Binance Explores Stablecoin Issuance on MUFG Progmat Coin Platform

SEC Opposes Motion to Dismiss Terraform Labs LawsuitLawyers representing the United States Securities and Exchange Commission (SEC) have responded to a motion to dismiss the lawsuit filed by Dentons, the lawyers representing Singapore-based Terraform Labs and its Founder Do Kwon.Photo by Miguel Á. Padriñán on PexelsCourt filingAccording to its arguments, set out in a court filing lodged to the District Court of the Southern District of New York on Thursday, the SEC’s counsel claims that the additional documents provided by Dentons lack sufficient grounds for dismissing the case.It claims that the internal SEC emails presented by Dentons are irrelevant to the current lawsuit. The SEC asserts that the parameters of an “investment contract” are clearly defined by the Howey test and argue that TerraUSD ($UST) should be classified as a security.The reliance by US regulators on the Howey test, a legal test case that implicated citrus grove contracts that date back to 1946, has proven to be controversial. Naturally, there could have been no consideration of the digital innovation that digital assets present today almost eighty years ago. Notwithstanding that, the SEC maintains that the principle factors of what constitutes an investment contract are covered by the case regardless.During the court hearing held on June 15, Dentons submitted supplementary documents to strengthen their motion to dismiss the lawsuit. The primary focus of the hearing was to determine whether the digital assets developed by Terraform Labs should be categorized as securities based on the criteria of an “investment contract.”Dentons maintains that the algorithmic stablecoin, $UST, should not be considered a security and emphasizes its practical purpose rather than its classification as an investment contract. To support their motion, Dentons included additional documents such as the US House Financial Services Committee hearing on digital asset regulation and stablecoin issuance, the SEC’s request for a restraining order against Binance.US, and the Hinman emails from the SEC vs. Ripple lawsuit.Judge to decideThe defense lawyers highlighted what they perceive as a “regulatory gap” in classifying crypto assets as securities, particularly as the US Congress engages in discussions about regulatory frameworks for digital assets and stablecoin issuance. Furthermore, they argued that the SEC is exceeding the scope of securities laws and relying on internal emails related to “investment contracts” to determine the security status.A decision on the motion to dismiss will be arrived at by July 14. Judge Jed Rakoff, who is presiding over the case, will be responsible for that, once he’s weighed up the merits of the arguments presented by both parties.It is noteworthy that Dentons has previously represented Kwon in challenging the US SEC’s subpoena during the investigation of the Mirror Protocol in 2021, as well as in a class-action lawsuit in the Singapore High Court in 2022. The law firm also provides representation to Terraform Labs in other legal matters.In a separate development, the Basic Court in Podgorica, Montenegro, has granted bail for Kwon and former Terra Chief Technology Officer Han Chang-joon. However, Kwon has recently been taken into custody for extradition in Montenegro while the court deliberates on South Korea’s extradition request for the Terra founder.As the legal proceedings continue, the outcome of the motion to dismiss will have significant implications for the ongoing dispute between Terraform Labs, Do Kwon, and the SEC.

Chinese authorities are unveiling new strategies to expedite the integration of the digital yuan in selected districts in Beijing and Shanghai, with a separate initiative furthering cross-border use of the e-CNY with Hong Kong.Photo by Yigang Zhou on UnsplashPudong New AreaAccording to the Xinhua news agency, the Chinese authorities have introduced an extensive reform initiative for Shanghai's Pudong New Area, which is scheduled to span from 2023 to 2027. This five-year plan, issued by the Chinese Communist Party Central Committee and the General Office of the State Council, aims to position the Pudong District as a leader in modernization. The reform plan places a strong emphasis on the pilot implementation of the digital yuan across various sectors in Pudong. As part of the plan, Pudong will be granted new authorities to evolve into an international hub. Key aspects of the reform include the integration of digital yuan into trade settlement, e-commerce payments, carbon trading and green power trading. This move is expected to standardize and broaden the application scenarios of the digital currency. Beijing's ‘Digital Yuan Adoption Demonstration Zone’Simultaneously, a member of the Beijing Municipal Committee and Hong Kong Professionals Association president, Fung Kwok-yau, has advocated for the swift progress of Beijing's "Digital Yuan Adoption Demonstration Zone." In a recent interview, Fung suggested expanding the digital yuan's application by installing e-CNY terminals in local stores at popular tourist destinations, malls and shopping districts. Fung acknowledges challenges in promoting the digital yuan, including late entry into the contactless payment market, high user acceptance barriers and difficulties in sustaining subsidies. To overcome these challenges, Fung recommends that culture and tourism departments take the lead in popularizing the concept of central bank digital currency (CBDC) and educating the public on digital yuan usage. To encourage small and medium-sized merchants already using digital yuan terminals, Fung proposes providing incentives to help consumers understand and use the currency. He emphasizes the need for a regular promotion mechanism and measures such as electronic consumption coupons to boost citywide adoption. PBoC cross-border e-CNY pilotIn a related development, the People's Bank of China (PBoC) plans to expand its cross-border digital yuan pilot in Hong Kong. Deputy Governor Xuan Changneng expressed the intention to deepen the cross-border e-CNY pilot to enhance convenience for businesses in both Hong Kong and mainland China. According to a social media post from Chinese news outlet Caixin, the PBoC will collaborate closely with the Hong Kong Monetary Authority (HKMA) to introduce new policy measures, including financial services and cooperation initiatives to drive CBDC adoption. Areas of cooperation between PBoC and HKMA include providing support for institutions participating in the pilot, increasing convenience for digital yuan users, expanding the number of Hong Kong-based banks handling e-CNY and exploring new digital yuan-powered cross-border remittance services for micro-payments. The goal is to develop digital yuan services that align more closely with the habits of Hong Kong residents and promote interoperability with Hong Kong payment systems. The PBoC aims to make further progress in key scenarios such as cross-border e-commerce and education. 

Indonesia Embraces XRP, ADA as Tradable Crypto AssetsIn a significant move towards cryptocurrency acceptance, the Indonesian government has taken a momentous step by including a range of digital assets, including XRP and ADA, in a recently published regulatory document.Photo by Nick Agus Arya on Unsplash501 digital assetsThe document, published earlier this month, comprises an extensive list of 501 cryptocurrencies that are eligible for trading within the country. Unsurprisingly, BTC and ETH feature on the list. Other notable cryptocurrencies that have been listed include SOL, LTC, DOT, SAND, and UNI. This development is seen as a positive stride towards wider crypto adoption and holds the potential for broader use of all of these assets. In the case of XRP, it provides it with greater potential to become a viable means of payment within the region in the future, even though current regulation within Indonesia prohibits payments for goods and services in anything other than the rupiah.Defining tradable assetsThe regulatory document, officially titled “Supervisory Body Regulation Commodity Futures Trading Number 4 of 2023,” signifies an amendment to the Trade Controlling Agency Regulations Commodity Futures Number 11 of 2022. Its main objective is to identify the assets that can be traded in the physical market of crypto assets within Indonesia.Colin Wu, a prominent Chinese reporter, shared this significant development on Twitter, sparking interest and discussions within the crypto community. The news has been met with a mix of optimism and caution from Indonesian individuals. One Indonesian YouTuber expressed enthusiasm for the country’s XRP-friendly stance and voiced hope for XRP to eventually attain legal tender status. However, others, like Twitter user Pondok Indah, urged the government to focus on regulatory oversight and taxation rather than direct involvement in the crypto business.This development takes place in the broader context of Indonesia’s evolving crypto landscape. According to a 2022 research report titled “The 2022 Global Crypto Adoption Index: Emerging Markets Lead in Grassroots Adoption ‘’ by Chainalysis, Indonesia ranked at the top among the 20 countries analyzed in terms of peer-to-peer (P2P) exchange trade volume. The country has demonstrated its active participation in the crypto market, with Indodax, the largest Indonesian exchange, adding support for FLOKI, an up-and-coming cryptocurrency, back in April.That said, as we’ve seen in many other jurisdictions, the development of regulation and policy relative to digital assets has not been without its hiccups. Last month, the governor of Bali warned the foreign tourists that flock to the Indonesian island that there would be consequences for those that flouted Indonesian law and used crypto as a form of payment for goods and services.Indonesia’s recognition of the potential benefits of digital assets demonstrates a path forward for other nations to follow. Providing regulatory clarity with regard to digital assets bolsters investor confidence but also opens doors for innovation and financial inclusion. In taking this approach, the Southeast Asian country is setting the stage through which digital assets can contribute to economic growth and technological advancement.