EU Crypto Regulation Allows ‘Freeze & Seize’ of Funds Tied to Crime

Hi NoRamp Community,

Daily News:

1) EU Crypto Regulation Allows ‘Freeze & Seize’ of Funds Tied to Crime

2) Robinhood’s Crypto Revenue Lowest In 3Y, Expands Crypto Operations

3) Barry Silbert Out as Grayscale Chairman

4) Hong Kong Releases Crypto ETF Requirements Ahead of US Approval

5) OakNorth Bank Appoints Adair Turner as New Chairman

EU Crypto Regulation Allows ‘Freeze & Seize’ of Funds Tied to Crime:

• The European Union has agreed on new crypto regulations allowing member states to freeze and confiscate assets linked to criminal activities, including provisions for the confiscation of property not directly linked to a crime but believed to be derived from criminal activities.

• The regulations, awaiting final approval, focus on identifying, tracing, and managing suspected criminal assets with attention to procedural safeguards to protect civil liberties, including a new rule on the confiscation of unexplained wealth.

• The move, addressing rising concerns over cybercrime and illicit finance in cryptocurrencies, aligns with global efforts to enhance regulatory frameworks, with EU member states given 18 months to implement the new rules into national law once adopted.

Robinhood Crypto Revenue Lowest In 3Y, Expands Crypto Operations:

• Robinhood's net revenue from crypto trading, once heavily reliant on Dogecoin, has significantly declined from a high of $233 million to $23 million in Q3 2023, amidst market volatility.

• Despite the downturn, Robinhood is expanding its crypto offerings in Europe, seeking regulatory clarity and diversifying its cryptocurrency portfolio, including re-listing certain coins and adding new ones not available in the U.S.

• The company maintains a strategic commitment to crypto, including Dogecoin, as part of its broader financial services, with CEO Vlad Tenev expressing optimism about the future of cryptocurrency in their business model.

Barry Silbert Out as Grayscale Chairman:

• Barry Silbert resigns as chairman of Grayscale Investments, with Mark Shifke replacing him and other new board members appointed amid strategic reshuffling.

• The leadership change occurs as the SEC reviews Grayscale's Bitcoin ETF application, a potential milestone that could significantly influence the crypto market and Grayscale's future.

• Silbert's resignation follows a turbulent year for parent company DCG, involving legal disputes and allegations of fund mismanagement, raising questions about the timing and motives behind the board's restructuring.

Hong Kong Releases Crypto ETF Requirements Ahead of US Approval:

• Hong Kong is advancing its regulatory framework for ETFs holding over 10% in crypto, as detailed in a joint circular by the Securities and Futures Commission (SFC) and the Monetary Authority, highlighting the increasing demand for digital asset investment vehicles.

• The new guidelines require crypto investment products to adhere to standards similar to mutual funds, including a good track record of regulatory compliance and experienced staff, while also establishing a list of permitted tokens and prohibiting leveraged exposure.

• These regulatory steps, part of a broader effort to enhance oversight of the crypto industry, follow the launch of a licensing program for crypto exchanges and increased investor protections, especially after the JPEX scandal impacted many investors.

OakNorth Bank Appoints Adair Turner as New Chairman:

• OakNorth, a SoftBank-backed British business bank, announces the appointment of former UK financial regulator Adair Turner as its new chairman, leveraging his extensive experience in financial regulation.

• Turner, who chaired the Financial Services Authority during the global financial crisis, is expected to guide OakNorth's expansion and product diversification with robust regulatory compliance.

• The appointment coincides with the bank's ambitious growth and sustainability goals, including achieving net-zero emissions by 2035, as it continues to develop its business banking offerings.

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