SEC plans enforcement on Robinhood, while Binance CEO tackles covert deals in Nigeria and ATO targets Aussie crypto users.
SEC Issues Wells Notice to Robinhood

SEC Issues Wells Notice to Robinhood

SEC plans enforcement on Robinhood, while Binance CEO tackles covert deals in Nigeria and ATO targets Aussie crypto users.

May 8, 2024
| Issue

Welcome to another edition of Datawallet Daily. Here are the key stories that are shaping the crypto landscape over the last 24 hours:

SEC Issues Wells Notice to Robinhood

The SEC is set to take enforcement action against Robinhood’s cryptocurrency business, as indicated by a Wells notice served to the trading platform. The notice followed an SEC investigation into Robinhood’s crypto listings and custodian operations, suggesting potential securities violations. Following this notice, Robinhood’s share price dropped by 2.5% in pre-market trading. 

Dan Gallagher, Robinhood’s chief officer for legal, compliance, and corporate affairs, expressed disappointment over the SEC’s move. He emphasized that the assets listed on Robinhood are not considered securities, indicating a readiness to contest any legal action from the SEC. 

Gallagher also highlighted the challenges posed by the current U.S. regulatory environment for crypto, noting its similarity to the equity markets’ regulatory landscape in 1932, thus emphasizing the need for clearer federal guidelines for digital assets.

Binance CEO Reports Covert Deal Attempts by Nigerian Officials

Binance CEO Richard Teng reported a distressing situation involving Nigerian officials who allegedly attempted a covert cryptocurrency settlement concerning allegations against Binance. Teng detailed incidents of detention of company executives, including Tigran Gambaryan, during their business visit to Nigeria. Despite participating in regulatory discussions and engaging with law enforcement, Binance representatives faced demands for secret payments to resolve unspecified allegations. 

The situation was exacerbated when Nigerian officials made advanced demands, resulting in the shutdown of Binance services in Nigeria and ongoing efforts to secure the detainees’ release. Teng criticized the Nigerian government for setting a risky precedent for international business relations.

Australian Tax Office Targets Data from 1.2M Crypto Users

The Australian Taxation Office (ATO) is targeting up to 1.2 million cryptocurrency exchange users to collect data on personal and transaction details. This initiative aims to identify individuals who may have failed to pay taxes on their cryptocurrency profits. Cryptocurrencies are considered taxable assets in Australia, requiring traders to pay a capital gains tax on profits from crypto transactions. 

The ATO plans to gather extensive data, including users’ birth dates, social media accounts, wallet addresses, and bank information, to ensure compliance with tax obligations amidst the surge in crypto market profitability. This move mirrors broader international efforts to address tax evasion in the cryptocurrency sector.

Bybit Adds Ethena Labs’ USDe for Collateral and Spot Trading

Bybit is set to integrate Ethena Labs’ synthetic dollar, USDe, enhancing its utility as a collateral asset and in spot trading pairs with Bitcoin and Ether. This collaboration allows users to trade perpetual futures and earn yield on Bybit’s platform, improving capital efficiency. Additionally, USDe will feature on Bybit’s Earn platform and will support launchpool farming. 

According to Guy Young, CEO of Ethena Labs, this partnership marks a significant move towards driving USDe’s utility and challenging the monopoly of traditional stablecoins. This development follows the addition of Bitcoin as a backing asset for USDe and the distribution of the ENA governance token.

Other breaking news

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