Nasdaq-listed cryptocurrency exchange Coinbase has alerted its customers that it may be compelled to share data with a U.S. regulator related to their interactions with prediction markets platform Polymarket.

The U.K. Treasury has moved to clarify the regulatory status of cryptocurrency staking by explicitly excluding it from the definition of a “collective investment scheme,” providing the sector greater regulatory clarity.

International banking giant Standard Chartered has obtained a license in Luxembourg to provide cryptocurrency custody services through a new entity, further growing its presence in the European digital asset market.

Top stories in the Crypto Roundup today:

• Coinbase Warns Users of Potential Data Sharing with US Regulator
• U.K. Treasury Excludes Crypto Staking from Collective Investment Scheme Definition
• Standard Chartered Secures Luxembourg License to Offer Crypto Custody Services

Coinbase Warns Users of Potential Data Sharing with US Regulator

Nasdaq-listed cryptocurrency exchange Coinbase has alerted its customers that it may be compelled to share data with a U.S. regulator related to their interactions with prediction markets platform Polymarket.

The disclosure comes amid ongoing regulatory scrutiny of prediction markets by the Commodity Futures Trading Commission (CFTC), the federal agency that oversees derivatives trading.

Emails sent to some Coinbase users, copies of which have started circulating on social media, show the warnings are accurate. The regulator has been engaged in a prolonged legal battle with prediction markets firms, which let users bet on the outcomes of future events, including elections and economic indicators.

Last year, the CFTC lost a case against prediction market firm Kalshi, when a U.S. federal judge ruled that the regulator couldn’t bar the platform from listing election contracts.

U.K. Treasury Excludes Crypto Staking from Collective Investment Scheme Definition

The U.K. Treasury has moved to clarify the regulatory status of cryptocurrency staking by explicitly excluding it from the definition of a “collective investment scheme,” providing the sector greater regulatory clarity.

A Jan. 8 order from the Treasury amends a section of the Financial Services and Markets Act 2000, stating that “arrangements for qualifying crypto asset staking do not amount to a collective investment scheme [CIS].”

The order defines “qualifying crypto asset staking” as the process of validating transactions on a blockchain, a distributed ledger technology network, or “other similar technology” and will take effect on Jan. 31.

In the U.K., collective investment schemes are arrangements in which participants are entitled to profit or income generated. These include investment funds and exchange-traded funds, which are heavily regulated by the country’s Financial Conduct Authority (FCA). 

Standard Chartered Secures Luxembourg License to Offer Crypto Custody Services

International banking giant Standard Chartered has obtained a license in Luxembourg to provide cryptocurrency custody services through a new entity, further growing its presence in the European digital asset market.

The move comes shortly after the European Union’s landmark Markets in Crypto Assets (MiCA) regulation came into full effect. In a statement, the firm said the new entity will serve as its “EU regulatory entry point” to offer cryptocurrency custody services to EU clients in compliance with MiCA.

Standard Chartered has appointed Laurent Marochini, who previously served as the head of innovation at major European bank Society Générale, as the CEO of its Luxembourg operations.

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