The Commodity Futures Trading Commission (CFTC) has approved the use of blockchain technology to handle trading collateral in U.S. derivatives markets, as per a report by the CFTC’s Global Markets Advisory Committee on Nov. 21.
Blockchain technologies, such as distributed ledgers and tokenization, can resolve long-standing issues for traditional derivatives exchanges and increase the range of assets available for collateral trades, the report stated.
“Globally, there have been successful and proven commercial use cases for tokenization of assets,” CFTC Commissioner Caroline D. Pham mentioned in a statement, adding, “Now, we can finally start making progress on U.S. regulatory clarity for digital assets.”
Among other advantages, blockchain networks “can enable real-time, 24/7/365 transfers of the [collateral] asset without expensive or complex connections across various intermediaries,” the report noted.
They “can also allow peer-to-peer transfers, meaning that an asset owner can transfer or pledge that asset without going through a broker,” it added.
South Korea’s Delio declared bankrupt with $1.75B in assets lost
According to various local news reports, a court in Seoul declared the South Korean virtual asset deposit platform Delio bankrupt on Nov. 22.
Delio, which owes its customers 245 billion won ($1.75 billion), stopped withdrawals last year and will now commence liquidation proceedings. Customers have until Feb. 21, 2025, to file claims, with the first creditors' meeting scheduled for March 19, 2025.
A court official stated, 'The debtor leased and entrusted the management of customer-deposit virtual assets to a management company, but a significant portion was deposited and managed in the FTX account.'
Consequently, the platform could not recover its assets following FTX's bankruptcy in November 2022 and was unable to return customer assets after June 13, 2023. Approximately 2,800 customers are affected by this bankruptcy.
Binance beefs up compliance team by 34% to 645 full-timers
Binance is on a hiring spree in its compliance department and will increase the team size by 34% by the end of the year, the exchange announced on its Binance Square platform on Nov. 22. The compliance team will have 645 full-time members and over 1,000 members counting contractors.
The move is part of the cryptocurrency exchange's intensified commitment to regulatory compliance and its ongoing transformation since resolving issues with United States regulators in 2023. During this period, it has increased its compliance spending by 36%.
Binance's chief compliance officer Noah Perlman stated in the announcement: 'Our sector is rapidly maturing, and compliance has become crucial for user protection, business success, and sustainable growth. Binance's enhanced compliance efforts demonstrate our dedication to setting industry standards.'
Binance announced it is hiring personnel from traditional finance and government agencies, highlighting three high-level appointments: Todd McElduff as enterprise compliance director, and Céline Inial and Caner Akyürek as special investigations specialists for France and Turkey, respectively.
In August, Binance announced it would expand its compliance team by at least 200 members. In 2022, it also reported a 35% increase in compliance spending, from $158 million to $213 million.
