Class-Action Lawsuit in Canada:

Cryptocurrency exchange Binance is facing a new class-action lawsuit in Canada, with plaintiffs alleging that the firm violated local securities laws. The lawsuit, filed in Ontario’s Superior Court of Justice, accuses Binance of selling crypto derivative products to retail investors without registration. The plaintiffs seek damages and rescission of unlawful derivatives trades, claiming that tens of thousands of Canadian users invested in Binance's cryptocurrency derivatives products.

App Removal in the Philippines:

The Philippines Securities and Exchange Commission (SEC) has ordered Google and Apple to remove the Binance app from their app stores for users in the Philippines. SEC chair Emilio Aquino stated that selling or offering unregistered securities to locals and operating as an “unregistered broker” violates the country’s securities regulations. The SEC aims to prevent further proliferation of Binance's illegal activities in the country, which could have detrimental effects on the local economy.

Founder CZ Sentenced to Prison:

Binance founder Changpeng “CZ” Zhao is facing a 36-month prison sentence after pleading guilty to violating laws against money laundering, according to U.S. prosecutors. The prosecutors argue that given the magnitude of Zhao’s willful violation of U.S. law, an above-guideline sentence of 36 months is warranted. This sentence, along with an agreed $50 million fine, is considered sufficient to achieve the goals of sentencing.

EU Regulations on Anti-Money Laundering:

The European Parliament has approved new regulations establishing formal due diligence obligations for cryptocurrency companies to combat money laundering. The laws aim to improve due diligence measures and identity checks for customers, extending to entities such as crypto asset managers. These entities must also report any suspicious activities to the authorities, impacting various crypto asset service providers under the Markets in Crypto-Assets (MiCA) regulation.

SEC Reviews Bitcoin Options Trading:

The U.S. Securities and Exchange Commission (SEC) has launched another round of consultations on a proposed rule change for trading options on Bitcoin exchange-traded products (ETPs). The review aims to understand better how listing Bitcoin options could affect the overall market, especially during times of stress. The Commission is assessing whether exchanges’ current surveillance and enforcement mechanisms are adequate to handle the unique aspects of Bitcoin options.

Chinese Investors Unable to Buy Hong Kong Bitcoin ETFs:

Despite the approval of spot Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong, Chinese investors will not be able to buy these ETFs. Three Chinese asset managers—China Asset Management, Harvest Global Investments, and Bosera—will offer the spot crypto ETFs through their Hong Kong subsidiaries but cannot provide Bitcoin or Ether exposure to investors in mainland China.