Fazzaco Weekly Digest: Binance CEO Pleads Guilty and Quits; eToro Licensed by ADGM; Institutional Spot FX ADV in October See Mixed Results
Recently, U.S. regulators sanctioned the founder of crypto exchange Binance, which gained widespread attention in the industry. Where will this crypto giant go in the future?
Countries such as the United States have become increasingly strict in crypto regulation, and some crypto services providers have begun to seek development in other crypto-friendly regions. Last week, the US-based electronic broker Interactive Brokers was approved to provide retail crypto trading services in Hong Kong.
Regarding the payment industry, the Australian government announced last week that it would amend the law to include digital payment services such as Apple Pay and Google Pay under supervision.
In addition, Fazzaco collected trading data for October from six major trading institutions last week and found that the average daily spot FX volume of four exchanges declined compared to the previous month.
Here are the related details, as well as some of the most read forex, crypto, and payment news pieces and articles from Fazzaco over the past week.
1. Institutional Spot FX ADV in October 2023 See Mixed Results
The institutional spot FX average daily volume of major platforms declined overall in October 2023. Among the six major institutions, only Cboe FX and FxSpotStream reported an increase in their spot FX average daily volume (ADV), while CLS, Euronext FX, 360T, and Moscow Exchange saw a decrease month-on-month. Refinitiv's data was excluded from this month.
Euronext FX saw the largest drop in its ADV, falling by 3.63% compared with September, while CLS recorded the smallest decline, at 0.81%.
2. eToro Obtains Broker License from Abu Dhabi Global Market
eToro, the global leading multi-asset trading and investing platform, announced that it has received approval for a Financial Services Permission (FSP) from the Financial Services Regulatory Authority of ADGM to operate as a broker for securities, derivatives, and cryptoassets in the United Arab Emirates. The development comes more than a year after the platform's in-principle approval.
Yoni Assia, Founder and CEO of eToro, commented: "The approval of our operating license by ADGM is a key milestone in our continued global expansion. Abu Dhabi is increasingly recognized as a growing fintech hub, and we are excited to become part of this flourishing ecosystem."
3. Australia to Amend Law to Regulate Digital Payments Like Apple, Google Pay
Australia's government said on Monday it would bring Apple Pay, Google Pay and other digital payment services under the same regulatory umbrella as credit cards and other payments as part of legislation set to be introduced to parliament this week.
Digital wallets from the likes of Apple, Google and WeChat developer Tencent have exploded in popularity but are not captured by Australian payments law.
4. Interactive Brokers and Victory Securities Licensed to Offer Retail Crypto Trading in Hong Kong
Interactive Brokers, a US-based automated global electronic broker, has been approved to provide crypto trading services in Hong Kong.
"Interactive Brokers Hong Kong is now licensed in Hong Kong to allow trading of virtual assets (currently Bitcoin and Ethereum) by retail clients," said David Friedland, Manager Director for Asia Pacific at Interactive Brokers, in his LinkedIn post two days ago.
5. State Street Global Advisors Names Anna Paglia as Chief Business Officer
State Street Global Advisors, the asset management business of State Street Corporation, Monday announced the appointment of Anna Paglia to the position of executive vice president and chief business officer, effective early next year.
Reporting directly to State Street Global Advisors CEO Yie-Hsin Hung, Paglia will be responsible for developing a longer-term growth strategy for its major businesses across global ETFs, index, cash and defined contribution and increasing the firm's overall competitive positioning and delivery of investment exposures and tailored solutions for its clients.
6. Robinhood Expands Brokerage Services to UK
The US-based stock trading company Robinhood Markets, Inc. (Robinhood) announced today (November 30, 2023) the introduction of its brokerage services to the United Kingdom, which represents a significant milestone in the firm’s international expansion journey.
The brokerage notes that it will grant access to its app in the UK on a rolling basis over the following weeks, reaching full availability in early 2024.
On November 21, 2023, the founder and CEO of Binance, the world's largest cryptocurrency exchange, Changpeng "CZ" Zhao, officially reached a plea deal with the U.S. Department of Justice, involving charges of money laundering, bank fraud, violating sanctions, and more. After pleading guilty, CZ announced on social media the next day that he had resigned from his position as CEO.
It is reported that this regulatory crisis will result in Binance having to pay a fine of up to $4.3 billion to the U.S. Treasury Department. And more importantly, what may follow is the most serious regulatory crisis that this once-dominant exchange has ever faced.
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