Stablecoins

Mitigating Money Laundering Risks in the Crypto Sector

Wednesday. November 20 at 5:00 PM

1 min. read

Switzerland's Financial Market Supervisory Authority (FINMA) has expressed concerns regarding the escalating money laundering risks within the cryptocurrency industry. In their 2024 Risk Monitor report, FINMA highlighted the misuse of digital assets, particularly stablecoins, for illicit purposes such as sanctions evasion. This misuse poses challenges for enforcement and increases legal and reputational risks for financial institutions lacking robust risk management strategies. FINMA stressed the importance of implementing stronger measures to address vulnerabilities associated with the misuse of digital assets, especially for financial intermediaries offering crypto services. The regulator has introduced institution-specific measures, including enhanced oversight and risk management requirements, to combat money laundering risks. Additionally, crypto organizations like Tether, TRON, and TRM Labs have collaborated to establish a financial crime unit to tackle the illicit use of stablecoins. These efforts aim to enhance compliance with anti-money laundering regulations and safeguard the integrity of the Swiss financial center.

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The Future of Stablecoin Networks in Global Payments

Tuesday. January 28 at 1:00 AM

Sixteen years post the creation of Bitcoin, the blockchain sector still grapples with issues in traditional finance. Brian Shroder, former Binance.US CEO, advocates for a stablecoin network tailored for global payments in local currencies to address these challenges. Shroder's 1Money Network aims to enhance stablecoin accessibility for daily transactions like peer-to-peer transfers and cross-border remittances. The stablecoin market, dominated by Tether and Circle's USD Coin, has seen significant growth. While other companies like Robinhood and Ripple are also venturing into stablecoin networks, 1Money stands out for its support of multiple stablecoins. Shroder envisions a future where stablecoins facilitate seamless global transactions. Despite blockchain's unresolved issues, stablecoins offer cost-effective solutions for cross-border payments. As stablecoins gain traction, they could drive mainstream adoption of blockchain technology, offering advantages like cost efficiency and enhanced transparency.

Stablecoins

The Growing Crypto Adoption in the UK

Saturday. January 25 at 9:00 PM

The United Kingdom has seen a significant increase in cryptocurrency ownership, with 7 million people now holding digital assets, up from 5 million. This surge reflects a shift towards sustainable and practical uses of cryptocurrencies. As adoption rates continue to rise, the British digital assets industry is poised to attract millions of new users, driving demand for easier money flow between crypto and fiat economies. Recent research by the Financial Conduct Authority (FCA) reveals that 12% of UK adults own crypto, with the average value of holdings also on the rise. The reasons for buying cryptocurrencies have evolved, with more people viewing them as long-term investments rather than mere speculation. The data suggests a growing acceptance of cryptocurrencies as a valuable asset class with diverse use cases. Businesses in the UK are urged to adapt to this trend by offering crypto solutions to stay competitive and meet the evolving needs of consumers.

Stablecoins

Circle Acquires Hashnote and USYC Tokenized Money Market Fund

Thursday. January 23 at 10:00 AM

Stablecoin issuer Circle has acquired Hashnote, a regulated asset manager known for its Hashnote US Yield coin. The acquisition includes the USYC Tokenized Money Market Fund. This move, in conjunction with a partnership with global trading firm DRW via Cumberland and plans to introduce native USDC to the Canton Network, aims to reshape the industry. Circle's public statement reveals the integration of USYC with USDC, facilitating seamless access between TMMF collateral and USDC. USYC, representing the Hashnote International Short Duration Yield Fund Ltd., is a significant fund with an AUM of $1.24 billion and an annual yield of 3.39%. The integration of USDC and USYC will allow for easy conversion between the two assets, positioning USYC as a preferred form of collateral. Circle's CEO, Jeremy Allaire, emphasizes the importance of tokenized money markets and the acquisition of Hashnote and partnership with DRW in advancing these innovations.

Stablecoins

Regulatory Push for Compliance with MiCA for Stablecoins in EU

Tuesday. January 21 at 1:00 PM

The European Securities and Markets Authority (ESMA) is urging firms to restrict stablecoins that do not adhere to the European Union's new Markets in Crypto-Assets Regulation (MiCA). ESMA emphasized the role of national competent authorities (NCAs) in guiding crypto asset service providers (CASPs) to align with MiCA guidelines. The authority did not specify which non-compliant stablecoins should be restricted but stressed the need for urgent action. MiCA prohibits issuers from offering unauthorized stablecoins, requiring EU authorization and written consent. NCAs are tasked with ensuring CASP compliance by the end of Q1 2025, with restrictions expected by January 2025. Tether's USDT, the largest stablecoin, may face EU restrictions as it is deemed non-compliant by ESMA. Industry players are actively engaging with regulators to address concerns and potential disruptions in the stablecoin market under MiCA.

Stablecoins