Tag: DeFi

CFTC Cracks Down on DeFi Firms Over Crypto Derivatives Trading – WSJ

Three decentralized finance companies agreed to settle charges filed by the Commodity Futures Trading Commission that they illegally offered derivatives trading in cryptocurrency, the agency said Thursday. The CFTC said the companies, Opyn and ZeroEx, both based in California, and North Carolina-based Deridex, illegally offered leveraged and margined retail commodities transactions in cryptocurrency. Deridex and Opyn were also charged with failing…

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USDT, USDC, DeFi Likely to Be SEC’s Next Targets in U.S. Crypto Crackdown: Berenberg

Stablecoins and decentralized finance (DeFi) are likely to become the next targets in the U.S. Securities and Exchange Commission (SEC)’s crackdown on the crypto industry, Berenberg said in a research report on Tuesday. The investment bank said the SEC may now focus on bringing stablecoins, including the two largest by market cap, tether (USDT) and USD Coin (USDC), and decentralized…

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SEC Lays Its Cards on the Table With Assertion That DeFi Falls Under Securities Rules

The U.S. Securities and Exchange Commission’s (SEC) warning shot last week that decentralized finance (DeFi) could be thrown into its expanding definition of what makes a securities exchange is the latest move to formalize what Chairman Gary Gensler has been saying: Crypto belongs in the securities world and will be regulated that way. The crypto industry had long pleaded for…

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Crypto DeFi Exchanges Face Scrutiny Under SEC Chief Gary Gensler – Bloomberg

The SEC says the re-upped proposal would capture an additional small number of digital asset firms, about a dozen, whose platforms use certain communication protocols to match buyers and sellers. Many of the newly-covered platforms under the proposal would likely seek an exemption from the rules under the Alternative Trading System exemption, SEC top economist Jessica Wachter said during the…

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U.S. Treasury Warns That DeFi Used by North Korea, Scammers to Launder Dirty Money

Decentralized finance (DeFi) services that aren’t compliant with anti-money laundering and terrorist financing rules pose “the most significant current illicit finance risk” in that corner of the crypto sector, according to the U.S. Department of the Treasury’s first analysis of hazards from the technology. In an expected risk assessment published Thursday, the Treasury said thieves, scammers, ransomware cyber criminals and…

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DeFi Needs to Comply With Anti-Money Laundering Rules, US Says

Decentralized financial transactions, including those done with virtual currencies, need to comply with anti-money laundering and sanctions laws, the US Treasury Department said in a new report. The 39-page report, which was commissioned by the Biden administration, concludes there are several risks associated with DeFi technology, which has no exact definition but includes self-executing transactions between two or more people…

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DeFi Project Sushi Reveals SEC Subpoena, Doesn’t Disclose Why

Sushi DAO, the organization behind what was once the leading decentralized crypto exchange, said the US Securities and Exchange Commission has subpoenaed the project as well as its new “head chef.” Jared Grey, Sushi’s equivalent to a chief executive officer, confirmed in a Twitter direct message to Bloomberg that he and the decentralized autonomous organization behind the DeFi exchange SushiSwap…

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Crypto Trader’s Fraud Charges in Mango Exploit Show DeFi Not Above Law – Bloomberg

Criminal charges against a crypto trader who claimed to have walked away with about $50 million worth of digital assets after exploiting a decentralized finance platform show that even as DeFi remains mostly unregulated, it offers no shield against the legal consequences of alleged fraud. “There’s a difference between what’s regulated and what’s legal,” Neal Kumar, partner at Willkie Farr…

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The Crypto World Is on Edge After a String of Hacks – The New York Times

These loosely regulated ventures allow people to borrow, lend and conduct other transactions without banks or brokers, relying instead on a system governed by code. Using DeFi software, investors can take out loans without revealing their identities or even undergoing a credit check. As the market surged last year, the emerging sector was hailed as the future of finance, a…

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