Novice

According to Cointelegraph, France's financial markets regulator, the Autorité des Marchés Financiers (AMF), has granted approval for the cryptocurrency operations of Hexarq, a subsidiary of the French bank BPCE. This authorization, announced in an official AMF notice on December 20, allows Hexarq to operate as a crypto asset service provider (CASP) in France. With this regulatory approval, Hexarq is now authorized to offer a range of cryptocurrency services, including custody, buying, selling, and trading of cryptocurrencies against the euro. This development marks a significant step for BPCE, one of Europe's top ten banks, as it plans to integrate Hexarq's crypto services into its main banking networks, Banque Populaire and Caisse d'Épargne, by 2025. This integration will potentially provide access to cryptocurrency investment services for BPCE's 35 million customers, with the bank's assets under management reaching approximately 1.3 million euros by the end of September 2024. Hexarq, launched in January 2021, focuses on digital assets, including cryptocurrencies and tokenized real-world assets. The AMF's approval makes Hexarq the fourth crypto business to receive CASP authorization in France. Other companies that have obtained similar approvals include Société Générale's crypto subsidiary, Forge, Deblock SAS, and GOin SAS. The AMF began accepting CASP applications in August 2024, ahead of the full enforcement of the Markets in Crypto-Assets regulations set for December 30. Despite the approval, BPCE has not disclosed further details about the launch of its cryptocurrency services in 2025. The entry of BPCE into the crypto market is anticipated to have a significant impact, given the bank's extensive customer base and substantial assets under management. This move aligns with the growing trend of traditional financial institutions exploring the cryptocurrency sector, driven by increasing demand for digital asset services.

According to Odaily, U.S. President-elect Donald Trump has stated that if the U.S. government is going to shut down, it should begin now. This comment comes amid ongoing discussions and concerns about a potential government shutdown.

According to Odaily, market sources reveal that Fox News has disclosed the U.S. House of Representatives may vote on a temporary solution to prevent a government shutdown at 10 a.m. Additionally, The Hill reports that House Speaker Johnson has indicated there is a plan in place to avert the shutdown, with a vote expected on Friday morning.

According to PANews, the European Union's crypto asset regulations are set to take full effect by the end of the year, prompting several cryptocurrency exchanges within the EU to delist the popular stablecoin Tether's USDT. This move is impacting the market for such tokens, with new issuers attempting to fill the gap, while investors are defaulting to using the euro for cryptocurrency transactions. The new EU regulations aim to provide regulators with a deeper understanding of cryptocurrency flows and help prevent criminal activities such as money laundering. Blockchain forensics experts have noted that USDT is frequently used in such illicit activities. However, cryptocurrency executives warn that the Markets in Crypto-Assets (MiCA) regulation might ultimately drain market liquidity without achieving the EU's objectives, potentially diminishing the EU's appeal to digital asset traders at this critical juncture. Usman Ahmad, CEO of Zodia Markets, a crypto trading company supported by Standard Chartered Bank, expressed understanding of the rationale behind the move but noted that it is quite exclusionary and restrictive for EU customers, as USDT is the most liquid stablecoin, far surpassing others. Tether's main competitor, Circle, obtained the necessary license in July. However, Tether has not yet acquired such a license, though it has not ruled out the possibility of pursuing one in the future. In the absence of a license, regulated exchanges must delist the token by December 30. Tether has declined to comment on its plans regarding an electronic money license.

According to Foresight News, Japan's ruling Liberal Democratic Party has approved a new tax reform outline that includes significant changes to the taxation of cryptocurrency transactions. This marks the first time that cryptocurrency tax revisions have been explicitly included in the party's agenda. The reform aims to regulate cryptocurrencies as financial products, similar to stocks, and introduce specific tax incentives and investor protection measures.

According to PANews, the U.S. House of Representatives has failed to pass a temporary funding and debt ceiling bill that had the backing of former President Donald Trump. The bill faced significant opposition, with 22 Republican lawmakers casting votes against it. This development highlights the ongoing challenges within the Republican Party as it grapples with internal divisions and differing priorities.

Grayscale announced on X (formerly Twitter) that the Grayscale Sui Trust is now open to eligible accredited investors. The trust provides exposure to $SUI, a third-generation blockchain focused on addressing scalability and transaction costs.The trust utilizes the CoinDesk SUI Reference Rate to offer USD-denominated pricing based on real-time data from multiple component trading platforms, ensuring a representative spot price for $SUI. This marks another step in Grayscale’s efforts to provide institutional-grade access to emerging blockchain technologies. 

According to BlockBeats, on December 19, the Bank of England decided to keep its interest rate steady at 4.75%, aligning with market expectations. The decision, however, came with an unexpected voting result of 6 to 3. Governor Andrew Bailey emphasized that a gradual approach to future rate cuts remains appropriate. He noted the inability to commit to specific timing or magnitude of rate reductions in 2025.The surprising element in the decision was the presence of three members who voted in favor of a 25 basis point rate cut. These members expressed concerns over the risks associated with a significant output gap due to weak demand. They also highlighted that, in the medium term, the Consumer Price Index (CPI) is projected to fall well below the 2% target.Following the announcement, the British pound weakened against the US dollar, with the GBP/USD exchange rate dropping to 1.2604. This reaction reflects market sentiments towards the unexpected dissent within the central bank's decision-making process.

According to Odaily, Hong Kong-listed company LianLian Digital has announced that its wholly-owned subsidiary, DFX Labs Company Limited, has received a set of licenses from the Hong Kong Securities and Futures Commission (SFC) under the Virtual Asset Trading Platform (VATP) licensing regime.The VATP license permits DFX Labs to conduct regulated activities under Type 1 (dealing in securities) and Type 7 (providing automated trading services) as per the Securities and Futures Ordinance. Additionally, the license allows the establishment and operation of a compliant VATP in Hong Kong in accordance with the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. This development marks a significant step for LianLian Digital in expanding its operations within the virtual asset trading sector, aligning with regulatory standards set by Hong Kong authorities.

According to PANews, the U.S. Securities and Exchange Commission (SEC) is closely monitoring the exclusion of cryptocurrency companies and their executives from banking services. SEC Commissioner Hester Peirce expressed concerns over the Public Company Accounting Oversight Board's (PCAOB) proposed budget of nearly $400 million for 2025, which emphasizes scrutiny on companies holding or facilitating cryptocurrency transactions. Peirce highlighted recent regulatory efforts to deter regulated entities from engaging in the crypto sector.Peirce questioned the PCAOB's decision to focus on these companies while ensuring that auditors, issuers, and broker-dealers are not discouraged from entering the cryptocurrency space. Despite her objections, Peirce's stance was not supported, as SEC Chair Gary Gensler and three other commissioners voted against her.

According to PANews, the Nigerian Securities and Exchange Commission (SEC) has revised its cryptocurrency regulations, introducing new requirements for Virtual Asset Service Providers (VASPs) and social media influencers involved in crypto-related marketing. The updated digital asset rules mandate that VASPs collaborating with third-party service providers to promote their crypto products must obtain prior approval from the commission. Additionally, VASPs are required to ensure that these third-party providers adhere to the marketing rules established by the SEC. These regulations apply to any VASP offering services to residents of Nigeria and are set to take effect on June 30, 2025.The revisions also address the role of social media influencers in promoting cryptocurrency products and services. Influencers must secure a 'no objection authorization' from the Nigerian SEC before publishing digital asset advertisements. Furthermore, they are obligated to verify whether the companies they promote are licensed by the Nigerian SEC. Financial influencers must also disclose if they receive compensation for promoting the crypto products or services. Non-compliance with these regulations could result in penalties, including a minimum fine of 10 million Nigerian Naira (approximately $6,400) or up to three years of imprisonment.

According to BlockBeats, the Bank of Japan has decided to keep its policy interest rate steady at 0.25% as of December 19. This marks the third consecutive time the central bank has opted to pause any rate hikes. The decision reflects the bank's ongoing assessment of the economic landscape and its commitment to maintaining stability in the financial markets.The Bank of Japan's decision comes amid a global economic environment where many central banks are grappling with inflationary pressures and economic uncertainties. By maintaining the current rate, the Bank of Japan aims to support economic recovery while monitoring inflation trends closely. This approach indicates a cautious stance, balancing the need for economic growth with the potential risks of inflation.The central bank's policy decision is crucial for both domestic and international markets, as it influences investor confidence and economic forecasts. By holding the rate steady, the Bank of Japan signals its intention to provide a stable economic environment, which is essential for fostering growth and investment. The decision also highlights the bank's focus on long-term economic health rather than short-term fluctuations.As the global economy continues to navigate challenges, the Bank of Japan's policy choices will be closely watched by economists and investors alike. The central bank's commitment to maintaining a stable interest rate underscores its strategic approach to managing economic conditions in Japan and its impact on the broader financial landscape.

According to Odaily, the vote to renominate Caroline Crenshaw as a commissioner of the U.S. Securities and Exchange Commission (SEC) has been cancelled, potentially ending her tenure. Originally scheduled for last Wednesday, the Senate Banking Committee was set to decide on extending Crenshaw's term, which began in 2020. However, the Senate's website now indicates that the vote has been called off.A Senate aide familiar with the situation confirmed that the vote has been scrapped and is unlikely to be rescheduled. This development significantly diminishes Crenshaw's chances of continuing as an SEC commissioner. To remain in her position, Crenshaw would need the Senate Banking Committee's approval before the current congressional session concludes. The 2024 congressional term ends on December 18. After this date, Crenshaw could still seek reappointment, but she would require approval from the new Congress, which is expected to be controlled by Republicans, making her reappointment unlikely.

According to PANews, Europol, in collaboration with law enforcement agencies from six countries, has successfully dismantled a large-scale drug trafficking network that utilized cryptocurrency for money laundering. The operation led to the arrest of nine suspects and the seizure of gold, luxury goods, €35,000 in cash, and €25 million (approximately $26.23 million) in cryptocurrency, totaling a value of €27.2 million.The network operated through an underground banking system controlled from Dubai, with financial transactions involving cryptocurrency. The coordinated action took place on November 4, 2024, in Malaga, Spain, targeting key members associated with criminal networks in Albania and southern Spain.

According to Odaily, Zaheer Ebtikar, founder of the crypto fund Split Capital, has indicated that the global market anticipates a weakening of the Federal Reserve's dovish stance by 2025. This expectation is prompting crypto event traders and market makers to reduce their risk exposure. On Wednesday, Federal Reserve officials lowered the benchmark interest rate for the third consecutive time, while also controlling the number of rate cuts expected in 2025. Typically, lower interest rates boost demand for higher-risk assets, such as cryptocurrencies.David Lawant, Head of Research at crypto prime broker FalconX, noted that while the current rate cut forecasts are influencing prices, they may not have a lasting impact due to the decreasing correlation between Bitcoin and major stock indices. Lawant explained that the anticipated slowdown in rate cuts by 2025 is not entirely unexpected, but it does exert some pressure on risk assets, including cryptocurrencies. Although macroeconomic factors have traditionally influenced cryptocurrency price trends, industry-specific factors may become more dominant in the coming weeks and months, especially as the market anticipates policy changes from a new administration.

According to BlockBeats, Nick Timiraos, often referred to as the 'Federal Reserve's mouthpiece,' reported on December 19 that there has been a shift in the perception of inflation risks among Federal Reserve officials. In September, out of 19 officials, three believed that the risks to the core Personal Consumption Expenditures (PCE) inflation forecast were tilted to the upside, suggesting that if the forecasts were incorrect, they might be too low.Today, the sentiment has changed significantly, with 15 out of the 19 officials now expressing concerns that the risks associated with the already revised upward core PCE inflation remain skewed to the upside. This indicates a growing consensus within the Federal Reserve that inflationary pressures could be more persistent than previously anticipated. The core PCE inflation is a critical measure for the Federal Reserve as it excludes volatile food and energy prices, providing a clearer picture of underlying inflation trends.

According to Odaily, a recent meeting between the Token Alliance of the Chamber of Digital Commerce and staff members of U.S. SEC Commissioners Hester Peirce and Mark Uyeda highlighted the need to address the handling of the 2018 Hinman speech. The Token Alliance emphasized that this issue should be a top priority for the Corporation Finance division due to its lack of relevance to the Howey Test, which has led to market confusion and an "improper creation of winners and losers."The SEC's priority list for each department is outlined in a timeline from the first to the 90th day of the new administration under President Trump. This list identifies policy changes that the industry believes could foster a new, more positive relationship between cryptocurrency market participants and the agency. Among the key first-day priorities are initiating a review of all existing crypto-related investigations, Wells notices, and ongoing litigation, with a focus on suspending cases that do not involve actual fraud or harm to investors. Additionally, the withdrawal of SAB 121 and the issuance of a rescission order in the Federal Register are highlighted, along with the formal withdrawal and reconsideration of the proposed amendment to Rule 3b-16, which seeks to expand the definition of "exchange" to include DeFi protocols.Notably, the Chamber of Digital Commerce expressed satisfaction with the open dialogue with the commissioners' teams, indicating a willingness to engage in ongoing discussions.

According to PANews, the Hong Kong Monetary Authority (HKMA) has reduced its benchmark interest rate by 25 basis points, bringing it down to 4.75%. This decision follows the U.S. Federal Reserve's announcement earlier in the day to cut its interest rate by the same margin.The move by the HKMA aligns with its policy of maintaining a stable monetary environment in Hong Kong, which is closely tied to the U.S. dollar due to the currency peg. The adjustment in the benchmark rate is expected to influence borrowing costs and economic activity in the region, reflecting the HKMA's response to global economic conditions and monetary policy trends set by the Federal Reserve.

According to Cointelegraph, debanking has emerged as a significant challenge for crypto firms, particularly affecting smaller projects that lack substantial financial and legal resources. Mauricio di Bartolomeo, co-founder of Ledn, has proposed several cost-effective strategies for small crypto startups to navigate debanking issues while maintaining essential regulatory compliance to build relationships with financial institutions.Bartolomeo emphasized the importance of seeking affordable legal counsel from law firms offering special pricing for startups. He also suggested that small firms consider partnering with banks in other countries or operating within crypto frameworks until they can establish traditional banking relationships. Highlighting the critical nature of regulatory compliance, Bartolomeo stated, "Number one is do not cut corners on compliance. The second you cut corners on compliance, you have debanked yourself. So do not cut corners on anti-money laundering (AML) or know-your-customer (KYC) compliance."Ledn, like many other crypto firms, faced debanking during Operation Chokepoint 2.0. However, the company managed to endure the situation due to its diversified banking partnerships, allowing it to focus on regulatory compliance and avoid unnecessary scrutiny from regulators. In 2020, Ledn received a debanking notice, underscoring the challenges faced by crypto firms in maintaining banking relationships.In November, industry leaders voiced their concerns against Operation Chokepoint, with crypto executives sharing their debanking experiences on social media. Venture capitalist Marc Andreessen highlighted the issue during an episode of The Joe Rogan Podcast, claiming that over 30 tech founders were debanked during the operation. He also accused the Biden administration of stifling innovation in AI by warning institutional investors against new AI startups.Court documents released through a Freedom of Information Act (FOIA) request revealed that the Federal Deposit Insurance Corporation (FDIC) had asked some banks to halt crypto activities in 2022. The heavily redacted FDIC documentation drew criticism from Judge Ana Reyes, who ordered the agency to provide more transparent documents by January 2025. Additionally, the FDIC reportedly pressured banks serving crypto clients to cease operations. Venture capitalist Nic Carter alleged that the FDIC, under the Biden administration's direction, deliberately targeted Silvergate Bank to dismantle its crypto clientele, despite the bank's solvency at the time of liquidation. Carter further claimed that the FDIC forced the bank to limit crypto deposits to 15%.

According to PANews, ZBD, a payment platform powered by the Bitcoin Lightning Network, has received approval from the Dutch Authority for the Financial Markets (AFM) for its EU Markets in Crypto-Assets (MiCA) license application. This approval marks a significant step for ZBD, as it will enable the company to offer a comprehensive range of cryptocurrency custody and exchange services across the European Union once the license becomes effective. The approval of the MiCA license is a crucial development for ZBD, as it positions the company to expand its operations within the EU's single market. The license will allow ZBD to provide its services in a regulated environment, ensuring compliance with the EU's stringent financial regulations. This move is expected to enhance the company's credibility and trust among users and partners, facilitating its growth in the competitive cryptocurrency market. ZBD's expansion into the EU market aligns with the broader trend of increasing regulatory oversight in the cryptocurrency industry. As more countries and regions implement regulatory frameworks for digital assets, companies like ZBD are seeking to secure the necessary licenses to operate legally and efficiently. The MiCA regulation, in particular, aims to create a harmonized regulatory environment for cryptocurrencies within the EU, providing clarity and protection for both consumers and businesses. The approval from the AFM is a testament to ZBD's commitment to adhering to regulatory standards and its readiness to meet the demands of the evolving cryptocurrency landscape. As the company prepares to launch its services under the new license, it is poised to play a significant role in the EU's growing digital asset ecosystem.