Dubai financial regulator updates crypto token rules for funds

The changes encompassed several areas, including the ability of both external and domestic funds to invest in crypto tokens.

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Crypto Trading Firm Cumberland Acquires New Yorks BitLicense

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New York sets customer service standards for virtual currency entities

The BitLicense just got a little tougher with new mandatory standards for treating customers right.

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Crypto Giant OKX Taps Ex-NYDFS ChiefWhats Behind the Bold Move?

OKX hired Linda Lacewell to serve as its new Chief Legal Officer. This exchange’s global compliance initiative continues to strengthen through its efforts. The company made this announcement because international markets have encountered increased regulatory obstacles. Lacewell succeeded Mauricio Beugelmans as the new Chief Legal Officer after he resigned after serving almost two years. During […]

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Fed, NYDFS assess their supervisory performance after March’s big bank failures

Internal reviews of the supervision of Silicon Valley Bank and Signature Bank have been released, showing weaknesses on the part of the banks’ regulators as well as management.

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New York state announces another upgrade to its virtual currency monitoring capacity

The New York State Department of Financial Services did not describe its new capacities, but said they will contribute to the detection of a variety of illegal activities.

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Circle Sounds Alarm Over Binance’s USDC Stablecoin Reserve Shortage To NYDFS

Circle, the company operating the USDC stablecoin, alerted the New York Department of Financial Services (NYDFS) to potential issues in blockchain data showing Binance did not have enough crypto in reserve to support its issued tokens, Bloomberg reported on February 13th. It resulted in NYDFS directing Paxos, which shares a regulator with Binance, to end […]

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Binance, Circle, and Paxos Receive Regulatory Scrut

Stablecoin issuer Circle supplied the NYDFS blockchain evidence claiming Binance's reserves were inadequate to sustain its currency. (Read More)

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Circle blew the whistle on Binance reserves to NYDFS: Report

The company's complaint to the New York regulator reportedly came before the SEC's lawsuit against Paxos over BUSD and NYDFS ordering the firm to "cease minting" the stablecoin.

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Paxos Trust Faces SEC Lawsuit Over Binance USD Stablecoin

Paxos Trust, a stablecoin issuer, has received a Wells notice from the SEC indicating that the regulator is planning to sue the company for violating investor protection laws in regards to Binance USD stablecoin. This article explores the implications of the lawsuit for Paxos and the stability of the stablecoin market.

<p>The post Paxos Trust Faces SEC Lawsuit Over Binance USD Stablecoin first appeared on CCNC.</p>

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New York Regulators Launch Investigation into Stablecoin Issuer Paxos

New York regulators are investigating Paxos, but the stablecoin issuer has debunked claims of its license being withdrawn.

Continue reading New York Regulators Launch Investigation into Stablecoin Issuer Paxos at DailyCoin.

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Stablecoin Issuer Paxos Faces NYDFS Probe

<p>Paxos Trust Co., the issuer of Binance’s stablecoin, is facing an investigation by the New York State Department of Financial Services (NYDFS), one of the most stringent state regulators in the United States, Bloomberg reported.</p><p>NYDFS Probes Paxos</p><p>There is no official confirmation on the investigation either from the regulator or the <a href="https://www.financemagnates.com/terms/s/stablecoin/" class="terms__main-term" id="e84b040e-4d12-499b-99bf-8ba75ea058ca" target="_blank">stablecoin</a> issuer. The extent of the scope of the investigation is also unclear.</p><p>“The department is in continuous contact with regulated entities to understand vulnerabilities and risks to consumers and the institutions themselves from crypto market <a href="https://www.financemagnates.com/terms/v/volatility/" class="terms__secondary-term" id="7fd330d9-8855-4c31-9770-cb52b328c117" target="_blank">volatility</a> we are experiencing,” a regulatory spokesperson told the publication.</p><p>Apart from its partnership with Binance, <a href="https://www.financemagnates.com/tag/paxos/" target="_blank" rel="follow">Paxos also issues its own stablecoin</a>, Pax Dollar (USDP), which has a market value of $859 million. Binance’s BUSD, issued in partnership with Paxos, has a market value of $16 billion and is the third-largest USD-pegged stablecoin in terms of market share.</p><p>“BUSD is a 1-to-1 backed stablecoin that is one of the most transparent stablecoins in existence,” Binance said in a statement, adding that it is closely monitoring the reports of the alleged investigations.</p><p>However, the stablecoin industry cannot clear its taint from controversies. Tether, the largest USD-pegged in circulation, is blamed for not maintaining an accurate fiat reserve, while the collapse of Terra Luna rattled the crypto industry last year.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">Wells Notice: A Wells Notice is a notification issued by regulators to inform individuals or companies of completed investigations where infractions have been discovered. It usually takes the form of a letter, which notifies recipients both of the broad nature of the violations… <a href="https://t.co/IOIJ5iFIbR">https://t.co/IOIJ5iFIbR</a></p>— Andrew (@AP_Abacus) <a href="https://twitter.com/AP_Abacus/status/1623786629847449601?ref_src=twsrc%5Etfw">February 9, 2023</a></blockquote><p>A Major Stablecoin Issuer</p><p>Paxos operates in New York with the much coveted BitLicense obtained from the NYDFS, the same regulator that has opened the reported probe. Last November, the company <a href="https://www.financemagnates.com/cryptocurrency/paxos-becomes-major-payments-institution-in-singapore/" target="_blank" rel="follow">gained a Major Payments Institution (MPI) license</a> from the regulator in Singapore to bolster its Asian presence.</p><p>On top of that, the New York-based blockchain infrastructure company received preliminary approval for a banking charter in April 2021. Though there were rumors that the US Office of the Comptroller of the Currency (OCC) was considering ordering Paxos to withdraw its application for a full banking charter, the company denied them.</p><blockquote class="twitter-tweet"><p lang="en" dir="ltr">To clarify speculation: Paxos has not been asked to withdraw its application for a national trust bank charter from the OCC, nor has it been denied the charter. Paxos continues to work constructively with the OCC.</p>— Paxos (@PaxosGlobal) <a href="https://twitter.com/PaxosGlobal/status/1623457250823258112?ref_src=twsrc%5Etfw">February 8, 2023</a></blockquote><p>The NYDFS is considered to be one of the strict cryptocurrency regulators. Last month, it issued guidance, ordering all crypto companies to <a href="https://www.financemagnates.com/cryptocurrency/nydfs-issues-guidelines-to-protect-crypto-customers-funds/" target="_blank" rel="follow">separate funds</a> belonging to the customers and their own. In addition, it mandated <a href="https://www.financemagnates.com/cryptocurrency/new-york-regulator-mandates-crypto-permission-for-banks/" target="_blank" rel="follow">licensing for banks</a> before their direct or indirect engagement with cryptocurrency-related activities.</p><p>Recently, Coinbase <a href="https://www.financemagnates.com/cryptocurrency/coinbase-reaches-100m-settlement-with-new-york-regulator-for-aml-failure/" target="_blank" rel="follow">settled with the New York state regulator for $100 million</a> for charges of anti-money laundering (AML) provision breaches. The exchange agreed to pay $50 million as a penalty and invest another $50 million over the next two years to ramp up its compliance efforts.</p> This article was written by Arnab Shome at www.financemagnates.com.

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New York Regulator to Scrutinize Stable Coin Issuer Paxos

New York regulators are reportedly investigating Paxos, the firm that issues the BUSD and USDP stablecoins. The Pax dollar (USDP)

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NYDFS Issues Guidelines to Protect Crypto Customers’ Funds

<p>The New York State Department of Financial Services (NYDFS) released regulatory guidance on Monday, ordering all crypto companies to separate funds belonging to the customers and their own. The regulatory superintendent, Adrienne Harris, highlighted that the rules focus on protecting customers' funds in case of an insolvency or similar proceeding.</p><p>NYDFS Issues Guidelines on Crypto Fund Segregation</p><p>“DFS’s virtual currency <a href="https://www.financemagnates.com/terms/r/regulation/" class="terms__main-term" id="341d154e-1396-4d12-a357-4837e79c4146" target="_blank">regulation</a> has protected New Yorkers since 2015,” Harris said. “Today’s guidance reminds DFS-regulated virtual currency companies of our expectations regarding the safekeeping of customer assets.”</p><p>The official announcement highlighted four areas the new guidelines are addressing. These include the segregation and separate accounting of customer assets, clarification of custody and safekeeping services, sub-custody arrangements with third parties, and proper disclosure of general terms and conditions to the customers.</p><p>NYDFS is one of the crypto regulators with <a href="https://www.financemagnates.com/cryptocurrency/news/bitooda-obtains-bitlicense-from-nydfs/" target="_blank" rel="follow">clear and stringent rules</a>, overseeing the activities of the crypto companies within the state of New York. The new guidelines against co-mingling of funds will apply to the companies that the regulator has licensed or chartered to custody, or temporarily hold, store, or maintain virtual currency assets on behalf of their customers.</p><p>Last month, the regulator <a href="https://www.financemagnates.com/cryptocurrency/new-york-regulator-mandates-crypto-permission-for-banks/" target="_blank" rel="follow">mandated the banking firms</a> in the state to seek advance permission before they or their authorized third-party agents engage in cryptocurrency-related activities.</p><p>Check out the latest FMLS22 session on "Will Crypto Fizzle Out or Here to Stay?"</p><p>FTX Collapse Triggers the Necessity of New Rules</p><p>The new guidelines came after the collapse of Sam Bankman-Fried FTX empire. He has allegedly used FTX customer funds to issue illicit loans to sister company Alameda Research. FTX, Alameda Research, and more than 130 other affiliates are now under <a href="https://www.financemagnates.com/terms/b/bankruptcy/" class="terms__secondary-term" id="41b3ef0d-d805-441d-8443-121890264e94" target="_blank">bankruptcy</a> protection, while Bankman-Fried is <a href="https://www.financemagnates.com/cryptocurrency/news/ftxs-sam-bankman-fried-pleads-not-guilty-to-us-criminal-charges/" target="_blank" rel="follow">facing criminal charges</a>.</p><p>Though Bankman-Fried, who does not associate himself with the operations of FTX anymore, wrote in a blog that the collapsed crypto exchange should have enough funds for the customers, the bankruptcy proceedings still need to start to compensate the customers.</p><p>Last year, the crypto prices plummeted from their all-time high levels, and the two major collapses in the industry, first Terra Luna and then FTX. Both these events have triggered the <a href="https://www.financemagnates.com/cryptocurrency/crypto-lender-genesis-files-for-bankruptcy-in-new-york/" target="_blank" rel="follow">collapse of several other firms </a>that had exposure to them.</p> This article was written by Arnab Shome at www.financemagnates.com.

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Coinbase Settles for $100M With Regulators Over Compliance System

Coinbase found itself overwhelmed by frantic platform adoption in 2020 and 2021, the NYDFS claimed in its filing today. This resulted in the exchange failing to maintain a robust compliance...

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Will the BUSD Upon Paxos Survive?

Apart from just having a native coin, the world’s largest global exchange, the Bianance, has now come up with their

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New York suggests charging crypto firms for regulation

The New York State Department of Financial Services (DFS) has submitted a proposed change in state laws that would allow it to charge licensed crypto companies for regulating them. The proposal is led by DFS Superintendent Adrienne Harris who is looking for public feedback on the move as the regulator looks to gain further oversight controls. (Read More)

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DFSA Publishes List of "Recognised Crypto Tokens" as Changes Take Effect

<p> The Dubai Financial Services Authority (<a href="https://www.financemagnates.com/tag/dfsa/">DFSA</a>) announced its initial list of 'Recognised Crypto Tokens' on Tuesday, changing its current regulatory regime concerning the crypto industry. The list includes <a href="https://www.financemagnates.com/terms/b/bitcoin/" target="_blank" id="261088a9-0f41-4202-a73c-31f75ba6bd93_1" class="terms__main-term">Bitcoin</a> (BTC), Ethereum (ETH), and Litecoin (LTC).</p><p class="MsoNormal">The DFSA defines a <a href="https://www.financemagnates.com/cryptocurrency/" target="_blank">cryptocurrency</a> token as a token that is used as a medium of exchange or payment or provides a right in another asset that meets the requirements. However, the regulator does not consider non-fungible tokens, utility tokens, and central bank digital currencies (CBDCs) as potential crypto tokens.</p><p class="MsoNormal">As of November 1, only recognized crypto tokens can be transacted within or from the Dubai International Financial Center (<a href="https://www.financemagnates.com/tag/difc/">DIFC</a>). A similar scheme is used by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM).</p><p class="MsoNormal">The DFSA began its foray into regulating the cryptocurrency sector by introducing investment tokens in September 2021. These differ from the currently recognized crypto assets and include security assets (i.e., shares, certificates, structured products) and derivative tokens (i.e., futures and options).</p><p class="MsoNormal">Dubai Wants To Become The New Crypto Hub</p><p class="MsoNormal">Dubai is taking more steps to become an international <a href="https://www.financemagnates.com/terms/h/hub/" target="_blank" id="70df8dbe-6564-4e03-8d97-dec68acfd2ce_2" class="terms__secondary-term">hub</a> to attract experts and cryptocurrency companies. Earlier this year, the Virtual Asset Law (VAL) was introduced, establishing the independent Dubai Virtual Assets Regulatory Authority (VARA) to further oversee local industry development.</p><p class="MsoNormal">A mix of low taxes and some of the lowest electricity costs in the world make <a href="https://www.financemagnates.com/cryptocurrency/why-crypto-miners-flock-to-dubai-despite-the-hot-weather/" target="_blank">Dubai a popular spot for cryptocurrency mining</a>. Miners are not even bothered by high temperatures, which in this part of the world can exceed 42°C in summer.</p><p class="MsoNormal">On the other hand, the high temperatures and ample sunshine make it possible to exploit the potential of renewable energy. It is in Dubai that the largest solar power plant is located. Moreover, the UAE believes that by 2024, 20% of its electric power will be from renewable sources.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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NYDFS calls for crypto firms to use blockchain analytics

The regulatory agency asked crypto firms to adopt methods to ensure greater risk assessment for potentially problematic transactions.

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Danish Company Works With Gov to Build Payment Solution on Algorand

A new report details the Danish Government’s efforts to assist Danish companies (like ZTLment) to build crypto infrastructure, and in this case, on the Algorand blockchain. Covered: Danish Gov Releases “Groundbreaking” Memo on Crypto Use ZTLment Releases The Protocol, Set to Go Live in 2022 “Game-Changer for Programmable Money” in the EU Danish Gov Releases […]

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