Regulations in the US, Indonesia’s plans to launch its own cryptocurrency exchange, and more news in today’s roundup.
The crypto industry and regulations are at a tipping point. In the United States, popular cryptocurrency exchange Coinbase has announced that it will temporarily prevent its clients from staking additional assets in four states due to ongoing legal proceedings. This measure, which affects users in California, New Jersey, South Carolina and Wisconsin, is a reflection of the regulatory challenges facing the industry in the country.
Coinbase’s suspension of certain staking services comes after the United States Securities and Exchange Commission (SEC) filed a lawsuit against the platform in June, alleging that it was offering unregistered securities. As a consequence, regulatory bodies in ten US states launched their own legal proceedings, which has led to the suspension of specific services on Coinbase.
Indonesia Moves Forward with Its Own Cryptocurrency Exchange
Despite the regulatory steps being taken in the United States regarding crypto assets, Indonesia is taking a bold step towards regulating and adopting cryptocurrencies. According to reports from Tempo.co, the Indonesian Commodities and Futures Trading Regulatory Agency (Bappebti) is planning to launch its own cryptocurrency exchange later this month. The original release was scheduled for December 2022, but suffered some delays.
Bappebti plans to restrict cryptocurrency sales to local transactions, keeping them in line with international market developments. This would include the question of cryptocurrency prices, as long as Bappebti approves them.
Indonesian regulators have completed system integration tests between merchants, exchanges, clearing and depository. Which indicates that they are close to finalizing the preparations for the launch of the national cryptocurrency exchange.
Eeon Intervenes in SEC Lawsuit Against Binance
In the case of the lawsuit filed by the United States SEC against Binance, a third party entity called Eeon has stepped forward to intervene and represent the interests of Binance clients. According to the filing with the District Court for the District of Columbia, Eeon claims that neither the SEC nor Binance’s lawyers have adequately represented the interests of clients. Which has led Eeon to seek representation on his behalf.
In its filing, Eeon claims to be a proper party in the case, as the court identified them as “Customers” in an order issued on June 17, 2023. Eeon contends that they are interested parties, investors, and owners of cryptocurrencies held by Binance and its affiliates, and argue that their interests have not been considered appropriately.
Nevada-based Eeon argues that cryptocurrencies should be classified as commodities rather than securities. They further claim that the SEC has no jurisdiction over cryptocurrencies, and point to the absence of regulations tailored to this emerging asset class.
SEC Accepts Bitcoin ETF Application
The SEC has accepted the application for a Bitcoin exchange-traded fund (ETF), its official website reported. This decision follows the acknowledgment of a similar request from Bitwise the day before.
Such application acceptance signals the official start of the review process for the Nasdaq Bitcoin ETF proposal. Although this is only the first step in a long regulatory journey, it is of great importance to the Bitcoin community. The SEC’s willingness to explore the idea of a Bitcoin ETF and assess its potential effects on the market is evident from this acknowledgment.
By Audy Castaneda