Tokenized stock pushback grows; FCA restricts six lenders

Six more companies, including Wells Fargo, Cisco and Marvell, have objected to listing tokenized versions of their stock on OKXICE, Reuters reported. That brings the total to 22. The venue is the first tokenized securities trading venue under the SEC's innovation exemption. McDonald's, Microsoft and Google were among earlier objectors, and the pushback may reflect issuer caution more than rejection of tokenization itself.

CoinDesk

A judge dropped the criminal probe into President Javier Milei and 10 others over the LIBRA token. The 60-page ruling concluded that Milei's post promoting the token did not, by itself, establish fraud and found no criminally relevant deception.

The Block, CoinDesk

The FCA has placed restrictions on six unregulated lenders, known as Annex 1 firms, after raising concerns about their anti-money laundering policies, controls and procedures while assessing their applications. The restrictions were imposed at each firm's own request. They limit the firms' ability to take on new customers or do new business with existing customers, including extending existing credit.

FCA

The FCA has banned Jeffrey Dawkins, former chief executive of Vector Wealth Ltd, and fined him nearly £270,000. The regulator says he dishonestly acted as a front for a disqualified director who used the company to sell high-risk bonds. Dawkins sold the firm to that director in 2019. The misconduct led to £4m in losses.

FCA

An FCA review found private market firms vary in how well they identify and manage conflicts of interest. The regulator is calling on firms to manage conflicts in line with the sector's rapid growth. The UK is a leading international centre for private markets, which cover assets, companies and debt not traded on public exchanges.

FCA

Hong Kong's banking regulator has unveiled an AI framework focused on accountability, resilience and trust. It applies to financial institutions as they expand their use of artificial intelligence.

Compliance Week

ECB executive board member Piero Cipollone said in an interview that the digital euro would give people a cash-like payment instrument, with privacy and full coverage of payment needs, that works online. He gave Italian bankers an update on the legislative debate in Brussels and on Eurosystem preparations. Tokenisation was the main topic at the meeting.

ECB