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Circle Proactively Cuts Ties with Justin Sun, Prioritizes Security

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Circle, a leading global financial technology firm, has recently come under fire from the so-called Campaign for Accountability (CfA) for its alleged role in facilitating illicit financing. In a letter to Senators Sherrod Brown and Elizabeth Warren, Circle’s Chief Strategy Officer and Head of Global Policy, Dante Disparte, refuted these claims and set the record straight on the company’s commitment to combating illicit finance.

Disparte categorically denied CfA’s assertion that Circle facilitates or finances any form of illicit activity, including Hamas. He also clarified that the exchange does not “bank” Justin Sun, nor does it have any accounts with him or his affiliated companies. In fact, the firm terminated all accounts held by Sun and his companies in February 2023.

Circle: Setting the Record Straight on Illicit Financing

Circle has a long-standing history of cooperating with regulators and law enforcement to combat illicit finance. The company has been recognized by the U.S. Secret Service for its efforts to identify and prevent fraud and scams. In addition, the firm adheres to strict regulatory requirements, including the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws.

Disparte also addressed CfA’s claims that Circle financed Hamas or Hezbollah. He pointed out that CfA’s reliance on a report by the blockchain firm Elliptic was misleading, as the report itself acknowledged that only a small fraction of the funds in question were USDC. Moreover, none of those funds were acquired from the exchange.

In response to CfA’s accusations, Circle has reaffirmed its commitment to combating illicit finance and to working with regulators to develop a comprehensive regulatory framework for stablecoins. The company has consistently advocated for strong reserving, redemption, disclosure, liquidity, and operational risk management standards for stablecoin issuers.

Circle’s response to CfA’s allegations underscores the company’s dedication to transparency and compliance. The company’s commitment to combating illicit finance and its support for robust regulatory oversight are essential steps toward building a more secure and trustworthy digital assets ecosystem.

SBI Holdings & Circle Join Forces: Pioneering A Web3 Era In Japan With USDC Surge

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According to the latest press release, SBI Holdings has officially inked a Memorandum of Understanding (MOU) with Circle Internet Financial. The strategic alliance aims to circulate USDC stablecoins, establish a banking relationship, and promote the adoption of Circle’s Web3 Services in Japan.

Circle’s Web3 Services Take Center Stage

The Japanese government, recognizing the growing influence of the digital asset economy, revised the Payment Services Act on June 3, 2023. This regulatory update paves the way for stablecoins’ issuance and circulation, aligning with the global trend towards a Web3 economy.

Circle’s USDC stands out by being fully backed 100% by highly liquid cash and cash-equivalent assets, ensuring a 1-to-1 redeemable value for U.S. dollars. With reserves held separately from operating funds, USDC has facilitated over $12.7 trillion in on-chain transactions as of November 17, 2023.

Under the MOU, SBI Group and Circle commit to expanding the use of stablecoins in Japan while adhering to stablecoin-related regulations. SBI VC Trade Co., Ltd., a subsidiary of SBI Group, is actively seeking registration as an electronic payment instruments service to facilitate the circulation of USDC within Japan, pending regulatory approval.

On the other hand, SBI Shinsei Bank, Limited will play a crucial role by providing banking services to Circle. This collaboration is expected to enhance USDC access and liquidity for businesses and users in Japan. Furthermore, as part of its digital asset portfolio strategy, SBI Group plans to leverage Circle’s Web3 Services, including the Programmable Wallet, blockchain infrastructure, and smart contract management tools.

Jeremy Allaire, CEO and co-founder of Circle, said:

Our partnership with SBI Holdings represents a shared vision for the future of digital currency and is a significant milestone in Circle’s expansion plans in Japan and Asia Pacific. We are excited to collaborate with SBI towards setting new standards in the financial sector in Japan.

Yoshitaka Kitao, Representative Director, Chairman, President & CEO of SBI Holdings, highlighted the timely nature of the collaboration. Given Japan’s preparations for the widespread introduction of stablecoins, particularly through the revised Payment Services Act, Kitao expressed pleasure in taking the initial step towards fostering the adoption of stablecoins in the country.

However, the partnership between SBI Holdings and Circle is poised to shape new standards in the Japanese financial sector, marking a crucial milestone in the global journey towards the mainstream adoption of stablecoins.

Related Reading | Bitcoin Supply in Profit Hits 2-Year High, Investor Behavior Signals Bullish Trends

New York’s Crypto Clean-Up: Stricter Guidelines for Listing & Delisting: Report

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In a move aimed at bolstering investor protection, the New York State Department of Financial Services (NYDFS) has announced stricter regulations for cryptocurrency listing and delisting in the state. The guidelines, revealed on November 15, mandate that crypto companies must now seek NYDFS approval for their coin listing and delisting policies.

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Crypto Compliance Mandate

These new measures, effective immediately, signify a significant shift in the oversight of digital currencies within the state. The NYDFS will evaluate company policies against more rigorous risk assessment standards, encompassing technological, operational, cybersecurity, market, liquidity, and illicit activity risks associated with the tokens.

Applicable to all digital currency business entities licensed under the New York Codes, Rules, and Regulation or limited purpose trust companies under the state’s banking law, these regulations have wide-reaching implications. Notably, companies that previously had their coin listing policies approved are now barred from self-certifying any tokens unless they receive explicit approval from the NYDFS.

Prominent players in the cryptocurrency space, including stablecoin issuer Circle, crypto exchange Gemini, fund manager Fidelity, trading platform Robinhood, and payments giant PayPal, are among those required to adhere to the newly implemented guidelines.

To ensure compliance, affected firms must engage with the NYDFS by December 8, 2023. They are expected to preview their draft coin listing and delisting policies during this meeting and subsequently submit them for approval by January 31, 2024.

Innovative Oversight for Crypto Listings

Adrienne Harris, the Superintendent of Financial Services, emphasized that the NYDFS plans to adopt an “innovative and data-driven approach” to supervise coin listings, delistings, and the broader cryptocurrency market.

Harris clarified that the new regulations do not signal a statewide crackdown on the digital asset industry. Instead, the objective is to create a well-regulated environment for New Yorkers to access the virtual currency marketplace while positioning New York at the forefront of technological innovation and progressive regulation.

This move follows the NYDFS’s earlier announcement in February, expanding its capabilities to identify illicit activities related to cryptocurrencies, such as insider trading and market manipulation.

As per an August report by Coinbase, approximately 690 blockchain-based companies are situated in New York, with 19% of New Yorkers reportedly owning digital assets. The state’s commitment to fostering a secure and innovative cryptocurrency ecosystem reflects the growing importance of digital assets in today’s financial landscape.

Related Reading | Bakkt Pivots To Digital Asset Custody

USDC Revolutionizes Financial Landscape with Singapore Mint

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Circle, a leading global financial technology company, has unveiled Circle Mint, a platform that facilitates seamless and cost-effective USDC minting for businesses and individuals in Singapore. This groundbreaking initiative marks a pivotal step towards expanding access to digital currencies in the Asia Pacific region.

Circle Mint is a secure and compliant platform that allows users to instantly convert fiat funds from their bank accounts to USDC, the world’s second-largest stablecoin pegged to the US dollar. With zero minting fees and near-instant settlement, Circle Mint eliminates the complexities and inefficiencies associated with traditional minting methods.

Circle Mint operates under Circle Singapore’s Major Payments Institution (MPI) license granted by the Monetary Authority of Singapore (MAS). This adherence to stringent regulatory standards ensures that transactions are conducted with the utmost transparency, security, and compliance.

Effortless USDC Integration for Singapore Businesses

The introduction of Circle Mint in Singapore marks a significant step forward in expanding access to digital currencies in Asia Pacific. Businesses can now effortlessly integrate USDC into their operations, enabling them to explore new avenues for cross-border payments, treasury management, and decentralized finance applications.

Circle Mint’s launch in Singapore is a testament to Circle’s unwavering commitment to fostering the growth and adoption of digital currencies. As the world of finance continues to evolve, Circle remains at the forefront, shaping the future of money and empowering individuals and businesses to embrace the boundless possibilities of digital assets.

With Circle Mint, businesses in Singapore can now seamlessly access USDC, empowering them to explore the transformative potential of digital currencies and shape the future of finance in the region.

2024 Crypto Forecast: Accelerating Evolution in Market Dynamics

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As 2024 approaches, the crypto industry braces for a series of pivotal developments that could significantly influence market dynamics. Matrixport research has forecasted several key events expected to shape the industry in the first half of the year, creating a buzz among investors and enthusiasts alike.

Shaping Crypto in 2024

The foremost anticipation revolves around the approval of a Bitcoin Exchange-Traded Fund (ETF) by the Securities and Exchange Commission (SEC) as early as January. If greenlit, trading of this ETF could commence by February or March, potentially marking a historic milestone for Bitcoin’s integration into traditional investment portfolios.

In addition, Circle, a major stablecoin issuer, is poised to make its stock market debut by April, expanding its presence in the financial market. Meanwhile, the reinvigoration of FTX with its anticipated 2.0 version is expected to take place by mid-year, contributing to the exchange’s resurgence among the top players in the industry.

The convergence of these events, coupled with the anticipated Bitcoin halving cycle, is projected to inject a fresh surge of momentum into the market, possibly impacting the price trajectory of the leading cryptocurrency.

Furthermore, Ethereum’s scheduled upgrade, IEP-4844, in Q1 2024 is anticipated to bring enhancements to the network, potentially influencing investor sentiment and market dynamics.

A significant macro-event on the horizon is the potential interest rate cut by the U.S. Federal Reserve in June. Market indicators suggest a possible rate adjustment, which could influence investor behavior and economic strategies.

The upcoming release of U.S. CPI data in the following week is expected to hold sway over Bitcoin’s performance. A decline in inflation could trigger a rally in Bitcoin prices, with experts predicting a potential breakout and setting the stage for a climb toward $40,000 and beyond.

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Source: CoinMarketcap

As the year draws to a close, there’s palpable anticipation within the industry, with the prospect of a “Santa Claus rally” gaining traction, further fueling the enthusiasm among market participants.

The events projected for 2024 present a landscape ripe with potential and excitement, marking a crucial period for the evolution of cryptocurrencies and their integration into the broader financial landscape.

Related Reading | Shiba Inu’s Valiant Climb: On Track for 50 Cents in the Coming Years 

Midas to Unveil stUSD Token, Linking U.S. Treasuries with DeFi Platforms

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In an upcoming convergence between traditional finance and the ever-expanding realm of cryptocurrencies, Midas, a stablecoin backed entirely by U.S. Treasuries, is set to introduce its stUSD token across various decentralized finance (DeFi) platforms like MakerDAO, Uniswap, and Aave in the forthcoming weeks. This revelation was disclosed in a presentation deck obtained by CoinDesk.

The Midas project, aiming to establish a solid footing in the DeFi space, is strategically procuring U.S. Treasury bonds through asset management giant BlackRock. The procurement entry is facilitated using Circle Internet Financial’s USDC stablecoin, as detailed in the presentation. Additionally, institutional partners like Fireblocks and Coinfirm are involved, providing custody technology and blockchain analytics support, respectively.

Tokenizing Treasuries: Midas’ Game Plan

The motivation behind this move stems from the substantially higher yields observed in traditional financial assets like U.S. Treasuries in comparison to the returns on conventional DeFi products. Midas aims to tokenize these traditional financial assets, making them seamlessly available within the DeFi ecosystem, as articulated in their presentation.

This strategic move resonates with the current industry trend of tokenizing real-world assets, particularly attracting attention from traditional finance entities. The focus on tokenizing Treasuries has seen significant growth in 2023, prompting the Midas project to tap into this potential.

Notably, the Midas team comprises industry figures like Fabrice Grinda, the founder and executive chairman of Global Technology Acquisition Corp. (GTAC), and Dennis Dinkelmeyer, the vice president of GTAC.

The stUSD token, being 100% backed by U.S. Treasuries and issued under German law as a debt security, emphasizes the adherence to regulatory compliance and legal frameworks. Midas highlights its compliance with European Securities Regulation and Anti-Money Laundering laws, further ensuring that the token’s transfer embodies the transfer of underlying legal rights.

Despite these advancements, neither Grinda nor Dinkelmeyer responded to requests for comment as of press time. The imminent integration of Midas into the DeFi space represents a pivotal step in bridging the gap between traditional finance and the evolving landscape of decentralized finance.

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USDC Issuer Circle Sets Sights On 2024 IPO

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USDC Connoisseur Circle is reportedly in talks about going public by early 2024, according to a report by Bloomberg citing anonymous sources. The stablecoin issuer has engaged consultants for a potential IPO, although the exact valuation it seeks remains unclear. This marks Circle’s third attempt at going public; in 2022, the company pursued an IPO with a valuation of $9 billion through a blank check deal. Prior to that, in 2021, Circle’s deal with a Special Purpose Acquisition Company named Concord Acquisition Corp. fell through.

The recent development has reignited speculation about Circle’s long-standing goal of becoming a U.S.-listed public company. However, a spokesperson for Circle denied the rumors, emphasizing that the company’s pursuit of an IPO has never wavered. Circle’s investors include major financial players such as Goldman Sachs, Fidelity, and Blackrock.

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USDC Issuer Circle Sets Sights On 2024 IPO 4

The USDC stablecoin, initially boasting a market cap near $56 billion, experienced a significant decline in June 2022. Circle faced challenges earlier this year when it revealed a $3.3 billion exposure to the collapsed Silicon Valley Bank, leading to a brief depeg of USD Coin. Despite these challenges, Circle plans to share financial reports regularly and has enlisted Deloitte as its auditor.

USDC is a cryptocurrency pegged to the U.S. dollar and backed by reserves provided by clients to Coinbase and Circle in exchange for newly created USDC. Coinbase and Circle generate interest income on these reserves, with Coinbase benefiting directly from higher interest rates.

USDC Expansion

Circle has also focused its efforts on Asia, recognizing the potential for stablecoins to play a role in the region’s evolving payment ecosystem. Yam Ki Chan, Circle’s vice president for strategy and policy, highlighted Asia as a natural market for the company due to the growing web3 business and the broader web3 ecosystem. USDC, launched in 2018 on the Ethereum blockchain, has expanded its reach to multiple blockchain platforms, including Algorand, Solana, and Tron.

The creation of USDC was a collaborative effort between Circle and Coinbase, forming the Centre Consortium with the goal of providing a transparent and regulated alternative to other stablecoins, particularly Tether [USDT].

XRP Ledger Prepares To Tokenize Real-World Assets as Ripple CTO Reveals Roadmap

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The XRP Ledger (XRPL), a pioneer in the blockchain space, is poised to revolutionize the world of real-world assets (RWA) through tokenization. Ripple’s Chief Technology Officer, David Schwartz, recently shared insights into XRPL’s potential as a platform for RWA projects, hinting at a timeline for their launch.

Schwartz’s announcement came during a video shared by the Flip The Chain team, where he outlined XRPL’s exciting roadmap. According to Schwartz, real-world assets are set to make their digital debut on the XRP Ledger within the next year and a half. 

XRP Ledger’s appeal for RWA tokenization lies in its low transaction fees and seamless integration for on-chain asset exchange. It makes it possible for users to buy, sell, store, and transfer assets without the need for traditional fiat currencies like the US dollar, thanks to XRPL’s decentralized exchanges (DEXes).

The gossip in the crypto world is that the first RWA tokenization projects could materialize as early as 2024 or in the early months of 2025. Assets like gold and real estate may be among the first to receive virtual representation on XRPL.

Meanwhile, the XRPL community eagerly awaits a decision on the “XRPL AMM” proposal, which aims to transform the platform into a DeFi powerhouse.

Enhancing USDC Transactions On XRP Ledger (XRPL)

In other XRPL news, SpendTheBits, a payment protocol built on the XRP Ledger, recently revealed a strategic partnership with Circle, a renowned stablecoin issuer. This integration, achieved using the Circle Developer API, now allows SpendTheBits users to effortlessly deposit and withdraw USDC, a popular stablecoin, across multiple blockchain networks.

SpendTheBits expressed their excitement in their announcement, stating that this achievement paves the way for a new era in cryptocurrency transactions. Using the STB app, users can engage in peer-to-peer transactions within and outside the XRPL ecosystem. The platform also simplifies business transactions through its Merchant portal participant, facilitating both XRPL-based and cross-chain payments in USDC.

This development opens doors to an expanded array of merchant opportunities, as businesses can now embrace USDC alongside Bitcoin payments. It marks a significant step towards a future where digital currencies seamlessly integrate into daily life, offering efficient, secure, and universally accessible financial transactions.

Related Reading | California Governor Approves ‘Digital Financial Assets Law’ For Crypto Regulations

Coins.ph & Circle Unite: Pioneering Secure And Affordable USDC Remittances

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Philippine fintech firm Coins.ph has revealed a significant partnership with global fintech company Circle Internet Financial to promote USDC-denominated remittances as a secure, low-cost alternative for international money transfers. 

This collaboration aims to benefit the Philippines’ economy and support the United Nations’ goal of reducing transaction costs for migrant remittances to less than 3% by 2023.

The Philippines witnessed a staggering $36.1 billion in remittances in 2022, as reported by the Bangko Sentral Ng Pilipinas, or the Central Bank of the Philippines. It underscores the significant role remittances play in the Philippine economy. 

However, traditional remittance channels are often plagued by high fees and lengthy transaction times, making it a challenging endeavor, particularly for the unbanked population, which accounted for 44% of the adult population in 2021, according to the country’s central bank.

Coins.ph & Circle’s Partnership Vision 

Coins.ph and Circle’s partnership aims to enhance the remittance landscape by enabling real-time settlements and minimizing transaction costs, focusing on the Philippines, the fourth largest recipient of remittances globally. 

The initiative­ begins by launching educational campaigns and community engageme­nt programs to empower Filipinos living abroad to utilize USDC for remittance­s. 

Wei Zhou, CEO of Coins.ph, has expressed dedication to offering innovative­ services that significantly impact users’ daily live­s. USDC, renowned globally as a trusted stable­coin, plays a crucial role across various sectors, from humanitarian aid to dece­ntralized finance (DeFi) platforms.

Raagulan Pathy, Vice President for Asia Pacific at Circle, emphasized their partnership with Coins.ph aligns with their mission to make the movement of money more accessible, inclusive, and efficient:

By making cross-border transactions near real-time and dramatically reducing transaction costs, we support the United Nations’ Sustainable Development Goal of reducing to less than 3 percent the transaction cost of migrant remittances by 2023. Together, we’re making critical steps toward increasing economic opportunity and prosperity in the Philippines.

This partnership between Coins.ph and Circle showcases the real-world impact of digital currencies and heralds a shared vision for the future. Both companies envision expanding their services to Southeast Asian markets with unwavering dedication to e­nhancing financial access and breaking down conventional barriers.

Related Reading | Bitcoin’s Next Halving Beckons: Will History Repeat Itself?

Ripple’s Major Milestone: Full MPI License Granted By Singapore’s MAS

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Ripple, a prominent player in the blockchain and digital payments world, has joined the ranks of high-profile web3 companies granted an MPI (Major Payments Institution) license by the Monetary Authority of Singapore (MAS). This move follows in the footsteps of Circle, a stablecoin issuer, which secured its license in June, and major cryptocurrency exchange Coinbase, which received approval on October 2, as reported by TronWeekly.

Today, Ripple announced that its subsidiary in Singapore, Ripple Markets APAC Pte Ltd, has successfully obtained its full MPI license to offer digital payment token services within the country. The development signifies Singapore’s unwavering commitment to fostering crypto innovation and staying at the forefront of the rapidly evolving blockchain landscape.

The company received in-principle approval for its MPI license application from MAS earlier this year. The company’s press statement emphasized the significance of this milestone, highlighting how it underscores the practical utility of cryptocurrency solutions for businesses and financial institutions. This achievement represents a significant stride toward the broader adoption of digital assets.

Singapore has earned a reputation as a global leader in pioneering digital asset regulation. The country’s forward-thinking approach makes it an ideal destination for businesses and financial institutions looking to harness the potential of cryptocurrencies for cross-border payments, crypto liquidity, and central bank digital currencies.

Ripple’s Commitment To Singapore

Brad Garlinghouse, the CEO of Ripple, expressed his appreciation for Singapore’s pivotal role in the company’s global operations:

Since establishing Singapore as our Asia Pacific headquarters in 2017, the country has been pivotal to Ripple’s global business. We have hired exceptional talent and local leadership, doubling headcount over the past year and plan to continue growing our presence in a progressive jurisdiction like Singapore.

Global finance le­aders are increasingly acknowle­dging the lasting importance of digital assets. According to a survey, 90% of these leade­rs believe that blockchain and digital asse­ts will greatly impact business, finance, and socie­ty within the next three­ years. Furthermore, nearly half of Asia Pacific finance leaders have­ plans to integrate cryptocurrency into cross-borde­r payments.

However, Digital payments are­ gaining momentum throughout the Asia Pacific region, signifying Ripple­’s prioritization of this area for its global payment solutions. The surge­ in cashless transactions by 109% expected by 2025 underscores the incre­asing significance of digital payment options in the re­gion.