Global regulators, including FATF and the FSB, weighed in on the risks posed by stablecoins; the U.S. government is reportedly considering creating its own cryptocurrency; EU regulators are looking into potential antitrust violations by Apple Pay; the FT brought new evidence of fraudulent accounting practices at Wirecard; Venmo will launch its first credit card; Revolut is looking to raise $1.5B in debt and equity; and digital bank Chime experienced a service disruption affecting millions.
Mark Zuckerberg will testify before Congress on Libra and Facebook’s cryptocurrency plans, while several more large companies dropped out of the project; CFTC Chairman Tarbert said the ether cryptocurrency should be treated as a commodity; the SEC halted Telegram’s $1.7B token offering; Robinhood rolled out interest-bearing accounts; BIS and the Swiss National Bank are exploring the potential for a central bank digital currency in Switzerland; and UNICEF established a fund for donations made in cryptocurrencies.
Libra faced a new round of criticism at the G-7 summit, while maintaining that it will go live in 2020; Wells Fargo partnered with Plaid to allow customer financial data; Deutsche Bank signed on to the JPMorgan-backed IIN; Wells Fargo plans to pilot a stablecoin; and Stripe raised $250M at a $35B valuation.
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.