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Crypto regulation in the world: weekly digest #129

USA

Exchanges in the USA are preparing to start payouts for FTX clients as part of the company's bankruptcy reorganization plan. Kraken has already prepared the list of clients, affected by the FTX collapse in the 2022. FTX's Chapter 11 Plan of Reorganization is set to become effective on January 3, 2025. This date also serves as the initial distribution record date for customers with allowed claims in the plan's «Convenience Classes».

Actual payments to eligible customers will begin within 60 days following the effective date, meaning distributions are expected to start by early March 2025. The initial payouts will primarily target customers with claims of $50,000 or less, who are expected to receive approximately 119% of their claimed account values. This group constitutes about 98% of FTX's customer base.

It is known, that FTX has partnered with crypto firms Kraken and BitGo to facilitate the distribution process. Customers will need to complete necessary identity verification and other requirements through FTX’s customer portal to participate in the payouts.

This development comes more than two years after FTX filed for bankruptcy following a liquidity crisis in November 2022, which resulted in significant losses for its users. The bankruptcy proceedings have been lengthy, but recent court approvals indicate that FTX has recovered substantial assets, estimated between $14.7 billion and $16.5 billion, to repay its creditors and customers.

Kenya

Kenya is poised to legalize cryptocurrencies, marking a significant shift in its regulatory approach. This announcement was made by Treasury Cabinet on January 10, 2025, as part of a broader initiative to create a regulated environment for cryptocurrencies and VASPs in the country.

The Kenyan government is drafting two key documents: a national policy on virtual assets and a proposed legislation titled «The Virtual Asset Service Providers Bill, 2025». These will outline the governance of virtual assets and establish licensing requirements for VASPs, aiming to foster a fair and competitive market while addressing risks such as money laundering and fraud.

This move comes after years of restrictive policies, including a ban on cryptocurrencies imposed by the Central Bank of Kenya in 2015. Despite this, there has been significant underground usage of digital assets, with about 2.8 million Kenyans reportedly owning cryptocurrencies.

The legalization is intended to harness the potential benefits of cryptocurrencies for financial inclusion and innovation. Kenya's financial sector has been a leader in technological advancements, notably with the success of mobile money services like M-Pesa. The government aims to position Kenya as a key player in the global digital finance ecosystem.

The draft policy will undergo public consultations until January 24, allowing stakeholders to provide input on the proposed regulatory framework. This initiative aligns with recommendations from the International Monetary Fund, which has urged Kenya to improve its crypto regulations to enhance compliance and consumer protection.

You can also read in out blog about crypto regulation in other African countries such es Ethiopia, South Africa and Nigeria.

Philippines

Several banks in the Philippines are collaborating to launch a new stablecoin, PHPX, which will be backed by the Philippine peso. This initiative aims to enhance cross-border payments and improve financial inclusion for Filipinos, particularly those working abroad who send remittances home.

The project involves four key banks: UnionBank of the Philippines, Rizal Commercial Banking Corporation, Cantilan Bank, and Rural Bank of Guinobatan. These institutions will jointly govern the stablecoin, ensuring its operational success and compliance with regulatory standards. PHPX will be built on the Hedera blockchain, which is known for its speed and security. This choice of technology is expected to facilitate real-time transactions and improve transparency in cross-border payments.

A primary objective of PHPX is to streamline the remittance process for overseas Filipino workers, who contribute significantly to the Philippine economy—over $40 billion annually. The stablecoin aims to allow these workers to send money home quickly and cost-effectively, enabling them to pay for essential services like education directly from abroad. The initiative also includes plans for a multicurrency exchange platform that will allow users to swap PHPX with other stablecoins, such as those pegged to USD or JPY. This feature is designed to cater to the diverse needs of Filipinos engaged in international transactions.

The PHPX stablecoin is expected to be operational between May and July 2025. This timeline reflects the collaborative efforts of the participating banks and their commitment to leveraging blockchain technology for modernizing financial services in the Philippines.

You can also read about crypto regulation in Philippines here.

News from other countries:

  • Phuket is set to pilot cryptocurrency payments for tourists, allowing them to use Bitcoin for transactions. The program was announced by Thailand's Deputy Prime Minister and Finance Minister, Pichai Chunhavajira, during a seminar organized by the Marketing Association of Thailand on January 8, 2025

  • The U.S. Senate Banking Committee is preparing to establish its first-ever subcommittee dedicated to cryptocurrency and digital asset regulation. Senator Cynthia Lummis from Wyoming, a prominent advocate for Bitcoin, has been provisionally selected to chair the new subcommittee, pending a confirmation vote expected next week. The formation of this subcommittee aims to create a more structured regulatory framework for the rapidly growing cryptocurrency industry. It will focus on providing clarity on various digital assets, including stablecoins, and addressing regulatory challenges.

We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!

The TokenScope Team
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