Kiffmeister’s #Fintech Daily Digest (03/20/2021)*

CFTC Orders Coinbase Inc. to Pay $6.5 Million for False, Misleading, or Inaccurate Reporting and Wash Trading

The US Commodity Futures Trading Commission (CFTC) issued an order filing and settling charges against digital asset exchange operator Coinbase for reckless false, misleading, or inaccurate reporting as well as wash trading by a former employee on Coinbase’s GDAX platform. 

FATF draft guidance on a risk-based approach to virtual assets and virtual asset service providers

The Financial Action Task Force (FATF) updated its Guidance on the risk-based approach to virtual assets (VAs) and virtual asset service providers (VASPs). These changes aim to maintain a level playing field for VASPs, based on the financial services they provide in line with existing standards applicable to financial institutions and other AML/CFT-obliged entities, as well as minimizing the opportunity for regulatory arbitrage between sectors and countries. 

Rise of Crypto Market’s Quiet Giants Has Big Market Implications

As of the middle of Asia’s day on March 17, Tether’s 24-hour volume was $94 billion versus Bitcoin’s $56 billion, according to cryptocurrency data provider CoinGecko. About 55% of all Bitcoin purchases are now conducted with Tether, according to researcher CryptoCompare. According to a March 10 report from The Block Research strategists including Larry Cermak, “Once global frameworks are established, we believe that $1 trillion in annual stablecoin volume will only be the beginning.” 

Where is the unique CBDC selling proposition

This paper provides a systemic analysis of the existing payment ecosystems in advanced and developing/emerging economies and discusses CBDC proposals from the perspective of potential unique selling propositions vis-à-vis existing subsystems.  

Anthony Scaramucci’s SkyBridge Applies for Bitcoin ETF

SkyBridge Capital has filed for a Bitcoin ETF with the Securities and Exchange Commission (SEC).  

* The views expressed herein are those of the author and should not be attributed to the International Monetary Fund, its Executive Board or its management.