In a joint statement released by three United States federal agencies, the banking sector was advised against creating new risk management principles to counter liquidity risks resulting from crypto-asset market vulnerabilities. The Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) released a statement reminding banks to apply existing risk management principles when addressing crypto-related liquidity risks. The joint statement highlighted the key liquidity risks associated with crypto-assets and related participants for banking organizations. The risks highlighted concern the unpredictable scale and timing of deposit inflows …

During the first G20 Finance Ministers and Central Bank Governors (FMCBG) meeting under India’s presidency, the members were invited to discuss key financial stability and regulatory priorities, among other policy approaches. India urged member nations to build and understand the macro-financial implications of crypto assets and recommended formulating a coordinated global policy. India’s Finance Minister, Nirmala Sitharaman, has historically supported the idea of creating crypto regulations in partnership with other jurisdictions — given the global reach of crypto assets. Under India's G20 Presidency, this narrative is now a part of mainstream discussions. During the FMCBG meeting held on Feb. 24 …

Lawyers representing former FTX CEO Sam Bankman-Fried in federal court have requested an extension to file a proposal related to his bail conditions. In a Feb. 24 filing with the United States District Court for the Southern District of New York, Mark Cohen of Cohen & Gressler said the legal team wanted until March 3 to file a proposal for additional bail conditions for Bankman-Fried as well as find a suitable candidate to act as a technical expert in the case. The lawyers agreed to hire an expert following a Feb. 16 hearing discussing the former FTX CEO’s use of …

The Central Bank of Jordan is closer to its next step toward a retail central bank digital currency (rCBDC) with the completion of an International Monetary Fund (IMF) technical report on the country’s markets. The IMF conducted a three-month mission last year to assist the bank with preparations for a CBDC feasibility report. The IMF released its report Feb. 23. Working between July and September 2022, the IMF gave the country’s existing retail payment market a largely positive review, calling it well-integrated. Two nonbank payment service providers (PSPs) have “generally accessible and appropriate product” and the country has high smartphone …

The World Wide Web, as its name implies, is borderless, and so is crypto. The internet and cryptocurrency’s common ethos is wide-open communication and exchange, unimpeded by national boundaries. On the ground, however, as crypto has become a more significant player in the financial system, nations have begun to consider issues of sovereignty and regulation. While many countries have so far remained open to crypto, others have restricted its use or outright banned it. The same reason that some have advocated for crypto and blockchain technology — as a means of revolutionizing the international financial system — has alarmed plenty …

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week. The backlash from the Terra implosion still haunts the crypto world, with the now-shuttered stablecoin yield platform Stablegains being sued for customer losses. The plaintiffs allege that the platform funnelled customer funds into Anchor Protocol without users’ knowledge or consent. Platypus, the DeFi protocol that was exploited for over $8 million, is working on a compensation plan to recover some of the funds. Florida’s Cogent Bank is proposing a $100 million participation in loans …

The Financial Action Task Force, or FATF, reported its delegates had come to an agreement on an action plan “to drive timely global implementation” of global standards on cryptocurrencies. In a Feb. 24 publication, the FATF said the plenary for the financial watchdog — consisting of delegates from more than 200 jurisdictions — met in Paris and came to a consensus on a roadmap aimed at strengthening “implementation of FATF Standards on virtual assets and virtual asset service providers”. According to the task force, in 2024 it will report on how FATF members have moved forward on implementing the crypto …

Central bank digital currencies (CBDCs) are digital versions of fiat currencies that are backed and issued by central banks. Here are five ways in which CBDCs could impact the global financial system. Digitalization of payments CBDCs might make payments quicker and more efficient because they would do away with the need for intermediaries. Costs could be brought down as a result, along with financial inclusion and an improved global payments system. CBDCs could also enable cross-border payments to become faster and more efficient, as they would not be subject to the limitations of the traditional financial system. The ease and …

Even as the crypto market continues to forge an impressive recovery from the 2022 bear market, the industry continues to attract the wrath of regulators worldwide, especially in the United States. Three U.S. financial watchdogs recently issued stern warnings to individuals looking to invest in retirement funds offering exposure to digital assets. The U.S. Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy, the North American Securities Administrators Association and the Financial Industry Regulatory Authority (FINRA) warned investors that individual retirement accounts (IRAs) that include cryptocurrencies could potentially be classified as “securities,” unless they are registered with the …

The International Monetary Fund (IMF) recently made another anti-crypto move, expressing its opposition to crypto becoming a legal tender. In response to this, members of the crypto community were quick to fire back, going on Twitter to express disagreement. The executive board of the IMF recently endorsed a crypto asset policy framework that included not granting crypto assets an official currency or legal tender status. The executives agreed with the framework and highlighted that it’s a necessary move to safeguard monetary stability. The best #Bitcoin promotion. https://t.co/vwW6YdzBhJ — Dennis Parker (@Xentagz) February 23, 2023 From expressing their support for Bitcoin …

A judge from the United States District Court of the Southern District of New York ruled that emojis like the rocket ship, stock chart and money bags mean "a financial return on investment," according to a recent court filing. In a tweet, former United States Securities and Exchange Commission (SEC) branch chief Lisa Braganca warned users of the potential legal consequence of their use of such emojis that may indicate future gains. She tweeted: A federal court judge ruled that these emojis objectively mean "one thing: a financial return on investment." Users of these emojis are hereby warned of the …

Binance Australia Derivatives sent an abrupt message to a select group of users on Feb. 23, saying it would be immediately closing their accounts due to a false classification of some users as “wholesale clients.” This incident caused a flurry of responses from users on social media, and the next day, the Australian Securities and Investments Commission (ASIC) announced it would be conducting a “targeted review” of Binance's local derivatives operations. According to a statement from a spokesperson of the regulator on Feb. 24, the review of Binance Australia Derivatives will include the company’s “classification of retail clients and wholesale …