Former FTX executive plans to plead guilty to charges; FCA to delay some crypto rules to 2024; CZ spoke about the rumours about Binance; emphasised that there are no liquidity problems.
Former FTX executive plans to plead guilty to charges
Ryan Salame, former co-CEO of FTX Digital Markets, plans to plead guilty to charges that he was involved in illegal activities on the exchange.
According to Bloomberg’s anonymous sources, Salame plans to plead guilty to various charges against him at his scheduled trial.
Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang pleaded guilty to the charges against them in December 2022. FTX’s former director of engineering, Nishad Singh, pleaded guilty to similar charges in February 2023.
FTX Digital Markets was the crypto exchange branch of FTX located in the Bahamas. Many executives, notably Sam Bankman-Fried, were employed there before the company’s bankruptcy. SBF denied all 12 charges against him before the hearings, which will be held on 2 October 2023 and 11 March 2024.
FCA to delay some crypto rules to 2024
The UK Financial Conduct Authority (FCA) has decided to postpone crypto marketing rules until 2024.
According to Bloomberg’s report, the regulator will give more time for new rules on financial promotions, which are scheduled to take effect next month. Thus, it is aimed that companies can move more comfortably to make some changes.
In the country, cryptocurrency services will be classified under the category of high-risk products in terms of marketing from 8 October. This means that companies in the UK should warn their customers against obvious risks. In addition, promotions will also need to be approved by an authorised firm.
Application required
The FCA said today that companies may be given until 8 January 2024 but must apply in advance to take advantage of this.
If no application is made, failure to comply with the rules after 8 October may mean that an offence has been committed.
The FCA was in consultation with leading actors in the crypto industry following its announcement in June. However, FCA official Lucy Castledine stated that the regulator is concerned that many crypto companies have not contacted them.
“As a regulator acting proportionally, we give a little more time to companies that apply for reforms that require technology and business change to be properly realised. We will closely monitor companies during this extended period.”
CZ spoke about Binance rumors and emphasized that there are no liquidity problems!
Binance CEO Changpeng Zhao clarified the claims made about the stock market.
CZ, who made the statement on the X platform, pointed out that many rumours are just FUD.
“I have seen some discussions within the community. When you do the right thing and there is a FUD, you don’t need to do anything. The community will defend you”
As the world’s largest cryptocurrency exchange’s struggle with regulators continues, the allegations against the stock market continue. The Securities and Exchange Commission (SEC) accused Binance and CZ of misusing customer funds and selling unregistered securities. CFTC also joined the regulators targeting Binance.
There is no liquidity problem
Binance CEO noted that they did not have any liquidity problems by reassuring their customers:
“There have been a lot of negative news, lawsuits, closure of fiat channels, stopping product sales, employee departures and exits from the markets, etc.We have no liquidity problem. All withdrawals and deposits are carried out in an appropriate manner. All client funds are safe and 100% segregated”
CZ continued to reassure investors by stating that there were lawsuits won after all these negativities, new fiat channels will be opened and new recruitments will be made.
Finally, CZ stated that given the size of Binance, the founding team is one of the teams with the lowest assets.
