Crypto exchange Binance has requested the dismissal of most of a £10 billion ($12.8 billion) lawsuit in London, alleging collusion with other exchanges to delist the Bitcoin Satoshi Vision (BSV) cryptocurrency. The lawsuit, brought to the Competition Appeal Tribunal (CAT) on behalf of over 200,000 BSV owners, claims that exchanges, including Kraken, engaged in anti-competitive behaviour to delist BSV in 2019, causing its value to plummet and hindering its potential to become a ‘top tier’ cryptocurrency.
BSV Claims’ lawyers argue that the delisting prevented BSV from gaining prominence and have valued this aspect of the claim at up to £9 billion. Despite not opposing the case’s certification under the UK’s collective proceedings regime, Binance’s lawyer, Brian Kennelly, argued that those who retained BSV made a voluntary decision and could have reinvested in other cryptocurrencies.
While Binance declined to comment on the ongoing litigation, Kraken described the lawsuit as ‘baseless.’ The delisting of BSV by Binance, Kraken, and others in 2019 followed claims by Australian computer scientist Craig Wright, who asserted he was the pseudonymous inventor of bitcoin, ‘Satoshi Nakamoto.’ Wright was recently found to have lied and forged documents to support his claim, a ruling he intends to appeal.
Stand with Crypto, an organisation advocating for cryptocurrency owners, celebrated a milestone as its membership exceeded 1 million. The group aims to wield political influence, urging policymakers to establish favourable regulations for the digital asset industry while avoiding excessive compliance burdens. Brian Armstrong, CEO of Coinbase, a platform facilitating crypto transactions and a co-founder of Stand With Crypto, emphasised the significant voting power within the crypto community, highlighting its potential impact on policy decisions.
The cryptocurrency sector is actively engaging in US elections, investing millions of dollars to support candidates sympathetic to crypto and oppose those advocating for stringent regulations. Coinbase recently pledged $25 million to the pro-crypto political action committee Fairshake, following similar contributions from Ripple and Andreessen Horowitz. Stand with Crypto has focused its efforts on swing states like Georgia and Arizona, where close election margins underscore the potential influence of its members.
Coinbase has actively engaged with White House officials and the Biden administration to address crypto-related concerns. Armstrong stressed the bipartisan nature of crypto issues, emphasising the need for cooperation to enact necessary legislation. Criticising Biden’s veto as a ‘bad political move,’ Armstrong highlighted the broad support for crypto-friendly measures and the significant constituency within the crypto community. While it remains uncertain if crypto issues will sway votes in the upcoming presidential election, Armstrong believes a subset of the growing voter bloc could prioritise digital asset issues at the polls.
Why does it matter?
The surge in Stand with Crypto’s membership was partly catalysed by frustration over President Biden’s veto of a measure to challenge the Securities and Exchange Commission’s stance on crypto assets. Additionally, there’s strong support for a Republican-sponsored bill proposing a new legal framework for digital currencies. Despite bipartisan backing for the bill in the House of Representatives, the White House has expressed opposition, with SEC Chair Gary Gensler cautioning about potential risks.
Crypto startup funding surged to $2.4 billion in the first quarter of 2024, marking a second consecutive quarter of growth, according to data from PitchBook. Expectations of lower interest rates and the launch of the first US bitcoin spot ETF fueled this 40.3% increase from the previous quarter. Despite the global venture capital investments hitting a near five-year low, the crypto sector saw substantial investor interest spread across 518 deals.
Why does it matter?
The rise in funding comes after a significant downturn from the peak of over $10 billion in early 2022, driven by economic uncertainties and the collapse of major market players. However, the approval of spot bitcoin ETFs by US regulators, with offerings from financial giants like BlackRock and Fidelity, has bolstered the credibility of digital assets, pushing bitcoin to an all-time high of $73,803 in March. This renewed confidence is expected to continue driving venture capital into the sector, as PitchBook analyst Robert Le noted.
Infrastructure-focused crypto and blockchain startups attracted the most funding during this period, with the largest deal being decentralised cloud platform Together AI’s $106 million early-stage round led by Salesforce Ventures, valuing the company at $1.1 billion. According to Le, early-stage deals are becoming increasingly competitive and often receive higher valuations than their late-stage counterparts. While exits remain low, mergers, particularly among exchanges, custodians, and infrastructure providers, are anticipated to increase as the market evolves.
The Hong Kong Securities and Futures Commission (SFC) recently warned about a scam involving deepfake videos of Elon Musk promoting a cryptocurrency trading platform called ‘Quantum AI.’ The scam, which promises unrealistic returns, highlights the growing use of AI for fraudulent activities, particularly in Asia. The SFC has requested the Hong Kong Police to block access to the associated websites and social media pages, many of which are now inaccessible.
Deepfake-related fraud incidents have surged in the Asia-Pacific region, with a 1,530 percent increase last year, notably affecting Vietnam and Japan. Penny Chai, Sumsub’s vice president for business development in APAC, noted that the high volume of digital financial transactions in emerging Asian markets creates a fertile ground for such scams. Videos promoting Quantum AI, often featuring altered footage of Musk, have been debunked and traced back to old appearances of Musk at events like the 2019 World AI Conference.
Why does it matter?
The use of deepfakes in fraud has become more prevalent, with Hong Kong identified as a major target. The rate of identity fraud in Hong Kong was 3.3% last year, with significant financial losses reported. In one case, a Japanese bank manager was tricked into transferring $35 million due to a deepfake audio mimicking his director’s voice. The SFC has been vigilant in flagging suspicious virtual asset trading platforms, issuing numerous warnings this year alone, particularly after the significant JPEX cryptocurrency exchange fraud.
Additionally, the SFC warned about other risky crypto-related products, such as the LENA Network, which involves cryptocurrency staking, borrowing, and lending. The regulator emphasised that these arrangements might be unauthorised collective investment schemes and carry high risks.
The United States Senate has passed a joint resolution calling on the Securities and Exchange Commission (SEC) to repeal a rule that affects financial institutions engaged in business with cryptocurrency firms. The resolution, known as H.J.Res. 109, seeks to nullify the SEC’s Staff Accounting Bulletin No. 121, which mandates that banks include customers’ digital assets on their balance sheets. Critics argue that this rule stifles innovation in the cryptocurrency sector.
The resolution passed the Senate on a vote of 60 to 38. This marks the first instance of standalone cryptocurrency legislation this session of Congress and represents an unusual bipartisan move, with a split of 51-49 in favor of Democrats. The resolution could have broader implications for the regulation of digital assets, particularly regarding the Financial Innovation and Technology for the 21st Century Act.
Before the resolution was passed in the House of Representatives, President Joe Biden stated his intention to veto the bill. He cited the need to protect investors in the cryptocurrency market and secure the overall financial system as his rationale. If the President does veto the legislation, it will return to Congress and require a two-thirds majority vote to pass again.
The Blockchain Association, a leading industry group, argues against the threat of a presidential veto, highlighting a growing awareness among the public, especially young people, regarding the significance of cryptocurrencies. They emphasize the importance of elected officials acknowledging and understanding the implications of cryptocurrencies.
According to confidential findings by UN sanctions monitors, North Korea utilised the virtual currency platform Tornado Cash to launder $147.5 million in March, following its theft from a cryptocurrency exchange last year. The monitors revealed to a UN Security Council sanctions committee that they had been investigating 97 suspected cyberattacks by North Korea on cryptocurrency companies between 2017 and 2024, totalling approximately $3.6 billion.
As can be seen in these confidential findings, one notable incident involved the theft of $147.5 million from the HTX cryptocurrency exchange late last year, which was then laundered in March. The monitors cited information from crypto analytics firm PeckShield and blockchain research firm Elliptic. In 2024 alone, they investigated 11 cryptocurrency thefts valued at $54.7 million, suggesting possible involvement by North Korean IT workers hired by small crypto-related companies.
North Korea, officially known as the Democratic People’s Republic of Korea (DPRK), has faced UN sanctions since 2006, aimed at curbing funding for its ballistic missile and nuclear programs. The US has previously sanctioned Tornado Cash over alleged support for North Korea, with two co-founders charged with facilitating money laundering. Virtual currency ‘mixer’ platforms like Tornado Cash blend cryptocurrencies to obscure their source and ownership.
Additionally, the monitors highlighted ongoing concerns about illicit arms trade between North Korea and Russia, with suspected shipments between North Korea’s Rajin port and Russian ports. There were also reports of North Korean cargo ships offloading coal in Chinese waters, potentially evading sanctions. Both China and Russia declined to comment on the monitors’ findings.
Coins.ph will back the stablecoin with its own cash and cash equivalents held in Philippine bank accounts, ensuring a one-to-one peg with the Philippine Peso. The pilot program aims to assess the benefits of the PHPC and its impact on the existing financial ecosystem. Coins.ph plans to make the PHPC stablecoin available on its platform by early June. The company’s CEO, Wei Zhou, previously served as CFO at Binance. Coins.ph received approval to publicly test the stablecoin in April and hopes to obtain full approval if certain metrics are met, allowing the PHPC to operate outside of the pilot phase.
Coins.ph’s approval to conduct the pilot program demonstrates the BSP’s openness to exploring digital and cryptocurrencies. Operating within the Regulatory Sandbox Framework allows the central bank to observe the real-world applications while ensuring consumer protection and financial system stability.
The Philippine government recently blocked Binance from operating in the country, indicating regulatory concerns and a cautious approach towards digital currency exchanges. Additionally, the Philippines plans to issue a wholesale central bank digital currency (CBDC) within two years.
The Central bank of Rwanda call the public consultation on the future Central Bank Digital Currency (CBDC) pilot. The Central Bank call for the inputs of all stakeholders via online questionnaire available on their official website.
The launch of the Rwanda’s CBDC might get fast trajectory after the government commitment to improve financial system in the country. In particular in relation to e-commerce, online payments systems, and related features.
Global tendencies towards implementation of the Central Bank Digital Currency is highlighted in the latest BIS report on the CBDC implementation, released earlier this year. The BIS innovation center follow closely developments around CBDC implementation and the coordination work needed,
Canadian cryptocurrency exchange Binance has been fined nearly CAD 6 million ($4.38 million) by Canada’s anti-money laundering agency, FINTRAC, for violating money laundering and terrorist financing laws. According to FINTRAC, despite several deadlines, Binance failed to register as a foreign money services business with the intelligence body. Additionally, the exchange did not report receiving virtual currency worth 10,000 or more on 5,902 separate occasions between 1 June 2021 and 19 July 2023.
The legal measure against Binance comes after a recent sentencing of the former CEO Changpeng Zhao to four months in prison for violating US money laundering laws. Binance agreed to pay a massive penalty of $4.32 billion, with Zhao also paying a $50 million criminal fine and an additional $50 million to the US Commodity Futures Trading Commission.
Binance’s decision to cease operations in Canada last year does not absolve them of the responsibility to comply with the country’s laws during their active period.
Why does it matter?
The ongoing scrutiny and legal action against Binance underscore the increasing global regulatory pressure on the cryptocurrency industry. Governments and financial institutions worldwide are prioritising the implementation of robust anti-money laundering measures to prevent illicit financial activities, including money laundering and terrorist financing within the cryptocurrency sector.
While cryptocurrencies offer benefits such as decentralisation, anonymity, and ease of cross-border transactions, they also pose challenges in terms of regulation and monitoring. The fines and legal consequences faced by Binance serve as a warning to other exchanges and entities operating in the crypto space to uphold stringent compliance standards.
In a recent interview, Joachim Nagel president of the Bundesbank and a member of the European Central Bank (ECB), said that the future of central banks is dependent on their ability to adapt their business models and embrace the use of central bank digital currencies (CBDCs). During a panel session at the Bank for International Settlements (BIS) Innovation he expressed concern about the uncertain future of central banks and emphasized the need for them to redefine their business models in the face of a changing financial landscape.
He added that distributed ledger technology (DLT), such as blockchain, is seen as a tool that can help central banks navigate this changing landscape and find new solutions. He stated that central banks need to accelerate their efforts in this regard and consider developing a new core product to address the decreasing attractiveness of physical money.
Another advocate for digital currencies in central banking is Francois Villeroy de Galhau, an ECB member from France. During the same conference, Galhau suggested that central banks should explore the use of central bank digital currencies for both wholesale and retail transactions.
The European Central Bank (ECB) is already actively working on the development of a digital version of the euro. The investigation phase has been completed, and the ECB aims to finalize the project by October 2025, determining the design and technical details along the way. This initiative demonstrates the ECB’s commitment to exploring the potential of CBDCs and adapting to the changing financial landscape.
