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SEC & Coinbase File to Seal Confidential Information in Court

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8 months ago

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The Securities and Exchange Commission (SEC) and Coinbase have filed a joint motion with the Southern District of New York, seeking an order to seal certain confidential information.

This action is sensitive given that both the parties involved claim that the documents in contention contain business information that if disclosed will be detrimental to their respective businesses. The case is based on the accusations made by the SEC that Coinbase participated in activities that should be under securities laws.

SEC and Coinbase Seek Court Approval

The motion to seal documents was made and submitted to Judge Katherine Polk Failla explaining the rationale as to why some documents should not be made public.

From the filing, the information comprises of the detailed financial operations, internal compliance measures, and the strategic business plans that are not disclosed to the public. 

The disclosure of such information may lead to the unfair business advantages to competitors or undesirable impact on market behavior.

Arguments that have been provided by both the SEC and Coinbase indicate that sealing of these documents is crucial to prevent serious prejudice to their operations and also maintain the sanctity of the investigation process. Legal consultants explained that this is a common practice in situations where business secrets may be revealed during the trial.

Background of the Case

The SEC first filed the lawsuit against Coinbase in June 2023, alleging that the company was functioning as an unregistered broker and exchange. After that, in March when a judge allowed the SEC’s accusation that Coinbase was involved in the unregistered sales of securities to go to trial.

This decision was especially beneficial to the regulator since it enabled the allegations to be tried by the jury. Therefore, earlier this month, Coinbase had requested the SEC to approve a new framework for the regulation of crypto asset securities, citing the fact that the current laws are not well suited for the nature of crypto assets.

This request was however turned down by the SEC which argued that the current frameworks in place are adequate to address issues of investor protection and market integrity. The regulatory body has however been in a rough period with the recent vote to kill passed by the Senate of SAB 121 rule and the pending voting on bills that seek to ease the regulation of cryptocurrencies with the SEC being accused of slowing down innovation.

Read Also: Spot Ethereum ETF: When Is Launch Timeline If SEC Gives Approval?

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Kelvin is a distinguished writer specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive analysis and insightful content, he has an adept command of English and excels at thorough research and timely delivery.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Regulation

Ex-SEC Lawyer Says XRP Lawsuit Settlement Weeks Away

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2 minutes ago

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January 22, 2025

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The crypto community is rife with speculation about an imminent Ripple SEC case settlement as the US Securities and Exchange Commission (SEC) prepares for its first meeting under acting chair Mark Uyeda. However, ex-Securities lawyer Marc Fagel debunked rumors of the settlement. He suggested that those holding out for a resolution will likely be disappointed.

According to the former SEC attorney, the Ripple SEC case settlement is likely to happen after Paul Atkin’s appointment as the SEC Chair. While all eyes are on Thursday’s closed meeting, it remains uncertain whether the XRP lawsuit will reach a conclusion shortly.

Is Ripple SEC Case Settlement Imminent?

In his recent X post, Securities lawyer Marc Fagel dismissed rumors of the Ripple SEC case settlement, which the community expects to follow Thursday’s closed meeting. Asserting that the meeting has nothing to do with the XRP lawsuit, Fagel stated,

This is the same meeting they hold nearly every week. They will vote on recommendations calendared weeks ago. Those expecting something monumental to happen are about to be disappointed.

Further, Fagel clarified the buzz surrounding the Ripple SEC case, positing that a settlement this week is impossible. Instead, he believes the Trump administration might facilitate a resolution, but only after Paul Atkins takes charge.

SEC’s First Closed Meeting with Acting Chair Mark Uyeda

Fagel’s post came in response to Fox Business journalist Eleanor Terrett’s thread, which revealed, “The SEC will hold its first closed meeting since Mark Uyeda took over as acting chair on Thursday.” This follows Mark Uyeda’s launch of a dedicated Crypto Task Force with Commissioner Hester Peirce as the lead. According to the agenda, Uyeda’s meeting would include the institution and settlement of injunctive actions and administrative proceedings, resolution of litigation claims etc.

Significantly, the potential closed meeting has sparked anticipations of a near-term settlement in the XRP lawsuit. Experts like MetaLawMan expect the SEC’s release of the Inspector General’s report on Bill Hinman’s conflicts of interest shortly. “I can’t think of any reason that simple act of transparency would need to wait for Paul Atkins’ arrival,” added MetaLawMan.

Mark Fagel Predicts a Possible 10-Month Delay in Ripple Case

Recently, Marc Fagel shed light on a possible delay in the Ripple SEC case settlement despite the XRPArmy’s growing optimism. Fagel’s statement that the lawsuit may conclude quickly or drag on for an extended period underscored the case’s uncertain outcome.

Despite the ongoing debate, the community remains optimistic about the lawsuit’s settlement. However, it needs to be seen how the closed meeting will impact Ripple vs SEC.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Thailand Boosts Crypto Ambitions, Welcomes Bitcoin ETFs on Local Exchanges

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3 hours ago

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January 22, 2025

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Thailand is witnessing a significant breakthrough in its ambitious vision to establish a digital asset hub. A recent report on Wednesday revealed Thailand’s plans to adopt Bitcoin ETFs, permitting local exchanges to list the exchange-traded funds.

Thailand Prepares for Bitcoin ETF Debut

The Thai Securities and Exchange Commission (SEC) plans to approve its first Bitcoin ETF, aligning with the country’s crypto hub vision, Bloomberg reported on January 15.

SEC Secretary-General Pornanong Budsaratragoon posited that the move would allow individual and institutional investors to invest in the Bitcoin vehicles directly.

Promoting the use of cryptocurrencies, Thailand is paving the way for the worldwide adoption of digital assets. During an interview on Tuesday, Pornanong stated,

Like it or not, we have to move along with more adoption of cryptocurrencies worldwide. We have to adapt and ensure that our investors have more options in crypto assets with proper protection.

Although, One Asset Management in Thailand has introduced a fund-of-fund tracking international Bitcoin ETFs, a direct investment tool remains pending approval. The ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) and was approved by the Thai SEC last year.

Thailand’s Thaksin To Legalize Crypto

The latest development came on the heels of Pheu Thai Party leader Thaksin Shinawatra’s efforts to legalize crypto. Citing the incoming US President Donald Trump’s crypto-friendly approach, Thaksin suggested Thailand embrace a more progressive stance on virtual assets. He also proposed the increased issuance and use of stablecoins.

Digital-asset trading activity in Thailand is picking up amid a wider rally that pushed Bitcoin to a record high of $108,315. Crypto hedge funds had a great last year but failed to give more returns than Bitcoin (BTC), as per Bloomberg

Thailand’s Broader Crypto Vision and Regulations

Thailand has long been striving to solidify its position at the forefront of the global crypto market. In a recent development, the country announced its crypto payment pilot project, with the trial set in Phuket.

While the initiative is expected to be executed within Thailand’s existing legal framework, it bolsters the nation’s crypto vision. The country is broadly looking to boost crypto adoption and Bitcoin ETFs will be welcome move for the local crypto industry.

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Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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South Korea’s Largest Exchange Upbit Under Sanctions Review by Watchdog

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4 hours ago

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January 22, 2025

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Upbit, South Korea’s largest crypto exchange, is facing increased scrutiny over alleged Know-Your-Customer (KYC) violations. The Financial Intelligence Unit (FIU) of South Korea has scheduled a disciplinary hearing on January 21 to evaluate the exchange’s regulatory compliance. As as result, the crypto market could see significant low activity amid the review

FIU Meeting To Assess Upbit’s KYC Violations

Notably, the FIU revealed that the sanctions review meeting would assess the 500k+ suspected KYC breaches discovered during an on-site inspection for the renewal of the virtual asset service provider (VASP).

Reportedly, this sanctions-level meeting for Upbit marks the first hearing of its kind, addressing issues identified during a VASP renewal inspection. This meeting will determine the extent of sanctions Upbit could face, considering factors like lapses in KYC compliance. Analyzing the crypro exchange’s explanation for its alleged violations, the regulator would determine the severity of fines and disciplinary actions against the platform.

Upbit Faces Scrutiny Under South Korea’s FIU

Since August last year, Upbit facing investigations led by the financial watchdog. During the license renewal process, the FIU uncovered 500,000-600,000 cases of unauthorized customer verification procedures. This includes instances of accounts being approved despite the blurred customer name or registration number, making identification impossible.

Though these cases highlight the exchange’s reluctance to follow regulatory standards, it is still uncertain whether they actually mark KYC breaches. However, following the disciplinary meeting, FIU is likely to draw conclusions, particularly based on Upbit’s explanations.

South Korea’s Crypto Regulatory Norms

South Korea has embarked on its journey to establish a crypto-focused regulatory framework. In a recent development, the Financial Services Commission has kicked off discussions on the second phase of crypto regulations, especially targeting stablecoins and customer protection.

South Korea’s recent collaboration with the US and Japan to tackle the growing crypto threats also underscores the nation’s commitment to user security. Last day, the three countries jointly released a paper, warning against the North Korean hackers’ eye on crypto.

The FIU’s meeting on Upbit’s KYC violation marks a significant turning point in South Korea’s regulatory landscape. While the meeting decides its fate in South Korea, it could have a broader impact on global crypto regulations and laws.

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Nynu V Jamal

Nynu V Jamal is a passionate crypto journalist with three years of experience in blockchain, web3, and fintech spheres. She has established herself as a knowledgeable and engaging voice in the cryptocurrency and blockchain space. Her experience as an Assistant Professor in English Language and Literature has further added to her quest for crafting informative, well-researched, and accessible content.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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