Three news to start your week: August 12
Russia allows crypto payments in international trade to counter sanctions
(Reuters)
Russian lawmakers have successfully passed a bill allowing businesses to utilize cryptocurrencies in international trade to circumvent Western sanctions following Russia's invasion of Ukraine. The law is set to take effect in September.
Elvira Nabiullina, the Russian central bank Governor and a key proponent of the new legislation, has announced that the first cryptocurrency transactions will occur before the end of the year.
Russia has encountered substantial delays in international payments with key trading partners like China, India, and the United Arab Emirates, as banks in these countries have become more cautious in response to pressure from Western regulators.
"We are taking a historic decision in the financial sphere," stated Anatoly Aksakov, the head of the Duma lower house of parliament.
China's financial regulator slaps fines on 17 banks over irregularities
(Global Times)
China's banking and financial regulator has fined 17 banks exceeding $2.37 million (17 million yuan) for violating loan management products and lending regulations. This decisive action showcases the government's commitment to closely monitoring and regulating financial institutions and markets.
The National Financial Regulatory Administration (NFRA) has issued 55 penalty notices, impacting a range of banking entities, including national development banks, state-owned commercial banks, joint-stock banks, urban and rural commercial banks, and village banks. In addition, the industry has seen two individuals banned for life.
Among the fined banks is Bank of Communications, one of the nation's largest commercial banks, which incurred a penalty of $680,000. This places them at the forefront of institutions faced with the most substantial penalties for alleged loan fraud. Three other commercial banks have also received penalties surpassing $140,000 each.
FTX Trading, Alameda Research Ordered to Pay $12.7 Billion, CFTC Says
(The Wall Street Journal)
The US District Court for the Southern District of New York has issued an order compelling FTX Trading to pay $12.7 billion to fraud victims. This resolution is part of a consent agreement that settles a lawsuit filed by the Commodity Futures Trading Commission.
Under the terms of the order, FTX Trading and Alameda Research must pay $8.7 billion in restitution and $4 billion in disgorgement. Additionally, the Bankruptcy Court for the District of Delaware has reached and approved a related settlement. As per this settlement, the CFTC has agreed to forgo seeking a civil monetary penalty against FTX Trading and to subordinate its monetary claims to the fraud victims.
It is worth noting that in March, the founder of FTX Trading, Sam Bankman-Fried, was handed a 25-year prison sentence. Furthermore, FTX filed for bankruptcy in November 2022.
With the consent order in place, the CFTC's litigation against FTX Trading has been resolved, although the case remains pending for four individual defendants, including Bankman-Fried, as the agency stated.
