ECB member doubles down on digital euro after Trump’s crypto EO: Report  

The United Kingdom’s financial regulator, the Financial Conduct Authority (FCA), plans to stop retail investors from borrowing money to fund their crypto investments.According to a May 2 Financial Times report, the ban on borrowing to fund crypto purchases is one of the upcoming crypto rules by the FCA. David Geale, FCA executive director of payments and digital finance, told the FT that “crypto is an area of potential growth for the UK, but it has to be done right.” He added:“To do that we have to provide an appropriate level of protection.”Geale denied claims that the FCA is hostile to the crypto industry. Instead, he explained that he views the industry as offering high-risk investments with less consumer protection. “We are open for business,“ he said.The interview follows the FCA seeking feedback on regulating the crypto market. In an attached document, the regulator noted that it is “exploring whether it would be appropriate to restrict firms from accepting credit as a means for consumers to buy cryptoassets.”FCA crypto regulation discussion paper. Source: FCAThe FCA did not respond to Cointelegraph’s inquiry by publication.Related: FCA releases discussion paper on crypto market transparency, abuseFCA’s upcoming rulesThe FCA aims to regulate the domestic cryptocurrency market, ruling over trading platforms, intermediaries, crypto lenders and borrowers, as well as decentralized finance (DeFi) systems. The regulator reportedly plans to introduce stricter rules for crypto services aimed at retail investors than those offered exclusively to professional or sophisticated investors.Gale explained that the agency aims to develop a framework “that is safe and is competitive.” He said that the regulator aims to develop a regulatory regime that would attract businesses:“If we can get the regulatory regime right it actually becomes attractive for firms. That is what we are trying to achieve.”Related: UK’s finance watchdog defends ‘too tough’ crypto stanceThe FCA lending banThe regulator explained that its upcoming ban to restrict lending to fund consumers’ crypto purchases is motivated by a concern over “unsustainable debt, particularly if the value of their crypto asset drops and they were relying on its value to repay.” The ban would also include credit card purchases.While 2024 FCA research showed that “the leading method of payment for cryptoassets among cryptoasset users continues to be the individual’s own disposable cash/income (72%),” it also highlights a growing trend in credit purchases. The research cites that only 6% of purchases were made on credit in 2022, but this metric climbed to 14% in 2024.The FCA also purportedly plans to block retail investors from accessing crypto lenders and borrowers. Other concerns about the crypto market cited by the regulator include market manipulation, conflicts of interest, settlement failures, a lack of transparency, illiquidity, and unreliable trading systems.To alleviate those issues, the regulator plans to require equal trade treatment by crypto trading platforms. Other potential rules include the enforcement of a separation between proprietary trading activities from those done for retail investors and demanding transparency on trade pricing and execution.Trading platforms would be banned from paying intermediaries for order flow, and users of staking services would have to be reimbursed for any potential losses caused by third parties. The FCA plans to exempt DeFi systems without centralized operations, as long as they do not feature a “clear controlling person.”Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

Crypto exchange KuCoin said that it may reenter South Korea after its platform was blocked in the country. On March 21, South Korean regulators ordered Google Play to block access to exchanges that were not compliant with the requirements needed to operate in the country. On April 11, South Korea’s Financial Services Commission (FSC) ordered the Apple Store to block unregistered crypto exchanges. KuCoin was among those affected by the country’s crackdown on unregistered platforms that were previously available. While the platform is now unavailable to South Koreans, it has not fully abandoned the jurisdiction. In an exclusive interview with Cointelegraph, KuCoin’s newly appointed CEO, BC Wong, said that the crypto exchange has plans to reenter the country. Wong (left), KuCoin EU CEO Oliver Stauber (middle) and Cointelegraph reporter Ezra Reguerra (right) at the Token2049 event in Dubai. Source: Market AcrossRegulators drive global players away from local marketsWong told Cointelegraph that before the exchange can reenter South Korea, it plans to secure compliance with major jurisdictions first. He said: “The resource is there. We need to go one by one. Our strategy will always be that major jurisdictions come first, which means the United States, EU, China, India, and maybe after that, Australia.”Wong confirmed to Cointelegraph that KuCoin representatives had started speaking with regulators. The executive said that operating in crypto is very similar to traditional financial markets, where there’s a need for a clear background in each jurisdiction. The KuCoin CEO also said that regulators are stricter compared to three years ago. He said that this could be a move to drive global players away from local crypto markets. “I’m not so sure that if the regulators’ intention is to regulate the global market or just simply, they want to pave the way to get all the global kind of players to be out from their market, and pave the road for their domestic exchange,” Wong added. Related: Kraken tells how it spotted North Korean hacker in job interviewKuCoin’s EU CEO shares regulatory challenges in EuropeOliver Stauber, who joined KuCoin as its European Union CEO, told Cointelegraph that there are also difficulties operating in the EU, even with the bloc’s Markets in Crypto-Assets Regulation (MiCA) in place. Stauber, who previously worked as the chief legal officer of Bitpanda, told Cointelegraph that while MiCA licenses have a passporting feature, which should allow license holders to provide services across the EU, the executive said that some jurisdictions interpret the laws differently. Stauber said that some jurisdictions may say that licenses were “wrongly assessed,” which gets in the way of operating in some jurisdictions.  “MiCA was said to have a level playing field in crypto all over Europe. However, as long as there are players who are not playing by the books, you know it’s getting quite messy and difficult,” Stauber told Cointelegraph. Magazine: Pokémon on Sui rumors, Polymarket bets on Filipino Pope: Asia Express

The European Union is set to impose sweeping Anti-Money Laundering (AML) rules that will ban privacy-preserving tokens and anonymous cryptocurrency accounts from 2027.Under the new Anti-Money Laundering Regulation (AMLR), credit institutions, financial institutions and crypto asset service providers (CASPs) will be prohibited from maintaining anonymous accounts or handling privacy-preserving cryptocurrencies.“Article 79 of the AMLR establishes strict prohibitions on anonymous accounts […]. Credit institutions, financial institutions, and crypto-asset service providers are prohibited from maintaining anonymous accounts,” according to the AML Handbook, published by European Crypto Initiative (EUCI).The AML Handbook. Source: EUCIThe regulation is part of a broader AML framework that includes bank and payment accounts, passbooks and safe-deposit boxes, “crypto-asset accounts allowing anonymisation of transactions,” and “accounts using anonymity-enhancing coins.”Related: Eric Trump: USD1 will be used for $2B MGX investment in Binance“The regulations (the AMLR, AMLD and AMLAR) are final, and what remains is the ‘fine print’ — aka the interpretation of some of the requirements through the so-called implementing and delegated acts,” according to Vyara Savova, senior policy lead at the EUCI.She added that much of the implementation will come through so-called implementing and delegated acts, which are mostly handled by the European Banking Authority:“This means that the EUCI is still actively working on these level two acts by providing feedback to the public consultations, as some of the implementation details are yet to be finalized.”“However, the broader framework is final, so centralized crypto projects (CASPs under MiCA) need to keep it in mind when determining their internal processes and policies,” Savova said.Related: Bitcoin volatility lowest in 563 days, Hayes predicts $1M BTC by 2028EU to increase oversight of crypto service providersUnder the new regulatory framework, CASPs operating in at least six member states will be under direct AML supervision.In the initial stage, AMLA plans to select 40 entities, with at least one entity per member state, according to EUCI’s AML Handbook. The selection process is set to start on July 1, 2027.AMLA will use “materiality thresholds” to ensure that only firms with “substantial operations presence in multiple jurisdictions are considered for direct supervision.”The thresholds include a “minimum of 20,000 customers residing in the host member state,” or a total transaction volume of over 50 million euros ($56 million).Other notable measures include mandatory customer due diligence on transactions above 1,000 euros ($1,100).Magazine: Bitcoin $100K hopes on ice, SBF’s mysterious prison move: Hodler’s Digest, April 20 – 26