Last week I wanted to do something different, but it was all about FTX. The Supreme Court of the Bahamas has authorized his two interim liquidators of PricewaterhouseCoopers to oversee the assets of the country-headquartered cryptocurrency exchange. A few days later, the Bahamas Securities Commission ordered that FTX Digital Markets’ digital assets be transferred to digital wallets owned by the Commission to protect “the interests of clients and creditors.”
Turkey’s Financial Crimes Investigation Service has become the latest agency to join the FTX bankruptcy investigation. The regulator also noted that it had been monitoring FTX’s activities in accordance with the country’s anti-money laundering (AML) laws. Meanwhile, authorities in the United States and the Bahamas are reportedly discussing the possibility of extraditioning the company’s former CEO, Sam Bankman-Fried, to the United States for questioning.
Given the possibility of an extradition, law firm Paul, Weiss’ abandonment of representing the interests of entrepreneurs does not look optimistic. The reason behind the withdrawal was a series of cryptic tweets by SBF that, according to his former attorney Martin Flumenbaum, were “constantly disruptive” and negatively impacted FTX’s restructuring efforts. I was.
It will certainly be interesting to hear Bankman-Fried speak before Congress, and the invitation has already arrived. The U.S. House Financial Services Committee has scheduled his December hearing aimed at investigating the collapse of cryptocurrency exchange FTX and its “broader impact on the digital asset ecosystem.” ” The committee expects to hear from individuals and companies involved in the event. This could include not only SBF, but also his Changpeng Zhao, the CEO of Binance.
New York Fed launches CBDC pilot program with major banks
The Innovation Center at the Federal Reserve Bank of New York has launched a 12-week proof-of-concept pilot. Central Bank Digital Currency (CBDC)Large banks such as BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, US Bank, Wells Fargo, etc. issue tokens and settle transactions through simulated central bank reserves to Join the pilot. Proof-of-concept projects will test the “technical feasibility, legal feasibility and business applicability” of distributed ledger technology, simulate tokens and explore regulatory frameworks.
Russian bill could legalize cryptocurrency mining
A new bill introduced in the Russian State House, the lower house of parliament, legalizes cryptocurrency mining and the sale of mined cryptocurrencies. Duma Financial Markets Committee Chairman Anatoly Aksakov told local media that he expects the bill to pass all three parliamentary sessions in December and enter into force on February 1. Other sources say the bill will become law on January 1. If the law is passed, it will set up a platform for cryptocurrency sales and allow Russian miners to use foreign platforms. In the latter case, Russian currency controls and regulations do not apply to the transaction, but it must be reported to the Russian tax authorities.
South Korea probes crypto exchanges to list native tokens
South Korea’s financial authority, the Korea Financial Intelligence Unit (KoFIU), has launched an investigation into a cryptocurrency exchange in connection with the listing of its self-issued token. South Korean cryptocurrency exchanges are banned from issuing native tokens, but KoFIU’s investigation aims to comply with regulations for the safety of investors. Flata Exchange is one of the prime suspects and is under investigation for listing its in-house token, FLAT, in January 2020, local media outlet Yonhap reports. Major exchanges such as Upbit and Bithumb have been approved by the regulator, and investigations will focus on smaller exchanges.