Stay in the loop with our weekly crypto digest as we get you up to speed on the hottest trends and events in the crypto space.
Here’s what happened in crypto this week:
Visa has released a product to help financial institutions issue fiat-backed tokens on blockchain networks. The Visa Tokenized Asset Platform (VTAP) is available on Visa’s development platform to allow its banking partners “to create and experiment with their own fiat-backed tokens in a VTAP sandbox.”
Vanessa Colella, Global Head of Innovation and Digital Partnerships at Visa, said that the company has been at the forefront of digital payments for nearly sixty years, and with the introduction of VTAP, they are once again setting the pace for the industry.
Vanessa added that they are now eager to leverage their extensive experience with tokenization to help banks integrate blockchain technologies into their operations.
Coinbase To Delist Unauthorized Stablecoin In The EU
Coinbase will delist stablecoins that do not comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA) by the end of 2024. The move comes as the EU tightens control over the crypto sector, and firms like Coinbase adjust their offerings to meet the new standards.
Coinbase recently confirmed that its European Economic Area (EEA) users will no longer have access to stablecoins that do not meet the regulation’s requirements. However, they will have the option to convert their holdings to compliant stablecoins.
While Circle, the issuer of USD Coin (USDC) and Euro Coin (EURC), secured an Electronic Money Institution license in July 2024, becoming the second-largest stablecoin issuer in the region, Tether (USDT)—the largest stablecoin issuer—has not yet obtained the necessary license.
HBO Documentary Claims Peter Todd Is Satoshi Nakamoto
A new HBO documentary that recently aired this next week claims it may have uncovered the true identity of Bitcoin’s enigmatic creator, Satoshi Nakamoto.
Titled “Money Electric: The Bitcoin Mystery,” leaked clips from the documentary claim former Bitcoin developer Peter Todd is the cryptocurrency’s creator. However, Todd denies this.
Peter Todd is known for his contributions to Bitcoin’s development and as the founder of OpenTimestamps, making him a respected figure in the crypto space.
Coinbase Reinforces Interlocutory Appeal In SEC Suit Citing Ripple Case
Coinbase has asked the judge in its SEC lawsuit to approve an interlocutory appeal, or an appeal granted before the case is decided after the SEC appealed the ruling in its separate case against Ripple Labs.
Coinbase seeks to ensure the Second Circuit has “as complete a picture as possible” by presenting its case for appeal around the same time as the SEC’s appeal in the Ripple case.
Coinbase’s original request for an interlocutory appeal was filed in early April. It requested that the Second Circuit of Appeals be allowed to review a key question in the case: how the Howey Test, the traditional standard for what counts as a security based on a 1946 Supreme Court ruling, applies to digital assets.
UAE Removes Taxes For All Crypto Transactions
The UAE’s Federal Tax Authority (FTA) has published amendments to the Executive Regulation of Federal Decree-Law No. 8 of 2017, which regulates Value Added Tax (VAT).
The changes will come into effect on November 15th, following Cabinet Decision No. (100) of 2024, introducing VAT exemption for transferring and converting virtual assets, including cryptocurrencies.
PwC noted that the exemptions in the transfer and conversion of virtual assets will be applied retrospectively from January 1st, 2018. The auditing firm explained that in the UAE, virtual assets are defined as a “representation of value that can be digitally traded or converted and can be used for investment purposes.” However, the definition does not include fiat currencies or financial securities.
Robinhood Chief Legal Officer Dan Gallagher, A Leading Contender For SEC Chair If Trump Wins The Election
According to Politico, Robinhood’s Chief Legal Officer Dan Gallagher emerged as the favorite to replace US Securities and Exchange Commission (SEC) Chairman Gary Gensler if Donald Trump is again elected president in November.
Moreover, they note that Trump is eyeing the switch, according to regulators, lobbyists, and securities lawyers. Gallagher previously served as the SEC commissioner between 2011 and 2015.
FTX Receives US Bankruptcy Court Confirmation To Fully Repay Customers In Cash With Interest
Defunct crypto exchange FTX has received court approval to execute its bankruptcy plan, refunding customers up to $16.5 billion in recovered assets.
According to the plan, FTX will first focus on repaying its clients before it tends to the demands of the American regulators. The exchange intends to refund 98% of clients who had $50,000 or less on the platform by the 60th day after implementing the plan. The repayment schedule has not yet been established.
Hong Kong To License More Crypto Exchanges By End Of The Year
According to a local media report, Hong Kong’s financial regulator has granted its third license under the new crypto trading platform licensing regime and aims to approve more platforms on the “deemed-to-be-licensed” list by the end of this year.
In a recent interview with a local news website HK01, Julia Leung, chief executive of the Hong Kong Securities and Futures Commission (SFC), said the regulator has approved HKVAX to operate as a crypto exchange in Hong Kong, following earlier approvals for OSL and HashKey.
Leung said 11 platforms are on the SFC’s list of deemed-to-be-licensed virtual asset trading platform applicants. The regulator has completed the first stage of onsite inspections and asked these applicants to make necessary adjustments.
Major crypto exchange Crypto.com announced that it had initiated a lawsuit against the SEC, claiming that it overstepped its authority by claiming most crypto transactions are securities while excluding similar transactions with Bitcoin and Ethereum.
Crypto.com also petitioned the CFTC and SEC for clarity on crypto derivatives, aiming to challenge the SEC’s alleged arbitrary classification of crypto transactions as securities.
It is worth noting that Crypto.com is not the only company the commission has targeted for potential violations of unregistered securities offerings. Robinhood, Uniswap, Consensys, and OpenSea received Wells notices earlier this year.
Canary Capital Files For A Spot XRP ETF With The SEC
Canary Capital has filed with the SEC for a spot XRP exchange-traded fund (ETF), following Bitwise’s similar move last week. The ETF aims to provide investors access to XRP through traditional brokerage accounts, minimizing barriers and risks associated with direct acquisition.
Notably, Steven McClurg, founder and CEO of Canary Capital, noted a more favorable regulatory environment and increased investors’ demand for cryptocurrencies beyond Bitcoin (BTC) and Ethereum (ETH).
The SEC has not previously approved a spot XRP ETF and is currently involved in a legal dispute with Ripple over XRP’s classification as an unregistered security.
FBI Created Its Own Crypto Token To Take Down 18 Suspects For Fraud And Market Manipulation
The US Federal Bureau of Investigation (FBI) has exposed an alleged widespread crypto market manipulation scheme involving 18 individuals and four major crypto firms. The case’s investigation saw the agency launch its own Ethereum-based token called NexFundAI.
The indictment, unsealed in a Boston federal court, alleges that the defendants engaged in “wash trading” and other deceptive tactics to inflate the value of various crypto tokens.
Wash trading is an artificial trading activity that misleads investors. In this type of trading, the same entity buys and sells an asset to create the illusion of high demand. The FBI’s token was launched to infiltrate firms offering market manipulation services.
US CPI Inflation Falls To 2.4% In September, Higher Than Expectations
Data: 2.4% YoY, 0.2% MoM
Forecasted: 2.3% YoY, 0.1% MoM
Last Month: 2.5% YoY, 0.2% MoM
According to the US Bureau of Labor Statistics (BLS), inflation in the US, as measured by the change in the Consumer Price Index (CPI), declined to 2.4% on a yearly basis in September from 2.5% in August. This reading came in above the market expectation of 2.3%. On a monthly basis, the CPI rose 0.2%, matching August’s increase.
The core CPI, which excludes volatile food and energy prices, rose 3.3% on a yearly basis, coming in above the August reading and the market forecast of 3.2%. The monthly core CPI was up 0.3% in September.
Final Thoughts
So that’s it for this week!
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Have a fantastic week ahead!
