Coinbase Rolling Out Perpetual Futures Trading for Retail Users Outside Us (The Block)
After handling billions of dollars in institutional futures trading, Coinbase has secured approval to offer perpetual futures trading services to retail customers outside the United States, it said in a statement. The exchange gained regulatory approval to offer the service to non-U.S. retail customers from the Bermuda Monetary Authority, or BMA, according to the statement. Through its Coinbase International Exchange arm, the exchange has seen more than “$5.5 billion in notional [futures] trading volume from institutions as of the second quarter of this year,” it also said.
U.S. House Bill Seeks Centralized Record of Off-Chain Crypto Transactions (CoinDesk)
It would be hard for a big exchange to repeat an FTX collapse if the firm’s internal flow of crypto assets was also reported to an outside repository that U.S. regulators could see. That’s the idea behind new legislation from Rep. Don Beyer (D-Va.) that would force exchanges to share the movement of digital assets now only recorded on their own ledgers.
Circle Intervenes in Binance’s SEC Case, Argues Stablecoins Aren't Securities (CoinDesk)
BlackRock, Invesco Bitcoin ETF Applications Again Delayed by SEC (Bloomberg)
The US Securities and Exchange Commission further delayed its review of applications from BlackRock Inc., Invesco Ltd. and others seeking to list the first Bitcoin exchange-traded fund in the US. The regulator, whose three-part mandate includes investor protection, also postponed decisions on applications from Bitwise and Valkyrie, according to documents posted to its website.
FTX Bankruptcy Claims Soar in Value in Over-the-Counter Markets as Estate Recovers $7.3B (CoinDesk)
The crypto exchange FTX’s bankruptcy has been characterized as one of the messiest in U.S. history. Legal fees in the bankruptcy case have already topped $200 million. Founder CEO Sam Bankman-Fried’s criminal trial is scheduled to get under way next week. But in over-the-counter markets where investors trade bankruptcy claims, the level of expected payouts for FTX creditors has more than tripled this year – reflecting success in the estate’s efforts to recover billions of dollars of assets.
Binance Sells Russian Unit to Day-Old CommEX, Exits Country (CoinDesk)
Crypto exchange Binance has agreed to sell the entirety of its Russia business to CommEX as it looks to fully exit the market over compliance concerns. "As we look toward the future, we recognize that operating in Russia is not compatible with Binance's compliance strategy," Noah Perlman, Binance's chief compliance officer said in a press statement. CommEX appears to be a crypto exchange that was officially launched on Tuesday, while it seemingly listed BTC/USDT and ETH/USDT trading pairs for spot trading in July. On its X (formerly Twitter) account, CommEX on Wednesday welcomed its "new users from Russia and around the world!"
BIS Wants Countries to Set up Legal Frameworks to Support CBDCs (The Block)
The Bank for International Settlements wants countries to set up legal frameworks that support the deployment of central bank digital currencies. In a speech on Wednesday at the BISIH-FSI conference in Switzerland, BIS General Manager Agustín Carstens warned that outdated legal frameworks in different jurisdictions could hinder the development of CBDCs. "It is simply unacceptable that unclear or outdated legal frameworks could hinder their deployment," Carstens said. "The work to address these issues needs to begin in earnest. And it needs to proceed at pace.".
Crypto Exchange Kraken Plans to Offer Trading in US-Listed Stocks (Bloomberg)
Kraken plans to offer trading in US-listed stocks and exchange-traded funds, marking the 12-year-old company’s first foray outside its cryptocurrency roots. Kraken will initially offer trading in the US and UK through a service built by a new division called Kraken Securities, according to a person with knowledge of the matter who asked not to be named discussing private information. It already holds the required regulatory permits in the UK and has applied with the Financial Industry Regulatory Authority for a broker-dealer license in the US, the person said.
Curve Founder Michael Egorov Settles Entire Debt Position on AAVE (The Block)
Curve founder Michael Egorov has settled his remaining debt position on the decentralized lending platform Aave, according to on-chain data flagged by web3 data analytics provider Lookonchain. Egorov deposited 68 million CRV ($35.3 million) to the non-custodial lending protocol Silo Finance and borrowed 10.8 million of Curve’s decentralized stablecoin crvUSD over the past two days, Lookonchain posted on X (formerly Twitter). He then swapped crvUSD for Tether’s USDT stablecoin and repaid his entire debt position on Aave today.
Crypto Exchange Gemini Pulled Funds From Crypto Lender Genesis Months Before Bankruptcy Filing (Bloomberg)
Crypto exchange Gemini Trust Co. withdrew hundreds of millions of dollars from Genesis Global Holdco LLC several months before the lender froze deposits and ultimately filed for bankruptcy, according to two people familiar with the move. Genesis and Gemini offered customers in the so-called Earn program the opportunity to generate yields on their crypto tokens. The service let customers of the Tyler and Cameron Winklevoss-owned exchange lend their tokens through Genesis.
Chase U.K. to Block Crypto Payments Citing Fraud, Scams (CoinDesk)
Banking giant Chase is banning crypto-linked payments via debit card or by outgoing bank transfer for U.K. clients starting Oct. 16, according to an email to customers. "If we think you're making a payment related to crypto assets, we'll decline it," the email said, adding that customers are free to use a different bank or provider to invest in crypto.
Stablecoin Issuers Risk Disrupting Funding Markets, JPMorgan Says (Bloomberg)
Stablecoin issuers vying for assets in the short-term funding space risk disrupting the market after the Federal Reserve limited access to a key facility, according to JPMorgan Chase & Co. The central bank decided in April that money funds created for the sole purpose of accessing its overnight reverse repo facility, or ON RRP, were deemed ineligible as a counterparty. That means stablecoins, seeking to park cash in liquid assets and unable to access the Fed facility, will likely have to compete with the $5.64 trillion money-market fund industry for assets like Treasury bills, potentially pushing those rates below the offering level on the RRP - currently 5.3%.
U.S. House Lawmakers Push SEC’s Gensler to Approve Spot Bitcoin ETF ‘Immediately’ (CoinDesk)
The U.S. Securities and Exchange Commission (SEC) should listen to the courts and give up efforts to block bitcoin exchange traded funds (ETFs) from regulatory approval, a bipartisan group of lawmakers argued Tuesday in a letter to SEC Chair Gary Gensler. On the eve of his scheduled appearance before the House Financial Services Committee, four members of that panel sent Gensler a letter contending that a spot bitcoin ETF is “indistinguishable” from the crypto futures ETFs for which the agency has already granted its blessing. Because of that, the agency should sign off on applicants requesting SEC approval, such as Fidelity, BlackRock’s iShares and Grayscale Investments, which shares CoinDesk’s parent company, Digital Currency Group.
Celestia Is Airdropping 60 Million Tokens in Bid to Build Its Network (The Block)
Over the next few weeks Celestia is dropping 60 million tokens as part of its Genesis Drop, it announced on X. Celestia's native token, named tia, will be made available to "7,579 developers and 576,653 onchain addresses on Ethereum rollups, Cosmos Hub, and Osmosis," the organization explained in a blog post. The organization has built a “modular blockchain architecture” to compete with established players like Ethereum. Celestia’s ploy is to separate the consensus mechanism — which is how blockchain participants agree that transactions have taken place — from execution. This way, any developer who wants to use Celestia’s technology to roll out a decentralized blockchain can do so without concerning themselves with setting up a consensus network from scratch.
SEC Extends Ark, Global X ETF Deadlines as Government Shutdown Looms (CoinDesk)
The efforts from Ark 21Shares and Global X to list spot bitcoin exchange traded funds (ETFs) must now officially wait longer for the U.S. Securities and Exchange Commission (SEC) to either approve or reject or deny their applications as the agency moved to extend deadlines Tuesday. As the federal government braces for a potential shutdown brought about by a budget impasse in Congress, the securities regulator extended its next deadlines for the two applications well before the interim deadlines arrived. The SEC has a total of 240 days to make a final decision on any application after it starts reviewing, but there are a number of potential time marks during that period in which it has to do certain things or extend the time it’s allowed.
Binance Seeks to Launch Stablecoins in Japan with MUFG Unit (Bloomberg)
Binance is seeking to launch stablecoins denominated in the dollar, euro and yen in Japan next year, as the embattled global crypto exchange pushes into the nation’s nascent market. Binance Japan Inc. wants to introduce the three tokens and potentially more in 2024 through its partnership with Mitsubishi UFJ Financial Group’s trust banking arm, Takeshi Chino, the unit’s general manager, said in an interview. The two firms have started jointly studying the issuance, according to a statement.
MicroStrategy Bought 5,445 Bitcoin for $150M Since August (CoinDesk)
Software developer MicroStrategy (MSTR) purchased nearly $150 million worth of bitcoin (BTC) between Aug.1 and Sept.24, it said in a Monday regulatory filing. "MicroStrategy, together with its subsidiaries, acquired approximately 5,445 bitcoins for approximately $147.3 million in cash, at an average price of approximately $27,053 per bitcoin, inclusive of fees and expenses," the company said in the filing.
Coinbase Role in Crypto Firm Celsius’s Bankruptcy Plan Questioned by SEC (Bloomberg)
The US Securities and Exchange Commission said it has concerns about Coinbase Global Inc.’s proposed involvement in Celsius Network’s plan to emerge from bankruptcy. Under the proposed plan, Celsius agreed to engage Coinbase to distribute assets to international customers. In a filing on Friday, the SEC — which charged Coinbase earlier this year with operating as an unregistered securities exchange, broker and clearing house — said the agreements ‘go far beyond the services of a distribution agent, contemplating brokerage services and master trading services that implicate many of the concerns’ raised in its suit.
Crypto Fund Management Opportunity Could Be Worth as Much as $50B, Bernstein Says (CoinDesk)
The crypto fund management business could have assets of as much as $650 billion within five years as the expected launch of spot-based bitcoin exchange-traded funds (ETFs) in the U.S. is likely to bring more capital to the market, broker Bernstein said in a research report Monday. The current "cottage industry" has about $50 billion of assets under management, equivalent to about 4% of the present size of the crypto market, analysts led by Gautam Chhugani wrote. At press time, the total crypto market capitalization was $1.08 trillion.
Coinbase Successfully Registers With Spain's Central Bank (CoinDesk)
Crypto exchange Coinbase (COIN) has registered with the central bank of Spain to provide exchange and custody services in the country, the company announced Monday. Registration with the Bank of Spain is a mandatory step to offering crypto-related services, and registered firms have to comply with the country's anti-money laundering standards.
DeFi Project Mixin Network Suspends Services After $200 Million Crypto Hack (Bloomberg)
Decentralized finance project Mixin Network has suspended deposits and withdrawals after suffering a hack involving $200 million in crypto assets, the entity said through a post on X, the firm previously known as Twitter. The breach was caused by a compromise in the project’s cloud service provider’s database, according to blockchain security firm SlowMist, which is assisting Mixin in the investigation.
Base Token Not ‘Ruled Out Entirely,’ Coinbase’s Paul Grewal Says (The Block)
A new token for the Coinbase-incubated Ethereum Layer 2 network Base has not been ruled out entirely, according to Coinbase Chief Legal Officer Paul Grewal. When Base launched in August, Coinbase said, "we currently do not plan to issue a new network token." However, it's "not something we've ruled out entirely," Grewal told Decrypt in an interview at Messari's Mainnet event yesterday. "I think a token could be viable at some point in the future," he added.
Google Cloud Adds 11 New Blockchains to BigQuery Data Analytics Service (The Block)
The cloud division at Google has added support for 11 additional blockchains into its BigQuery data analytics service. These networks are Avalanche, Arbitrum, Cronos, Fantom, Near, Optimism, Polkadot, Polygon, Tron and the test networks Polygon Mumbai and Ethereum Goerli. Google Cloud notes that users can now make intricate on-chain queries, such as assessing the number of NFTs minted or contrasting transaction fees across these chains. Integration with end-user applications like Looker and Google Sheets is also available.
Crypto Exchange UpBit Temporarily Suspends Aptos Withdrawals Due to Scam Token Bug (The Block)
UpBit, the largest crypto exchange in South Korea, halted deposits and withdrawals of Aptos (APT) due to a system error that credited a scam token as equivalent to legitimate Aptos tokens, according to user reports. UpBit acknowledged in a statement that its system detected abnormal deposit attempts and temporarily suspended deposits and withdrawals while it fixed the error, which was first reported by X account Definalist.
European Crypto Asset Manager CoinShares Starts US Hedge Fund Division (Bloomberg)
CoinShares, one of Europe’s largest cryptocurrency asset managers, is starting a hedge fund division as it seeks to make inroads with American investors. The St. Helier, Jersey-based firm on Friday debuted the CoinShares Hedge Fund, which will be available to qualified US investors. CoinShares is known for its offerings of virtual-currency exchange-traded products, overseeing more than $2.5 billion in assets under management overall.