Real-time Tether reserves, Coinbase selects EU hub, and other crypto-industry developments

We have gathered the week’s most important crypto-industry news.

In 2024, Tether will begin reporting USDT reserves in real time

In an interview with Bloomberg, the position of CEO at Tether Paolo Ardoino shared plans for the issuer USDT for 2024. They include publication of data on the collateral backing the stablecoin, greater investment in technology, regulatory engagement and the adoption of renewable energy.

For the second quarter, Tether reported a net profit of $850 million. According to the document, 85% of USDT collateral consists of cash and cash equivalents. In September the company became the 22nd-largest purchaser of US Treasuries with reserves of $72.5 billion.

Earlier Ardoino stated that the issuer’s high profitability gives the opportunity to explore new business lines. Subsequently the company invested $1 billion in a Bitcoin mining project in El Salvador, and spent $420 million on purchasing 10,000 Nvidia H100 chips.

Media: Ripple posts job opening whose requirements align with IPO preparations

The fintech company Ripple added a senior investor relations manager to the list of open positions. The job posting sparked discussions in the community about the company’s plans to go public, according to Cointelegraph.

The listing states the role will require direct engagement with shareholders. The chosen candidate will be responsible for developing and implementing the communications strategy and managing relationships with “existing and potential investors, current shareholders and financial analysts.”

In October the Monetary Authority of Singapore granted Ripple a major payment institution licence. It allows it to continue providing services related to digital payment tokens. According to representatives of the California fintech company, 90% of its business is conducted outside the United States.

Earlier Ripple acquired the Swiss-based crypto custodian Metaco. The acquisition will enable the fintech company to offer clients tools for custody, issuance and settlement of tokenized assets.

Binance will stop accepting new users in the United Kingdom

Binance, the cryptocurrency exchange, paused expanding its UK user base after regulatory directives FCA to its partner – Rebuilding Society. The latter pledged to limit the conduct of financial promotions on behalf of unauthorised crypto-asset service providers.

On 8 October, a new crypto advertising regime came into force in the United Kingdom, proposed by the FCA. It complements the recently enacted Financial Services and Markets Act, affecting regulation of the industry in the country.

“We are working closely with the FCA […] and are looking to find another authorised firm to approve our financial promotions”, the exchange said.

Existing Binance UK users will retain access to services if they fill in an Investor Declaration and pass the compliance test. During this period they will be restricted from access to some new products and services, the company said.

On 19 October it emerged that Binance France CEO Stephanie Cabossioras resigned. In June reports suggested that the subsidiary was suspected of illegally providing crypto services and failing to meet anti-money-laundering obligations.

Coinbase chose Ireland as its main EU hub

Coinbase chose Ireland as its main operational and regulatory hub in the EU. After obtaining the MiCA license the company will be able to offer its services to residents of other EU member states. Coinbase has been active in the country since 2018.

In September the crypto exchange received registration of compliance with anti-money-laundering requirements from the Bank of Spain. The decision will allow Coinbase to offer a full range of products and services to retail and institutional investors in the country. Earlier, the company received VASP registration in Italy, Ireland and the Netherlands.

Media: owner of Hong Kong-based OSL puts platform up for sale

The operator of the Hong Kong-based crypto platform OSL — BC Technology Group — is considering a sale valued at HKD 1 billion (~$128 million). Bloomberg reported, citing people familiar with the matter.

The sources say BC Technology could sell a stake rather than the entire OSL business. Discussions are ongoing, and there is no guarantee they will lead to a deal. The company denied the report in a filing.

On 1 June, new regulatory requirements came into effect in Hong Kong for crypto platforms applying to retail investors. All centralised platforms operating in the special administrative region or dealing with local investors must hold a Securities and Futures Commission licence.

OSL has been among the few platforms to obtain regulator approval.

Also on ForkLog:

• Coinbase opened access to futures outside the United States.
• Binance agreed to offer services in euros.
• Media learned about the withdrawal of FDIC insurance on Binance.US customer deposits.
• BitGo acquired an asset-management software developer HeightZero.
• Media: the US Securities and Exchange Commission will not appeal the court’s decision in the Grayscale case.
• SEC dropped charges against Brad Garlinghouse and Chris Larsen.
• A group of former ConsenSys employees filed a lawsuit against Joseph Lubin.

What to read this weekend?

By mid-2024, FTX clients could receive payouts on claims in the bankruptcy proceedings totaling $9.2 billion.

As part of the proceedings in the case of the collapsed FTX and its founder Sam Bankman-Fried (SBF), Notre Dame accounting professor Peter Easton conducted an analysis of all operations of the exchange and its “daughter” Alameda Research.

Also on ForkLog: ForkLog presented details of speeches by SBF associates — former FTX CTO Nishad Singh and former Alameda CEO Caroline Ellison.