Dive into the CFTC's recent settlements with Opyn, ZeroEx, and Deridex, explore Coinbase's international expansion aims, and much more.
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CFTC Settles Charges Against Opyn, ZeroEX and Deridex

CFTC Settles Charges Against Opyn, ZeroEX and Deridex

Dive into the CFTC's recent settlements with Opyn, ZeroEx, and Deridex, explore Coinbase's international expansion aims, and much more.

Date:
Sep 9, 2023
| Issue
#
101

Welcome to the final edition of Datawallet Daily for the week. As always, let's get straight into the trending stories over the last 24 hours:

CFTC settles charges against Opyn, ZeroEx, and Deridex 

The Commodity Futures Trading Commission issued a warning to operators of decentralized finance protocols on Thursday. The commission revealed that it had taken legal action against the Opyn, ZeroEx, and Deridex platforms and reached settlements with them.

The charges filed against Deridex and Opyn included their failure to register as a swap execution facility or designated contract market. Additionally, they failed to register as futures commission merchants and neglected to adopt a customer identification program in accordance with the Bank Secrecy Act compliance program. On the other hand, ZeroEx, Opyn, and Deridex were accused of illegally offering leveraged and margined retail commodity transactions involving digital assets.

To resolve these charges brought forward by the regulator, Opyn was ordered to pay a civil monetary penalty of $250,000. Similarly, ZeroEx was directed to pay $200,000 while Deridex faced a penalty of $1000., Furthermore, all three platforms were instructed to cease any actions that would constitute violations under the Commodity Exchange Act and CFTC regulations.

Founder of Thodex was sentenced to 11,196 years in prison

On Thursday, a Turkish court handed down a sentence of 11,196 years in prison to the founder of Thodex, an insolvent cryptocurrency exchange in Turkey. The charges against Faruk Fatih Ozer and his two siblings include fraud, money laundering, aggravated fraud, and leading a criminal organization. 

Bloomberg reported that Ozer served as the operator of the exchange until its collapse in 2021. He went missing after Thodex abruptly halted trading in April 2021, resulting in over 400,000 users losing their funds. This severe punishment reflects the gravity of the crimes committed by Ozer and his accomplices.

Coinbase lays out international expansion plan

Coinbase has unveiled its proposed approach for the second phase of its strategy, known as "Go Broad, Go Deep," which aims to expand its presence internationally. The company's focus is on markets that have established "transparent regulations" for cryptocurrency. Specifically, Coinbase has identified the EU, UK, Canada, Brazil, Singapore, and Australia as their immediate priorities. Additionally, they have mentioned that they are in the advanced stages of choosing their MiCA hub within the EU.

Qualified providers for crypto payments are lacking in Singapore 

The FinTech Regulatory Sandbox framework, established by the Monetary Authority of Singapore (MAS), has not approved any businesses as cryptocurrency payment providers. In response to a letter in the Financial Times questioning the Singaporean government's approach to crypto adoption, MAS clarified that they do not have a specific "crypto sandbox" but rather a sandbox that facilitates experimentation across various fintech areas. The MAS emphasized their commitment to supporting innovation and ensuring proper oversight within the financial sector.

Ant Group launches new blockchain brand

Ant Group, the company that owns Alipay, the largest mobile payment platform in the world, has introduced a new sub-brand called ZAN. This brand will specifically focus on blockchain development and providing services to both individual and institutional Web3 developers.

In a press release dated September 8th, Ant Group outlined the range of technical products and services that ZAN will offer its clients. The offerings begin with a solution designed to assist Web3 companies in issuing and managing real-world assets (RWAs) while ensuring compliance with local regulatory requirements. Additionally, ZAN will provide various technical products including electronic Know Your Customer (KYC), Anti-Money Laundering checks, as well as Know Your Transaction checks for Web3.

Other breaking news

Wrapping up

That’s all for today’s edition, folks. Today’s drop covered Ant Group launching a new service for Web3, meanwhile, Singapore is struggling to attract payment providers due to their strict “sandbox” rules. Coinbase unveiled its international expansion plans and the founder of a collapsed Turkish crypto exchange sentenced to over 11,000 years in prison. Stay tuned for more updates next week and enjoy your weekend!