Headlines

▌DBS plans to apply for a license to offer cryptocurrencies in Hong Kong

DBS Group plans to apply for a license that will allow it to offer cryptocurrencies to customers in Hong Kong. DBS Bank (Hong Kong) CEO Sebastian Paredes said at a briefing in Hong Kong on Monday: "We are planning to apply for a license in Hong Kong so that we can sell digital assets to Hong Kong customers." “Hong Kong remains committed to becoming a regional cryptocurrency hub”, said Paul Chan, Financial Secretary of Hong Kong expressed last week.

Policies

▌A new EU draft law stipulates that EU banks must impose the greatest possible risk weight on encrypted assets

According to a draft law published by the European Parliament on Friday, EU banks must impose the greatest possible risk weight on encrypted assets. The planned rules could determine how the traditional financial sector participates in digital assets. According to the draft, banks will have to disclose their direct and indirect exposure to cryptocurrencies, while the European Commission develops more granular rules for the industry. In an explanatory text, the Parliamentary Committee on Economic and Monetary Affairs said: "The growing likelihood of (financial) institutional involvement in crypto-asset-related activities should be adequately reflected in the EU prudential framework to adequately mitigate the impact of these instruments on institutional financial stability. This is all the more urgent given recent adverse developments in the crypto asset market.”

Cryptocurrency

▌Coinbase CEO Visits Washington DC to Push for Regulatory Clarity

Coinbase CEO Brian Armstrong tweeted that after regulators took enforcement actions against Kraken and Paxos this month, uncertainty in the industry has increased. He visited Washington, DC today to push for clearer rules. He said: "'I'm in Washington and there's a meeting that's been canceled and for the next hour or so we'll be at the Dirksen Senate Office Building dining bar and welcome to talk about crypto and how we're getting crypto legislation and regulatory clarity this year degrees. This place is a 'carb center' and needs more 'low sugar' options."

▌Judge approves deferral of CFTC’s civil action against SBF until after criminal case ends

A judge has granted U.S. prosecutors’ request to the U.S. Commodity Futures Commission (CFTC) to delay filing a civil lawsuit against SBF. In a filing last week, prosecutors asked a judge to delay a civil fraud lawsuit brought by the Securities and Exchange Commission (SEC) and CFTC against SBF until its criminal charges are concluded. Prosecutors said suspending the civil case would save time and resources because the outcome of the criminal case "could have a significant impact on issues that ultimately are at issue in the civil case." A request to postpone the SEC's civil action is still pending. According to previous news, SBF has agreed to suspend the trial of the civil case, as have lawyers for FTX and Alameda's other executives Gary Wang and Caroline Ellisone, as well as lawyers for FTX.com and the Alameda bankruptcy estate. Additionally, SBF has pleaded not guilty to criminal fraud charges against him. The criminal case will begin in October.

▌Paxos disagrees with the US SEC regarding BUSD as a security, and stated that it will file a lawsuit if necessary

According to a press release on Monday, stablecoin issuer Paxos acknowledged that it had received a notice from the U.S. Securities and Exchange Commission (SEC), indicating that it may take enforcement action based on its allegations that Binance USD constitutes an unregistered security. BUSD is a U.S. dollar-pegged stablecoin owned by Binance. But the company said it “categorically disagrees with the SEC staff because BUSD is not a security under the federal securities laws.” The company also claims that Paxos is “always backed 1:1 by USD-denominated reserves, fully segregated and held in Insolvency Remote Account” and said the company was “prepared to vigorously pursue litigation if necessary.” Additionally, Paxos stated that the notice was only for BUSD and that Paxos has received no other allegations. According to previous news, Paxos stated that it will stop issuing new BUSD tokens under the direction of the New York Department of Financial Services (NYDFS).