Top Headlines
- The United States Commodity Futures Trading Commission (CFTC) filed criminal charges against the heads of BitMEX, one of the largest crypto exchanges, for permitting money laundering and flouting KYC and AML regulations as per the Bank Secrecy Act (The New York Times)
- The charges may spell danger for other decentralized finance operations, as many similar exchanges have made light AML and KYC practices a norm to attract clients due to the anonymity provided (Coin Telegraph)
Cryptocurrency Spotlight:
- The Southern District of New York ruled on Wednesday that the embattled Kik Interactive “Kin” coin offering was done in violation of Section 5 of the Securities Act. Parties are now instructed to file a joint proposed judgment for both monetary and injunctive relief by October 20th (Law Street Media)
- Executives at PwC Global criticized cryptocurrency guidance released by the IRS and other global tax regulators as incomplete and misleading, focusing most heavily on crypto’s designation as “property” which leads to a tax burden when disposed of or used as payment (Bloomberg)
- Twitter CEO Jack Dorsey is publicly criticizing the apolitical stance of crypto giant Coinbase after Coinbase CEO released a public letter to employees reaffirming its avoidance of political and social positions. Dorsey referred to the use of cryptocurrency as “direct activism” against traditional financial systems (Coin Telegraph)
International Spotlight:
- ?? In signs that the European Central Bank is moving forward with the development of its central bank digital currency, the Bank has applied to trademark the phrase “digital euro” (Coindesk)
- ?? In their continued quest to avoid United States sanctions, Venezuela has launched a national stock exchange on the Ethereum blockchain, allowing for Venezuelan citizens to trade stocks, bonds, and other securities (Coindesk)
- ?? British Columbia-based cryptocurrency exchange Netcoins has applied to become the first regulated cryptocurrency exchange in Canada in hopes of attracting clients who may mistrust unregulated exchanges (BC Business)