The world’s largest asset manager BlackRock has met with the U.S. Securities and Exchange Commission (SEC) on spot Bitcoin exchange-traded funds shortly after the largest Bitcoin fund operator Grayscale also met with the regulator.

Former Binance CEO Changpeng “CZ” Zhao poses “an unacceptable risk of flight and should not be allowed to leave the United States ahead of his sentencing in February. Zhao was released on a $175 million bond in a previous sentencing.

KPMG Canada, the Canadian arm of the global consulting giant, is collaborating with blockchain analytics firm Chainalysis to combat fraud and criminal activities in the digital asset industry.

Top stories in the Crypto Roundup today:

• BlackRock Meets With SEC on Spot Bitcoin ETF Structure
• U.S. Prosecutors Seek to Block Binance Founder CZ from Leaving the Country
• KPMG Canada Partners with Chainalysis to Fight Crypto Crime

BlackRock Meets With SEC on Spot Bitcoin ETF Structure

The world’s largest asset manager BlackRock has met with the U.S. Securities and Exchange Commission (SEC) on spot Bitcoin exchange-traded funds shortly after the largest Bitcoin fund operator Grayscale also met with the regulator.

BlackRock’s meeting with the SEC was reportedly surrounding the fundamentals of its proposed spot Bitcoin ETF, with a note from the regulator detailing that the meeting focused on whether the spot Bitcoin ETF would have an in-kind redemption model or an in-cash one.

An in-kind redemption model allows investors to leave a fund by getting paid in the assets backing it, while an in-cash model would see investors receive cash rather than assets.

BlackRock filed to list its iShares Bitcoin Trust in June in a move that seemingly kicked off a race to list a spot Bitcoin ETF in the United States, with asset management giants including Fidelity, Invesco, and others filing to list one.

A spot Bitcoin ETF would allow investors to gain exposure to the cryptocurrency without having to manage a crypto wallet or its private keys.

U.S. Prosecutors Seek to Block Binance Founder CZ from Leaving the Country

Former Binance CEO Changpeng Zhao “CZ” poses “an unacceptable risk of flight’ ad should not be allowed to leave the United States ahead of his sentencing in February. Zhao was released on a $175 million bond in a previous sentencing.

In a new filing to a Seattle federal court, U.S. prosecutors have requested a review of that decision, as it would allow Zhao to return to his residence in the United Arab Emirates, with the stipulation that he must return to the U.S. two weeks prior to his sentencing in February 2024.

Prosecutors have argued that Zhao presents an “unacceptable risk of flight and nonappearance if he is allowed to leave the United States pending sentencing.” The government, they wrote, would not “be able to secure his return” if Zhao decided not to return partly over the lack of an extradition treaty between the UAE and the US.

Prosecutors pointed to Zhao’s strong connections in the UAE, including his family, and mentioned his substantial overseas wealth, largely beyond the jurisdiction of U.S. authorities, allowing him to live there indefinitely.

Zhao’s sentencing comes after Binance agreed to pay $4.3 billion to the U.S., one of the largest corporate penalties in the country’s history, to settle with a coalition of regulators accusing the exchange of breaking sanctions and money-transmitting laws.

KPMG Canada Partners with Chainalysis to Fight Crypto Crime

KPMG Canada, the Canadian arm of the global consulting giant, is collaborating with blockchain analytics firm Chainalysis to combat fraud and criminal activities in the digital asset industry.

The partnership sees KPMG aim to provide advanced blockchain monitoring, support, governance, and risk management to its clients,  helping them comply with evolving cryptocurrency regulations and strengthen their anti-money laundering efforts.

The initiative responds to increasing complexities and frequencies of frauds in the digital asset sector, with Chainalysis’ 2023 Crypto Crime Report pointing to a record illicit crypto transaction volume of $20.6 billion.

The industry has been facing sophisticated threats, including wallet hacks, SIM swaps, and significant losses, like the recent $114 million theft from Poloniex's hot wallets.

Last year, KPMG Canada stepped into the metaverse by opening its first collaboration hub between its U.S. and Canadian units, adding Bitcoin and Ethereum to its balance sheet, and investing in digital art from the World of Women (WoW) NFT collection.

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