Caitlin Long, founder and CEO of the pioneering bank for the crypto sector Avanti Bank & Trust, has declared that the regulatory crackdown on crypto “has begun.” In a lengthy tweet on Tuesday, the Wall Street veteran highlighted her thoughts on the current regulatory situation in the United States, predicting that authorities will not target Bitcoin (BTC) and Ether (ETH) directly, instead opting to go after “intermediaries” and “access points” for U.S. dollars into the sector.
“The issue isn’t Bitcoin, Ethereum, or other crypto protocols, they’re just fine. The risk comes from the banks’ operational processes.”
She also noted that Tuesday marked the “key event,” in which the comment period for the Federal Reserve’s proposed payment system access guidelines ended, arguing that the Fed’s guidelines were partially aimed at cryptocurrencies despite not mentioning the asset class directly.
The guidelines, proposed on May 5, outline the system that the central bank will use to evaluate requests to access the agency’s financial services. The proposal comes amid growing requests from fintech firms and financial institutions and providers to gain access to the payments system.
Indian’s stance on crypto adoption has maintained a gray composure ever since the birth of Bitcoin. In what seems like another blow for the Indian crypto community, one of the biggest financial services, ICICI Bank, has warned users to not use their remittance services for transferring any form of crypto or digital currency.
In ICICI’s latest iteration of the Retail Outward Remittance Application form, the bank has clearly stated its intent to stop users from using the service for crypto transfers. Based on the Foreign Exchange Management Act (FEMA) 1999, the declaration states:
The major banking institution has shared two more points that reiterate its anti-adoption stance, further warning users to not use its remittance service for investing in companies that deal with Bitcoin or any other crypto and virtual currencies.
Users were also warned to not send any funds that may have been procured via crypto investments in the past. However, the Indian government has not yet shown resistance to blockchain-based financial applications.
Binance customers in the United Kingdom are once again left without a fiat currency withdrawal option on Binance. According to Financial News on Tuesday, the crypto exchange giant sent emails to affected customers informing them of the problem.
However, the exchange reportedly has not given any details as to the reason for the latest suspension of pounds sterling withdrawal but assured customers that it was working to resolve the situation.
Back in June, Binance had temporarily suspended cash payouts via Faster Payouts amid warnings from the U.K. Financial Conduct Authority about the exchange operating in the country without a license.
As previously reported by Cointelegraph, Binance reinstated the service at the start of July but Tuesday's notice once again puts the exchange's U.K. customers in limbo.
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