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FTX To Bear Costs For Bahamas Regulators Holding Digital Assets

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All expenses related to the digital wallet that houses the assets of FTX Digital Markets (FDM) shall be borne by FTX, the recently defunct cryptocurrency exchange. The Securities Commission of The Bahamas is in charge of keeping the pocketbook under control, according to a Bahama’s Supreme Court decision from Monday.

The statement said,

“The Order secured today confirms the Commission is entitled to be indemnified under the law and FDM shall ultimately bear the costs the Commission incurs in safeguarding those assets for the benefit of FDM’s customers and creditors, in a manner similar to other normal costs of administering FDM’s assets for the benefit of its customers and creditors………… No payment(s), however, may be made to the Commission without prior approval of the Supreme Court.”

The Supreme Court ruled that FTX must cover the expenses incurred by the Securities Commission in retaining the assets “for the benefit of FDM’s customers and creditors.” But no payment to the commission may be made without the Supreme Court’s prior consent.

FTX Owes Over $3B To Biggest Creditors

According to a document submitted to a US bankruptcy court, the defunct cryptocurrency exchange FTX owes its 50 largest creditors close to US$3.1 billion. FTX, which declared bankruptcy after being unable to handle consumer withdrawals, alone owes its top 10 debtors over US$1.45 billion.

The cryptocurrency exchange filed for bankruptcy over ten days ago, abandoning about one million creditors, albeit the degree of the harm is uncertain due to allegedly bad record-keeping procedures.

FTX was the second-largest cryptocurrency exchange after Binance before it went under.
Its inability to fulfil a surge in withdrawals caused by worries about its solvency revealed that it did not actually have assets worth the billions of dollars it had stated.

In addition, FTX has requested assistance from other exchanges in getting back cryptocurrency that was taken during the latter phases of its collapse so that it can pay its creditors. Analysts estimate that around US$270 million worth of cryptocurrency was stolen.

Gemini managed Holon’s crypto funds suspended by Australian regulators

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Gemini specifically has been battling its way into many nations together with other cryptocurrency organizations. While many people think that cryptocurrency exchanges may be the next hotspot for regulators, it appears that Gemini has jumped on board. The Winklevoss twins’ exchange, may have gotten into a tiff with the Australian cryptocurrency watchdogs.

According to a press statement, Australia’s financial services and markets regulator has halted Sydney-based asset manager Holon Investments’ ability to offer or distribute three cryptocurrency funds to retail investors for a period of 21 days. It has come to light that these crypto funds were being managed by the prominent crypto exchange Gemini.

The Australian Securities and Investment Commission (ASIC) made the decision as a result of Holon Investments’ non-compliant target market determinations (TMD).

The target market document, or TMD, outlines the target market for an investment product. ASIC expressed concern that Holon did not adequately take into account the characteristics and dangers of the Funds when deciding on their target markets.

According to the regulator, the broad target market specified in Holon’s TMDs, which includes investors with possibly medium, high, or very high risk and return profiles, is not a good fit for the cryptocurrency funds.

The funds held by Holon in Bitcoin, Ether, and Filecoin are affected by the suspension. The cryptocurrency exchange Gemini oversees the management of all three funds. The press release read,

“If the ASIC’s concerns are not addressed in a timely manner, final stop orders will be placed on the funds….. Holon will have an opportunity to make submissions to ASIC before any final stop order is made.”

Winklevoss resigns as Gemini Europe’s director

The millionaire co-founder of the cryptocurrency exchange Gemini, Cameron Winklevoss, has resigned from the Gemini Europe board of directors.

A Companies House statement states that on October 12th, Winklevoss resigned as a director of the European division of the larger firm, Gemini Europe, which is incorporated in the UK.

Blair Halliday, the former UK managing director, lost his board membership at the same time as Gillian Lynch, the company’s new head of Ireland and the EU, took his place. Last week, Halliday also relocated to the competing exchange Kraken.

Gemini, a New York-based company established by Tyler and Cameron Winklevoss, just started its cryptocurrency exchange and custody services in Ireland after obtaining an e-money license there six months prior and opening an office there in 2021.

Public Opinions to be Considered by OCC to Determine the Future of Cryptocurrency Regulations

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Over the last few years, the cryptocurrency market has come to the forefront as a challenger to the mainstream fiat industry. Established regulators in the United States have become more inclusive in discussing the virtual asset industry, and the evidence for this has now become stronger.

In a recent publication by the US Office of the  Comptroller of the Currency  [OCC], the organization asked the public for its opinion on the operating rules and functions relating to cryptocurrencies. This comes as a victory for a field that has been shunned for the longest time.

The OCC will seek public comments and update its rules on the activities and operations of the national bank and the federal savings association. In addition to the latest release, the OCC also released an Advanced Notice of Proposed Regulations [ANPR], which will clarify the rules and regulations relating to the activities referred to above.

The document was signed by Brian Brooks, former Chief Legal Officer of Coinbase. Brooks took up his new role at the OPCC a few days ago, a move seen as a positive marker for the digital asset industry.

An excerpt from the release read:

“The NPR is part of the OCC’s continual effort to modernize its rules and remove unnecessary requirements to relieve banks of unnecessary burden, encouraging economic opportunity and promoting the safe, sound, and fair operation of the federal banking system. The ANPR is part of the agency’s effort to support the evolution of the federal banking system and its ability to meet the needs of the consumers, businesses, and communities it serves. “

The OCC claimed that the latest move was part of the body’s commitment to responsible innovation in the cryptoverse. The body believed that banks and other traditional institutions must be able to evolve to meet the needs of ” consumers, businesses and communities” that rely on them. The concept of inclusivity was reiterated with the OCC stating that all stakeholders in the space needed to have their voices heard.

Cryptocurrency supporters were given a boost when the OCC recognized that the industry had come a long way since the public reveals of Bitcoin in 2009. Additionally, the body pointed out that developments made by companies like PayPal had paved the way for innovations like mobile banking, which was was looked down upon earlier.