Payment Expert’s Blockchain Bulletin analyses how the world of blockchain is constantly evolving and having a major impact on the payment industry, with cryptocurrencies, NFTs and the metaverse revolutionising the space.
This week, the US Securities and Exchange Commission (SEC) sued Binance and Coinbase as the country prepares for a milestone battle between regulators and exchanges, whilst Coincover spoke to Payment Expert on best crypto security practices as well as their thoughts on the UK’s impending crypto bill.
Binance violated an alleged 13 charges in SEC lawsuit
The world’s largest crypto exchange Binance has not one, but two lawsuits from US regulators to contend with as on Monday, the SEC announced it was suing the exchange after allegedly violating 13 civil financial laws.
The basis of SEC’s allegations stem from Binance circulating unbacked and unregistered securities, pertaining to its BNB and BUSD tokens, as well as rerouting billions of investor dollars, acknowledgement of conflicts of interest, lack of disclosure and a “calculated evasion of the law”.
Binance stated it will ‘vigorously defend’ itself from SEC claims against the company and highlighted its other battles with other exchanges as an example of the agency’s unclear regulatory standards when it pertains to crypto regulation.
SEC sues Coinbase, claims it is an ‘unregistered exchange’
The second exchange this week the SEC came down on was Coinbase, after months of investigation notices and other lawsuits, the financial regulator filed the lawsuit claiming Coinbase was an unregistered exchange.
Similar to Binance, SEC alleges Coinbase was circulating unregistered securities and acting as a trader and broker without a licence for all. Coinbase filed its own lawsuit against the SEC after months of asking for clear regulatory guidance in which the exchange alleges the agency did not comply.
It remains to be seen whether Binance and Coinbase will win the battle against the SEC or whether the SEC is able to enact its authority upon crypto exchanges within the country, one thing is for certain, and it is that the landscape of the crypto market in the US will drastically alter over the next several years.
Coincover Director believes crypto regulation will lead to more secure market
Following the high-profile collapses of FTX and TerraLuna last year, crypto security has been the utmost priority for policymakers across the world when it comes to establishing a regulatory framework around crypto and digital assets.
Katharine Wooller, Business Unit Director at Coincover, spoke to Payment Expert on the company’s reaction to the UK’s recent consultation into crypto regulation as well as best practices for firms protecting customers’ digital assets.
CryptoUK heaps praise on APPG’s holistic view of UK crypto sector
The inaugural report from the Crypto & Digital Assets APPG has been praised by CryptoUK for presenting a ‘holistic view on the UK sector’.
In total, the report makes 53 recommendations to the Government, and takes a specific look at the regulatory framework for the crypto sector, in order to harness innovation and growth in the UK.
Ian Taylor, Board Advisor at CryptoUK, stated: “The report recognises the significant growth of the sector in the UK and the tremendous opportunity it presents for the country’s economy and reputation as a leader in financial innovation.
Swift deepens its blockchain project through further collaborations
Swift is enhancing its exploration into blockchain technology, as it increases collaboration with partners and institutions to drive developments in the space.
The move comes at a time when cross-border payments take on significant importance at a time of economic strain.
Tom Zschach, Chief Innovation Officer, Swift, commented: “There’s unlikely to be a single prevailing blockchain network. We would expect to see a multitude of different platforms emerging, each serving different customer segments with their own bespoke capabilities and requirements.