3Commas Weekly Update June 7, 2024

Staying informed and flowing with the ever-dynamic regulations surrounding cryptocurrency across various nations is essential due to its volatile nature and the constant evolution of the industry.

Let's take a look at the recent developments and new regulatory updates for a sound trading journey and trading plan. Here are the new developments. 

Binance Resumes Crypto Buys via Mastercard 

Binance, the world's largest crypto exchange has reenabled the purchase of cryptocurrency via bank transfers using Mastercard debit and credit cards for “smooth transactions,” according to Binance X post.

The “buy crypto” options via Mastercard have been reenabled, with a maximum one-time purchase of up to 5,000 euros, worth approximately $5,440 for euro-based transactions, and up to $20,000 for United States dollar-based purchases.

CryptoUK Publishes Travel Rules for Crypto Businesses.

The CryptoUK Travel Rule Working Group published a 36-page guide to help crypto businesses navigate the U.K. 's Travel Rule requiring crypto businesses to collect, verify and share information about digital asset transactions with another crypto company.

The new guide is to help VASPs, crypto businesses, and other market participants to have a deeper understanding of the rule’s application in the United Kingdom.

Paxos International to Launch a regulated interest-paying stablecoin

Paxos International will be issuing an interest-bearing stablecoin called the Lift Dollar (USDL). The USDL will be regulated in the Abu Dhabi Global Market (ADGM) and pay overnight yield on the interest Paxos International earns on the reserves backing it.

The USDL will be backed 1:1 by liquid U.S. government securities and cash equivalent reserve assets held in complaint with the requirements of the ADGM’s Financial Services Regulatory Authority. Instead of earning interest on those reserves, Paxos International will charge an issuer fee for the token. 

Turkey Denies Plan to Tax Crypto and Stock Gains

Turkey has dismissed tax on gains from stocks and cryptocurrencies but is exploring a transaction tax as part of efforts to regulate the tax on financial transactions.

Turkey introduced a crypto bill earlier to regulate the crypto market. The bill requires crypto businesses to get licenses following International standards. The legislature of the Turkey government also stipulated mandatory revenue collection from crypto service providers.

Spot Ether ETF approvals will ‘take some time’ — Gary Gensler

US SEC explains that there might be delays with the approval processes of the S-1 registration statements for spot exchange listing. 

In a June 5 interview on CNBC, Gensler said the next steps on the SEC’s approval of spot Ethereum ETFs will “take some time,” stating that the commission might have a delay with the signing of S-1 registration processes.

UAE central bank approves licensing process for stablecoins

The board of directors of the Central Bank of the United Arab Emirates (CBUAE) has approved the issuance of a new process to oversee and license stablecoins in the Emirate.

The regulations clarified the issuance, licensing and supervision of dirham-backed payment tokens.  

The UAE lawyer explained that payment tokens must be backed by UAE dirhams and cannot be linked to other currencies, digital assets or algorithms. She also maintained that merchants and service providers can only accept dirham-backed tokens and no other virtual assets.

What You Should Know: The spot ETH ETF approval will be delayed and as a trader, you should be prepared. Also, the Turkish government is looking at having stable  regulations of crypto in the country for businesses and users. Stay updated and vigilant with crypto regulations to ensure you’re making decisions with as much information as possible.