Coinbase CEO says hostile US rules play into China’s hands, Hong Kong and UAE to cooperate on virtual assets

Coinbase CEO warns strict US crypto rules will benefit China

Coinbase CEO Brian Armstrong said in a Tuesday editorial that China stands to benefit from an increasingly hostile US regulatory environment towards crypto.

“By enforcing restrictive policies, the US is inadvertently driving crypto-innovation offshore,” the crypto exchange boss wrote in an opinion piece at MarketWatch. “That shift will compromise America’s legacy of pioneering technological advancements, and weaken our national security posture.”

Armstrong called China “an ambitious adversary,” and highlighted digital payment systems Alipay and Tencent as examples of competitors to American firms.

China released a web3 whitepaper earlier in the month, and Hong Kong will allow crypto trading within the region to resume on June 1.

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Hong Kong and UAE to cooperate on virtual assets

The central banks of the United Arab Emirates and Hong Kong have announced plans to work more closely together on crypto regulation.

The news comes after a bilateral meeting in Abu Dhabi where the two regions talked about strengthening their financial cooperation and to regulate virtual assets together, Decrypt reported.

The talks also involved cross-border trade settlements, which could open the way for central bank digital currencies being used.

The regions have inched closer to each other in recent years, with several Hong Kong businesses receiving UAE licences and opening offices in the country.

SEC settles with insider trading case against former Coinbase employee

The US Securities and Exchange Commission has settled an insider trading case against a former Coinbase employee and his brother on allegations, according to a Tuesday announcement.

Former product manager Ishan Wahi and Nikhil Wahi agreed to disgorge any gains earned as part of the insider trading, as well as pay interest as part of the civil settlement.

The brothers have also pleaded guilty to Department of Justice charges for the 2022 allegations, with Ishan facing two years imprisonment, and Nikhil currently serving a ten-month sentence.

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Crypto exchange Bybit exits Canada amid heightened regulations

Crypto exchange Bybit will leave the Canadian market, according to a Tuesday announcement.

The exit comes after Canadian regulators announced heightened requirements for crypto firms last December, including the restriction of margin and leverage trading for Canadian clients. Bybit has given Canadian clients until September 30 to exit the platform.

The announcement follows in the footsteps of crypto exchanges Binance and OKX, which have both Mande similar announcements recently. OKX has since announced plans to open an European headquarter in Paris.

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Nansen slashes 30% of workforce in latest web3 layoffs

Blockchain analytics firm Nansen announced plans to cut its workforce by 30% on Tuesday, the latest set of layoffs in what has been a painful year across web3.

Nansen CEO Alex Svanevik tweeted a public apology to those affected, including a full statement in which he took full responsibility.

Svanevik cited the ongoing crypto bear market as a main factor in the layoffs, but stated the firm had the resources to continue operating for “several years.”

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