Ripple Labs Triumphs Over SEC; Hong Kong and Canada Adjust Crypto Policies; UK Alerts Against Unauthorized Exchanges
Summary:
The US District Court Judge turns down the Securities and Exchange Commission's (SEC) protest over its earlier defeat against Ripple Labs. With the SEC's appeal declined, the XRP cryptocurrency value shows a sudden uptick. Meanwhile, the Hong Kong Police and Securities and Futures Commission form a task force to investigate illicit crypto exchange actions. In Canada, crypto exchanges and issuers receive guidelines on managing value-referenced crypto assets, including stablecoins. The UK adds 143 non-authorized crypto exchanges to its alert list cautioning customers to avoid these firms.
In a significant court ruling on 3rd October, Judge Analisa Torres of the United States District Court shot down United States Securities and Exchange Commission's (SEC’s) attempt to contest its earlier setback against Ripple Labs, a leading cryptocurrency company. The decision was based on SEC's unsuccessful attempt to demonstrate substantial legal concerns or significant point of contention. This appeal aimed to overturn the July court decision that XRP token's retail sales didn't fit the legal criteria of a security. However, the SEC’s appeal was dismissed leading to a near 6% rise in XRP’s value. Nonetheless, with Judge Torres scheduling a trial for unresolved issues on April 23, 2024, not everything is lost for SEC. The verdict's implications appear to split legal opinion. Notwithstanding views of the judgment being a major victory for Ripple, legal professionals urge the public to curb their enthusiasm. Analysing the verdict, Bill Hughes, lawyer for blockchain company ConsenSys, told Cointelegraph that the denial of SEC’s appeal wasn't unexpected as such rulings are commonplace during this trial phase.
Further, the Hong Kong Police Force and the Securities and Futures Commission (SFC) have put together a task force specifically aimed to oversee illicit activities related to cryptocurrency exchanges. The joint task force will focus on monitoring and investigating unlawful actions by virtual asset trading platforms, exchanging information on questionable operations, determining the risks of such exchanges, and overseeing investigations together.
In related news, the Canadian Securities Administrators (CSA) have provided interim guidance to exchanges and cryptocurrency issuers on how to manage value-referenced crypto assets, particularly stablecoins. In this context, they highlighted that trading in stablecoins may potentially be deemed as securities and/or derivatives trading, which is outlawed for Canadian crypto exchanges. However, issuers who employ qualified custodians to manage an appropriate reserve of assets, and exchanges which make public crucial information associated with governance, operations and asset reserves, may be permitted to trade these assets.
Meanwhile, the United Kingdom’s Financial Conduct Authority (FCA) has added 143 cryptocurrency exchanges to its alert list. These are unauthorized firms that the public should avoid dealing with, and whose operators could face criminal charges for non-compliance.
Published At
10/9/2023 8:30:00 PM
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