According to Foresight News, the Ministry of Science and ICT in South Korea, in collaboration with the Korea Internet & Security Agency (KISA), is set to launch a blockchain support plan in 2024. The estimated investment for this year is 20 billion Korean won, approximately 14.5 million USD. The funds will be used to develop public blockchain services and promote the commercialization of products from blockchain companies. The plan will support public blockchain projects including digital coupons related to Central Bank Digital Currency (CBDC), digital badges, and online voting systems.

According to Odaily, South Korea's financial authorities are planning to reassess the status of approximately 600 cryptocurrencies traded on domestic exchanges. This rigorous review aims to ensure compliance with the new 'Virtual Asset User Protection Law' that came into effect on July 19. Recent local media reports suggest that the South Korean government has finalized a best practice plan to support virtual asset trading. The plan outlines strict new requirements for cryptocurrencies to be listed on domestic exchanges. The current system allows exchanges to conduct their internal reviews, but the authorities will establish a more stringent review process as a supplement. The core focus of the new regulations is on listing screening. Under the current system, exchanges individually review and list cryptocurrencies. However, by implementing the best practice plan, the authorities will establish standards that all listed cryptocurrencies must meet. A financial authority official explained, 'Exchanges review every six months whether to maintain support for virtual asset trading.' Subsequent reviews will take place every three months.

In a groundbreaking move, the government of El Salvador has proposed a reform of the current banking law aimed at introducing a new type of bank dedicated to offering Bitcoin and other cryptocurrency services. This initiative aligns with El Salvador's pioneering efforts to integrate Bitcoin into its financial system and the broader economy.  Details of the Proposed Reform - New Type of Banks: The proposed reform will allow the establishment of new banks specifically designed to lend Bitcoin and provide crypto services. - Private Investment: The initiative encourages private investors to form specialized banks focused on Bitcoin and stablecoin services for sophisticated investors. - Comprehensive Services: These new banks are expected to offer a range of financial services, including:  - Economic Risk Management: Tools and strategies to manage financial risks associated with investments.  - Purchase of Financial Products: Facilitation of buying a variety of financial products.  - Investment Management: Services to manage and optimize investment portfolios.  - Hedging: Techniques to protect against potential losses in investments.  - Other Financial Derivatives: Access to advanced financial instruments. Supported Currencies The services provided by these new banks would support any legal currency in El Salvador, including the U.S. dollar and Bitcoin, which was officially adopted as legal tender in the country in 2021.  Implications for El Salvador's Financial Landscape - Financial Innovation: The introduction of banks specializing in Bitcoin and cryptocurrency services marks a significant step in financial innovation, reflecting El Salvador's commitment to leveraging digital currencies. - Investment Opportunities: This reform is likely to attract sophisticated investors interested in the burgeoning crypto economy, offering them tailored banking services. - Economic Diversification: By integrating cryptocurrency services with traditional banking, the reform could contribute to a more diversified and resilient financial system. - Risk and Regulation: The initiative will require careful regulation to manage the unique risks associated with cryptocurrency, ensuring stability and protecting investors. El Salvador's proposal to reform its banking law to accommodate Bitcoin and cryptocurrency services underscores the nation's forward-thinking approach to digital finance. If approved, this initiative could set a precedent for other countries considering similar integration of cryptocurrencies into their financial systems.

According to PANews, the U.S. Securities and Exchange Commission (SEC) has dismissed the latest arguments from Ripple Labs to reduce its fines, insisting on a total penalty of nearly $2 billion. This includes $198.2 million in pre-judgment interest, $876.3 million in civil penalties, and another $876.3 million in refund amounts. Last month, Ripple attempted to seal part of its financial information, but the SEC opposed this, believing the company should disclose the revenue obtained through XRP. Last week, Ripple proposed to Judge Analisa Torres of the New York District Court a fine 'not exceeding $10 million', far less than the $876.3 million civil penalty proposed by the SEC. Ripple cited the SEC's settlement agreement with Terraform Labs as a basis. However, the SEC emphasized in its response that its settlement with Terraform was based on the company's bankruptcy, agreement to refund, and dismissal of relevant responsible persons, measures that Ripple has not taken. The SEC stated that Ripple's fine should be calculated based on the gross profit of its violations, not the total sales. If the penalty ratio of Terraform (close to 12%) is applied to Ripple, its fine should be $102.6 million. The SEC believes that such a low fine cannot meet the purpose of civil penalty regulations. Since the SEC accused Ripple of selling unregistered securities in 2020, the two parties have been arguing in court. Judge Torres has confirmed Ripple's illegal behavior, but only when selling to institutional investors. Currently, the legal battle between the two parties continues.

According to Golden Finance: Evolve Bank and Trust has entered into a cease-and-desist agreement with the Federal Reserve, prompted by findings of unsafe and unsound operations within the bank's fintech collaborations and inadequate anti-money laundering (AML) controls. The order follows scrutiny arising from the failure of intermediary Synapse Financial Technologies, which led to account freezes for numerous FinTech users. Details of the Cease-and-Desist Order The Federal Reserve's cease-and-desist order against Evolve Bank addresses several critical issues: - Unsound Operations: The Federal Reserve highlighted unsafe and unsound operations in Evolve’s fintech collaborations. - AML Deficiencies: The bank was found to lack adequate anti-money laundering controls, a significant compliance lapse given its role in the financial ecosystem. - Synapse Financial Technologies Failure: The failure of Synapse Financial Technologies, an intermediary, resulted in the freezing of many fintech user accounts, exacerbated by disagreements over account balances between Synapse, Evolve, and other fintech entities. Impact on the Cryptocurrency Ecosystem Evolve Bank plays a crucial role in the cryptocurrency landscape, providing financial services to platforms such as BlockFi and FTX. The cease-and-desist order could have broader implications for these services, potentially affecting their operational stability and customer confidence. Compliance and Due Diligence Requirements As part of the cease-and-desist order, Evolve Bank is required to: - Submit a Detailed Compliance Plan: Evolve must present a comprehensive compliance plan that addresses the operational deficiencies identified by the Federal Reserve. - Update Due Diligence Procedures: The bank needs to upgrade its due diligence procedures to ensure robust customer information verification and compliance with regulatory requirements. Broader Implications - Enhanced Regulatory Scrutiny: This move by the Federal Reserve signals heightened scrutiny on banks involved in fintech and cryptocurrency sectors, emphasizing the need for stringent AML controls and sound operational practices. - Increased Compliance Costs: Evolve Bank will likely incur significant costs to implement the mandated compliance enhancements, which could impact its financial performance and operational efficiency. - Operational Disruptions: The requirement to improve due diligence procedures and customer information handling may cause temporary operational disruptions as Evolve Bank works to comply with the Federal Reserve’s directives. The cease-and-desist order against Evolve Bank underscores the critical importance of sound operational practices and robust anti-money laundering controls, particularly for institutions involved in the fintech and cryptocurrency realms. As Evolve Bank works to address these regulatory requirements, the broader industry will likely observe increased regulatory scrutiny, necessitating proactive compliance measures to mitigate similar risks.

According to Odaily, the Australian Treasury Department is planning to include stablecoin regulations in its draft crypto bill. A representative from the Australian Securities and Investments Commission (ASIC) has stated that they have held meetings with regulatory bodies such as the SEC to discuss the legal stance on crypto technology. The Treasury Department had previously announced plans to release a legislative draft by the end of 2024, covering licensing and custody rules for crypto asset providers. Based on the latest developments, this draft may include a framework for regulating stablecoins. The inclusion of stablecoin regulations in the draft bill signifies the Australian government's recognition of the growing influence of cryptocurrencies and their commitment to ensuring a regulated and secure environment for its use.

According to Odaily, officials from the Dubai International Financial Centre (DIFC) have expressed their interest in strengthening and promoting cooperation in the rapidly developing fintech ecosystems. Jacques Visser, the Chief Legal Advisor of DIFC, stated that the focus of virtual asset regulation is increasingly on cross-border regulation. He mentioned that they are in close communication with other regions, including Hong Kong, encompassing all tokenized assets and assets with trading value under Web3. A lot of work, including cooperation and coordination on cross-border regulation, is currently underway. Visser believes that there is a significant potential for cooperation between Dubai and Hong Kong, particularly in the area of payment services. He stated that payment services are key to the future of finance and fintech, and he believes there are many areas both parties are interested in promoting. Furthermore, for Dubai, Hong Kong serves as a bridge to mainland China, which is the United Arab Emirates' largest trading partner.

According to PANews, the Federal Reserve is set to announce its latest decision on interest rates and monetary policy statement. This announcement is scheduled for 2:00 AM Beijing time on Thursday, June 13. A few hours prior, the U.S. Department of Labor will release the latest inflation data. Jerome Powell's press conference will take place at 2:30. It is widely anticipated that the Federal Reserve will maintain the benchmark interest rate within the range of 5.25% - 5.50%, a rate that was set in July of the previous year.

According to Odaily, the US employment data released last Friday exceeded expectations, diminishing hopes for a Federal Reserve rate cut in September. This development led to a decline in Bitcoin and Ethereum prices. QCP Capital noted that the drop in Bitcoin and Ethereum prices following the report's release created a 'buy the dip' opportunity. As other central banks continue to lower borrowing costs, the Federal Reserve will find it increasingly difficult to maintain high interest rates. The market will increasingly absorb the impact of at least one rate cut by the Federal Reserve. It will be challenging for the US to ignore this as other countries around the world continue to cut rates. QCP Capital added that its trading department has seen bullish capital flows during this downturn. These include sellers of aggressive bearish options and buyers of bullish spreads, especially for Bitcoin's bullish options.

According to CryptoPotato, the U.S. central bank is expected to keep interest rates unchanged in its policy decision on Wednesday, June 12. This decision follows strong jobs data for May, leading policymakers to likely maintain rates within the 5.25% to 5.5% range for the seventh consecutive meeting. The number of cuts planned for this year may also be reduced as policymakers evaluate a variety of economic data. June 12 will also see the release of core CPI (consumer price index) reports, a key measure of inflation that significantly influences the Federal Reserve's monetary policy decisions, including interest rate adjustments. An increase in the CPI reading indicates rising inflation, which usually pressures the Fed to either raise interest rates or maintain them. The year-on-year CPI figure is expected to remain at 3.4%, suggesting that the central bank will not alter rates this week. There has been a strong correlation between Bitcoin price and CPI data this year. Higher-than-expected CPI has negatively affected the digital asset, while a lower-than-expected CPI has had a positive impact. Other key events this week include the OPEC Monthly Report on Tuesday, the Fed Interest Rate Decision and Press Conference on Wednesday, May PPI Inflation data on Thursday, and MI Consumer Sentiment data on Friday. On Thursday, June 13, core PPI (producer price index) reports will be released. This data measures the average change over time in selling prices received by domestic producers of goods and services and serves as a valuable supplementary inflation indicator used by FOMC policymakers. Analysts predict the first rate cut to occur at the central bank's September policy meeting, the last gathering before the November 5 presidential election. The Fed rate decision is likely already factored into crypto markets, as it is widely expected that rates will remain unchanged. There may be some volatility mid-week, but the sideways momentum is likely to persist. Altcoins may suffer, however, as Bitcoin dominance remains high, delaying the onset of altseason. Crypto trader 'Emperor' shared his thoughts on the market's state with his 390,000 followers on June 9, suggesting that the market is in a confusing position.