2023-11-22 05:13
Commerzbank (ETR:CBKG) has obtained a regulatory nod from Germany's Federal Financial Supervisory Authority (BaFin) to provide cryptocurrency custody services to institutional investors. This development positions Commerzbank as the first full-service bank in the country to venture into the realm of digital asset custody, potentially signaling a broader acceptance and integration of cryptocurrencies within its extensive customer base. The bank is set to launch a new platform that will be subject to additional regulatory scrutiny, ensuring compliance with Germany's stringent financial regulations. This move by Commerzbank comes at a time when the German banking sector is increasingly engaging with blockchain and cryptocurrency innovations. DZ Bank recently rolled out a distributed ledger technology (DLT)-based custody solution aimed at institutional clients, while Dwpbank has introduced its wpNex platform that extends crypto-related services to a multitude of German banks. These strategic advancements are widely regarded by digital currency investors as pivotal steps toward enhancing the adoption of cryptocurrencies, providing much-needed infrastructure for secure investment and storage of digital assets. The enthusiasm for these initiatives is tempered by a call for vigilance from BaFin, which underscores the necessity for rigorous adherence to the established regulatory framework. BaFin's cautionary stance comes in the wake of identifying structural issues within Coinbase (NASDAQ:COIN)'s operations in Germany, emphasizing the need for a globally coordinated approach to cryptocurrency regulation amid ongoing market fluctuations and industry shifts. As traditional financial institutions like Commerzbank align their services with the evolving demands of the digital economy, regulatory bodies remain focused on safeguarding the interests of investors and maintaining systemic stability in this rapidly developing sector. https://www.investing.com/news/cryptocurrency-news/commerzbank-secures-bafin-license-for-crypto-custody-services-93CH-3240666
2023-11-22 05:11
Copyrighted Image by: Reuters Coinbase (NASDAQ:COIN) is emerging as a frontrunner in the cryptocurrency exchange market, with its shares rising by 5% to $105.54 amid a leadership shakeup at rival Binance and increasing investor confidence. Brian Armstrong, CEO of Coinbase, is steering the company towards becoming a central figure in the crypto industry in the United States, advocating for economic freedom and a compliance-focused approach that resonates with investors and industry experts alike. The recent regulatory challenges faced by Binance, which led to CEO Changpeng Zhao stepping down and Richard Teng taking over, have opened a window of opportunity for Coinbase. The company's strategic involvement in Exchange-Traded Fund (ETF) applications with key players like Vanguard and the Chicago Board Options Exchange (CBOE) since June 21 has been instrumental in its ascent. These efforts are supported by Surveillance Sharing Agreements (SSAs), which aim to maintain market integrity by addressing regulatory concerns about possible market manipulation on crypto exchanges. The significance of Coinbase's role in the ETF space is underscored by its partnerships with institutions such as BlackRock (NYSE:BLK) and Vanguard in their filings for institutional spot ETFs. These filings are particularly noteworthy given the anticipation surrounding the potential approval of a Bitcoin spot ETF. This comes on the heels of Grayscale's legal win against the SEC's refusal to review its application, coupled with BlackRock's ETF application filed in June. Industry support is evident as John E. Deaton, a lawyer associated with Ripple, has voiced his belief in Coinbase's potential to triumph in this competitive sector. The increase in COIN shares held by Deaton further reflects this sentiment. As Coinbase continues to navigate the evolving landscape of cryptocurrency regulation and market dynamics, its strategic initiatives appear to be setting the stage for the company to potentially lead as the top crypto exchange, especially with Bitcoin futures ETFs having been available on U.S. markets since October 2021. https://www.investing.com/news/cryptocurrency-news/coinbase-stock-climbs-as-it-eyes-top-crypto-exchange-spot-93CH-3240665
2023-11-22 04:35
Copyrighted Image by: Reuters. In a sweeping regulatory crackdown, cryptocurrency exchange Binance has agreed to pay a total of $8.7 billion in settlements to various U.S. regulatory bodies and will cease operations in the United States market. The settlements include $3.4 billion to the Financial Crimes Enforcement Network (FinCEN), $968 million to the Office of Foreign Assets Control (OFAC), and a significant $4.3 billion agreement with the Department of Justice (DOJ). The actions by Binance, which have led to these penalties, involve breaches of the Bank Secrecy Act, violations of sanctions programs, and inadequate adherence to know-your-customer practices. These lapses allowed sanctioned entities and cybercriminals to utilize the platform for illicit activities, posing risks to the integrity of the U.S. financial system. As part of the settlement agreements announced today, Binance will appoint a compliance monitor for five years and its CEO Changpeng Zhao will step down from his position. Despite this major shift for Binance, its U.S.-based affiliate Binance.US, operated by BAM Trading Services and registered as a money services business, will not be impacted by the parent company's exit from the U.S. market. Treasury Secretary Janet Yellen highlighted the gravity of this enforcement action, stating that it is unprecedented in nature and underscores the commitment of U.S. regulators to hold financial institutions accountable. She emphasized that cryptocurrency exchanges must operate within regulatory frameworks that safeguard national security interests and contribute positively to the financial system. The investigations into Binance's operations were conducted by FinCEN, OFAC, and the IRS Criminal Investigation division. They revealed intentional efforts by Binance to obstruct law enforcement inquiries and a lack of risk-based procedures for certain product offerings. Secretary Yellen's announcement underscored that these landmark penalties serve as a stark reminder to all crypto exchanges operating within or targeting U.S. consumers: adhere strictly to regulatory norms or face decisive government action aimed at curtailing practices detrimental to national security and financial stability. https://www.investing.com/news/cryptocurrency-news/binance-agrees-to-87-billion-in-penalties-and-exits-us-market-93CH-3240662
2023-11-22 04:35
Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies moved little on Wednesday, while the dollar stemmed recent declines after the minutes of the Federal Reserve’s late-October meeting reiterated the bank’s outlook on higher-for-longer interest rates. Regional currencies saw a measure of profit taking after a strong run-up in the past two sessions, as markets priced in bets that the Fed was done raising interest rates. But Tuesday’s minutes cast some doubt over when the central bank will begin trimming interest rates, given that most Fed officials have also repeatedly signaled higher for longer rates. The Chinese yuan- which was one of the best-performing Asian units this week, traded sideways at 7.1386 to the dollar. The currency was boosted by a series of stronger-than-expected midpoint fixes from the People’s Bank of China, as well as reports that Beijing was planning to roll out more stimulus measures, particularly for the beleaguered property sector. The Japanese yen steadied around 148.20 to the dollar, after strengthening sharply against the greenback over the past week. The prospect of no more Fed rate hikes was a great boost to the yen, which had been battered by a growing rift between U.S. and Japanese interest rates. But the outlook for the yen remained clouded by uncertainty over a dovish Bank of Japan, which has so far signaled few changes to its ultra-loose stance. The Australian dollar fell slightly after racing to over three-month highs in the prior session. Reserve Bank of Australia Governor Michele Bullock warned that inflation in the country remained resilient- a trend that could attract more rate hikes in the coming months. Among other Asian currencies, the South Korean won rose 0.1%, while the Singapore dollar was flat even as data showed the island state’s economy grew slightly more than initially expected in the third quarter. But growth still remained largely laggard, amid pressure from weakness in China, high inflation and tighter monetary conditions. The Indian rupee traded sideways, while the Indonesian rupiah led losses across Southeast Asia with a 0.4% drop. Dollar arrests recent slide as Fed minutes reiterate rate outlook The dollar index and dollar index futures were flat in Asian trade on Wednesday, steadying after sinking to near three-month lows earlier in the week. Growing expectations of no more Fed rate hikes hit the greenback with a wave of selling. Tuesday’s Fed minutes offered no new signals, reiterating the bank’s outlook for higher-for-longer interest rates. But the minutes still saw some traders rethink expectations that the Fed will cut rates by as soon as March 2024. But expectations for a cut in June remained robust, with CME's Fedwatch tool signaling an around 40% chance for a cut. Still, the prospect of higher-for-longer U.S. rates limits any major upside in Asian currencies, as the gap between risky and low-risk yields remains narrow. https://www.investing.com/news/forex-news/asia-fx-rally-cools-as-fed-minutes-help-stall-dollar-losses-3240661
2023-11-22 04:18
Copyrighted Image by: Reuters. Investors are closely monitoring the AUD/USD exchange rate, which has recently dipped to 0.6553. This movement comes amid predictions that the Reserve Bank of Australia (RBA) will keep the cash rate steady until February, despite previous minutes from the bank's meetings suggesting a possible inclination towards future rate hikes. The currency pair's decline reflects market anticipation ahead of the release of October's Australian Westpac Index and comments from RBA Governor Bullock. Additionally, traders are poised for the release of US economic data later today, including Jobless Claims and Durable Goods Orders, which could further influence the currency market. In related financial news from yesterday, the Federal Open Market Committee (FOMC) indicated a readiness to implement further monetary tightening should inflation persist at elevated levels, though interest rates were left unchanged for the moment. This statement aligns with recent economic indicators such as the Chicago Fed Index, which reported a drop to -0.49, and a notable 4.1% decrease in US Home Sales in September. As the global financial community awaits these critical economic updates, all eyes are on how central banks' policy decisions and economic indicators will shape market dynamics in the near term. https://www.investing.com/news/forex-news/audusd-falls-as-rba-expected-to-maintain-cash-rate-93CH-3240656
2023-11-22 03:09
Copyrighted Image by: Reuters The global cryptocurrency market cap has sustained its upward trajectory, reaching $1.42 trillion, with Bitcoin demonstrating resilience by holding above the $37,000 mark. This stability comes amid positive market reactions to the news of Binance's ongoing settlement discussions with the U.S. Securities and Exchange Commission (SEC), which are seen as a potential turning point for regulatory clarity in the crypto industry. RFK Jr., a notable political figure, has recently expressed strong support for Bitcoin, emphasizing its role in challenging traditional banking systems and promoting personal freedom. His pro-Bitcoin stance could not only affect Bitcoin prices but also impact his prospective presidential campaign, signaling a growing intersection between cryptocurrency advocacy and electoral politics. In trading terms, Bitcoin is currently priced at $37,240, navigating between immediate resistance at $37,574 and significant support at $36,342. The Relative Strength Index (RSI) is positioned at 58, indicating that there may be further room for price growth before the market reaches overbought conditions. Investors and market observers are closely monitoring the developments surrounding Binance's CEO Changpeng "CZ" Zhao's legal situation and the anticipated Department of Justice (DOJ) settlement of $4 billion regarding allegations against Binance. These events are expected to have substantial implications for the stability and future price movements within the cryptocurrency sector. https://www.investing.com/news/cryptocurrency-news/bitcoin-maintains-position-above-37k-as-binance-settlement-talks-lift-market-93CH-3240643
