French National Assembly votes in favor of easing crypto license regulation; Binance announced that they holds token collateral and user funds on same wallet by mistake; BlockFi’s $1.2 billion investment in FTX and Alameda Research revealed
French National Assembly votes in favor of easing crypto license regulation
With this move by the parliament, it will become easier for crypto firms to get licenses. This is pretty good news for crypto companies, especially in the European Union region.
By a vote of 33 to 61, French lawmakers passed the regulations proposed by Senator Daniel Labaronne, which would ease crypto companies’ licensing requirements.
With the crypto industry under pressure, Senator Labaronne has proposed a change to ease the licensing difficulty and allow crypto companies to register with the Financial Markets Authority following MiCA provisions. Among these changes were articles such as reporting to regulators and allocation of funds.
Companies already complying with the provisions on money laundering measures will be able to operate until the end of the transition period offered by MiCA legislation, possibly until 2026.
While France tries to ease licensing requirements, the European Parliament is also preparing to impose tougher restrictions on banks holding crypto. Members of Parliament voted in favor of the upcoming amendments to the Capital Requirements Directive regarding crypto investments of traditional banks.
https://www.theblock.co/post/205237/french-senators-vote-to-ease-crypto-licensing-regulation
Binance announced that they holds token collateral and user funds on same wallet by mistake
Binance has previously stated that the firm’s corporate assets are in separate accounts and should not be part of proof-of-reserves calculations.
Binance, the largest US exchange, has reportedly admitted to accidentally storing some customer funds in the same wallet as the company’s secured tokens. Following the announcement, Binance started the process of transferring the said assets to private collateral wallets.
Binance mistakenly included the tokens minted by the exchange itself in a wallet containing client assets.
Binance has released a proof of collateral that provides information for all 94 tokens it issues. The firm has previously pointed out that b-tokens are always fully collateralized and backed in a 1:1 format.
According to the published proof of collateral, almost 50% of all Binance B-tokens are currently stored in a single wallet called “Binance 8”. The wallet has much more token reserves than is required for the amount of b-tokens that Binance has issued. This suggests that Binance is mixing collateral with customers’ tokens, rather than storing assets separately.
After FTX collapsed, this mistake was not suitable for Binance.
BlockFi’s $1.2 billion investment in FTX and Alameda Research revealed
Crypto lending firm BlockFi has published documents that should not have been published in error regarding bankrupt crypto exchange FTX and its sister company Alameda Research. With the publication of these documents, it was revealed that BlockFi had previously invested in FTX and Alameda.
The FTX collapse, which can be considered one of the biggest collapse events in crypto history, has dragged many companies to the brink of bankruptcy. Some companies disclosed their assets stuck in FTX and transparently experienced all their financial troubles.
However, others denied that they invested indirectly in FTX or Alameda, arguing that the financial problems they faced had nothing to do with FTX. It seems that BlockFi was the kind of company that could fall into this category. Until he accidentally published documents that mentioned $1.2 billion. However, it was also revealed that the company was passing on false information.
According to the news published by CNBC, it turned out that BlockFi currently has $ 415.9 million stuck in FTX and $ 831.3 million in Alameda Research. The company filed for bankruptcy on November 28, citing the collapse of FTX.
