Do Kwon Sentenced in the Balkans

Plus crypto news from Indonesia, Japan, and the UK

Author

Nathaniel Whittemore
June 20, 2023

The Breakdown First Five - Friday June 16, 2023

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Indonesia lists tradable Crypto

In stark contrast to the SEC’s approach, Indonesia have updated their list of tradable Cryptocurrencies. The extensive list now includes 501 crypto tokens named as allowable for trading by the local regulator. While the US has moved to muddy the waters and hold back the Crypto industry, Indonesia has consistently been forward thinking in adopting digital assets. If Indonesian regulators can put out a clear list, why can’t the SEC?

4. Land of the Rising Leverage

Japanese Crypto exchanges are urging regulators to relax margin trading restrictions to attract more customers, particularly institutional traders. Japan allowed up to 25 times leverage in 2020 and 2021, seeing massive volumes to match. In 2022 exchanges were restricted to just 2x, making institutional trading much less viable. The industry body is now asking for as much as 10x leverage to make Japan more attractive for Crypto firms.

3. IMF presents the Blueprint

The IMF has released their blueprint for cross-border CBDCs. The system seeks to cut payment costs while maintaining capital controls and compliance checks. The proposal would use a single centralized ledger, rejecting blockchain innovations. There would be some privacy features and liquidity upgrades by allowing contracts to be pledged as collateral. It’s still unclear who voted for the IMF to reconstruct the international monetary system.

2. Lords pass Crypto bill

The Financial Services and Markets Bill has been passed in the UK’s House of Lords. The legislation would bring Crypto under the regulatory umbrella. Stablecoins were rolled into this bill as it progressed through parliament, granting clear legal status to issuers. The bill would allow the existing financial regulator to begin making Crypto rules, which are expected to arrive over the next year. The bill will now move back to the House of Commons for approval.

1. Do-ing time

Do Kwon has been sentenced to 4 months of hard time in a Balkan prison. A Montenegro court found the disgraced Luna founder guilty of traveling on a false passport. Kwon has already served several months behind bars, so could be out by August to face extradition to both the US and South Korea were he faces more substantive charges related to the Luna detonation.

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Thanks for reading -NLW