Several major financial firms are collaborating to test the benefits of shared-ledger technology for jointly settling tokenized assets like commercial bank money and various securities. The initiative, known as the Regulated Settlement Network, is a proof-of-concept designed to expedite and secure cross-border transactions using a singular system for tokenized assets. This trial is an extension […]
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Venezuelan State Oil Company to Accelerate USDT Adoption for Settlements; Tether Vows to Uphold OFAC Sanctions
PDVSA, the state-owned Venezuelan oil company, would be preparing to migrate more of its payments portfolio to USDT, a dollar stablecoin, to avoid being affected by the restitution of U.S. sanctions. Reuters reported that the company started receiving payments in USDT last year and will accelerate its adoption. Tether, nonetheless, stated it will uphold OFAC […]
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BRICS Bloc Mulls Stablecoins, CBDC-Based System for International Settlements
Russian Deputy Foreign Minister Sergey Ryabkov revealed that the BRICS bloc has been considering the use of stablecoins for its common rail payment systems. In an interview with TV BRICS, Ryabkov stated that the use of stablecoins and a connection linking the CBDCs of the participants were studied as part of the integration processes of […]
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Bank of Russia Supports Cryptocurrency Usage for International Settlements
The Bank of Russia has announced that it will support accelerating the adoption of cryptocurrency payments for international settlements. According to Elvira Nabiullina, governor of the Bank of Russia, these crypto-based payments must be launched in a sandbox-style experimental regime. In contrast, payments with national digital assets will be launched without similar precautions. Bank of […]
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BIS Announces Project Agorá: Central Banks Bet on Tokenization for Cross Border Settlements
The Bank for International Settlements, the central banks’ bank, announced the launch of Project Agorá, a joint private-public initiative seeking to examine the potential benefits of tokenization for improving cross-border settlements. Agorá includes the participation of seven central banks and private institutions to be convened by the Institute of International Finance (IIF). BIS to Explore […]
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Crypto Lender Genesis Agrees to $21 Million SEC Fine, Funds to Await Bankruptcy Claim Settlements
Genesis Global Capital has settled with the U.S. Securities and Exchange Commission (SEC) and agreed to pay a million civil penalty. The SEC further disclosed that the regulator will “not receive any portion of the penalty until after payment of all other allowed claims by the bankruptcy court, including claims by retail investors in […]
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Russia Regulates Use of Digital Assets for International Settlements
Russia has integrated the use of digital assets as payment for international transactions in its legislation. President Vladimir Putin signed into law a document that describes using these assets as payment for international settlements, a use case not contemplated in any law, appointing the Central Bank of Russia as the overseer of these transactions. Russia […]
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BRICS Meeting: Iran Pushes for Common Currency — China, Russia Prioritize Settlements in Local Currencies
The first BRICS sherpa meeting with 10 member states has kicked off in Russia with representatives from Brazil, Russia, India, China, South Africa, Saudi Arabia, the United Arab Emirates, Iran, Egypt, and Ethiopia. China, Russia, and Iran are all advocating for the use of national currencies in trade settlements. Iran’s sherpa also expressed hope that a common BRICS currency will soon be operational.
BRICS Meeting With 10 Member States
The first BRICS sherpa meeting for 2024 under the chairmanship of Russia commenced on Tuesday in Moscow, with participation from 10 member states for the first time. In addition to, Brazil, Russia, India, China, and South Africa, the economic bloc is joined by five new nations: Saudi Arabia, the United Arab Emirates, Iran, Egypt, and Ethiopia.
Iran’s sherpa and deputy foreign minister for economic diplomacy, Mehdi Safari, said at the meeting:
In the plans of 2024, I hope that these economic and financial pillars, especially banking and financial issues, payment systems, digital currency, common currency, exchanges with national currencies, etc., will speed up and become operational.
He also stressed the importance of strengthening the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), noting: “I emphasize once again that we in Iran have plans, and will implement the necessary plans, for active and innovative participation in this year’s program.”
Last year, there were reports that the BRICS economic bloc was planning to create a common currency. However, at the group’s leaders summit in August last year in Johannesburg, South Africa, the BRICS nations pushed for the use of national currencies to reduce reliance on the U.S. dollar, instead of discussing a common currency.
Russia’s Deputy Foreign Minister Sergey Ryabkov said at the BRICS sherpa meeting on Tuesday: “In line with the decision of the BRICS leaders in Johannesburg, we will explore ways to make greater use of national and local currencies and payment instruments in our cross-border transactions in order to reduce the negative side effects of the current global economic system.”
China’s BRICS sherpa and vice minister of foreign affairs, Ma Zhaoxu, similarly stated:
We should implement the leaders’ instructions, promote financial corporation as a strategic priority, expand settlements in local currencies, and strengthen linkage between payment systems.
Moreover, he revealed: “China is considering [the] possibility of launching a BRICS AI development and cooperation center in China.”
Do you think the BRICS nations will create a common currency this year? Let us know in the comments section below.
Coinbase CEO Says Binance Settlements Allow Crypto Industry to ‘Turn the Page’
Coinbase CEO Brian Armstrong says the enforcement action against Binance has allowed the crypto industry to “turn the page.” He emphasized: “There are many, many companies in crypto that are helping build the crypto economy and update our financial system globally. But many of them are still small startups, so I think getting regulatory clarity is going to help bring in more investment in the crypto space.”
Coinbase’s CEO Shares Crypto Industry Outlook
The CEO of cryptocurrency exchange Coinbase (Nasdaq: COIN), Brian Armstrong, discussed the crypto industry outlook following Binance’s settlements with the U.S. Department of Justice (DOJ) during an interview with CNBC on Monday. Noting that there have been “a few bad actors in crypto,” the Coinbase executive said:
The enforcement action against Binance, that’s allowing us to kind of turn the page on that and hopefully close that chapter of crypto history.
“It’s a good moment for us to turn the page as an industry and recognize that building a company offshore, skirting regulation, is just not going to work. We’ve seen that now through these high-profile companies that have really gone bust or ended up with regulatory enforcement actions as they should,” Armstrong continued. The executive added that many companies that sought to establish themselves responsibly, legally, and with trustworthiness from the outset now have the opportunity to grow as they should.
Armstrong also addressed concerns by some that cryptocurrency is being used in illicit activity. “It’s true that there has been some small amount of illicit activity in crypto, but it’s actually about less than 1% from what we’ve seen. If you look at the illicit use of cash, for instance, it’s actually, oftentimes, it’s 3% or 4%. That’s much higher than what’s happening in crypto,” he pointed out. The Coinbase CEO noted:
So we’ve now seen millions of people around the globe … that are using crypto and these are just ordinary people.
He emphasized: “There are many, many companies in crypto that are helping build the crypto economy and update our financial system globally. But many of them are still small startups, so I think getting regulatory clarity is going to help bring in more investment in the crypto space.”
Regarding the U.S. Securities and Exchange Commission (SEC) lawsuit against Coinbase, Armstrong shared: “We feel very good about our case with the SEC and our chances there … this is a civil matter, it’s really just trying to understand the technicality of which assets are commodities, which are securities.” He opined: In the U.S. we have the unfortunate thing of there’s two federal regulators for the commodities and securities.” While reiterating that he believes Coinbase’s chances against the SEC “are very good,” he stressed:
Regardless of the outcome, it’s going to help us with our goal of getting regulatory clarity.
Expressing the view that it would have been preferable for the regulator to publish clear guidance, he suggested that in the absence of that regulatory clarity could come from case law in court or Congress passing legislation.
What do you think about the statements by Coinbase CEO Brian Armstrong? Let us know in the comments section below.
SEC Scores ‘Huge Victory’ in Binance-DOJ Settlements, Former SEC Official Says
The U.S. Securities and Exchange Commission’s former head of internet enforcement has detailed why the SEC is a huge winner in the Binance settlements with the U.S. Department of Justice (DOJ), the Treasury, and other federal authorities. He stressed that what Binance has agreed to could “strengthen” the SEC’s lawsuit against the crypto exchange and its former chief executive.
‘SEC Netted a Huge Victory Against Binance’
Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark explained in a lengthy post on social media platform X Wednesday why the settlements between Binance and U.S. authorities, including the Department of Justice (DOJ), are “a huge SEC victory.” He believes that the Binance settlements contain numerous elements that the securities regulator could leverage to bolster its case in the lawsuit against the crypto exchange and its former CEO, Changpeng Zhao (CZ).
The DOJ, the Treasury Department, the Financial Crimes Enforcement Network (FinCEN), and the Commodity Futures Trading Commission (CFTC) held a press conference on Wednesday to announce the Binance settlements, pleas, and consent orders.
Stark, who founded and served as chief of the SEC Office of Internet Enforcement for 11 years, pointed out that the securities watchdog, particularly Chair Gary Gensler, was “conspicuously absent” from the press conference. Noting that “The SEC appears to be the sole U.S. federal government holdout for a Binance-related settlement,” Stark opined:
The SEC netted a huge victory against Binance … without even filing a court document, without even negotiating a settlement agreement, and without even attending the DOJ/CFTC/FinCEN/Treasury press conference.
The former internet enforcement chief proceeded to outline multiple ways the securities watchdog could benefit from the Binance settlements. “The SEC now has at its disposal a treasure trove of fresh and comprehensive Binance-related inculpatory evidence gleaned from the various pleadings, orders, attachments, and other Binance-related charging documents,” he began, adding that they will “provide formidable cannon fodder for SEC investigators and litigators to strengthen their Binance-related accusations and contentions.”
Binance also agreed on multiple monitorships that will “undoubtedly create extraordinary and unique opportunities for the SEC’s investigative and litigation teams to identify and utilize a perpetual stream of newly discovered inculpatory evidence,” Stark described.
Moreover, Stark noted that Binance agreed on “an astonishing level of cooperation” by the exchange, ex-CEO Changpeng Zhao (CZ), and “every single Binance employee.” He added: “The SEC could use the cooperation requirements as leverage during any investigative or discovery disputes … For instance, Binance and Zhao will not want the SEC to complain to FinCEN, DOJ, Treasury, etc. about a lack of Binance-related cooperation, which could, in turn, result in additional fines, penalties [and] even prison time.”
Binance also agreed to file Suspicious Activity Reports (SARs), Stark continued, adding that “any newly filed Binance-related SARS will likely create a novel and continual flow of salient and compelling leads and inculpatory evidence relating to Binance.” In addition, he stressed that “Going forward, when the SEC makes reference to criminal conduct at Binance during the course of their Binance-related litigation, those characterizations will not be hyperbole, rumor or conjecture. Classifications of Binance-related conduct as criminal behavior will be fact.”
In conclusion, Stark noted that in addition to “the devastating facts alleged in the DOJ indictment against Binance” and “the 92 pages of vast and relentless AML violations” alleged by FinCEN, “the SEC could opt to add claims or facts relating to Binance’s failure to escalate red flags of potentially suspicious activity, as well as failing to adopt an AML program reasonably designed for its business.” The ex-head of internet enforcement concluded:
These new AML-related facts/allegations could not only strengthen the SEC’s case but could also trigger greater fines, penalties and disgorgement.
Do you agree with former SEC internet enforcement chief John Reed Stark that the SEC is a huge winner in the Binance settlements with the DOJ, Treasury, and other federal agencies? Let us know in the comments section below.