3Commas Weekly Crypto Regulatory News Update

Amidst the unstable crypto regulations across different countries and the ever-evolving world of cryptocurrency, staying updated on regulatory changes is crucial.

These updates are geared towards helping you to be aware and stay compliant in your trading journey. Here are the latest developments you need to know:

Binance License in France 

Binance France gets a new owner following regulator warnings; CEO Changpeng Zhao is no longer Binance's beneficiary if it wants to keep its French license. 

The Financial Markets Authority (AMF) in France had earlier sent a warning to Binance in December 2023. As was reported by Cointelegraph, the AMF had informed Binance France that it had to take action in response to the problems that arose between the original beneficial owner and the United States Justice Department, Commodity Futures Trading Commission (CFTC) and the Treasury’s Financial Crimes Enforcement Network. 

This was in response to the withdrawal of former Binance CEO Changpeng from the company after pleading guilty to Anti-Money Laundry in the US.

The new names of the beneficiaries of Binance France were not provided. Binance France said they were both members of the founding team at Binance. The Pappers information service listed them as Lihua He and Yulong Yan.

Worldcoin Trading Ban Imminent?

Regulators across the world are banning Worldcoin amidst privacy fears; Worldcoin which currently has a market capitalization  of over a billion and over 450 million in trading volume has been banned in countries like India, Kenya, Germany, Brazil, South Korea, and Spain.

Worldcoin, an AI-centric identification project, is reportedly collecting biometric data of individuals and rewarding them with 25 WLD tokens which is worth around $115. 

Regulators around the world are banning the project citing that the project is a critical threat to individual privacy of users.

Thailand Offering New Visa for Digital Nomads

The Thai government has announced a new visa class for remote workers that can be extended for up to 360 days. There are still no clear details on income and tax liabilities.

The local outlet, Kahosod English, reported that the Thai government has introduced the new Destination Thailand Visa (DTV) for those wanting a workcation.

Kahosod reports that the new DTV has a $270 fee (10,000 Thai baht) and is valid for five years. It offers a 180-day stay which can potentially be extended for another 180 days subject to the same fee, giving holders the chance of working from Thailand for nearly 12 months at a time.

Nevertheless, the new DTV is different from the Long Term Residents (LTV) "Work-from-Thailand" visa, often referred to as a digital nomad visa, which is much harder to obtain.

Terraform, Do Kwon to Reach Settlement With US SEC.

Terraform Labs and CEO Do Kwon are finalising a settlement with the US Security Exchange Commission. Both parties are expected to submit the final terms for court approval by mid-June.

Terraform and Kwon were legally found responsible for defrauding investors in its civil case with the SEC in February. US SEC had sought approximately $5.3 billion for the significant financial penalty attributed to investors losing their money in the algorithm stablecoin TerraUSD (UST) collapse. 

FIT21 Implementation Could be a Slow Process — CFTC Commissioner.

Summer Mersinger, Commissioner of the Commodity Futures Trading Commission (CFTC) has predicted that the implementation of the FIT21 Act can potentially take months, even years to fully go into effect.

What is the FIT21 Act? - FIT21; Financial Innovation and Technology for the 21st Century Act is a comprehensive market structure bill that will protect consumers, ensure crypto companies have robust rules, create clarity for job creators and blockchain builders, and 

ensure that the digital assets ecosystem thrives in the US.

The FIT2 bill has successfully passed the House of Representatives with bipartisan support and is now facing its next challenges in the Senate. Once it becomes a law, the regulatory bodies like the SEC and CFTC will enforce the new law and this is a Slow Process where public comments are sought and reviewed. This process can potentially take several months, though.

Citadel-backed Hidden Road Halts Bybit Access to its Clients

Hidden Road, a Citadel-backed brokerage firm, has stopped its clients from accessing ByBit exchange citing Know-Your-Customer verification procedures and Anti-Money Laundering regulations. 

ByBit responded to the new development affirming that it would conduct an audit of its brokerage business to ensure that the regulatory policies were correctly implemented.

Gate.HK Shuts Down After Failing to Acquire Local License 

Hong Kong-based cryptocurrency exchange Gate.HK has closed down; The Hong Kong Securities and Futures Commission (SFC) has mandated all crypto exchanges in the region to stop their services if they fail to acquire an operational license by May 31st.

OKX, Huobi Amongst Others to Withdraw Local Virtual Assets Trading Platform (VATPs) License Application in Hong Kong.

A total of 11 crypto companies and exchanges, including the OKX and Huobi local arm, withdrew their applications ahead of the June 1 deadline, with 18 applications still pending approval.

According to Cointelegraph reports, the Hong Kong Securities and Futures Commission (SFC) has explained that the commission will be conducting on-site inspections of (VATPs) that are still going through their regulatory applications after the deadline.

According to the SFC website, only two companies, OSL Digital Securities Limited and Hash Blockchain Limited, have been granted a licence to operate in the region.

What You Should Know: As a 3Commas trader, you should be armed with the latest news updates to keep you informed and stay compliant with the ever changing regulations. These news updates will help you to know which exchange is still functional in a particular region. It will also give you fundamental insights to the coins you are trading and other interesting news to stay ahead of the curve.