StealthEX & CryptoDaily Breaking News: Bans, Trials, Latest Innovations

StealthEX & CryptoDaily Breaking News: Bans, Trials, Latest Innovations

Thanks for joining our weekly crypto update from StealthEX and CryptoDaily! Our mission is simple: to give you a quick and easy-to-understand look at the news and trends in the crypto sector.

Excited to check out the top stories from this week in the digital money world? Let’s dive in!

StealthEX & CryptoDaily Breaking News: Bans, Trials, Latest Innovations

Portugal Slaps Ban on Worldcoin’s Data Collection Operations

In a significant setback to Worldcoin, Portugal’s National Data Protection Commission (CNPD) has issued a 90-day prohibition on the company’s biometric data collection activities. Citing privacy concerns, the watchdog stressed the need for stricter regulation on the collection and transfer of biometric data.

This decision comes on the heels of similar actions taken by Spain and Kenya, pointing at comprehensive global scrutiny for Worldcoin. The company, backed by Sam Altman, continues to grapple with privacy concerns related to its iris-scanning protocols.

As authorities worldwide step up measures to protect citizens’ privacy, this underscores the inherent challenges biometric-centric firms face, calling for stringent checks in the future.

KuCoin Faces Bank Secrecy Act and Money Laundering Charges

Leading cryptocurrency exchange, KuCoin, rolled into a considerable storm as it’s faced with multiple charges stemming from violations of anti-money laundering (AML) laws. US Federal Prosecutors slapped the charges against KuCoin and its founding duo, Chun Gan and Ke Tang, citing breach of the Bank Secrecy Act.

Furthermore, the exchange allegedly failed to maintain an effective anti-money laundering program, adding to the growing clamour in traditional and financial watchdogs for better AML measures within crypto exchanges. 

While the implications of the allegations are still unfolding, they could serve as a stern check for crypto platforms, bolstering the pursuit of regulatory compliance.

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SEC vs. Terraform Labs: High-Stakes Fraud Trial Unfolds Without CEO Do Kwon

The Manhattan Federal Court is currently the battleground for a high-stakes lawsuit involving Terraform Labs and its founder, Do Kwon, spearheaded by the Securities and Exchange Commission (SEC). The trial, which commenced on Monday, focuses on allegations of fraud against the now-bankrupt cryptocurrency firm and its absent former CEO. The SEC charges revolve around misleading claims made by Terraform Labs in 2021 concerning the stability of TerraUSD and the blockchain’s purported usage in a widely-used Korean payment app. This legal skirmish isn’t merely about technological mishaps, as per the SEC, but rather deliberate deceit aimed at investor manipulation.

At the heart of the proceedings, SEC lawyer Devon Staren dubbed Terraform a “scam,” attributing over $40 billion in investor losses to the rapid collapse of the Terra ecosystem. Contrasting this, Terraform’s defense, led by Louis Pellegrino, accuses the SEC of cherry-picking evidence to bolster its case. Do Kwon’s legal representative, David Patton, defends Kwon’s transparency regarding TerraUSD’s risks. Kwon’s absence from the trial—following extradition delays post-arrest in Montenegro—adds a layer of complexity to this legal drama, underscoring the intricate challenges at the intersection of cryptocurrency and regulation.

Binance Faces Ban in the Philippines Over Licensing Issues

The Philippines is set to impose a ban on Binance, the globe’s leading cryptocurrency exchange, citing unlicensed operations. The country’s Securities and Exchange Commission (SEC) has collaborated with the National Telecommunication Commission (NTC) to restrict local access to Binance’s website and trading platforms. This decision comes after a formal notice issued by the SEC highlighted concerns over the security of Filipino investors’ funds due to Binance‘s operations without the required licenses.

The regulatory body has given a three-month period before the ban becomes effective, allowing investors to withdraw their funds. The SEC’s move underscores the risks associated with unlicensed investment platforms and follows a previous warning issued to Binance in November 2023. Moreover, individuals promoting Binance’s services in the Philippines risk criminal charges, intensifying the crackdown on unauthorized cryptocurrency activities. This development marks another significant regulatory challenge for Binance, following a hefty fine in the US and the stepping down of its CEO, Changpeng Zhao, amid legal troubles.

SWIFT Advances CBDC Integration with Successful Second Test Phase

SWIFT has revealed successful outcomes from the second phase of its sandbox testing for the CBDC (Central Bank Digital Currency) interlinking solution, marking a significant step towards integrating digital currencies into global finance. Unlike developing its CBDC, SWIFT focused on creating the SWIFT connector, a groundbreaking system designed to seamlessly link existing CBDCs with financial institutions’ operations.

This test phase, involving 38 key players including central banks and commercial banks, has demonstrated the SWIFT connector’s ability to handle diverse financial transactions with CBDCs and digital tokens. This development promises a future where financial transactions are more integrated, faster, and more secure across global networks.

The initiative, one of the largest CBDC collaborations, saw over 125 sandbox users executing more than 750 transactions. These tests explored complex scenarios like digital trade, tokenized assets, and foreign exchange, showcasing the potential for substantial improvements in global trade efficiency and payment automation.

SEC Targets Ripple with $2 Billion in Fines, Ripple to Contest

Ripple Labs faces a daunting challenge as the U.S. Securities and Exchange Commission (SEC) seeks an imposing $2 billion in fines and penalties over its dealings. This request by the SEC was disclosed in court documents, currently sealed, spotlighting the ongoing legal battle between the regulatory body and the cryptocurrency firm.

Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC’s approach, accusing it of trying to intimidate the company and the broader crypto sector rather than applying the law justly. Ripple plans to file a counter-response next month, aiming to address the SEC’s allegations head-on.

Ripple CEO Brad Garlinghouse labeled the SEC’s demand as unparalleled, especially given the absence of any fraud or recklessness charges in the case. He accused the SEC of overstepping its legal bounds, referencing instances where the commission faced judicial reprimand for its overreach and bad faith actions.

London Stock Exchange to Debut Crypto ETNs

The London Stock Exchange (LSE) is gearing up to welcome crypto exchange-traded notes (ETNs) related to Bitcoin and Ether by May 28, following a pivotal regulatory update from the Financial Conduct Authority (FCA). This move positions the LSE at the forefront of integrating digital assets into traditional financial markets, allowing for the trading of debt securities backed by cryptocurrencies during London’s trading hours.

In a recent announcement, the LSE outlined the procedures for issuers interested in listing these innovative products. The application process for Bitcoin and Ether ETN issuers starts on April 8, with a deadline of April 15 for submission if they aim to be included in the May 28 listing. This strategic date selection aims to maximize issuer participation from day one of trading. Furthermore, issuers are required to prepare a comprehensive “base prospectus” for FCA approval, ensuring compliance and investor protection.

The LSE emphasized the importance of physically backed Bitcoin and Ether ETNs, mandating that these assets be primarily stored in cold storage or secured via regulated custodians.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.

Tags: Bitcoin crypto news crypto world CryptoDaily Ethereum
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