Crypto Chronicles: BitOK's Weekly Recap of Top Regulatory News
Get a quick and easy update on last week's top headlines with BitOK.
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1. Starting from September 1, crypto businesses in the UK must adhere to the FATF Travel RuleThe Travel Rule mandates sharing customer information during crypto transfers to identify suspicious transactions. The UK enacted Travel Rule enforcement in July 2022. Businesses must fully implement the rule by September 1st for crypto transfers within the UK or jurisdictions that follow the rule. They're also responsible for compliance with third-party vendors. When transacting with non-compliant jurisdictions, UK businesses must assess recipient capability for information exchange.
Source - 2. Farmington State Bank, affiliated with FTX, is facing enforcement action by the Fed and Washington State Department of Financial InstitutionsThe bank received $11.5 million from FTX's sister company, Alameda Research, through its holding company FBH Corporation, and has shifted its focus to digital banking services and assets without informing the regulators. This move comes in the context of increasing regulatory scrutiny on banks associated with cryptocurrency firms following the collapse of FTX and other similar incidents.
Source - 3. Bitcoin has surged to new heights in Argentina after pro-Bitcoin presidential candidate Javier Milei won the primary electionDespite global cryptocurrency markets slumping, Bitcoin's value in Argentina reached 10 million Argentine pesos (ARS) on August 14. This spike is part of a broader trend of Bitcoin gaining value against the Argentine peso due to ongoing inflation and currency devaluation. Milei's victory has boosted Bitcoin's prominence in the country. However, while Bitcoin is flourishing in Argentina, it has experienced declines in global markets, losing 3.7% of its value against the US dollar since August 14. This scenario is similar to Turkey, where Bitcoin has also reached historic highs amid substantial inflation.
Source - 4. Dubai's crypto regulator has fined the founders of the collapsed digital asset hedge fund Three Arrows Capital (3AC) for violations related to the OPNX exchangeKyle Davies and Su Zhu, along with other executives, were fined $54,000 for breaching Dubai's marketing laws. Additionally, OPNX faces a $2.7 million fine for market regulation violations, which remains unpaid. VARA's strong stance on crypto violations is evident, having suspended BitOasis' license earlier this year for non-compliance.
Source - 5. Regulatory clarity in Canada is sparking institutional interest in crypto, says WonderFi CEO Dean SkurkaDespite higher costs brought about by regulations, financial institutions are showing more engagement with crypto assets. Skurka notes a rise in trading by institutional players on WonderFi exchange, particularly in the over-the-counter (OTC) segment. While some exchanges left due to regulations, WonderFi sees benefits and aims to consolidate the market. Skurka expects this trend to continue as Canada's crypto infrastructure develops.
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