Daily Crypto News | December 16th, 2022
Welcome to Barmy’s Daily Crypto News – December 16th, 2022
1. Australian regulator sued Finder.com over its crypto yield product
The Australian financial services regulator is suing financial product comparison website Finder.com for allegedly providing a bitcoin yield-bearing instrument without the necessary authorization.
It follows proceedings against Block Earner in November as the regulator’s second local target for a crypto income product.
On December 15, the Australian Securities and Investments Commission (ASIC) filed a lawsuit against Finder.com subsidiary Finder Wallet, a locally regulated exchange for digital currencies.
ASIC claimed that the Finder Earn product was an illegal financial product and that Finder Wallet had violated rules governing product disclosure and the targeted distribution of financial products.
2. Crypto.com received Brazilian EMI license
A Payment Institution License (EMI) has been granted to Crypto.com by Banco National do Brasil, the country’s central bank. According to a statement on the business’ website, the license would let it to “continue providing regulated fiat wallet services for customers in Brazil.” Since the beginning of the year, Crypto.com has made a Visa card available in Brazil for bitcoin and fiat purchases.
Recently, the website of the Singapore-based cryptocurrency exchange received a proof-of-reserves page. According to the release, it has recently acquired authorization in a number of nations, including France, the United Kingdom, and South Korea. Additional jurisdictions, like Singapore, Dubai, and Ontario, have granted it interim clearance.
In the meantime, the Brazilian Securities and Exchange Commission is pushing for legislative modifications to expand its regulatory authority. After several years of deliberation, the nation’s first cryptocurrency regulation law was enacted in April.
3. Dutch central bank warns investors using KuCoin
De Nederlandsche Bank, the Dutch central bank, has issued a warning to investors using KuCoin, claiming the exchange is functioning illegally.
The central bank declared on December 15 that MEK Global Limited, or MGL, which operates as KuCoin in the Netherlands, was in violation of the laws governing AML/CFT (anti-money laundering and countering the financing of terrorism). The cryptocurrency company was “illegally offering services” and “illegally offering custodial wallets,” according to De Nederlandsche Bank.
KuCoin was introduced in 2017 and has operations across the majority of the world’s nations. Its headquarters are in Seychelles. Due to the decline in the cryptocurrency market and the demise of FTX, KuCoin has come under investigation from lawmakers and regulators as a significant crypto exchange. In July, the exchange’s CEO Johnny Lyu denied allegations of insolvency, and the company offers users proof-of-reserves information.
4. New York State released detailed guidelines for banks seeking to engage in activities with crypto
On December 15, the New York state Department of Financial Services (DFS) published guidelines for authorized banks looking to participate in virtual currency activities. The advice outlines the application procedure and “summarizes the types of information the Department considers relevant” for getting the agency’s approval. It became effective right away.
The document stated that approval was necessary 90 days before beginning any actions. A prior activity’s approval “does not constitute general consent” for subsequent ones, and some actions taken by outside service providers would also need the agency’s authorization.
Additionally, the statement that accompanied the guideline advised institutions already involved in virtual currency activities to get in touch with their points of contact at the agency right now.
When it issued its so-called BitLicense in 2014, New York became one of the first states to license cryptocurrency-related activity. When it established the regulations in June, it also made the claim that it was the first state to implement stringent guidelines for stablecoin reserves and redeemability. Under additional authority given to the agency in April, the state proposed in December introducing an annual assessment fee for regulated crypto companies.
5. To recover “mistakenly sent” ERC-20 tokens, Coinbase has released a tool
By supplying “the Ethereum TXID for the transaction where the asset was lost and the contract address of the lost asset,” users who deposited any of the nearly 4,000 ERC-20 tokens to a Coinbase address can retrieve their previously unrecoverable payments, according to a Dec. 15 release from Coinbase. The exchange announced that certain ETC-20 coins, such as Wrapped Ether (wETH), TrueUSD (TUSD), and staked Ether (STETH), would be subject to recovery with a 5% fee on transactions above $100.
Since nearly the inception of the cryptocurrency industry, many consumers have dealt with funds that were delivered in error. A Canadian court determined in 2018 that a user who received 530 Ether instead of the now-defunct Copytrack (CPY) tokens was compelled to refund them.
Other significant exchanges appear to provide recovery for comparable transactions on an individual basis. In its support pages, Binance stated that it “does not offer a token/coin recovery service” and that it may decide to help users “solely at its discretion.” Users were advised to get in touch with Crypto.com’s customer service team and were warned that “money retrieval may not be possible in some circumstances.”
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