Kraken has banned USDT delisting, added crypto protection, and more.
Holding digital assets has become an increasingly popular business, especially after the introduction of Bitcoin Exchange Traded Funds (ETFs) in the United States.
Recent companies looking to secure assets for institutional investors include Taurus and FireBlocks. While Taurus announced the opening of a Canadian office in response to security and token requests, FireBlocks is awaiting regulatory approval for a special purpose trust company administered by New York's Department of Financial Services.
Ripple predicts that the institutional crypto holding market could reach $10 trillion by 2030.
In other news, Coinbase appointed Kendrick Meek to its Digital Asset Regulatory Council. Meek previously served as a representative for Florida's 17th congressional district. According to the exchange, the arrival of Mac is part of efforts to “modernize the system” that regulates digital assets in the United States.
This week's CryptoBiz also covers Kraken's denial of plans to list stablecoins in Europe, Grayscale's CEO resignation, Promethium Ether (ETH) escrow service treating ETH as a security, and more.
Crypto exchange Kraken currently has no plans to delist USDT in Europe
Cryptocurrency exchange Kraken currently has no plans to remove Tether (USDT) in Europe, despite a recent report that the company was “actively reviewing” the decision to remain legally compliant. “[Kraken] The US dollar continues to register gains in Europe, and we have no plans to cancel it at this time, said Mark Greenberg, Kraken's head of global asset development and management. Greenberg said the company will continue to comply with all legal requirements — including those it disagrees with. However, the rules are not finalized yet and we will do our best to continue offering all relevant coins to our European customers. Bloomberg reported on May 17 that Kraken was “actively evaluating” plans to comply with the markets within the framework of the Crypto-Assets Regulation.
Prometheum Launches Ether Storage Service That Treats ETH As Security: Report
Digital asset trading and protection firm Promethium has launched an Ether protection service that treats digital assets as collateral. According to a May 20 report from Fortune, the service was initially rolled out to select companies on May 17, with a full-scale launch expected in June. The company gained attention last June when the company's founder and CEO, Aaron Kaplan, testified before a US House of Representatives committee, advocating crypto regulation under the existing securities law. In February, Prometheus announced that it would treat Ether as a security when it launched a security service, drawing criticism from the crypto community.
Grayscale CEO Michael Sonnenschein stepped down
Michael Sonnenschein has stepped down as CEO of Greyscale Investments. Digital Currency Group founder and CEO Barry Silbert announced the decision on May 20. Sonnenschein will be replaced by former Goldman Sachs executive Peter Mintzberg on Aug. 15, while Grayscale's chief financial officer, Edward McGee, will lead the company. Interim as CEO. Sonnenschein served as CEO for 10 years and was instrumental in introducing crypto funds to institutional investors, including sponsoring the Spot Bitcoin (BTC) ETF.
Binance.US wins appeal to reinstate Florida money services license
Binance.US has won its appeal against the suspension of its financial services business license in Florida. Florida's First District Court of Appeal ruled that the state's Office of Financial Regulation lacked legal justification for the emergency freeze order and did not articulate many serious alternatives to the decision. The ban was initially made after Binance CEO Changpeng Zhao pleaded guilty to violating US anti-money laundering laws on November 21, 2023. The ban has put more than 170,000 government account holders at risk of huge financial losses and tax liabilities. Digital asset holdings amid price volatility.
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