• The US court has issued a summons for Binance CEO Changpeng Zhao after the Securities and Exchange Commission (SEC) sued the exchange.
• A lawsuit against DeFi platform PoolTogether was dismissed due to lack of standing.
• The European Consumer Organisation filed a complaint against Instagram, YouTube, TikTok and Twitter for facilitating misleading crypto asset promotions, while UK’s Financial Conduct Authority announced tougher rules for crypto services advertisers from October 8.
US Court Issues Summons For Binance’s CZ
A United States district court in Washington reportedly issued a summons for Binance CEO Changpeng Zhao after the Securities and Exchange Commission (SEC) sued the exchange. “A lawsuit has been filed against you,” the document said. “Within 21 days after service of this summons on you […] you must serve on the plaintiff an answer to the attached complaint or a motion […].” Should Zhao fail to respond, judgment by default will be entered against him for the relief demanded in the complaint. However, it is not clear if the summons has been served at this point.
Lawsuit Against DeFi Platform Dismissed
A US district court judge dismissed a lawsuit against decentralized finance (DeFi) platform PoolTogether. The judge said there are concerns related to the startup, but a lawsuit in a federal court is not “an appropriate way to address them.” Furthermore, the plaintiff, Joseph Kent, “suffered no concrete harm at the hands of the defendant,” and therefore, “the Court holds that Kent lacks standing to sue and, accordingly, grants the defendants’ motions to dismiss on that ground. The alternative motions to compel arbitration are denied as moot,” stated in the order.
EU Targets Social Media Platforms Over Crypto Ads
The European Consumer Organisation (BEUC), an umbrella group for 46 independent consumer organizations from 32 countries, filed a complaint with European Commission and consumer authorities against Instagram, YouTube, TikTok and Twitter over “facilitating misleading promotion of crypto assets” which leads to “serious harm” according to their announcement on June 8th. BEUC requested that these social media platforms establish stricter advertising policies and enforce them as well as adopting measures in preventing influencers from misleading consumers about cryptocurrencies nature amongst other points mentioned in their statement.
UK’s FCA Announces Tougher Crypto Services Rules
Crypto services advertisers will face new stricter marketing rules unveiled by Financial Conduct Authority (FCA) on Tuesday starting October 8th 2021 . There will be 24-hour ‘cooling-off’ period for first time crypto investors under these new regulations as well as additional disclosure requirements when making these types of promotions involving digital assets such as Bitcoin or Ethereum etc…
Commonwealth Bank Limits Customer’s Ability To Send Money To Crypto Exchanges
Commonwealth Bank of Australia have limited customers ability when sending money overseas towards cryptocurrency exchanges due anti money laundering regulations within Australia . It is believed banks may have received instructions from financial intelligence agency AUSTRAC which requires banks must approve all international transfers before sending it out .