FIN urged Congress to apply BSA standards to crypto firms; Jay Clayton affirmed his stance that crypto products are subject to existing securities laws; China’s proposed cryptocurrency is taking shape ahead of an expected go-live later this year; Stripe launched a lending product for online businesses; Uber is exploring offering loans to its drivers; the Hong Kong Stock Exchange suffered cyber attacks; and U.K. digital banks are expected to triple their customer base over the next year, but likely will remain unprofitable.
Libra is facing scrutiny from European antitrust regulators; N26 launched in the U.S. market; Mark Carney suggested potentially replacing USD with crypto as the world’s reserve currency; Apple launched its credit card to U.S. consumers; Mastercard experienced a data breach affecting mostly German customers; and Tala raised $110M in Series D funding.
Rakuten is applying for an ILC charter in Utah; Venezuelan president Nicolas Maduro was accused of using cryptocurrency to evade international financial sanctions; the U.K. FCA published guidance on crypto assets; Capital One disclosed that a data breach exposed the personal information of 100 million customers; and the London Stock Exchange is acquiring Refinitiv for $27B; and LabCFTC Director Gorfine is leaving the agency.
The U.S. Treasury Secretary said U.S. regulators are likely to issue new crypto regulations; despite misgivings about Facebook, Congress appears unlikely to block its plans to go live with Libra; the IRS is warning U.S. taxpayers to review and potential revise their tax returns to account for gains from crypto transactions; Apple’s new credit card is expected to launch in August; Robinhood raised over $300 million at a $7.6B valuation; and Facebook is readying its launch of WhatsApp Pay in India.
Fed Chair Jerome Powell joined the growing chorus of regulators raising flags about the Facebook-backed Libra cryptocurrency; German digital bank N26 launched operations in the U.S. market; payments processor Stripe suffered downtime issues that halted online sales for many businesses; British Airways and Marriott were both fined over $100 million by the U.K. ICO for data breaches, while Facebook faces a $5 billion fine from the FTC; and the EU and U.K. are looking for ways to stem the use of cryptocurrency services to launder money.
The U.S. House Financial Services Committee formally requested that Facebook halt its planned Libra rollout; the U.K. FCA proposed a ban on derivatives tied to crypto assets; IBM’s TradeLens consortium added new members; the forthcoming Libra currency is already attracting digital scammers and domain squatters hoping to make a quick profit; and the Financial Times published an opinion piece on why central banks should issue digital currencies.