CFTC publishes digital currencies

CFTC publishes digital currencies guide for futures intermediaries

According to a published press release from the Office of Oversight of Intermediaries (DSIO), a new document has been issued to firms authorized to mediate urgent exchange transactions. The guide explains how to track and report certain digital assets owned by customers in relation to physically delivered futures contracts or swaps.

The CFTC noted that keeping clients' assets in segregated accounts could pose significant risks to other clients. The guide also provides guidance on best practices that futures intermediaries should follow when developing and maintaining risk management programs for their digital assets.

The guidelines do not apply to the custody of digital assets of customers by foreign intermediaries in relation to trading futures or futures options. CFTC division director Joshua B. Sterling said the Commission encourages financial technology innovation as it works to create a "holistic framework for digital asset derivatives."

Organizer of $ 1 billion cryptocurrency pyramid arrested in Spain

According to La Provincial, the organizer of the cryptocurrency scheme, Santiago Fuentes, was detained in Tenerife and officially charged with financial fraud and money laundering.

According to Tulip Research, Fuentes' site served about 120,000 users who invested 40,000 BTC in an arbitrage trading bot. In total, BTC equivalent to $ 1 billion was invested in the Arbistar 2.0 cryptocurrency scheme.

Investors began accusing the platform of fraud last month when Fuentes claimed that a "computer error" had prevented trading bots from stripping assets and wiped out more than a quarter of the money. Tulip said it links some of Arbistar 2.0's asset stripping activities to the Hydra darknet market.

The company called the frequent payments of interest on the use of cryptoassets (up to 1% per day) and the limited options for withdrawing money (only on weekends) elements of the "classic pyramid". Fuentes has previously denied allegations of fraud or bankruptcy for Arbistar 2.0.

Recently, the Indian Malapurram District Police launched an investigation into the owner of three cryptocurrency firms, who called for investing in Morris Coin cryptocurrency. In addition, in September, the head of the Argyle Coin cryptocurrency pyramid, which offered investments in diamonds, was charged with fraud.

Beijing plans to become a blockchain development hub

The document, titled Beijing Blockchain Development and Innovation Action Plan (2020-2022), states that Beijing should become one of the first cities in the Middle Kingdom to integrate distributed ledger technology into economic policy:

“By 2022, Beijing will become an important and influential hub for blockchain innovation, technology demonstration hub, industrial development hub, and technology innovation talent hub. It will illustrate the Beijing Plan for Economic and Social Development using Blockchain. "

Already in Beijing, 140 applications for public services use blockchain, and in the future, the technology will be implemented in even more applications. In addition, at the beginning of the month, Beijing launched a special fund for blockchain development.

The regulator of Malaysia announced the lack of a license from the Binance exchange

The regulator added Binance to the list of unauthorized firms that do not comply with Malaysian securities laws. The Malaysian Securities Commission indicated that Binance operates in the country as an exchange without the required license. To date, only three cryptocurrency exchanges have received SC approval - Luno, Sinegy and Tokenize.

Banco Santander has successfully tested PoC for interbank payments

Testing was conducted with the participation of IberPay, which controls the Spanish interbank payment infrastructure. IberPay said the PoC has proven its viability and the blockchain could find real use in making payments.

Along with Banco Santander and IberPay, large Spanish banks Banco Sabadell, BBVA, Bankia and Caixabank took part in the study. Consulting services on the use of the blockchain-based interbank network were provided by the firm Grant Thornton, which previously dealt with the liquidation of the hacked cryptocurrency exchange Cryptopia.

During testing, banks made over 20,000 automated transactions through the blockchain. On average, it took 2.5 seconds to process each payment. Banco Santander said smart contracts have greatly simplified transactions between banks when certain conditions are met. PoC ensured maximum security, efficiency and data immutability, as well as transparent information tracking and compliance with necessary requirements.