Abu Dhabi broadens crypto regime with new stablecoin approvals and Binance licensing

Israel Doubles Down on Blocking Crypto Funding of HamasIn a move to disrupt the flow of funds to Hamas, Israeli authorities have ordered the closure of over 100 cryptocurrency accounts on Binance, the world’s largest crypto exchange.Photo by Leonid Altman on PexelsHeightened monitoring of crypto-related financingIsraeli authorities were already monitoring crypto accounts suspected of terrorism financing before the recent attack by the Palestinian militant group Hamas. Since then, they have requested information about hundreds of accounts on Binance, suggesting that the scale of their actions has grown significantly since October 7.A statement from Israeli police last week outlined that they had frozen crypto accounts related to financing of Hamas. According to a report on Tuesday by the Financial Times (FT), the Israeli authorities have taken matters further still, having closed more than one hundred accounts on Binance.Scrutinizing 200 additional accountsSources cited by the FT as being close to the situation have revealed that these actions were initiated in response to Hamas’s assault on October 7. Authorities have also sought information on approximately 200 additional crypto accounts, with most of them being held on Binance. While Binance has acknowledged blocking a “small number” of accounts since the summer, it emphasized its adherence to internationally recognized sanctions rules and declined to provide further comment.Governments and regulators have long expressed concerns that terrorist organizations might exploit lightly regulated crypto markets for financial transactions. However, the recent attacks on Israel and the subsequent crypto-based fundraising campaigns by Hamas have made these concerns more pressing.Tom Alexandrovich, the Executive Director at the Israel National Cyber Directorate, stated that cryptocurrency has become a major tool for terror financing during these times of conflict. He noted that the amount of crypto funds involved has significantly increased since the start of the attack.Tether freezes accountsTether, the issuer of leading US dollar stablecoin USDT, announced on Monday that it had frozen 32 addresses containing more than $873,000 due to their alleged links to “terrorism and warfare” in Israel and Ukraine. The exact timing of when these accounts were blocked and the distribution of assets between Israel and Ukraine were not disclosed.Notably, US financial regulators previously alleged that money held on Binance had ties to Hamas. A lawsuit by the Commodity Futures Trading Commission (CFTC) in the United States in March claimed that senior Binance executives had knowledge of “Hamas transactions” in 2019. Binance has refuted these allegations and expressed its intent to contest the lawsuit.Commentators within the crypto space fear that opponents of the development of crypto, like US Senator Elizabeth Warren, will try to capitalize on this issue by using the opportunity to further draconian regulation.Over the past two years, Israeli authorities have seized millions of shekels from crypto accounts with suspected ties to Hamas and other militant groups in the Middle East. A recent analysis by Elliptic found that crypto wallets associated with various suspicious Middle East groups have interacted and relied on the same crypto exchange services to convert crypto into sovereign currencies.

Streami Appoints New CEO, Boosting Hopes for Regulatory Crypto Approval in KoreaStreami, the operator of South Korean cryptocurrency trading platform Gopax, has been struggling for months to obtain approval for the change of its chief executive officer from the financial regulator. This challenge emerged following the significant investment by the global exchange Binance, which became the company’s largest shareholder in February. At that time, Leon Sing Foong, who was the Asia-Pacific head of Binance, was appointed as CEO.Photo by Andriyko Podilnyk on UnsplashCityLabs’ emergenceHowever, the recent appointment of a CEO from a Korean company could potentially represent a turning point for Streami. This development is particularly noteworthy because this local firm has acquired shares in Streami and is expected to further increase its stake in the company.In a report from local news outlet Bizwatch, it was revealed that Cho Young-joong, who currently serves as CEO of CityLabs, has been officially designated as the new CEO of Streami. This appointment now places him in a leadership position overseeing both the smart city infrastructure company and the cryptocurrency exchange operator.Before Cho’s appointment, CityLabs had made investment in Streami, contributing KRW 5.4 billion, which is approximately $4 million. This investment secured CityLabs an 8.55% stake in Streami, equivalent to a total of 76,308 shares of the company.Thanks to this development, Streami has finally filled the CEO position, ending a two-month vacancy that began after the resignation of former CEO Lee Joong-hoon in August. While it has been confirmed by a company official that Cho has been selected as the new CEO, he has not yet assumed his role.Frequent leadership changesIn the course of this year, Streami has already undergone three leadership changes. The stagnant administrative process at the Financial Intelligence Unit (FIU) compelled Leon Foong to step down from his position, which was subsequently assumed by Lee Joong-hoon, Streami’s former Vice President. However, despite Lee’s appointment, little progress was made during his tenure. Additionally, It’s also worth noting that there were reports indicating Leon Foong’s complete departure from Binance in late August.Several industry sources have suggested that Binance is likely to relinquish its status as Streami’s largest shareholder but could later participate in managing the company. The hope is that this strategic maneuver will assist Streami in securing approval from the FIU.

In a recent report, Singaporean digital asset financial services firm Matrixport has made a bold forecast regarding the future of bitcoin prices and the potential rejection of spot bitcoin ETFs by the Securities and Exchange Commission (SEC) in the United States.Photo by André François McKenzie on UnsplashMinority viewWhile most ETF and crypto industry analysts in recent weeks have been suggesting a greater than 90% chance of the imminent approval of a spot bitcoin ETF coming from the SEC, Matrixport has had its say, speculating that the regulator will once again reject all such applications. In a note published to its website on Wednesday, the firm stated:”The current five-person voting Commissioners leadership critical for the ETF approval of the SEC is dominated by Democrats. SEC Chair Gensler is not embracing crypto in the U.S., and it might even be a very long shot to expect that he would vote to approve bitcoin spot ETFs.” The report emphasizes the dominant influence of Democratic leadership within the SEC, particularly Chairman Gary Gensler's cautious approach to crypto regulation. The Democrat-led administration in the United States has been decidedly anti-crypto in its policies throughout the ongoing term of U.S. President Joe Biden. Matrixport also suggests a potential delay in ETF approvals until Q2 2024, dampening hopes of an imminent market boost. Potential bitcoin price slumpShould the company be right in that speculation, it extrapolates that this turn of events will potentially lead to a substantial decline in bitcoin's value, with the bitcoin unit price possibly dropping to as low as $36,000. This revelation has sent shock waves through the market, prompting Matrixport to advise investors to take protective measures. The recommended strategies include purchasing put options or engaging in direct shorting of bitcoin to mitigate potential losses. With an ominous Jan. 5, 2024 deadline looming, traders could decide to hedge their long exposure by purchasing $40,000 strike put options expiring at the end of January or opting for outright short positions through options. Matrixport's report challenges the previously optimistic expectations surrounding bitcoin's future, highlighting the SEC's likely rejection of spot ETFs as a significant factor. Despite the platform's earlier bullish stance, it now expresses skepticism about the SEC's willingness to embrace cryptocurrencies. The firm contends that the current influx of funds into crypto, driven by expectations of ETF approval, could result in significant liquidations if the SEC denies the proposals. The report estimates that about $10 billion of the $14 billion additional investments might be linked to optimistic ETF prospects. Notably, Matrixport foresees a rapid 20% decline in bitcoin's price, reverting to a range of around $36,000 to $38,000 should the SEC reject the ETFs. Positive long-term outlookDespite the potential setback with the SEC, Matrixport maintains a positive long-term outlook for bitcoin, expecting the BTC price to end 2024 above the $42,000 mark, where it started the year. The analysis also considers historical trends in U.S. election years and bitcoin mining cycles for the potential rally. At the time of writing, the bitcoin unit price is down 4.75% over the course of the past 24 hours, now standing at $42,838. Investors are closely monitoring the upcoming SEC decision and may well be heeding Matrixport's advice to navigate potential market volatility.