The 5 Crypto Stories You Need to Know This Week (1 May 2023)

Powered by ACX - The Crypto-specialized Customer Support and Compliance Support Provider

1. Coinbase Files Action Against SEC; Responds to Wells Notice

Coinbase filed an action in federal court to compel the SEC to respond to their July 2022 petition asking the SEC to provide guidance for the crypto industry.

In a blog post, Coinbase Chief Legal Officer Paul Grewal claimed that the exchange’s July 2022 petition seeking regulatory guidance for the industry has attracted the support of over 1,700 entities and individuals.?

However, despite the SEC's enforcement actions and public statements, they have yet to formally respond to Coinbase's petition. The legal action aims to compel the SEC to share its decision.

The actual legal action document is available to read here.?

Meanwhile, Coinbase responded to the Wells Notice it received from the SEC late last month, signaling the regulator's intention to pursue enforcement action against the exchange.?

As we noted at the time, the notice surprised many in the crypto community, and the implications of this ongoing conflict could have far-reaching consequences for the industry.?

Definitely a development to follow.

2. HK Central Bank Tells Banks Not to Discriminate Against Crypto

Opening a bank account is a challenge for crypto companies globally and Hong Kong is no exception.

In a very positive step, Hong Kong’s central bank reminded banks not to discriminate against crypto companies, stating:?

“To this end, in recent months we have actively discussed with banks and reminded them that there is no legal and regulatory requirement prohibiting banks in Hong Kong from providing banking services to virtual assets (VA) related entities.?

We have also reminded banks to adhere to a “risk-based approach” when conducting customer due diligence (CDD) and avoid unnecessary processes, and refrain from adopting a “one-size-fits-all” approach to reject account opening applications.”

This is another positive step for HK as the city tries to reclaim its role as a global crypto hub.

This came on the back of the news that Hong Kong’s Securities and Futures Commission intends to publish guidelines on its licensing regime for crypto exchanges in the coming month.

Join My WhatsApp Community

Interested in getting my daily curated crypto news updates? And hearing my point of view on these developments?

You can join the WhatsApp Announcement Group community here:

3. FDIC Cites Poor Management and Crypto Ties for Signature Bank Collapse

The FDIC stated that poor management was the primary reason behind last month’s collapse of Signature Bank.

Many in crypto and legal circles will likely criticize this report as many believe that the real reason behind the closure was the close links Signature Bank had with the crypto industry.

4. FBI Raids Home of Former FTX Executive

The FBI searched former FTX executive Ryan Salame’s Maryland home.

Salame was once co-CEO of FTX Digital Markets, the exchange's sprawling Bahamas operation, becoming one of Sam Bankman Fried’s (SBF) closest advisors alongside former Chief Technology Officer Gary Wang and former Head of Engineering Nishad Singh, each of whom is cooperating with federal prosecutors.?

According to the New York Times, investigators are looking into the $24 million in political donations that Salame made during the 2022 U.S. midterm elections, alleging that the majority of the total $90 million donated by ex-FTX employees was taken from customer funds.

5. Standard Chartered’s Spin-Off Crypto Custody Unit Raises $36 Million

Zodia Custody, the crypto-focused subsidiary of Standard Chartered, raised $36 million as it pursues international expansion.

According to Bloomberg, SC Ventures, the venture arm of Standard Chartered, and Japanese conglomerate SBI Holdings provided the bulk of the capital.

This is another example of TradFi firms investing in infrastructure plays relating to digital assets.?

Found this content useful? Make sure to subscribe!

Powered by ACX

ACX is the world’s first crypto-specialized customer support, compliance support, and community management provider.

ACX enables crypto platforms to offer 24/7 customer support and compliance support to their clients in multiple languages, from Spanish and French to Turkish and Arabic, by actual human agents that are advanced trained not only in crypto but also in customer experience and crypto compliance.

Want to enhance your crypto compliance function whilst reducing costs? Want to offer 5-star and differentiating crypto customer support to your clients?

ACX can help. www.acxinternational.com

Listen to My Latest Podcast Episode

Was shutting down Signature Bank illegal? Was there a breach of regulatory and statutory obligations by regulators? A law firm thinks so.

Some lawyers think that the actions of regulators as part of “Operation Choke Point 2.0” breach constitutional due process clauses and their regulatory and statutory obligations.

An exclusive interview with Cooper & Kirk PLLC Managing Partner David Thompson.

Some of the topics discussed include:

• Why he believes there was regulatory harassment of financial institutions and bank executives
• What was Operation Choke Point 1.0, and how is it different from 2.0?
• How should due process apply in such cases?
• What statutory obligations do regulators have in such cases?
• Why do banks never take legal action against regulators in such cases?
• Is a coordinated action by the Federal Reserve, the OCC and the FDIC against the crypto industry legal?
• What legal options do these banks and crypto firms have in response to these actions?

You can download or watch the full episode here:

Apple: https://apple.co/3KxszSU

Spotify: https://spoti.fi/3MiS77O

Google: https://bit.ly/3nJrXRp

Youtube: https://bit.ly/40E153z

Enjoyed this content? Make sure to subscribe or share it with a friend! A new Future of Money newsletter will be in your inbox each week!

See you all next week!!?

Henri Arslanian

*Please note that this newsletter reflects Henri’s personal views and not those of any organisation he is involved with. This newsletter is for educational purposes only and none of its content should be construed as investment or financial advice of any kind.?

Who is Henri?

Henri Arslanian is the co-founder and managing partner of Nine Blocks Capital Management, an institutional-grade hedge fund focused exclusively on digital assets, with a market-neutral crypto fund focused on generating alpha from inefficiencies in crypto markets using relative value, arbitrage, and quantitative strategies.?

Henri was previously a partner and global crypto leader at PwC. In that role, he advised many of the world’s leading crypto exchanges, investors, financial institutions, and tech firms on their crypto initiatives and numerous governments, regulators, and central banks on crypto regulatory and policy matters.

With over 500,000 LinkedIn followers, Henri is a TEDx and global keynote speaker, a best-selling published author, and is regularly featured in global media, including Bloomberg, CNBC, CNN, BBC, The Wall Street Journal, The Economist, and the Financial Times.?

Henri was named by LinkedIn as one of the 2022 global Top Voices in Finance and is the host of the CryptoCapsules? social media video series as well as The Future of Money podcast and newsletter.