Hello world, we at Liminal are extremely proud to present to you the monthly edition of our Security and Regulatory Newsletter.
Liminal believes in optimising security and custody practices globally across the Web3 industry. Through our monthly newsletter, we highlight incidents pertaining to security, regulations and compliance that have happened in the past month and how one can follow better security practices to safeguard their digital assets.
We will also highlight regulatory changes that might have happened globally, which were significant to the overall ecosystem.
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Dive in and get a detailed analysis of everything security and regulation in the domain of web3 with Liminal’s Monthly Security and Regulatory Newsletter.
Web3 Security Compromises in February
Kraken ends staking, pays $30 million fine in a settlement with U.S. SEC
U.S. cryptocurrency exchange Kraken has reportedly agreed to close up shop on its crypto staking operation and pay a $30 million fine to the U.S. Securities and Exchange Commission.
Peer-to-peer Bitcoin exchange LocalBitcoins to shut down after ten years
LocalBitcoins, a Finnish platform that allows individuals to trade Bitcoins with one another peer-to-peer, will be shutting down. The exchange is one of the longest-running cryptocurrency exchanges, and for a while, functioned as a way for people to trade cash for Bitcoin (and vice versa) more privately. However, in 2019, the exchange introduced KYC requirements.
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LocalBitcoins cited “the ongoing very cold crypto-winter” as the rationale for the closure and stated that new sign-ups would be suspended immediately. Trading will be suspended a week later, and users will have a year to withdraw Bitcoins they stored on LocalBitcoins’ wallet product.
Coin Cloud crypto ATM operator files for bankruptcy
The US-based company Coin Cloud, which operates crypto ATMs in the US and Brazil, filed for bankruptcy on February 7. They are the second largest crypto ATM operator in the world and also in the US.
The company disclosed liabilities between $100 million and $500 million and assets between $50 million and $100 million. In a filing, they reported they had 5,001–10,000 creditors.
Web3 Regulatory Practices for February
Philippines focuses on empowering the local crypto industry with regulations
The country’s Securities and Exchange Commission aims to strengthen its control over the local crypto industry.
The regulatory body has drafted rules on financial products and services, including cryptocurrencies and digital financial products, for public comment, keeping its goal in mind.
The proposed rules, if approved, will expand the definition of security to accommodate tokenised securities and other blockchain-related products.
Australia making big moves for Crypto
Australia’s Assistant Treasurer and Minister for Financial Services, Stephen Jones, recently shined a light on the country’s plans for crypto regulations.
According to Mr Jones, the government’s foremost goal is to protect crypto asset customers, and the government will take multiple crucial steps.
The Australian authorities have first planned to expand their crypto team and enhance enforcement efforts to achieve this goal.
Indonesia Wants to Treat Crypto as a Security
With Indonesian President Joko Widodo signing a new law on January 12th, crypto regulatory powers will now shift from the Financial Services Authority (OJK) to CoFTRA, a commodities watchdog.
ABI, the blockchain trade association of Indonesia, has welcomed the move, saying that “this shift has shown a good understanding from the regulator that crypto assets are broader than just trading.”
According to the Indonesian Government, the regulatory changeover would take two years.
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by Liminal
