Block 1 : The essential news
     
    • Europe's cryptosphere tightening its grip 
     
    MEPs want to limit cryptocurrency payments to €1,000 if customers are not identified (KYC) in order to combat money laundering and terrorist financing. Three European committees have adopted these regulations, which also provide for the creation of a dedicated anti-money laundering agency: the Anti-Money Laundering Agency (AMLA). These proposals still need to be submitted to the European Council and the European Commission for validation. 
     
    • New charges against Sam Bankman-Fried, former head of FTX
     
    US prosecutors have filed a complaint against Sam Bankman-Fried, former CEO of FTX, for attempting to bribe Chinese officials with a $40 million bribe to regain access to frozen trading accounts. This scandal is in addition to 12 other charges already brought against him. Despite the seriousness of the charges, Bankman-Fried is out on bail, living with his parents and retaining conditional access to the Internet. If convicted, he could face more than 100 years in prison. The trial is scheduled for 2 October 2023.
     
    • Gary Gensler calls for funds to regulate the cryptocurrency industry
     
    SEC Chairman Gary Gensler called for $2.4 billion in a speech at the White House to strengthen regulation of the crypto ecosystem, citing "increased complexity in the capital markets" and especially in the digital asset market. However, the US Congress could intervene in this situation. Gensler is due to justify his actions before the House Financial Services Committee on 18 April. The committee chairman wants stronger SEC oversight of digital asset regulation. 
      Block 2: Crypto Analysis of the Week
       
      Binance, the world's largest cryptocurrency exchange by trading volume, and its CEO Changpeng "CZ" Zhao, are facing legal action from the Commodity Futures Trading Commission (CFTC), which accuses them of authorising and even encouraging unauthorised trading in cryptocurrency derivatives by individuals in the US. The CFTC filed the lawsuit Monday morning in a Chicago federal court, alleging that the exchange failed to register the necessary licenses.

      Rumours have circulated for months that various US agencies, including the Department of Justice and the Securities and Exchange Commission, were building a case against Binance, possibly related to money laundering offences. CFTC Chairman Rostin Behnam, when asked on CNBC about the potential consequences of these murky Binance cases, deftly avoided giving a direct answer.
       
      However, the complaint itself seeks injunctions that could effectively bar CZ, compliance officer Samuel Lin and Binance from operating in the US or registering as commodity futures traders. Ultimately, they could be required to disgorge all profits, revenues and gains from the alleged violations. 
       
      The 74-page complaint filed by the CFTC states that since 2017, Binance has deliberately and progressively expanded its presence in the US, despite publicly claiming to block or restrict US customers from accessing its platform. This activity is illegal, as Binance is not registered to offer derivatives in Uncle Sam.
       
      According to the CFTC, which relies on chats, recorded emails and witness accounts, Binance employees informed US customers how to use virtual private networks (VPNs) to access the site, even though US access was ostensibly blocked due to the lack of registration.
       
      The complaint also suggests that Binance's alleged compliance negligence could have had more serious consequences, such as possible transactions by US and EU-designated terrorist organisations on the platform. 
       
      For example, in February 2019, after receiving information about Hamas transactions on Binance, Lim informed a colleague that terrorists typically send small amounts because larger amounts would constitute money laundering. In response, Lim's colleague jokingly pointed out that "you could barely buy an AK-47 with $600."
       
      Binance could challenge the charges in court or seek a settlement agreement, but its future course of action remains unclear. In an initial response, Binance highlighted its recent cooperation with regulators and its efforts to improve compliance, while CZ disputed the CFTC's description of the facts in a blog post. Some social media users are speculating that CZ will simply pay a fine to resolve the issue, drawing comparisons with large banks that have faced similar regulatory disputes. 
       
      However, it is unreasonable to equate a cryptocurrency platform with a traditional bank, as banks provide essential services such as payment facilities, receipt of public funds, savings accounts and business loans among others.
       
      While some proponents of cryptocurrencies claim that their marketplace provides financial services to the "unbanked", the CFTC's complaint raises questions about why some cryptocurrency users are excluded from traditional banking systems. The CFTC's complaint underscores its commitment to protecting US investors, regardless of their residency or alleged lack thereof. To be continued...

      Block 3 : Gainers & Losers

       

      MarketScreener

      Block 4 : Things to read

      North Korea now mining crypto to launder its stolen loot (Wired, en anglais)

      Crypto bankruptcy markets thrive after FTX collapse (Wired, en anglais)

      The arrest of a crypto fugitive (Podcast WSJ, en anglais)

      ChatGPT has impostor syndrome (The Atlantic, en anglais)