The Fed criticizes Tether, and the work of the British division of Binance is banned
The Fed is concerned about the growing popularity of stablecoins amid the lack of regulation of this market
Boston Federal Reserve Bank Governor Eric Rosengren has raised concerns about the risks associated with Tether to the soundness of the financial market. According to the official, USDT has become a “new problem” in the short-term lending markets.
“The reason I talked about tether and stable coins is if you look at their portfolio, it basically looks like a portfolio of a prime money market fund but maybe riskier. We actually had a stablecoin that ran into financial difficulties last week. Tether, as you highlighted, has a number of assets that, during the pandemic, the spread got quite wide on those assets,” Eric Rosengren said.
He noted that stablecoins are already playing a significant role in the modern economy. However, the absence of a significant degree of regulation of this industry can be dangerous for all players in the financial market.
British regulator has decided to complicate the work of Binance
The British Financial Conduct Authority issued a warning to top managers at Binance, which states that the crypto exchange is not allowed to conduct regulated activities in the country. Because of this, the local division of the company got in a deplorable situation.
The FCA ruling states that Binance cannot carry out any activity requiring licensing without the consent of the regulator. Since the company goes through the registration procedure in the authority, it has no right to provide unregulated services, for example, the ability to conduct transactions in the derivatives market.
In addition, the management demanded that the company stop advertising campaigns launched earlier in the country in the coming days. Until June 30, the crypto exchange is obliged to warn its customers about the FCA restrictions on the site.
Mexican entrepreneur announces approval of major crypto coin
Mexican billionaire Ricardo Salinas Pliego said that the Banco Azteca he created will become the first bank in the country to accept BTC. The entrepreneur wrote about this on Twitter.
“Sure, I recommend the use of bitcoin, and me and my bank are working to be the first bank in Mexico to accept bitcoin,” Salinas said.
According to the businessman, bitcoin is “an asset that should be part of every investor’s portfolio.” Salinas noted the value of BTC, “which is traded with huge liquidity on a global level.”
