The European Banking Authority (EBA) issued a new set of cryptocurrency guidelines on Wednesday, July 12, 2023, to take effect next year. It comes after the European Union, in April this year, approved the “Markets in Crypto Assets Regulation” (MiCAR) for trading in Bitcoin, Ether, stablecoins, etc.
Wednesday’s new guidelines include provisions for permanent redemption rights and handling of complaints as EBA expects more issuance of stablecoins.
Meanwhile, the UK Financial Conduct Authority (FCA) has cracked down on unauthorised crypto ATMs, where users sell Bitcoin and Ethereum for cash. FCA has warned ATM operators to comply with its regulations aimed at preventing money laundering and other financial crimes. Enforcement agencies, including FCA, have shut down 26 out of 34 ATMs following investigations this year.
In another development, the European Securities and Markets Authority has clarified the separation of customer money and company money for the crypto asset service providers (CASPs) in draft rules to avoid a repeat of the FTX fiasco.
South Korea Mandates New Crypto Disclosures
South Korea’s Financial Services Commission (FSC) announced new crypto guidelines mandating the disclosure of a new set of information, including the number and value of crypto tokens held, the company’s business models, internal accounting policies related to crypto sales and profits, etc. These changes would take effect from January 2024.
REI Network Joins Hands With Carbon Browser
Open blockchain platform REI Network and web browser Carbon Browser have joined hands to boost blockchain privacy and adoption in a decentralized world. The partnership will see the integration of REI features with Carbon’s privacy-focused browser.
Celsius Takes Legal Action Against Stakehound
Cryptocurrency lender Celsius has dragged StakeHound, a liquid staking platform, to court, alleging failure to pay around $150 million worth of crypto tokens, including Ethereum (ETH), Polkadot (DOT), and Polygon (MATIC).
The allegation is that Celsius provided ETH, MATIC, and DOT tokens to StakeHound in 2020 and 2021, for StakeHound’s ‘stTokens’. But it discontinued its staking activities in June 2021. Celsius has asked StakeHound to return its property and pay the damage and lawyer fees in exchange for stTokens. StakeHound argues that it has no obligation to return ETH for stTokens.
The dispute shows the challenges in the complex crypto space. The outcome of the legal case is yet to be seen, but it surely would be worth watching to understand its impact on the crypto community.
