Tag: FCA

  • Crypto Weekly: Bitcoin ETFs See $2.38B Inflows, QNT Jumps 260%, UK Launches Crypto Licensing

    Crypto Weekly: Bitcoin ETFs See $2.38B Inflows, QNT Jumps 260%, UK Launches Crypto Licensing

    Bitcoin spot ETFs recorded $2.38 billion in weekly net inflows, while Quant (QNT) surged 260% to a five-year high. Meanwhile, the Bitget hacker began moving stolen funds, Wintermute-linked shorts on Hyperliquid reached $126 million, and the UK Financial Conduct Authority (FCA) opened its new crypto licensing window.

    Bitcoin Spot ETFs Attract $2.38 Billion

    According to SoSoValue, Bitcoin spot ETFs saw a net inflow of $2.38 billion last week. BlackRock’s IBIT led with $1.158 billion, followed by Fidelity’s FBTC at $702 million. The total net asset value of Bitcoin spot ETFs now stands at $108.42 billion, with the ETF net asset ratio at 6.43% and cumulative net inflows totaling $57.55 billion.

    QNT Surges to Five-Year High

    QNT climbed roughly 260% weekly to a peak of about $370 before settling around $205. The rally was driven by The Clearing House selecting Quant for its On-Chain Money Initiative. Additional catalysts include Quant’s integration into Murex MX.3 and its selection by the European Central Bank for digital euro testing.

    Bitget Hacker Moves Stolen Funds

    The wallet linked to the September 24 Bitget hack began transferring Ethereum (ETH) into THORChain vaults and swapping assets into Bitcoin. Bitget confirmed the breach did not compromise private keys; instead, a critical backend component was exploited to pass fraudulent transaction data through the exchange’s authorization process.

    Wintermute’s Hyperliquid Shorts Reach $126 Million

    Onchain Lens reported that a Wintermute-linked wallet held roughly $126.25 million in short positions on Hyperliquid as of September 28, with a $46.92 million Ethereum short representing the largest position. The wallet showed approximately $963,600 in unrealized profit at the time and a lifetime P&L of around $197.22 million.

    UK Opens New Crypto Licensing Window

    The FCA began accepting crypto license applications at 7 am UK time on September 30. Firms have until February 28, 2027, to submit during the main application window. The new regime starts October 25, 2027. The FCA published a 73-page preview requiring details such as firm activities, regulated permissions, control structure, customer asset handling, and financial/operational standards.

    FAQs

    How much did Bitcoin spot ETFs attract last week?

    Bitcoin spot ETFs recorded $2.38 billion in weekly net inflows. BlackRock’s IBIT led with $1.158 billion, followed by Fidelity’s FBTC with $702 million.

    Why did QNT surge 260% in a week?

    The rally coincided with The Clearing House selecting Quant for its On-Chain Money Initiative. Other factors include Quant’s integration with Murex MX.3 and its involvement in digital euro testing.

    What happened to the funds stolen from Bitget?

    A wallet linked to the September 24 Bitget breach began moving ETH through THORChain and swapping into Bitcoin. The exchange attributed the breach to a compromised backend component.

    How large are the Wintermute-linked Hyperliquid short positions?

    On-chain tracking identified approximately $126.25 million in short positions. The largest was a roughly $46.92 million ETH short.

    When does the UK’s new crypto licensing window open?

    The FCA’s crypto authorization gateway opened on September 30, 2026. The main application window runs until February 28, 2027, with the new regime beginning October 25, 2027.

  • UK’s FCA Softens Crypto Regulations While Retaining Capital and Stress Test Requirements

    UK’s FCA Softens Crypto Regulations While Retaining Capital and Stress Test Requirements

    The Financial Conduct Authority (FCA) has eased certain aspects of its planned UK crypto regulatory framework following industry feedback. However, the revised rules still require firms to hold capital against risky assets, conduct annual stress tests, and implement consumer safeguards. The regime is scheduled to take effect in October 2027 and will cover trading, custody, customer service, and risk management.

    The FCA reduced compliance thresholds and simplified reporting duties for some crypto activities after extensive consultation with market participants. Capital requirements for certain cryptoassets, including fiat-backed stablecoins, were also lowered. Industry representatives had argued that overly stringent rules could stifle growth and push operations offshore. The regulator stated that the revised framework aims to protect consumers without unduly burdening compliant businesses.

    Under the new rules, crypto firms must maintain capital reserves proportional to the risk of assets on their balance sheets. They must also design and run annual stress tests, submitting results to the FCA. Unlike the Bank of England’s approach of prescribing specific scenarios for major banks, crypto companies will calculate their own exposure and determine necessary capital levels.

    David Geale, the FCA’s executive director for payments and digital finance, described the framework as the UK’s first comprehensive crypto regulation. He noted that it applies established financial principles where crypto activities present comparable risks. The FCA expects stronger oversight to reduce misconduct and questionable practices, though consumers will still be warned that crypto investments can lose all value.

    Industry reactions have been mixed. Dan Coatsworth, head of markets at AJ Bell, said regulation can strengthen protection and reduce scams and misleading promotions, but cannot eliminate risk entirely. Following the announcement, Bitcoin and other major cryptocurrencies traded within narrow ranges, showing little immediate price reaction.

    As the October 2027 effective date approaches, crypto businesses should review the final standards and prepare their systems accordingly. The FCA’s revised approach offers more flexibility while maintaining accountability, seeking to balance innovation with consumer protection.

  • Bitcoin ETFs See $222M Outflow, UK FCA Finalizes Crypto Rulebook, Binance Hit With $200M Lawsuit: Crypto News Roundup

    Bitcoin ETFs See $222M Outflow, UK FCA Finalizes Crypto Rulebook, Binance Hit With $200M Lawsuit: Crypto News Roundup

    The cryptocurrency market witnessed a flurry of notable events today, as Bitcoin spot ETFs recorded massive outflows, the UK Financial Conduct Authority (FCA) published its final crypto rulebook, and Binance faced a $200 million class-action lawsuit in London. Additionally, hackers managed to steal over $75 million from crypto platforms in June.

    Bitcoin Spot ETFs Suffer $222 Million in Net Outflows

    According to data from SoSoValue, Bitcoin spot ETFs experienced a total net outflow of $222.64 million on the last trading day. BlackRock’s IBIT led the withdrawals with a daily net outflow of $212.45 million, bringing its total historical net inflow to $60.25 billion. Fidelity’s FBTC followed with a $10.20 million outflow, and its historical net inflow now stands at $10.13 billion. The total net asset value of Bitcoin spot ETFs is $70.95 billion, with an ETF net asset ratio of 6.02%. Cumulative net inflows across all Bitcoin ETFs have reached $51.15 billion.

    CryptoQuant CEO Predicts Parabolic Bitcoin Rally

    CryptoQuant CEO Ki Young Ju took to X (formerly Twitter) to share his outlook, stating that Bitcoin is poised for another parabolic surge. He noted that while capital efficiency is declining, the current cycle has seen $697 billion in net capital inflows, generating only a 689% return. In contrast, $2.7 billion in 2011 drove a 55,436% increase. Ju believes that the next parabolic bull run will require deeper institutional allocation and that Bitcoin must transition into a core macro asset rather than remaining an ETF product driven primarily by retail investors. He added that this shift is still in its early stages and that Bitcoin could achieve another parabolic surge if it absorbs over $1 trillion in realized market cap.

    UK FCA Releases Final Crypto Rulebook

    The UK’s Financial Conduct Authority has finalized a comprehensive crypto rulebook, published on June 30. The framework introduces mandatory licensing, custody standards, market-abuse protections, disclosure requirements, and prudential rules. Firms wishing to conduct regulated crypto activities in the UK must obtain FCA approval. Applications will open on September 30, 2026, and close on February 28, 2027, with the regime expected to take effect on October 25, 2027. A notable change from the initial proposal is the reduction in capital requirements for non-systemic stablecoin issuers from 2% to 1% of the total value issued. The UK’s stablecoin framework operates on two tracks: the FCA oversees most qualifying stablecoin issuers and cryptoasset custodians, while the Bank of England handles systemic stablecoins.

    June Hacks Drain $75.87 Million From Crypto Platforms

    According to blockchain security firm PeckShield, crypto platforms lost approximately $75.87 million across 40 separate hacking incidents in June. This figure marks a 7.13% decline from May’s total of $81.7 million. The largest single breach was the Humanity Protocol exploit, which accounted for over $30 million in losses. Attackers compromised private keys that had been backed up to a malware-infected developer machine. Security firm Quantstamp reported that the methods and tools used in the attack are commonly associated with North Korean hacking groups. The exploiter has since laundered the stolen funds across multiple networks, including Bitcoin, Solana, Hyperliquid, and BNB Chain.

    Binance Faces $200 Million Class-Action Lawsuit in London

    Approximately 1,700 British investors have filed a class-action lawsuit before the High Court in London against Binance and its co-founder Changpeng Zhao. The plaintiffs are demanding $200 million in damages for losses allegedly incurred due to the trading of unauthorized derivative products. The case was officially filed on June 30. The traders claim that Binance promoted high-risk leveraged products since late 2019 without obtaining the necessary regulatory permissions. According to KP Law, the firm representing the claimants, many of the clients were ordinary citizens who invested their life savings and suffered losses of tens of thousands of pounds.

    Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies are highly volatile and involve significant risk. Always conduct your own research before investing.