00:00 Speaker A

We’re coming into the end of June here and into the beginning of July, which means a whole lot of rule making from a whole lot of governments. We got three, well, we got one country, we got one continent, we got another country and we got a state. Let’s talk about those. Here’s the first story. We’re going to keep these up because there’s four of them that are coming in hot right now.

00:27 Speaker A

I think it’s pretty ironic that crypto spent, you know, 15 years promising to make government obsolete and as I’m going to show you, government’s response this week was essentially that that’s cute, here’s the paperwork, right? We’re starting in the UK.

00:43 Speaker A

UK to lower stable coin buffers undercutting EU’s MiCA requirements. So basically the UK now, as I’ve told you, is softening their crypto regulation and legislation because they want to compete. They were one of the strictest regimes and now seeing what’s happening in Europe with MiCA and the United States trailing on the clarity Act, they’ve arguably seen an opportunity here to jump in and to woo the industry into the UK with softer laws, something that we didn’t think would be coming.

01:29 Speaker A

So they’re ending their gray zone. Now running an exchange, holding people’s crypto or issuing a stable coin needs a license much like a bank with a capital cushion, stress tests and real insider trading rules. Interestingly, it’s cutting its proposed stable coin capital charge from 2% to 1% so that it doesn’t scare firms off. This is being written today, but won’t become the rules likely until 2027.

01:58 Speaker A

I also told you uh last week about how they changed some of their very strict stable coin laws and are proposing much softer ones.

02:06 Speaker A

So the UK trying very hard here to woo the industry over as they’re alienated elsewhere.

02:14 Speaker A

The next one, of course, we’ve been covering this on a nearly day-to-day basis, the European Union. EU’s Europe’s unlicensed crypto firms face wipe out as MiCA deadline hits. European regulator ESMA called on unauthorized crypto asset service providers to wind down their businesses in an orderly manner as the MiCA transitional period ends on July 1st.

02:43 Speaker A

This is basically comply or leave. These are rules that were written years ago that the industry cheered, forgetting that they were actually going to be set into motion at one point and that point is literally July 1st, which is tomorrow.

02:59 Speaker A

I’ve told you the story about how Binance tried to go through the Greek regulator and ended up being blocked, although they technically withdrew their application, and many reports saying that the EU’s central banker, Christine Lagarde was actually behind making sure they were banned, leaving a now really between all these exchanges that are being kicked, apparently 3,000 different entities tried to get regulated and now about 200 are getting clearance.

03:32 Speaker A

leaving about 10 million EU users right now needing a new platform. Uh you’ve seen some tweets from OKX and from Coinbase wooing over the Binance users that are going to be banned.

03:49 Speaker A

It’s going to be interesting to see how this shakes out, but once again, the UK softening while you’re seeing this sort of crackdown as Mika gets put into action in Europe.

04:02 Speaker A

Next one, Australia crypto travel rule starts July 1st as exchanges add transfer checks. This is really interesting because now every single transfer of crypto in Australia from centralized exchange to centralized exchange will be entirely traceable.

04:26 Speaker A

So anonymous transfers are over. They’re putting a name on every single move. So if you send crypto between exchanges, your verified ID, just like a bank wire, is going to be there with no minimum. So even if you send $1 in crypto, they’re going to know exactly who did it and how they did it, much like sending a bank wire.

04:53 Speaker A

So I would call this massively stricter enforcement in Australia as well. Not the direction that uh Australians were probably looking for it to go.

05:07 Speaker A

And this one is a state rate uh regulator, obviously. We have California’s DFAL clock is ticking. XRP price hanging in the balance. Literally they can make any article about XRP. It has nothing to do with XRP, but uh apparently XRP doesn’t have the license and that’s where the thing is.

05:27 Speaker A

We won’t get deeply into what DFAL is, but basically it’s a regulatory regime for any crypto entity in the state of California.

05:40 Speaker A

Those who have followed along uh at home of how regulation happens in the United States, you have the federal regulator, but then you have the states and when you’re waiting for something like the Clarity Act and it’s not happening, the states put their own laws into action.

05:58 Speaker A

New York is the strictest, it has the bit license, which is very difficult to get. Seems like California is going in that direction as well.

06:08 Speaker A

So California, obviously, making their own rules while they wait for Clarity Act to likely pass or not pass in the United States.