Latvia’s central bank has announced that is offering free pre-licensing consultations for crypto-asset service providers (CASPs) to ensure they are well-prepared for the phased implementation of MiCA across the EU. These consultations will provide comprehensive guidance on regulatory requirements, necessary documentation, and initial compliance assessments, aiding companies in navigating the complex regulatory landscape.
Starting from January 2025, the central bank will accept applications and issue licences for CASPs in accordance with MiCA. In the meantime, unlimited pre-licensing consultations will be available, reflecting the bank’s commitment to fostering a robust and compliant crypto-asset ecosystem.
This proactive measure forms part of Latvia’s broader strategy to position itself as an attractive location for CASPs within the EU. Latvia’s efforts are further highlighted by its introduction of the “Crypto Asset Services Law” and substantial financial commitments toward digitalisation and innovation, underscoring its ambition to become a hub for blockchain and crypto companies.
Latvia is following a trend seen in other EU countries, such as France, which has also begun accepting CASP applications ahead of the official enforcement date. These proactive steps by EU nations underscore the importance of regulatory preparedness in the evolving crypto landscape, positioning themselves as favourable destinations for crypto-asset service providers.
A US federal judge has rejected Coinbase’s attempt to dismiss a class-action lawsuit from shareholders. The lawsuit claims that Coinbase, the largest US cryptocurrency exchange, misled investors by downplaying the chances of facing legal action from the US Securities and Exchange Commission (SEC). The ruling comes 15 months after the SEC sued Coinbase for allegedly operating as an unregistered securities exchange, leading to a significant drop in the company’s stock price.
The shareholders argue that Coinbase and its top executives falsely portrayed the company’s position, emphasising that the crypto assets it listed were not securities and thus unlikely to attract regulatory action. Additionally, they allege that the company misled investors about the risks customers faced regarding their assets in the event of bankruptcy. Coinbase’s share price fell sharply after revealing disappointing earnings and adding new disclosures in May 2022.
While the judge dismissed claims that Coinbase falsely denied engaging in proprietary trading, some allegations can proceed, including those about misrepresenting risks to customer assets. Coinbase remains confident in its legal standing and is prepared to defend its case in court.
A major super political action committee (PAC) supporting US Vice President Kamala Harris in her presidential campaign, Future Forward PAC, will now accept cryptocurrency donations. Coinbase confirmed that the PAC has partnered with its commerce platform to facilitate crypto contributions ahead of the upcoming election in November, where Harris faces former President Donald Trump in a closely contested race.
Although Harris has not yet publicly taken a stance on cryptocurrencies, her campaign team has engaged with leading crypto firms like Coinbase and Ripple. Trump’s campaign, meanwhile, has been courting crypto donors by promising policies friendly to the sector, while Harris’ adviser, Brian Nelson, hinted at support for emerging technologies, a positive signal for the crypto industry.
Crypto companies are making contributions to pro-crypto candidates across both political parties through super PACs, focusing on congressional races. Meanwhile, a Washington fundraiser is set to raise $100,000 for Harris, with the crypto community calling for a softer regulatory approach.
Super PACs are allowed to raise unlimited funds to support candidates but are prohibited from directly contributing to campaigns or political parties, positioning Future Forward PAC as a key player in Harris’ electoral bid.
Robinhood’s cryptocurrency platform has agreed to pay $3.9 million to settle claims it blocked customers from withdrawing crypto assets between 2018 and 2022. The California Attorney General’s office announced that Robinhood Crypto had violated state laws by preventing customers from accessing cryptocurrencies they had purchased, forcing them to sell their assets to leave the platform.
The platform was also accused of misleading customers regarding where their assets were held and falsely advertising competitive pricing through multiple trading venues. As part of the settlement, Robinhood will allow customers to withdraw their crypto assets to personal wallets and honour its commitments regarding trading practices.
Robinhood did not admit wrongdoing but expressed satisfaction with the settlement. The company aims to make cryptocurrency more accessible and affordable, according to a statement from its general counsel.
California’s Attorney General Rob Bonta emphasised that the settlement serves as a warning that all companies, including those in the cryptocurrency space, must comply with consumer protection laws. Robinhood shares rose slightly after the news.
Elon Musk and Tesla have won the dismissal of a federal lawsuit accusing them of defrauding investors by promoting Dogecoin. US District Judge Alvin Hellerstein issued the decision in Manhattan, rejecting insider trading and manipulation claims.
Investors had alleged that Musk’s social media antics, including posts on X and an appearance on ‘Saturday Night Live,’ were designed to inflate Dogecoin’s value. They accused him of driving the cryptocurrency up by 36,000% before allowing it to crash, causing them billions in losses.
Among the claims was that Musk and Tesla timed their trades to coincide with Musk’s public statements, including a surge in Dogecoin’s price when he briefly replaced Twitter’s logo with Dogecoin’s Shiba Inu dog. The investors argued that this allowed Musk to profit at their expense.
Musk’s lawyers maintained that his tweets were light-hearted and there was no proof linking him or Tesla to suspicious trading or sales. The lawsuit, which originally sought $258 billion in damages, was dismissed after multiple failed attempts.
Nasdaq is seeking regulatory approval to launch and trade options on a bitcoin index, offering institutional investors and traders a new way to hedge and amplify their exposure to the cryptocurrency. The United States Securities and Exchange Commission (SEC) has not approved options based on bitcoin-related exchange-traded funds (ETFs), including Nasdaq’s application to trade options on BlackRock’s $21.3 billion iShares Bitcoin Trust ETF.
The new bitcoin index options would provide a quicker and more affordable method for traders to gain access to the cryptocurrency market. Options are derivatives that allow the holder to buy or sell an asset at a set price by a predetermined date, making them a popular tool for traders and investors to manage risk and enhance liquidity.
Nasdaq’s proposed options would track the CME CF Bitcoin Real-Time Index, which monitors bitcoin futures and options contracts on the CME Group exchange. This development comes as institutional demand for bitcoin-based financial products grows despite the SEC’s slow approval process for options on newly launched spot bitcoin ETFs.
While awaiting regulatory decisions, traders have explored other products, such as leveraged ETFs tied to bitcoin. Exchanges initially applied for the spot bitcoin ETF options as soon as the SEC approved the underlying ETFs but have since adjusted their filings in response to the regulator’s comments.
Australia’s Federal Court has ruled that Bit Trade Pty, the operator of the Kraken cryptocurrency exchange in Australia, failed to meet design and distribution obligations for its margin trading product. The case, initiated by the Australian Securities and Investments Commission (ASIC) in September 2023, centred on Bit Trade’s failure to determine an appropriate target market before offering the product, despite prior warnings.
The court’s ruling highlights the legal requirement for financial products to be appropriately distributed to consumers. ASIC argued that the obligation to repay digital assets or national currency classified the margin trading product as a credit facility, which required stricter compliance. ASIC’s Deputy Chair, Sarah Court, emphasised the significance of this outcome as a reminder to the crypto industry about the importance of adhering to regulations.
Bit Trade, a subsidiary of US company Payward Incorporated, expressed disappointment with the decision but stated its readiness to comply with the court’s ruling. The company has seven days to negotiate declarations and injunctions with ASIC, which plans to pursue financial penalties against Bit Trade at a later date.
In addition to this case, Kraken’s parent company is also under scrutiny in the US, where the Securities and Exchange Commission filed a lawsuit in November 2023, accusing Kraken of operating as a securities exchange without proper registration.
Ark Labs, a young startup focused on enhancing bitcoin transactions, has secured $2.5 million in pre-seed funding. The funding round, led by billionaire investor Tim Draper, saw participation from Draper Associates, Fulgur Ventures, Axiom Capital, and angel investor Stephen Cole. The investment highlights Silicon Valley’s growing interest in making cryptocurrency, particularly bitcoin, a mainstream payment method.
Despite bitcoin’s status as an important asset class with billions in trading inflows, experts suggest it needs broader utility to maintain high-interest levels. Ark Labs plans to use the funds to expand its team and improve its technology to facilitate quicker and more cost-effective bitcoin transactions.
Tim Draper, a seasoned investor in tech giants like SpaceX and Tesla, emphasised the need to make bitcoin a viable medium of exchange for everyday use. He believes Ark Labs’ technology will contribute to seamless bitcoin payments, advancing its adoption as a practical currency.
The startup’s efforts align with a broader trend of mature investors and capital increasingly backing bitcoin, a shift that could drive the cryptocurrency’s evolution and greater acceptance as an asset class.
Mercado Pago, the financial technology arm of Latin American e-commerce giant MercadoLibre, has introduced a stablecoin called Meli Dolar in Brazil. The new digital currency is pegged to the US dollar at a one-to-one value and is available to all Mercado Pago clients through the company’s app.
The launch expands Mercado Pago’s crypto offerings, including assets like bitcoin and ether. Also, the introduction of Meli Dolar marks Mercado Pago’s latest move into the cryptocurrency market in Brazil, the company’s largest market.
In 2022, MercadoLibre also launched MercadoCoin, a cryptocurrency tied to its loyalty program. Mercado Pago has announced that clients will not be charged fees for trading Meli Dolar, and the crypto asset platform Ripio will facilitate these transactions as an exchange and market maker.
Tether, a leading cryptocurrency company, announced plans to introduce a new stablecoin pegged to the United Arab Emirates (UAE) dirham, aiming to offer an alternative to the US dollar. Stablecoins, digital tokens backed by traditional currencies, are commonly used for payments and trading on crypto exchanges. Tether’s CEO, Paolo Ardoino, highlighted the growing interest in holding dirhams outside the UAE, citing the currency’s stability and the nation’s robust economic position.
The UAE is positioning itself as a global hub for the crypto industry, rapidly enabling cryptocurrency payments in areas such as real estate and education. The country is also developing virtual asset regulations in Abu Dhabi and Dubai, fostering increased adoption and transaction volumes. Despite the growth, regulators have warned of risks associated with crypto assets, particularly concerns over stablecoin reserves and the potential for rapid outflows.
Tether, whose dollar-pegged stablecoin (USDT) dominates the market with $117 billion in circulation, plans to launch the dirham-backed stablecoin in partnership with Abu Dhabi-listed Phoenix Group and Green Acorn Investment. While a specific launch date has not been provided, the licensing process with the UAE Central Bank is expected to take several months.
