SEC Delays Ether ETF Decisions; Binance Hit with $2.7B Fine; Montenegro Halts Extradition; China Tightens Gaming Regulations
Summary:
The US Securities and Exchange Commission delays decision on several Ether (ETH) ETFs until May 2024. Montenegro court halts the extradition of Terraform Labs co-founder Do Kwon. Crypto exchange Binance and its ex-CEO, Changpeng Zhao, ordered by a U.S. court to pay a $2.7 billion penalty to the Commodity Futures Trading Commission. The General Administration of Press and Publication of China proposes new guidelines restricting in-game token activities and imposing stricter regulations on online gaming companies.
The US Securities and Exchange Commission is postponing the approval process for several Ether (ETH) exchange-traded funds (ETFs), expecting to make a decision by May 2024. Deliberation on the Hashdex Nasdaq Ethereum ETF and Grayscale Ethereum Futures ETF specifically has been delayed. The intention of the Hashdex ETF is to contain both spot Ether and futures contracts, while it's predicted that Grayscale's Ethereum Futures ETF could force the SEC to allow Grayscale to metamorphose its Ethereum Trust into a spot Ethereum ETF. The SEC mentioned in the filings that they are initiating procedures to solicit more public opinion on whether these ETFs should receive listing. The SEC also postponed its verdict on the VanEck spot Ethereum ETF and the spot Ethereum ETF submitted by Cathie Wood’s ARK Invest and 21Shares. Regardless of these delays, many observers still anticipate approvals for Bitcoin (BTC) spot ETFs by the beginning of 2024. Bloomberg ETF analysts James Seyffart and Eric Balchunas predict that a spot Bitcoin ETF will receive approval from the US SEC in January 2024 despite numerous eleventh-hour changes that applicants are hastily inserting into their submissions.
A court in Montenegro has overturned its prior approval of extradition for Terraform Labs co-founder Do Kwon, meaning he will not be extradited to the U.S. or South Korea. The High Court of Podgorica previously found in favor of Do Kwon’s extradition in November 2023, leaving the final decision up to the justice minister of Montenegro. Following the latest appeals court decision, Kwon’s defense appeal has been successful and the issue will be referred back to the Basic Court of Podgorica for retrial. The appellate court panel specifically determined that the original decision by the High Court of Podgorica substantively violated the provisions of Montenegro’s Criminal Procedure Code.
In other news, Binance, the cryptocurrency exchange, alongside its former CEO, Changpeng “CZ” Zhao, has been ordered by a U.S. court to pay a fine of $2.7 billion to the Commodity Futures Trading Commission. The court declared that Binance and Zhao had violated the Commodity Exchange Act and the CFTC's rules, imposing a civil fine of $150 million on Zhao personally, and mandating Binance to give back $1.35 billion of improperly obtained transaction fees and pay an additional penalty of $1.35 billion to the CFTC.
Lastly, The General Administration of Press and Publication of China (GAPP) plans to limit activities involving in-game tokens. According to its newly proposed guidelines for the online gaming industry, the body suggests banning the purchase of physical goods and the exchange of in-game tokens for real currency. The draft guidelines also advocate tighter restrictions, such as the requirement for companies to secure a license in China, store user data for up to two years, ensure content aligns with national and socialist values, and eliminate the possibility of users registering anonymously.
Published At
12/25/2023 11:00:00 PM
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