The CoinGeek Pulse Episode 59: Canada regulator bars Tether trading; Cuba eyes digital currency for payments, Asia updates

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The Ontario Securities Commission (OSC) continues to tighten its grip on digital currency operators. The Canadian securities regulator has barred digital currency platforms from offering Tether (USDT) trading services.

The regulator has prohibited the country’s first registered digital currency exchanges, Wealthsimple and Coinberry, from trading USDT—the only digital asset prohibited by the OSC.

Wealthsimple is the fully registered digital currency trading platform identified by the OSC, while Coinberry is the only digital currency exchange to report to the OSC before the deadline set early this year.

The OSC has issued its initial phase of approvals for these companies under the “interim, time-limited registration framework.” This allows platforms to operate in a regulatory environment to foster innovation and respond to novel circumstances.

Tether has also been banned from doing business in New York, the U.S. financial industry capital, by the state’s Attorney General. In February, Tether reached an agreement with the state’s attorney general office for $18.5 million.

Tether was under investigation after it allegedly covered up $850 million in losses. Authorities are also probing if the company has enough cash reserves to back its token circulation, which continues to be a major concern of users and analysts in the blockchain space.

Following El Salvador’s move, socialist country Cuba is set to recognize and regulate digital currencies for payments in a possible attempt to circumvent sanctions imposed by U.S. Presidents.

Gaceta Oficial, Cuba’s official gazette, recently published a resolution for the central bank to set rules on digital currencies in commercial transactions and to issue licenses for virtual assets service providers. The resolution states that the central bank can authorize use of digital currencies “for reasons of socioeconomic interest” but with state-controlled operations. It also states that the use of digital currencies could not involve illegal activities.

For years, it has become increasingly difficult to send and use U.S. dollars to the country due to toughened embargo rules imposed by former U.S. President Donald Trump followed by current President Joe Biden’s new sanctions in July.

Meanwhile in Asia, South Korea’s industry watchdog Financial Service Commission (FSC) will establish a digital currency-focused agency to check and monitor digital currency-related financial activity. This also includes the prevention of potential money laundering in the country. Korea Financial Intelligence Unit (KFIU) will handle the new unit and will also set up a ‘Policy Management Planning Division.’ 

In other news, central bank-licensed Philippine Digital Asset Exchange (PDAX) is preparing to embrace digital currency usage and adoption. PDAX exchange has secured $12.5 million in new capital towards greater token support from an undisclosed U.K.-based VC firm, Hong Kong-based BC Group and Philippine-based UBX. Nichel Gaba, PDAX founder and chief executive, said the exchange would be looking to roll out support for a number of new tokens including NFTs and gaming tokens.

This week, be sure to check out CoinGeek Conversations’ Summer Special Series featuring the interviews with some of the most exciting technologists in the BSV enterprise blockchain ecosystem.

Also a must-watch from CoinGeek is Dr. Craig Wright’s invitation to Elon Musk, CEO of both Tesla (NASDAQ: TSLA) and SpaceX, to discuss Bitcoin, green technology and how his companies can benefit from blockchain technology.

“We can work together to change things,” says Dr, Wright in the video invitation. He adds, “I hope you take me up on this offer to join me in solving these issues. I hope to see you at the CoinGeek Conference in October.”

CoinGeek New York will take place from October 5 to 7 at The Sheraton Time Square. The conference will feature the brightest and most creative minds in the industry and will cover the latest developments of and on the BSV blockchain—the world’s largest public blockchain by all major utility metrics, such as data storage and daily transaction volume, scaling ability, and average block size.