still Above Pre-2021 Levels

Cryptocurrency adoption has slowed significantly since the start of this year's bear market, but remains above pre-2021 levels, according to a new study by blockchain analytics firm Chainalysis. According to Chainalysis' global index score, cryptocurrency adoption slowed in the first two quarters of 2022 compared to the highs in the second and fourth quarters of 2021. However, adoption remains higher than it was before the bull market up to and including Q1 2021. Chainalysis’ Crypto Geography 2022 report also found that 18 of the 20 countries with the highest rates of crypto adoption are low- and middle-income countries that use cryptocurrencies for remittance transfers and to protect savings from high inflation. In contrast, decentralized finance (DeFi) adoption is most prevalent in North America and Western Europe, accounting for 37% and 31% of all crypto trading volume, respectively.