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In the last week, several major financial regulators, both national and international, simultaneously produced new guidelines for decentralized assets. The European Banking Authority and the European Securities and Markets Authority proposed guidelines for assessing the suitability of management members in crypto firms, offering standardized criteria for evaluating their knowledge, expertise, integrity and ability to dedicate adequate time to fulfill their responsibilities.

The Basel Committee on Banking Supervision of the Bank for International Settlements (BIS) proposed to oblige banks to provide both quantitative and qualitative data on exposures to crypto assets and the corresponding capital and liquidity requirements. According to the BIS, using a uniform disclosure format will encourage the application of market discipline and lessen information asymmetry between banks and market participants.

The United States Treasury Department’s Financial Crimes Enforcement Network proposed designating cryptocurrency mixing as an area of “primary money laundering concern” following Hamas’ attack on Israel. It suggests requiring domestic financial institutions and agencies to “implement certain recordkeeping and reporting requirements” for crypto mixers transactions.

The Hong Kong Securities and Futures Commission (SFC) will make certain digital currency products available only to professional investors. The updated requirements consider digital assets “complex products” under the SFC and subject to the same guidelines as similar financial products. The commission mentions crypto exchange-traded funds and products issued outside Hong Kong as complex products.

FTX court updates 

FTX’s former general counsel Can Sun was unaware of the exchange’s comingling of funds with Alameda Research, he told jurors during his testimony in Sam Bankman-Fried’s criminal trial. Sun said he learned from other employees about Alameda’s exemption from the liquidation engine system in August 2022. Typically, the system would liquidate loss-making trades, but Alameda reportedly bypassed the mechanism due to its exception.

Accounting professor Peter Easton provided a breakdown of the alleged commingling of funds between FTX and Alameda Research since 2021. According to Easton’s analysis, Alameda invested in Genesis Capital, K5 Global Holdings, Anthropic PBC, Dave Inc, Modulo Capital and other ventures, partially using funds from FTX customers. In June 2022, Alameda had a negative balance of $11.3 billion with FTX, while the companies’ liquid assets stood at $2.3 billion, meaning a gap of $9 billion between the sister firms. Another critical point from the analysis: Alameda has 57 accounts with FTX that could have negative balances, whereas no other customer could do so. The analysis challenges Bankman-Fried’s defense argument that Alameda had similar privileges as other market makers on FTX.

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Pennsylvania aborts two-year mining moratorium bill 

A Pennsylvania House Representative has cut a two-year crypto mining ban from a bill to regulate the sector’s energy consumption, claiming trade labor unions pressured the change. The committee’s chair and the bill’s sponsor, Democratic Representative Greg Vitali, revealed that Democratic Party leaders pressured him not to run the bill inclusive of the moratorium. Vitali said building trade labor unions had “chronic opposition” to environmental policy and claimed the unions had his Democratic colleagues in their pocket. According to the politician, voting against the unions would risk the Democratic majority in Pennsylvania’s House, and he would rather see the bill pass sans moratorium than not at all.

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Gemini, Genesis, DCG accused of $1 billion fraud

New York’s attorney general has filed a lawsuit against cryptocurrency firms Gemini, Genesis and Digital Currency Group (DCG) for allegedly defrauding investors through the Gemini Earn investment program. An official statement from the office of Attorney General Letitia James outlines the basis of the charges, claiming that the companies defrauded more than 23,000 investors, including 29,000 New York citizens, of more than $1 billion. An investigation carried out by James’ office claims that Gemini lied to investors about its Gemini Earn investment program, which it ran in partnership with Genesis. It argues that while Gemini had assured investors that the program was a low-risk investment, investigations reveal that Genesis’ financials “were risky.”

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Politics

Spending Review 2025: Faster drug treatments and longer-lasting batteries to come from £86bn science and tech package

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Spending Review 2025: Faster drug treatments and longer-lasting batteries to come from £86bn science and tech package

Research into faster drug treatments and longer-lasting batteries will form part of the £86bn science and technology funding due to be unveiled in the government’s spending review next week.

On Wednesday, Chancellor Rachel Reeves will unveil how much taxpayer money each government department will get.

Each region in England will be handed up to £500m to spend on science and technology projects of their choice, the Department for Science, Innovation and Technology (DSIT) says.

In Liverpool, the funding is being earmarked to speed up the development of new drug treatments, while in South Wales, it will fund longer-lasting microchips for smartphones and electric cars.

Overall by 2030, Ms Reeves’s spending package will be worth more than £22.5bn a year, the government says.

“Britain is the home of science and technology,” she said on Sunday. “Through the ‘plan for change’, we are investing in Britain’s renewal to create jobs, protect our security against foreign threats and make working families better off.”

Science and technology secretary Peter Kyle added: “Incredible and ambitious research goes on in every corner of our country, from Liverpool to Inverness, Swansea to Belfast, which is why empowering regions to harness local expertise and skills for all of our benefit is at the heart of this new funding – helping to deliver the economic growth at the centre of our plan for change.”

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Spending review 2025: All you need to know
How much cash will each department get?

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Can AI predict spending review, asks Sky deputy political editor Sam Coates

Flat real-terms budget ‘won’t be enough’

Regional leaders such as North East Mayor Kim McGuiness and West Midlands Mayor Richard Parker welcomed the funding promise.

But the announcement was met with caution by industry leaders.

John-Arne Rottingden, chief executive of Wellcome, the UK’s biggest non-governmental research funder, said: “While it’s positive under the financial circumstances, a flat real-terms science budget, along with continuing barriers such as high visa costs for talented scientists and the university funding crisis, won’t be enough for the UK to make the advances it needs to secure its reputation for science in an increasingly competitive world.”

He claimed the UK should be “aiming to lead the G7 in research intensity” to “bring about economic growth” and “advances in health, science, and technology that benefit us all”.

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Director of policy and public affairs at the Institute of Physics Tony McBride expressed similar concerns.

“To fully harness the transformational potential of research and innovation – wherever it takes place – we need a decade-long strategic plan for science,” he said.

Mr McBride said a “plan for a skilled workforce… starting with teachers and addressing every educational stage” is key – something he hopes will feature in Ms Reeve’s spending review.

Among the other announcements expected are a potential scrapping of the two-child benefit cap and a green light to a new nuclear power station in Suffolk – Sizewell C.

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Reform UK chairman Zia Yusuf reverses decision to quit party

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Reform UK chairman Zia Yusuf reverses decision to quit party

Reform UK chairman Zia Yusuf has reversed his decision to quit the party, saying “the mission is too important” and that he “cannot let people down”.

Instead, he said he will return in a new role, heading up an Elon Musk-inspired “UK DOGE” team.

In a statement, he said: “Over the last 24 hours I have received a huge number of lovely and heartfelt messages from people who have expressed their dismay at my resignation, urging me to reconsider.”

He added: “I know the mission is too important and I cannot let people down.

“So, I will be continuing my work with Reform, my commitment redoubled.”

Mr Yusuf said he would be returning in a new role, seemingly focusing on cuts and efficiency within government.

He said he would “fight for taxpayers”.

Only two days prior, Mr Yusuf dramatically handed in his resignation.

He claimed he no longer thought getting a Reform government elected was a “good use of my time” – but has now seemingly changed his mind.

Reform UK leader Nigel Farage welcomed the news of Mr Yusuf’s return.

He said: “I am delighted that Zia Yusuf will head up Reform UK’s DOGE department.”

Reform UK party leader Nigel Farage and party chairman Zia Yusuf, during a Reform UK press conference.
Pic: PA
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Nigel Farage welcomed Zia Yusuf’s return. File pic: PA

Read more:
Why did Zia Yusuf resign as chairman of Reform UK?
Reform’s rise forces rethink for SNP
‘Farage could become PM’

Mr Yusuf’s initial decision to quit came after he publicly distanced himself from the party’s new MP, Sarah Pochin, when she asked Sir Keir Starmer about banning the burka at Prime Minister’s Questions.

Reform said a ban was not party policy – and the chairman called it a “dumb” thing to ask.

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What is DOGE?

DOGE is a meme-coin inspired creation of Musk’s, standing for the Department of Government Efficiency.

It is the latest right-wing US import into British politics.

Before his public fallout with Donald Trump, the tech billionaire said his focus was saving taxpayers’ money by locating wasteful spending within government and cutting it.

Read more: How Elon Musk’s mission to cut government spending fell flat

However, opposition politicians questioned the impact of his efforts and how much he actually saved.

Musk initially had ambitions to slash government spending by $2trn (£1.5trn) – but this was dramatically reduced to $1trn (£750bn) and then to just $150bn (£111bn).

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Politics

Singapore’s ousted crypto firms may not find shelter elsewhere

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Singapore’s ousted crypto firms may not find shelter elsewhere

Singapore’s ousted crypto firms may not find shelter elsewhere

Singapore’s ousting of unlicensed firms was not a sudden move and it’s among several regions tightening licensing duties.

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