This Week's Recap: Highlights of the Top Stories

MiCA and Its Impact: What You Need to Know about the EU's Latest Crypto Regulation

The European Union is set to become the world's first significant jurisdiction with a comprehensive crypto law through its Markets in Crypto Assets regulation (MiCA), which will be implemented this year. This legislation aims to provide legal certainty and introduce compliance checks to enhance user protection. Among the many provisions, here are two important ones:

Transparency and disclosure: Crypto issuers must publish detailed white papers highlighting the specifics of the crypto-assets, including potential risks and environmental impacts. These white papers must be transparent, fair, and not misleading to users.

The other provision is on consumer protection that mandates crypto issuers to act in the best interest of their clients by offering transparent information about pricing, fees, and risks associated with crypto-assets. Besides that crypto assets must be kept separate from the issuers' own assets, and client complaints must be handled promptly and effectively.

MiCA's Looming Deadline: Crypto Exchanges Shake-Up Stablecoins

As the new regulatory framework approaches, many crypto exchanges offering services in the bloc are already taking measures, mostly by dropping stablecoin offerings. At least four cryptocurrency exchanges have reportedly confirmed that they are restricting access to stablecoin by a section of their users within the EEA. This week, Bitstamp confirmed that it would delist the euro-denominated stablecoin, EURT, before the 30 June deadline.

EURT is a euro-pegged stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term issued by Tether, the firm behind the largest circulated stablecoin, USDT, which has a market capitalization of over $112.7 billion. Notably, Bitstamp became one of the first crypto exchanges to list EURT in November 2021. In a statement, the exchange mentioned that it "will not list any new EMTs that don’t meet MiCA requirements, nor will it engage in any marketing of them."

MiCA Is Already Here: Binance Restricts EU Users from Copy Trading and Many Stablecoins

Elsewhere, European Binance users logging into their mobile app this week were greeted with an unsettling message indicating that certain services were no longer available in their region. This sudden change came as MiCA takes effect at the end of June in the region. Binance has already blocked access to some services, including copy trading, starting from June 26.

However, the leading crypto exchange mentioned: "Stablecoins that are not regulated under MiCA, including USDT and others, will still be available for trading on Binance on Spot, for deposit and withdrawal and in your wallet, as normal. They will also be available to sell on Convert. Binance will not be delisting these stablecoins."

Under upcoming MiCA rules some stablecoins will face restrictions as unauthorized stablecoins.

Binance won't delist any unauthorized stablecoins on spot but will limit their availability for EEA users only on certain products, such as launchpool and earn, and will propose…

— Binance (@binance) June 3, 2024

Bitstamp Implements Pre-MiCA Overhaul, Delists EURT Stablecoin

Still on MiCA preparation, Bitstamp announced significant updates this week ahead of the implementation of the new regulations, confirming that the EUR-denominated stablecoin EURT will be delisted before the 30 June deadline. Electronic Money Tokens (EMTs) currently available on the oldest crypto exchange, which do not fall under the euro denomination and are not yet within MiCA's regulatory scope, will remain listed.

However, these tokens will have restricted availability for European customers on specific products. Bitstamp has declared its intention to refrain from listing any new EMTs that do not comply with MiCA requirements and from marketing such tokens. The exchange boasts over 50 licenses globally, positioning itself as one of the most regulated exchanges.

📢 We're making some changes to accord with MiCA regulation coming into force on June 30th.

EURT will be delisted, and EMTs will have limited availability to European customers. Our commitment to compliance and security stays strong. Learn more: https://t.co/S4xSlgL0fO

— Bitstamp (@Bitstamp) June 26, 2024

MiCA Deadline in 3 Days, Only 9% of Companies Fully Prepared: Report

In terms of preparation, are crypto companies fully prepared to embrace the MiCA regulations? A recent study shows that only 9% of surveyed firms fully comply with MiCA requirements, with a significant 25% yet to commence preparations. As MiCA's implementation deadline approaches, the regulators have urged firms to promptly ascertain their regulatory scope and initiate compliance measures.

The report also highlighted the impending impact of the European Union's MiCA on cryptocurrency trading surveillance. Commissioned by Eventus, it is dubbed "The Impact of MiCA on Crypto Market Surveillance: Insights and Challenges." The report draws from interviews with senior executives at 68 firms involved in crypto trade conducted by Acuiti.

Are Crypto Players Ready for MiCA?

In general, the MiCA regulations aim to provide a comprehensive regulatory framework for crypto assets, covering aspects such as transparency, disclosure, authorization, and supervision. These regulations are designed to ensure market integrity, financial stability, and enhanced consumer protection across the EU's 27 member states.

There are mixed reactions within the crypto industry to the MiCA provisions. Many industry leaders like Binance's CEO Changpeng Zhao have welcomed the regulatory clarity MiCA promises, viewing it as a step toward legitimizing and stabilizing the crypto market in Europe. The regulation is expected to attract more institutional investment due to the legal certainty it provides​.

The European Parliament voted for MiCA to be implemented.

This means one of the world’s largest markets is introducing tailored regulations for crypto to protect users and support innovation.

The fine details will matter, but overall we think this is a pragmatic solution to…

— CZ 🔶 BNB (@cz_binance) April 20, 2023

Vanuatu Gears Up to Implement Crypto Legislation This September

The Pacific Island nation of Vanuatu plans to endorse a digital asset and service provider bill in September. Branan Karae, the Commissioner of the Vanuatu Financial Services Commission (VFSC), disclosed this at a digital assets symposium organized by the country's financial regulator on June 27. The bill is expected to be enacted during the first week of Parliament.

Loretta Joseph, the VFSC policy consultant and speaker at the conference, stated that the bill had been ready for several years, although it faces delays due to multiple cabinet changes. The bill, first introduced in 2020, will establish licensing and registration requirements for virtual asset service providers (VASPs), allowing them to operate legally within the nation.

Binance's Regulatory Pivot: UAE Users to Migrate to VARA-Licensed Platform

Binance announced a significant transition for its United Arab Emirates users. After obtaining a full Virtual Asset Service Provider license from Dubai's Virtual Assets Regulatory Authority, Binance will migrate all UAE resident accounts from its global platform to the locally regulated Binance FZE exchange (Binance Dubai).

The transition process will require UAE residents to update their KYC information by December 15, 2024. The exchange will contact users via email with instructions on submitting the necessary documentation. During the transition period, UAE users can continue to access their existing Binance Global accounts and services. However, after December 15, accounts will be automatically moved to Binance Dubai, with login credentials and user IDs remaining unchanged.

Bybit Surpasses Coinbase's Crypto Trading Market Share

According to a recent report published by Kaiko, Bybit has surpassed Coinbase to become the second-largest cryptocurrency exchange in terms of volume. It is now only behind Binance, which dominates the market. The report outlined that Bybit’s market share surged from 8 percent in October 2023 to 16 percent in June 2024, the highest growth rate among the top exchanges.

Coinbase also improved its market share by merely a single percentage point, from 7 percent to 8 percent in the same period. The demand on Bybit surpassed the volume handled by Coinbase last March. However, Binance lost market share, as its dominance declined to 54 percent of the total volume in June, compared to 60 percent last October.

Mt. Gox Prepares to Roll Out Repayments to Defunct Users in BTC and BCH

Mt. Gox, the cryptocurrency exchange that lost 850,000 Bitcoin in 2024, is preparing to repay the affected users in Bitcoin and Bitcoin Cash. The rehabilitation trustee has announced that repayments will be processed starting July 2024, according to a written note by the exchange issued on June 24.

The trustee has reportedly completed the exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term and confirmation of the required information with certain cryptocurrency exchanges. The repayments will reportedly be made through these exchanges. The trustee has urged users to remain patient. The order of the payments will depend on the respective cryptocurrency exchange.

Coinbase Initiates Legal Actions against SEC and FDIC over FOIA Compliance

Coinbase filed lawsuits against the US Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC) this week. The suits claim that both agencies failed to fulfill Freedom of Information Act requests submitted to the US District Court for the District of Columbia.

Coinbase's lawsuits allege that the SEC and FDIC neglected to provide requested information under the FOIA, impacting transparency in regulatory dealings. The crypto exchange accuses the federal agencies of actions perceived as attempting to marginalize the cryptocurrency industry within the banking sector.

Specifically, Coinbase's FOIA requests to the SEC aimed to obtain information concerning the agency's stance on Ethereum, particularly its transition to a proof-of-stake consensus mechanism with Ethereum 2.0.

Crossover Markets Secures $12M in Series A Funding Round

Crossover Markets Group, established by two former Jefferies executives, closed a $12 million Series A funding round. The fundraising was led by Illuminate Financial and DRW Venture Capital. Crossover was established in 2022 by two former Jefferies executives, Mulvihill and Anthony Mazzarese. While Mulvihill is steering the company as the CEO, Mazzarese is holding the role of Chief Commercial Officer.

Crossover is also backed by big names in the trading industry. Earlier, it closed its seed round by receiving funds from institutions including Flow Traders, Laser Digital, Two Sigma, and Wintermute, and retail brokers like Exness, Gate.io, GMO, Pepperstone, Trademax, and Think Markets. Following the latest funding round, Mark Beeston, founder and Managing Partner of Illuminate Financial, and Kevin Wolf, CFO at American Financial Exchange and former CEO of Euronext FX, will join Crossover’s board of directors.

Cash is King, But Crypto Beckons: Inside the Modern Retail Investor's Portfolio

A new study by eToro reveals that retail investors are heavily invested in financial services stocks and cash assets while perceiving cryptocurrency as a change for the future. Cash still dominates, with 69% of investors holding it in their portfolios. When asked which assets they would most like to add to their portfolios, respondents typically indicated that these would be digital tokens.

Cash is held by 69% of respondents, while stocks are in second place, with 49%. Financial services stocks dominate retail portfolios, with 61% of surveyed investors holding positions in the sector. Technology and energy follow at 40% and 35% respectively. This trend reflects the recent outperformance of energy and tech stocks, as well as expectations for financial services to gain momentum in the coming months.

FCA Restricts FlowBank-Owned LCG from Onboarding New Clients

The UK’s Financial Conduct Authority (FCA) has imposed restrictions on the operational license of London Capital Group Ltd (LCG), retail forex, and contracts for differences (CFDs) broker owned by the now-bankrupt FlowBank. The restrictions follow the Swiss regulator’s intervention into FlowBank, initiating bankruptcy proceedings against it.

A statement on the LCG’s UK website stated: "LCG has engaged an independent firm to establish the current financial status of the UK entity. While this assessment is ongoing, LCG has applied to the FCA to place certain restrictions on our regulatory permissions." According to the FCA’s registry, all restrictions on LCG were imposed on 13 June 2024, the same day Switzerland’s Financial Market Supervisory Authority revoked FlowBank’s license and put the company into bankruptcy.

FlowBank’s Shareholder Says FINMA’s Decision "Violated Its Rights"

The majority shareholder of now-bankrupt FlowBank, FlowB Holding Switzerland AG, intends to challenge the Swiss regulator's decision to open bankruptcy proceedings earlier this month. Although the shareholder did not specify the exact actions, it highlighted that the move aims to ensure that its rights are respected. It added that the regulatory decision violated the rights of FlowBank and its shareholders and caused considerable harm.

Charles-Henri Sabet, a member of the Board of Directors of FlowB Holding Switzerland, mentioned: "This decision condemns an innovative and growing bank, whose business was profitable and which was known and appreciated by thousands of clients and partners in Switzerland and abroad."

IG US Takes the Plunge with Rebranding to tastyfx

IG US, a forex broker, announced that it is rebranding its brokerage and platform technology to tastyfx. This move aims to offer a more aligned experience for its US-based customers and integrate FX trading more closely. Despite the name change, the trading platform will remain largely the same. Enhancements will continue to be made, providing improved forex trading technology.

The rebrand to tastyfx aims to create a forex-focused brand specifically for US clients, offering fast technology, zero commissions, and supportive customer service. Meanwhile, IG Group initiated a waiting list for options trading in the UK through its tastytrade brand, following plans in development for over two years.

Prop Firm UWM Also Relaunches MetaTrader, Signaling Possible Industry Shift

Four months after chaos erupted in the retail proprietary trading industry due to MetaQuotes' license suspensions, prop firms are gradually reintroducing the popular MetaTrader platforms to their offerings. Union Wealth Management (UWM) is the latest to join this trend, relaunching trading on the platform most favored by retail traders.

UWM announced on social media on Monday that MetaTrader 4 and 5 are once again available in their lineup, along with new trading challenges. However, migration from other platforms supported by UWM is impossible, as a different broker now handles MetaTrader operations.

“About 60 to 70% of Our Traders Are on Mobile,” Says CEO of Scope Markets South Africa

“About 60 to 70 percent of our traders are on mobile,” revealed Robert J. van Eyden, CEO of Scope Markets South Africa, to Finance Magnates in an interview. He added, “The reason is a majority of the adult population in South Africa and Africa have mobile phones, but not necessarily notebooks or laptops. So a lot of the transactional services are done through mobile.”

Scope Markets operates with an ODP license in South Africa. The entity offers contracts for differences (CFDs) instruments in forex, indices, commodities, energy, and stocks. It also offers CFDs of stocks listed on the Johannesburg Stock Exchange. However, the local CFD offerings are comparatively small.

“Our Focus Is on Solving Real Problems and Creating Sustainable Solutions:” Moniepoint VP

In the heart of Nigeria, a financial revolution is quietly reshaping the contours of business and everyday life. Edidiong Uwemakpan, the Vice President of Brand, Communications, and PR at Moniepoint, likens business to an ecosystem, emphasizing the interconnectedness and interdependence within the financial sphere.

In an interview with Finance Magnates, Edidiong, affectionately known as Didi, shared her insights and initiatives that aim to bridge the gap in financial inclusion, a pressing challenge across Africa. Edidiong's firm serves a myriad of businesses, from informal vendors to larger enterprises. “In Nigeria, over 70% of businesses are informal, and we serve most of them,” she explains.

Moniepoint's approach is multifaceted, beginning with providing basic banking services and extending to offering credit facilities and financial tools like invoicing and accounting software. This comprehensive support system is designed to empower businesses to grow and thrive.

"The Numbers Are Beautiful:" AliPay+ Europe GM Discusses EURO 2024 Impact

AliPay+ is creating seamless connections between Asian consumers and European businesses. Pietro Candela, General Manager of Europe at AliPay+, sat down with Finance Magnates and delved into the company's rapid advancements, ambitious future plans, and the overarching vision that drives their initiatives.

During AliPay+’s SME Heroes event in Gelsenkirchen, Germany, Candela reflected on the swift development of a new concept that AliPay+ executed with remarkable speed. This initiative, which targeted both existing and new user bases through promotions linked to soccer events, garnered immediate and significant attention, resulting in a notable increase in transactions.

Zoom in 2024: From Pandemic Darling to Corporate Crawler

Zoom is the ultimate story of "right time, right place." The video conferencing software spiked during the pandemic, but these days it’s struggling. Remember the early days of the pandemic when Zoom was the superhero of remote work? Everyone from forex traders to teachers seemed to be a Zoom evangelist.

The platform soared as millions of people shifted to virtual meetings, family gatherings, and even happy hours. Zoom's market capitalization hit an astronomical $139 billion in October 2020. It was the darling of the tech world, synonymous with the new normal. However, fast forward to 2024, and the picture isn't as rosy.