With January now in full swing, we take a look at the news stories that have been dominating the cryptocurrency and forex spheres in our best of the week segment.
Canada puts most crypto exchanges under securities laws
As Finance Magnates reported, the Canadian Securities Administrators (CSA) published new guidance indicating that the majority of the digital asset exchanges operating in the country will fall under the securities law. Any crypto exchange facilitating securities or asset trading will be subject to Canadian securities legislation. Only non-custodial exchanges might be excluded from the list as they do not handle any customer funds.
The CSA chairman Louis Morisset has advised the exchanges to seek legal counsel and clarified the CSA’s intentions to take action against any platforms – based in Canada or abroad – offering services to Canadian clients.
FCA expects up to £55m decline in 2019-21 profit for UK CFD firms
The Financial Conduct Authority (FCA) published an impact assessment that examined how the regulatory restrictions on contract for differences (CFDs) offered to retail clients are impacting the sector in the UK.
Based on information collected from reviewing two unnamed UK based CFD firms before and after the implementation of ESMA’s temporary measures, the FCA expects that firms offering CFDs to retail clients will see a reduction in profit of between £38.5 million and £55.3 million from 2019-2021.
Coinbase settles Cryptsy victims’ lawsuit for $1 million
After three long years and just before an approaching jury trial, leading crypto exchange Coinbase settled a class-action lawsuit brought against it by the victims of now-defunct crypto exchange Cryptsy for $962,500.
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Finance Magnates reported that despite Coinbase’s push for a dismissal of the lawsuit and settlement through arbitration, the motion was denied by the court. The settlement will now be transferred to an escrow account and distributed to the victims.
NY court orders Telegram to reveal its ICO bank records
In a surprise move, Federal judge Kevin Castel ordered encrypted messaging app Telegram to disclose its bank records by February 26th.
As covered by Finance Magnates, the same judge had previously limited the scope of the documents the messaging app must produce only a few days before the court order.
Telegram unsuccessfully argued that its bank records comply with foreign data privacy laws. However, the SEC stated: “Telegram does not even mention the names of the foreign countries whose laws might apply, nor does it cite any specific data privacy laws.”
Regulators taking aim at fiat fraud by intensifying KYC demands in 2020
In an interesting and popular Op-ed, Nimrod Lehavi, Co-founder and CEO of Simplex, explored how and why brokers will need to take additional measures to prevent money laundering by promoting transparency.
Discussing the impact of a more stringent 5AMLD will have on brokers and exchanges, Nimrod expertly dissects the KYC effect in 2020.
FC Barcelona and FBS sign new global partnership agreement
Finance Magnates reported on the new global partnership agreement reached between FC Barcelona and international Forex broker FBS. For the next four years, FBS will now be the football club’s Official Trading Partner.
The partnership will see the creation of branded content and different joint programs to offer unique online and offline experiences to their followers around the world.