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At the beginning of 2024, with the victory of the GrayScale case and the promotion of Wall Street capital headed by Bellaide, the BTC ETF was historically approved, marking that virtual assets entered the field of mainstream traditional capital for the first time.A wave of bull markets.
Such a bull market is not only reflected in the value level of virtual currency, but also that blockchain technology is gradually accepted by mainstream institutions. The most influential is the successful launch of the Berlaide tokens BUIDL.There is no doubt that in the future, traditional financial capital will be more grafted on the blockchain.
At the regulatory level, the United States still lacks a unified unified virtual asset supervision framework, but this does not prevent US supervision from cracking down on illegal crimes (such as KUCION’s regulatory law enforcement of anti -money laundering requirements), as well as the gradual recognition of virtual assets in traditional Wall Street capital (such as such as virtual assets (such as such as virtual assets (such as such as virtual assetsBTC ETF, token funds, etc.).
On the other hand, the European Union and Hong Kong are actively establishing a comprehensive virtual asset supervision framework (such as the EU’s MICA and the Vasp licenses of Hong Kong and many consulting opinions). At the practice levelThe cost of exhibition industry and obstacles to the adjustment of compliance business.
Crypto Friendly Is Not Crypto EasyEssence
This article will sort out the global Web3 virtual asset supervision and hot event observation in the first quarter of 2024. The content covers the historic approval of the BTC ETF, KUCOIN and its founders’ supervision and law enforcement, Berlaide’s tokenization fund BuidlNew regulations for the anti -money laundering of the custody wallet and Hong Kong, which is comprehensively moving towards virtual asset compliance.
1. The historic approval of BTC ETF
After ten years of BTC ETF’s hard approval, the road of hardship approval finally ushered in the dawn of victory. At 4 am on January 11, 2024, the US Securities Regulatory Commission (SEC) also passed 11 spot BTC ETFs at the same time.All of these should be attributed to GrayScale’s victory.
1.1GrayscaleVictory
On August 29, 2023, a ruling from the Federal Court made GrayScale win in a lawsuit against SEC’s refusal to apply for spot BTC ETF [1].This has accelerated the process of applying for BTC ETFs such as BLACKROCK and Fidelity for the past few months.
The reason for SEC’s previously not approved BTC ETF is to worry about market fraud and manipulation.Although SEC has allowed futures BTC ETF transactions for the first time in 2021, it said that futures products are more difficult to be manipulated because the market is based on the futures price of the Chicago Commodity Exchange (CME), and the Chicago Commodity Exchange is subject to US commodity futures transactions.Supervision (CFTC) supervision.
However, in the case, the judge agreed with GrayScale’s statement: The logic of the futures BTC ETF approval should be equal to the logic of the spot BTC ETF approval.The judge believes that the SEC failed to explain how it is different from the ETF products, and believes that the SEC’s application for rejecting GrayScale is arbitrary and has no basis. The administrative behavior that treats this difference violates administrative law.The court eventually agreed with GrayScale’s request and revoked SEC’s rejection application.
As a result, the attitude of the SEC was completely changed until the GrayScale case, from passively non -approval to active censorship, and said in the approval document on pages 22:This Order Approves The Proposals on an Accelerated Basis.
1.2 SEC tells us where is the risk of BTC ETF?
ETF itself, as the long -original compliance financial product, has no legal obstacles. BTC is also the only asset defined by the United States (especially SEC) as “non -securities”.So where is the risk of BTC ETF?
In the 22 -page approval file [2], SEC tells us:The risk comes from the irresistible of the ETF underlying asset trading market -the operational risk of the BTC spot market.
Although each ETF has signed a monitoring sharing agreement with the compliance regulatory exchanges (such as the Chicago Commodity Futures Exchange) and the risk of monitoring the BTC futures market, the BTC spot itself is not in CME transactions. The monitoring cannot be covered toBTC spot market.
The SEC argument is: BTC futures are already compliant products in CME. It is necessary to prove that the price correlation of BTC spot BTC futures is the best choice.As a result, the BTC price of the two virtual currency exchanges of Coinbase and Kraken compared with the correlation between the BTC price of the two virtual currency exchanges in CME futures, it was found that the two were highly related.This means that if fraud or manipulation behavior occurs in the BTC spot market, these behaviors are likely to affect the futures market, which will be detected by CME’s monitoring system, so that supervision can enter the control risk.
The market manipulation risk of the BTC spot market mainly comes from the transactions of the market business or market participants in CEX. If the US supervision can cover the supervision of CEX, the risk can be relatively controlled.For this, the U.S. regulatory approach is to cover the two virtual currency exchanges of Coinbase and Kraken through supervision compliance. At the same time, Binance, which has the largest transaction volume, has been successfully settled and controlled in compliance.
1.3 Different from members of SEC
Although the SEC finally passed the BTC ETF, there is still huge differences in the decision -making level of the SEC. SEC Chairman Gary Gensler carefully stated in the press release [3]::
“The ETF approval of this SEC is limited to the ETF (BTC) ETF (BTC) ETF (Holding One Non-Security Commodity, Bitcoin).It should never show that SEC is willing to approve the listing standards of any other virtual asset securities (Crypto Asset Securities).The approval did not show that the SEC’s views on the status of other virtual assets or some virtual asset market participants do not comply with the status quo of the securities law in accordance with the securities law.
As I said in the past, most virtual assets were investment contracts, so they were under the jurisdiction of securities law.
Although the SEC is neutral, I want to point out that the underlying assets in the precious metal ETF have consumption and industrial use. In contrast, BTC is mainly a speculative and volatile asset. It is also used for many illegal activities.Including ransomware, money laundering, evasion of sanctions and terrorist financing.
Although SEC approved the listing and transactions of the spot BTC ETF today, we have not approved or recognized BTC.Investors should be cautious about products related to BTC and virtual assets.”
The dispute between other members’ statements is that the BTC ETF of spot and futures is completely two things, and it is not advisable to regulate the spot BTC ETF with the logic of regulating the BTC ETF of the futures futures.No major regulatory agencies cannot prevent the price manipulation and fraud in the BTC spot market.
1.4 The historical significance of BTC ETF
In any case, the passing of the BTC ETF is very historical, so that we can also be in it with the ideal of crypto punk/overnight fantasy, adding a strong color to the rolling flood of history.
As Silicon Valley Wang Chuan (x:@svwang1) said:“On January 10, 2024, at the meaning of the history of the world currency, after looking back, it may be on August 13, 1971 (Nixon announced the decoupling with gold).Compared with the golden standard system within a few years).”
two,Kucoin and its founders’ criminal proceedings that violate the anti -money laundering regulations
On March 26, 2024, the US Department of Justice on the virtual currency exchanges Kucoin and two founders, because they conspired to operate an unspeakable fund transmission business subject, and violated the anti -money laundering compliance procedure of the Bank of Confidentiality LawThe prosecution [4].
The U.S. prosecutor said: “KUCOIN and its founders deliberately tried to hide the fact that a large number of U.S. users traded on their platform. The daily transaction volume reached billions of dollars and annual transaction volume reached tens of trillion.Institutions must abide by US laws, go to final and CFTC for registration, and implement KYC/AML/CTF anti -money laundering compliance procedures. Kucoin is said to be intentionally choosing not to do so, causing it to become a shelter for illegal money laundering.5 billion US dollars of suspicious and criminal funds with more than $ 4 billion.
Virtual currency exchanges like KUCOIN cannot be both on both sides.Today’s indictment should send a clear information to other virtual currency exchanges: if you plan to serve American customers, you must follow American law.”
At the same time, CFTC also filed a civil lawsuit against KUCION [5], accusing Kucion that many entities under the off -site commodity futures transaction, leverage, deposit or retail commodity transaction business provided financing violations of the CEA Law (CEA) And multiple terms stipulated in CFTC.
In fact, it is not the difference between the US supervision of the regulatory and law enforcement of KUCION. The summary is still a sentence of the US Treasury Minister Yellen:“Any subject who wants to exhibit the industry in the United States and benefits from the good financial market in the United States should strictly abide by US laws.”
three,Belide’s tokened fund
Our articles last year analyzed the important degree of token funds in connecting Tradfi and DEFI, and the form of assets of the fund, because (1) itself is supervised; (2) the relatively standardized digital expression method is RWA assets.The best carrier.
Then in March of this year, BlackRock’s tokened fund aircraft carrier sailed.
3.1 What is the tokened fund buidl
On March 21, 2024, BlackRock and Securitize joined hands with the public blockchain -Ethereum to launch the first token fund BUIDL “BLACKRock USD Institutional Digital LIQUIDITY FUND”, which will pass the SEC uritize marketsProvide qualified investors with the opportunity to earn the US dollar standard [6].
Vigatization is one of the core of the digital strategy of Bellaide. The tokenization of the Buidl Fund marks that Berlaide actively enters the field of real -world assets (RWA) to the key step towards the field.The benefits of investors can realize the issuance and transactions of ownership on the blockchain, provide investors with access to chain products, provide instant and transparent settlement, and allow transfers of cross -platform equity.
The BUIDL Fund will maintain a stable value of $ 1 each token, and assign interest through the form of Rebase, that is, the dividend should be calculated daily as the new to Investor’s wallet.100% of the fund’s total assets will invest in cash, US Treasury and repurchase agreements, allowing investors to earn money while holding currency on the chain.The most important thing is that investors can transfer their tokens to other pre -approved investors at 24/7/365, and the fund also provides flexible hosting options.
The Bank of New York Mellon will operate the funds between the fund and the traditional market for the fund, and as the custodian and manager of the fund, Security will be the fund’s transfer agent and the tokenization platform to manage the tokenization fund shareAnd report fund subscription, redemption and distribution.Securitize Markets will provide the fund to qualified investors as a sales agent.Pwa has been appointed an auditor of the fund.In addition, other asset custody partners include: Anchorage Digital Bank, Bitgo, Coinbase, and Fireblocks.
3.2 Dynamic fund potential potential
From the perspective of traditional financial Tradfi, the fund can release huge value after the foundation and distributed ledger technology through blockchain and distributed ledger technology.
Earlier, Berlaide CEO Larry Fink made it clear in an interview with Bloomberg that the asset tokenization will become the next development direction of Berlaide: “We believe that financial assets will be the next trend, which means that this meansEach stock and bonds will be recorded on one general ledger.
In addition, British supervision is also actively exploring fund tokenization. In the statement of its investment association, it is said that the fund tokenization is expected to improve the efficiency, transparency and international competitiveness of the investment management field, and released the “British fund tokenization — Implementing the report of the blueprint [7].
Although Franklin Templeton has long been realized on the tokens of public blockchain, the Black aircraft carrier has undoubtedly opened the door to the new financial RWA new world. In the future, we will see more traditional financial assets using blockchain technologyReleased greater value.The visibility is the tokenization of the stock market.
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(https://app.rwa.xyz/treasuries)
Four,EU’s non -hosting wallet anti -money laundering new rules
On March 23, 2024, according to Cointelegraph report [8], EU supervision is updating a new anti-money laundering regulatory regulation to supervise the virtual currency business trading activities of Non-Custodial Wallet.
This measure is regarded as the continuation of the EU last year’s establishment of a comprehensive regulatory framework (MICA), and it is an important part of the EU’s widespread anti-money laundering strategy.The Anti -Money Laundering Act is expected to be implemented in 2027 three years, and jointly strengthened restrictions on providing services with anonymous accounts with the MICA Act.
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(EU SCRAPS PROPOSED $ 1K Payment Limit for Self-Custody Crypto Wallets)
The anti -money laundering bill requires that the Crypto Asset Service Provers (CASPS) provides services in the EU reaches 1,000 euros with unbuttonous wallet users to conduct customer dedication and identity recognition (KYC).It is worth noting that this is the European Union’s compliance requirements for virtual currency service providers (mainly referring to hosting user funds, such as exchanges, custody wallets, etc.) under the MICA regulatory item -compliance requirements — —— such as exchanges, custody wallets, etc.) –That is, transactions with more than 1,000 euros between non -hosted wallets and virtual currency service providers will be regulated without transactions between custody wallets.
There is no doubt that the EU’s regulatory regulations bring huge challenges to the anonymity of virtual assets. After the EU passed the MICA bill to incorporate the virtual currency service provider into the regulatory supervision, and then the anti -money laundering bill includes the unschittated wallet related to the virtual currency service provider intoSupervision, after comprehensive supervision, the next step will be related tax bills.
Recently, we see that whether it is already in the European Union or the main body intends to provide virtual currency services in the EU exhibition industry is actively fulfilling the compliance requirements of the European Union MICA Act.After the supervision of all aspects is fully implemented, it will undoubtedly reconstruct the EU ’s previous virtual asset market’ s brutal growth pattern.
Big fish will continue to participate in market games in a more EU way, and small fish will be out of pressure from regulatory compliance.
Reference article: Can the Virtual Asset Market Supervision Law Mica allow the EU to fully embrace Web3?
five,Fully move towards compliant Hong Kong
With the “Policy Declaration on the Development of Virtual Assets in Hong Kong” in October 2022, Hong Kong’s new virtual asset VASP system was officially implemented on June 1, 2023. This is the major benefit of the Hong Kong virtual asset industry in China.
In order to comprehensively supervise all virtual asset trading activities in Hong Kong and implement the standards of the Special Working Group (FATF) of the Financial Action (FATF), the Hong Kong government has revised the “Campaign of Money Laundering” and established a new VASP “Mandrement” system.From the aspects of stablecoin, virtual assets, and virtual asset custody, the participants of virtual assets in the process of actual circulation and participation forms have been comprehensively supervised.
Although other aspects of supervision is still in the process of soliciting opinions or legislative specifications, other aspects of supervision can still provide us with a comprehensive overall supervision framework.
I have previously introduced the VASP card issuance system of the virtual asset exchange, which will not be repeated here.
5.1 Stable currency
On December 27, 2023, the Hong Kong Financial Affairs and Treasury Bureau (“Treasury Bureau”) and the Hong Kong Financial Administration (“Financial Management Bureau”) jointly released a public consultation document, which implemented a stable coin issuer in Hong Kong.The legislative proposal of the regulatory system is launched for consultation [9].
Legislative background: Due to the important role of stable currency in Web3 and virtual asset ecosystems, and the connection between the traditional financial system and the virtual asset market is becoming more closely, the Hong Kong government believes that there is a need to set up a regulatory system for the issuer of fiat currency stable coins.To supervise the stable currency issuer through risk -oriented and flexible ways, it can properly manage the risk of stable currency and financial stability in the stable currency, and provide a clear legal and regulatory environment to promote the sustainable responsibility of Hong Kong’s virtual asset ecology.develop.
Consider legislative suggestionsIntroducing new laws to implement the issuer of the issuer of the issuer of statutory stable currency, Mainly consisting of two parts:
(1) French currency stable coin issuer’s issuer and regulatory systemEssenceThe issuer of fiat currency stable currency must meet a series of strict card issuance conditions and regulatory requirements. After obtaining licenses, it can operate in Hong Kong.Regardless of the stability mechanism of fiat currency stabilization and related support assets, all fiat currency stable coins issuer will be in line with the same regulatory framework.It means that USDC and USDT stable coins need to apply for licenses in the Hong Kong exhibition industry.
(2) Regulatory system of the main body of fiat currency stabilization coins and promotion activities.Only the issuer of the fiat currency stable coin issuer, recognition agency, licensed corporation and licensed virtual asset trading platform can provide services to purchase fiat currency stable coins in Hong Kong, or actively promote relevant services to public people in Hong Kong; only because of reasonsThe stable currency issued by the licensed issuer can be sold to retail investors (the public), otherwise it can only be sold to professional investors.It means that only the licensed subject can retail in Hong Kong. For example, USDC and USDT stable coins issuers have not held licenses in Hong Kong and can be traded through licensed in -in -law service providers, but they can only target professional investors.
Hong Kong’s stable currency supervision system focuses on fiat currency stable currency instead of other types of stablecoin (such as stable currency linked to gold or other assets).The stabilized currency supervision system in Hong Kong will adopt risk -based methods to supervise the issuer and related activities of fiat currency stable currency, and will follow the principles of “the same business, the same risk, and the same supervision”.The Hong Kong Government has the right to adjust the scope of the new regulatory system based on the development of the virtual asset market.
In addition to the public consultation documents, in order to cooperate with the consultation proposal of the regulatory system of stable currency issuers, the HKMA announced the launch of the “sand box” of stable currency issuers.The HKMA hopes to convey the expectations of supervision to institutions intending to issue fiat currency in Hong Kong through the “sandbox” and collect participants’ opinions on regulatory requirements to promote the implementation of the subsequent regulatory system [10].
5.2 Virtual asset -off transaction OTC OTC
On February 8, 2024, the Public Consultation Documents of the Public Consultation Documents of the “Legislative Suggestions on Regulatory Virtual Assets” (“OTC Legislative Suggestions”) [11] was planned to be raised in accordance with the “Campaign of Money Laundering and Terrorist funds to crack down on money laundering and terrorist funds.RegulationsEstablish a new system for transaction service providers from the Hong Kong Customs as a virtual asset market as a regulatory agencyRegularly regulate all subjects that provide virtual asset -off trading services (OTC services).Under the proposed system, anyone who is engaged in any virtual asset spot trading service in Hong Kong must apply for a license to the Customs Director.
The OTC business of virtual assets is defined as:
(A) In spot trading services providing any virtual assets in business form, the purchase and sale of virtual assets between non-business forms between individuals and individuals (Peer-To-Peer);
(B) Whether it is providing services through physical stores (that is, including automatic tellers) or other platforms (such as Internet platforms), it is not suitable for people who are not contract/binding transactions. For exampleTransaction) online platform/online application/communication system operator, etc.;
(C) It is clear that the operation of the virtual asset trading platform covered by the virtual asset trading platform has been issued.
In the same way, considering the extensive business form of trading operators outside the virtual asset market.In accordance with the principles of the same business, the same risks, and the same rules, to ensure that all forms of virtual asset -site transaction services are regulated by the proposed system.
The Hong Kong Government recommends that anyone who operates a virtual asset market in Hong Kong or actively promotes and provides virtual asset -off transaction services to the Hong Kong public, and must obtain a license issued by the Customs Customs.Require.
“Actively promote“The definitions can consider whether there are detailed promotion plans, whether it is promoted by promotional channels (Internet, newspapers, etc.), and whether it is planned to be carried out in a planned manner.
5.3 Virtual asset hosting
On February 20, 2024, the HKMA issued a guidelines on virtual asset custody activities, providing clear governance and risk management, customer asset isolation and protection, commission and outsourcing for the institutional application for the application of virtual asset custody service services as a brand license (TCSP).Waiting for standards [12].
The background of the publication guidelines: With the continuous development of the virtual asset industry, the HKMA has noticed that it is increasingly interested in the approval agencies for virtual asset -related activities, especially to provide customers with the interest of virtual asset custody services.In order to ensure that the virtual assets of the customer’s custody are fully guaranteed, and the relevant risks are properly managed, the HKMA believes that it is necessary to provide guidelines for providing virtual asset storage services to provide virtual asset storage services.
We have seen the Hong Kong government’s requirements for virtual asset custody in the VSAP licensing system. For example, in the VASP licensing system, we require the exchange to hold customers’ funds and virtual assets through trustworthy companies.The further standardization of virtual asset custody requirements will further implement the formal form of virtual asset participants and protect the interests of investors.
Reference
[1] GrayScale vs. SEC
[2] SEC BTC ETF Decision
https://www.sec.gov/files/rules/sro/nysearca/2024/34-99306.pdf
[3] Statement on the Approval of Spot Bitcoin Exchange-Traded Products
https://www.sec.gov/news/statement/gensler-tatement-datement-spot-bitcoin-011023
[4] Prominent Global Cryptocurrency Exchange KuCoin And Two Of Its Founders Criminally Charged With Bank Secrecy Act And Unlicensed Money Transmission Offenses
https://www.justice.gov/usao-sdny/pr /prominent-global-Cryptocurrency-EXCHANGE-KUCOIN-AD-TWO-ITS-CRIMINALLY
[5] CFTC CHARGES KUCOIN with Operation Illegal Digital Asset Derivatives Exchange
https://www.cftc.gov/pressroom/pressReleases/8884-24
[6] BlackRock Launches Its FIRST tokenized Fund, Buidl, on the Ethereum Network
https://securitize.io/learn/press/blackrock-launchs-first-tokenized-buidl-rhe-eetwork
[7] UK Funds Given the Green Light for tokenisation Development
https://www.theia.org/news/press-reason
[8] EU SCRAPS PROPOSED $ 1K Payment Limit for Self-Custody Crypto Wallets
https://cointelegraph.com/news/eu-enacts-n -N -NONYMOUS- Crypto-Transa-Via-Self-Custody-Walletm_source=tldrcrypto
[9] Stablecoin Isuers -Hong Kong Monetary Authority
https://www.hkma.gov.hk/ews-nd-Media/insight/2023/12/20231227///
[10] Hong Kong Financial Administration-Monetary Authority launched a stable coin issuer “sand box”
https://www.hkma.gov.hk/gb_chi/news-andia/press-reases/2024/03/20240312-4//
[11] Legislative suggestions on the public in the virtual assets of the regulatory of virtual assets
https://www.fstb.gov.hk/fsb/tc/publication/consult/doc/vaotc_consultation_paper_tc.pdf
[12] Provision of Custodial Services for Digital Assets
https://www.hkma.gov.hk/media/doc/key-information/guidelines-nd-circular/2024/20240220e4.pdf
