SEC
SEC typically refers to U.S. Securities and Exchange Commission which "protects investors in the $3.8 trillion municipal securities markets that cities and towns rely on to provide neighborhood schools, local libraries and hospitals, public parks, safe drinking water and so much more". But it can also refer to the security and exchange regulation bodies of other countries.
Coinbase reassures customers on staking services amid SEC crackdown
Despite the SEC's crackdown on staking services provided by centralized providers, Coinbase has informed its customers that its staking services will continue and may even increase. Coinbase has updated its staking terms and conditions, stating that users earn rewards from decentralized protocols, not from the exchange itself. The SEC has expressed concerns over users losing control of their tokens when using staking programs. Coinbase has argued that its staking services are fundamentally different from competing exchanges like Kraken.
SEC Revokes License of ParagonCoin Crypto Startup
ParagonCoin, a crypto startup backed by rapper The Game, had its license revoked by the SEC for violating securities laws by failing to file periodic reports. The startup had held a $70 million initial coin offering in 2017, and in 2021, was found liable for more than $12 million in a class-action lawsuit. Meanwhile, other rappers like Snoop Dogg and Eminem are entering the Web3 space with NFTs and new startups.
Thailand SEC Considers Ban on Crypto Staking and Lending
Thailand's SEC is seeking public comments on a draft regulation that would ban virtual asset service providers from offering or engaging in any crypto staking or lending activities.
Nigerian President-elect's Manifesto Includes Blockchain and Crypto Regulations
Nigerian President-elect Bola Tinubu has released a manifesto proposing the implementation of blockchain technology and cryptocurrencies in Nigeria's banking and finance sector. The manifesto suggests reforming existing Nigerian Security Exchange Commission regulations to create a more business-friendly framework for regulating digital assets. The proposed regulations would require digital asset companies to register with the SEC and comply with SEC regulations. The release of the manifesto coincides with the increasing adoption of cryptocurrencies in Nigeria, with the government hoping that the proposed SEC regulation reforms will attract more investors in the digital and economic sectors and stimulate economic growth.
BaFin Declines to Classify NFTs as Securities, Recommends Case-by-Case Approach
The Federal Financial Supervisory Authority of Germany (BaFin) has stated that it is not yet prepared to classify non-fungible tokens (NFTs) as securities. While NFTs may be considered investments in certain cases, BaFin suggests that classification should be approached on a case-by-case basis. The lack of immediate exchangeability and standardization makes it unlikely that NFTs will be classified as crypto assets. However, if an NFT contains documentation of exploitation rights or ownership, it could be considered an investment. BaFin does not expect NFTs to comply with the licensing requirements of the Payment Services Supervision Act or fall under its Anti-Money Laundering supervision, except for NFTs that are considered "crypto assets."
Safeheron Discovers Security Flaw in MPC Wallets
Safeheron has identified a security flaw in MPC wallets when used with Starknet-based apps like dYdX and Fireblocks. The flaw allows attackers to bypass the security protection of private keys in MPC wallets, potentially leading to unauthorized transactions.
Algorand Wallets Hacked Again
Algodex warns of a security breach on March 5, while MyAlgo urges users to withdraw assets or rekey funds following a February hack.
Hong Kong Suffers Surge in Crypto Scams in 2022
Hong Kong police reported a surge in crypto-related scams in 2022, with losses amounting to HK$1.7 billion ($216.6 million), up 106% from the previous year. The number of crypto-related scam cases reported in Hong Kong also surged by 67% from 2021. Such scams accounted for over 50% of the HK$3.2 billion ($407 million) stolen from city residents in technology crimes. The Hong Kong police CyberDefender website reported almost 23,000 cases of technology-related crimes in 2022. The use of cryptocurrency has made it more complicated for enforcement to track criminal funds, as fraudsters can hide their identities, transactions, and final destination.
Binance pivots to stablecoins after SEC regulatory action
Binance, the largest cryptocurrency exchange by trading volume, has turned to alternative stablecoins such as TrueUSD (TUSD) and decentralized stablecoins, following a regulatory action against its native stablecoin, Binance USD (BUSD), by the US Securities and Exchange Commission (SEC). Binance was forced to seek alternatives after the New York Department of Financial Services (NYDFS) asked BUSD issuer Paxos Trust to stop minting new BUSD altogether.
Ripple CEO Warns SEC's "Enforcement" Approach May Hurt US Crypto Industry
Ripple CEO, Brad Garlinghouse, has suggested that the US Securities and Exchange Commission's (SEC) approach to regulation is putting the US at risk of missing out on being an attractive hub for the next evolution of blockchain and crypto innovation. Garlinghouse noted that the SEC's case against Ripple is the SEC simply playing "offense" and "attacking" the industry as a whole. He added that the crypto industry has "already started moving outside" of the US given its crypto regulation process is "behind" other countries such as Australia, UK, Japan, Singapore, and Switzerland.