{"id":38077,"date":"2023-07-20T05:54:20","date_gmt":"2023-07-20T09:54:20","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/nasdaq-abandons-crypto-custody-service-amid-u-s-regulatory-challenges\/"},"modified":"2023-07-20T05:54:21","modified_gmt":"2023-07-20T09:54:21","slug":"nasdaq-abandons-crypto-custody-service-amid-u-s-regulatory-challenges","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=38077","title":{"rendered":"Nasdaq Abandons Crypto Custody Service Amid U.S. Regulatory Challenges"},"content":{"rendered":"
\n

Nasdaq has scrapped plans for a cryptocurrency custody service amid recent regulatory challenges.\u00a0<\/p>\n

During an earnings call on Wednesday, Nasdaq CEO Adena Friedman said the company has chosen to abandon its plans due to the changing business and regulatory landscape in the United States.<\/p>\n

\u201cConsidering the shifting business and regulatory environment in the U.S., we\u2019ve made the decision to halt our launch of the U.S. digital assets custodian business and our related efforts to pursue a relevant license,\u201d she said.\u00a0<\/p>\n

\n

\u201cHowever, we continue to build and deliver technology capabilities that position Nasdaq as a leading digital asset software solutions provider to the broader global industry.\u201d<\/p>\n<\/blockquote>\n

Friedman explained that the decision comes even as Nasdaq has put in significant effort to establish the necessary infrastructure and gain regulatory approval for the custody service.\u00a0<\/p>\n

In fact, the firm had even applied to the New York Department of Financial Services (NYDFS) for a limited-purpose trust company to oversee the custody business.<\/p>\n

The CEO noted that Nasdaq will continue to engage with crypto companies, partnering with potential exchange-traded fund (ETF) issuers.\u00a0<\/p>\n

\u201cMore broadly, we remain committed to supporting the evolution of the digital asset ecosystem in a variety of ways, among them through our ongoing engagement with regulators, the delivery of comprehensive technology solutions across the trade life cycle and through our partnerships with potential ETF issuers to support tradable exchange listed products,\u201d Friedman added.<\/p>\n

Nasdaq’s Crypto Custody Was Much-Anticipated<\/h2>\n

As reported, Nasdaq announced back in March that it aims to launch its much-anticipated crypto custody service by the end of the second quarter to meet the increasing institutional interest and demand for crypto services.\u00a0<\/p>\n

Custody services are considered a critical component for institutional investors who want to navigate the crypto asset class securely, providing secure storage solutions and safeguarding digital assets against theft or loss.<\/p>\n

The unit was expected to initially offer custody services for Bitcoin and Ether, with plans to include other services, including execution services and liquidity services, over time.\u00a0<\/p>\n

Meanwhile, Nasdaq’s decision to bail on its crypto custody plans highlights the challenges that financial institutions face when trying to enter the cryptocurrency space.<\/p>\n

This is specifically true in the light of heightened scrutiny of crypto firms by US regulatory agencies the Securities and Exchange Commission and the Commodity Futures Trading Commission.\u00a0<\/p>\n

Last month, the SEC\u00a0sued both\u00a0Binance<\/strong>, the world’s largest cryptocurrency exchange, and\u00a0Coinbase<\/strong>, the largest US-based cryptocurrency\u00a0exchange.\u00a0<\/p>\n

The commission has also taken enforcement action against crypto exchanges\u00a0Kraken\u00a0<\/strong>and\u00a0Bittrex<\/strong>, as well as crypto lending platform\u00a0Nexo<\/strong>\u00a0so far this year.\u00a0<\/p>\n

Just recently, Congressman Ritchie Torres\u00a0wrote an open letter to SEC Chairman Gary Gensler, expressing his discontent with the agency\u2019s failure to issue clear guidance to the cryptocurrency industry.<\/p>\n

\u201cUnder Chair Gensler, the SEC has not issued a single rule on crypto assets, nor has it given any clear guidance,\u201d said Torres. \u201cAll it has done is sent mixed messages, one after the [other], not only contradicting the CFTC but often contradicting itself.\u201d<\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Nasdaq has scrapped plans for a cryptocurrency custody service amid recent regulatory challenges.\u00a0 During an earnings call on Wednesday, Nasdaq CEO Adena Friedman said the company has chosen to abandon its plans due to the changing business and regulatory landscape in the United States. \u201cConsidering the shifting business and regulatory environment in the U.S., we\u2019ve […]<\/p>\n","protected":false},"author":1,"featured_media":38079,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-38077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"\nNasdaq Abandons Crypto Custody Service Amid U.S. Regulatory Challenges | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Nasdaq has scrapped plans for a cryptocurrency custody service amid recent regulatory 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