Friday, June 30th. As the week comes to an end we can focus on the highlights of the crypto industry over the past few days.
KuCoin to implement mandatory KYC
Crypto exchange KuCoin announces new user verification rules (KYC). They will enter into force in the second half of July.
After July 15, the exchange will do the following:
- introduce a compulsory verification of new users;
- limit access to a number of services to current customers who do not perform KYC.
The latter would only benefit from spot orders for sale and withdrawal. KuCoin is going to suspend deposits as well as impose curbs on margin and futures accounts, KuCoin Earn services and ETFs.
“We are closely monitoring cryptocurrency regulation in the jurisdictions where we offer our services. The KYC system update is aimed at complying with regulatory requirements and improving the security of users’ assets,” commented KuCoin CEO Johnny Liu.
You can find guidelines as to how to complete the KYC on the platform’s website in the “Help Center” page.
KuCoin is a cryptocurrency exchange supporting spot, margin and P2P trading. The platform intensively develops its own ecosystem – KuCoin Community Chain with native KCS token, KuCoin Wallet, NFT-marketplace dubbed Windvane and numerous DeFi-applications.
Prior to that, KuCoin analysts outlined promising initiatives offering services based on the fusion of two technologies — AI and blockchain.
Coinbase accuses SEC of abuse of power
The Securities and Exchange Commission overstepped its jurisdiction regarding crypto in its case against Coinbase, according to the stock exchange response to the claim of the regulator.
As Coinbase representatives put it, the assets listed in the claim are not investment contracts and, therefore, cannot qualify as securities.
Citing Howey’s test, the team explained that cryptocurrencies in the secondary (OTC) market do not constitute any agreement under which the sale of a contract-linked asset takes place. Moreover, token issuers owe no obligations to investors.
“Because no such obligations are carried in the transactions over Coinbase’s secondary market exchange, and because the value that Coinbase purchasers receive through these transactions inheres in the things bought and traded rather than in the businesses that generated them, the transactions are not securities transactions,“ the statement said.
Once again, the exchange pointed to SEC Chairman Gary Gensler’s changed stance on the regulator’s powers between taking office in April 2021 and mid-2022.
“Even were the SEC correct that the assets and services it identifies are within the scope of its existing regulatory authority, this action must be dismissed on the independent grounds that it violates Coinbase’s due process rights and constitutes an extraordinary abuse of process,” the filing said.
Ledger wallet launches institutional crypto trading platform
Ledger, a manufacturer of hardware wallets, unveiled Tradelink, a trading platform for corporate clients.
As part of the initiative, the company has signed agreements with numerous crypto projects, including Crypto.com, Bitstamp, Huobi, Uphold Institutional, CEX.IO, Wintermute, Coinsquare, NDAX, Damex, Bitazza, Flowdesk and YouHodler.
Some of the upcoming customers already include Komainu, TetraTrust, Etana, Crypto Garage, Damex and Kryptodian.
The platform unifies custodians, brokers and exchanges. Tradelink will not charge any fees for transactions. However, to perform any transfers of funds, you do not have to keep them on Tradelink.
“We are creating a future-proof solution that will give Ledger Enterprise customers flexibility and security allowing institutions to de-risk their businesses,” says Pascal Gauthier, head of the firm.
Ledger emphasized the burgeoning need for such crypto trading platforms amid security and regulatory concerns.
By working with several custodial firms, it means that companies using the brand new network do not face blocking, according to the company.
“Ledger’s innovative Trading Operation technology not only heightens security, but also fosters a regulation-friendly landscape for institutional trading,” said Crypto.com President and COO Eric Anziani.
As far as you remember, back in May Ledger introduced a private key recovery feature to back up access to the Nano X hardware wallet. Afterwards, Gauthier vowed to disclose the source code of the software following concerns about the security of the company’s products.
CoinShares: Wall Street turns to crypto
Eight major U.S. financial institutions are “actively” seeking to give customers access to Bitcoin and other cryptocurrencies. Their AUM (assets under management) amounts to $27 trillion, as calculated by CoinShares Chief Strategy Officer (CSO) Meltem Demirorsas.
She cited these figures after BlackRock filed an application with the SEC to launch a bitcoin-ETF (Exchange-Traded Fund). Meltem referred to the initiative as “just one of the stories.”
Among other institutions:
- Fidelity – Bitcoin and Ethereum trading and storage;
- JPMorgan Chase – transfers of tokenized versions of USD and EUR via JPM Coin;
- Morgan Stanley – access to three bitcoin funds;
- Goldman Sachs – OTC cryptocurrency trading;
- BNY Mellon – Bitcoin and Ethereum storage and transfers;
- Invesco – exchange-traded fund based on the first-ever cryptocurrency in Europe, an application for a similar product in the United States;
- Bank of America – Bitcoin futures trading.
“It’s still more of a trickle than a wave. We’re seeing the bridges being built in real-time,” she added.