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The Hong Kong Monetary Authority (HKMA) has launched "Project Ensemble," a venture aimed at developing a wholesale central bank digital currency (wCBDC) to enhance Hong Kong's capacity in handling digital asset transactions. By introducing this project, Hong Kong seeks to solidify its position as a leader in the tokenization sector, transforming assets into digital tokens. Project Ensemble, initiated on March 7, targets the establishment of a financial infrastructure facilitating seamless digital money transfers between banks through CBD. Initially focusing on digitized bank deposits for public use in tokenized asset transactions, the project pledges to modernize Hong Kong's financial ecosystem. By merging digital and traditional finance, the initiative aims to explore the digitization of various assets, including green bonds and infrastructure projects. The introduction of a wCBDC Sandbox for testing digital currency applications reflects the HKMA's proactive approach to embracing...

Worldcoin, the biometric iris scanning project, has filed a complaint against the actions of the Spanish Data Protection Agency (AEPD) for imposing a ban on its operations in Spain. Tools For Humanity, the company behind Worldcoin, argues that the AEPD's actions circumvent established procedures under the European Union's General Data Protection Regulation (GDPR). The company contends that the AEPD lacks jurisdiction to intervene and that the appropriate authority is the Bavarian State Office for Data Protection Supervision (BayLDA), where Worldcoin is incorporated. While the ban order has led to the pause of World ID verification services in Spain, the World App services related to the project's digital wallet remain accessible. By invoking the GDPR and asserting jurisdictional issues, Tools For Humanity aims to contest the legality of the AEPD's actions and uphold compliance with established regulatory frameworks. However, the outcome of this legal battle will likely have broader...

The Hong Kong Monetary Authority (HKMA) announced the initiation of Project Ensemble, aimed at developing a new wholesale central bank digital currency (wCBDC) to facilitate tokenization. This project will focus on creating innovative infrastructure for interbank settlement using wCBDC, initially concentrating on tokenized deposits for transactions involving tokenized assets. The HKMA plans to establish a sandbox to research and test various tokenization use cases, including settlement of tokenized real-world assets. Additionally, the formation of a wCBDC Architecture Community comprising local and multinational banks, key players, and the HKMA's CBDC Expert Group is underway to facilitate collaboration. While the announcement did not mention involvement by the Bank for International Settlements (BIS), it highlighted the HKMA's participation in various BIS projects and experiments conducted with local and Chinese banks. The HKMA's recent guidance on the sale and distribution of...

The Bangko Sentralng Pilipinas (BSP) is moving forward with its plans to study wholesale central bank digital currency (wCBDC), with a pilot project named Project Agila expected to conclude by the end of the year. BSP's deputy governor, Mamerto Tangonan, described the project as a "learning exercise" aimed at exploring the democratization of access to securities and investment instruments, making them more accessible to the general public. Six domestic banks are participating in the pilot alongside the BSP, utilizing wCBDC for fund transfers among themselves. BSP Governor Eli Remolona emphasized that the central bank is solely considering wCBDC to address concerns about bank disintermediation, clarifying that the CBDC would not operate on a blockchain. BSP by engaging in pilot projects with domestic banks, the BSP aims to understand the potential applications and implications of wCBDC, particularly in democratizing access to investment opportunities. However, challenges such as...

Do Kwon, the mastermind behind Terraform Labs, finds himself embroiled in a gripping extradition saga as Montenegro prepares to send him back to South Korea. Kwon, accompanied by a Terra executive, was apprehended attempting to cross borders with forged documents. While his colleague, Han Chang-joon, was already extradited to South Korea last February, Kwon faces a four-month sentence in Montenegro for his involvement. Despite potential legal challenges, Kwon's future seems destined for South Korea, with both the U.S. and South Korea vying for jurisdiction over his alleged crimes, including securities fraud. The extradition decision, following a year of legal battles, highlights the complexity and high stakes involved in Kwon's case. Kwon's extradition saga underscores the intersection of international law and cryptocurrency regulation, with multiple jurisdictions seeking to prosecute him for alleged financial crimes. The case highlights the challenges of enforcing regulatory...

Matt White, CEO of Dubai’s Virtual Assets Regulatory Authority (VARA), welcomes the Financial Action Task Force's (FATF) decision to remove the UAE from its grey list, seeing it as a positive step forward for crypto-related investments in the region. The FATF's move follows the UAE's successful fulfillment of its action plan to combat money laundering and terrorism financing, signaling significant progress in implementing reforms. White outlined VARA's vision to establish baseline Virtual Asset Service Providers (VASPs) and products essential for a thriving crypto ecosystem in Dubai. This includes ensuring the presence of reputable exchanges, brokers, and custodians, equipped with a comprehensive suite of products to serve the crypto market effectively. VARA aims to collaborate with industry stakeholders on targeted proof of concept or pilot projects, facilitating initiatives such as tokenizing funds by identifying interested VASPs and engaging relevant regulatory bodies to...

Digital Currency Group (DCG) and its CEO Barry Silbert have filed motions to dismiss a $3 billion lawsuit brought by the New York Attorney General’s Office (NYAG), contending that the fraud allegations are unfounded. The lawsuit, filed in October 2023, accused DCG, Gemini, and Genesis of defrauding investors, including thousands of New Yorkers, through the Gemini Earn investment program. DCG subsidiary Genesis settled with the NYAG in February, but the NYAG subsequently filed an expanded complaint against DCG and included Genesis as a defendant. DCG has now denied the allegations and filed motions to dismiss the lawsuit, labeling the accusations as baseless and unsupported. The motions filed by DCG and Barry Silbert indicate a vigorous defense against the NYAG's allegations, signaling their determination to refute the claims and clear their names. The legal battle underscores the contentious regulatory landscape in the cryptocurrency industry and the potential ramifications for firms...

In a significant development for the cryptocurrency industry, CFTC Chair Rostin Behnam emphasized the urgent need for Congress to enact comprehensive crypto regulations. Behnam highlighted the necessity for a regulatory framework that addresses the complexities of digital assets, stressing the false narrative of crypto fading away. He urged Congress to act swiftly, particularly regarding Bitcoin's status as a commodity. Concurrently, the CFTC's advisory committee voted to advance a pioneering digital assets taxonomy, aiming to provide clarity for effective regulation. Behnam's call for comprehensive crypto regulations reflects growing recognition of the industry's significance and the need for regulatory clarity to foster innovation and investor protection. The CFTC's proactive steps, including advancing a digital assets taxonomy, signify a commitment to understanding and regulating digital assets within its jurisdiction. This may prompt collaboration and clarity between regulatory...

CFTC Chairman Rostin Behnam has voiced disagreement with the SEC over Prometheum's Ethereum custody plans, warning of potential conflict within U.S. financial market regulations. Behnam asserted that both Bitcoin and Ethereum are commodities, contrary to the SEC's stance. He expressed concern that allowing Prometheum to custody Ethereum could create non-compliance with SEC rules for CFTC registrants listing Ether futures contracts. Behnam's testimony highlights the regulatory ambiguity surrounding Ethereum's classification as a security or commodity. The clash between the CFTC and SEC underscores the challenges of regulating digital assets within the existing framework. Behnam's call for congressional intervention reflects the need for legislative action to address regulatory gaps and ensure market integrity amid the evolving crypto landscape. The disagreement between the CFTC and SEC over Ethereum's classification shows the urgent need for regulatory clarity in the cryptocurrency...

The Spanish Data Collection Agency (AEPD) has directed human identity-focused crypto project Worldcoin (WLD) to cease collecting personal data in Spain following multiple complaints from users. The AEPD mandates Worldcoin to stop data collection and processing, including blocking already collected data, due to alleged infringements such as insufficient information disclosure, data collection from minors, and non-withdrawable consent. The AEPD's intervention reflects growing concerns over privacy and data protection in the cryptocurrency space, particularly regarding projects like Worldcoin that gather sensitive personal information. The move underscores the need for stringent regulations and oversight to safeguard users' rights and privacy in emerging technologies. Spain's action against Worldcoin underscores the importance of regulatory compliance and accountability in the cryptocurrency sector. It highlights the challenges faced by projects that handle personal data and the...

The United Kingdom has officially announced its adoption of the Organization for Economic Co-operation and Development’s (OECD) cryptocurrency reporting standards into its legal and fiscal framework, following the spring budget announcement. The move aims to bolster tax transparency and curb tax evasion in the burgeoning crypto market. The Treasury projects a significant increase in tax revenue, with an expected rise of £35 million ($45 million) between 2026 and 2027, further increasing to £95 million between 2027 and 2028. The new standards, scheduled to take effect in 2026, seek to address tax transparency challenges arising from the rapid growth of fintech and the global cryptocurrency market. The UK's incorporation of OECD cryptocurrency reporting standards underscores its commitment to regulating and taxing the rapidly evolving crypto sector. By aligning with international standards, the UK aims to enhance transparency and accountability in crypto transactions, thus bolstering...

In a significant development for the crypto lending sector, Nexo DWTC announced its preliminary approval from Dubai's Virtual Assets Regulatory Authority (VARA) to engage in virtual asset lending, borrowing, and broker-dealer activities within the UAE's bustling city. This provisional "Initial Approval [IA]" nod marks Nexo's entry into Dubai's rapidly expanding crypto market, positioning it as one of the early players in digital asset lending in the region. With this initial approval, Nexo DWTC is set to offer its services through the Nexo platform, ensuring compliance with regional laws and providing seamless access via both mobile and desktop interfaces. Kalin Metodiev, CFA, co-founder, and managing partner at Nexo, expressed enthusiasm about the company's strategic alignment with Dubai's Virtual Asset Regulatory Authority's guidance, highlighting their commitment to innovative market strategies tailored to Dubai's regulatory framework. Nexo's licensing journey with VARA follows a...