Crypto Weekly Legal Expansions: Robinhood, Kraken, OKX, Coinbase, and More

Van Thanh Le

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Mar 15 2025

3 weeks ago4 minutes read

Robot balances UK flag and digital card in currency river

Robinhood to Pay $29.75 Million to Settle FINRA Compliance Investigations

Robinhood has agreed to pay $29.75 million to settle multiple investigations by the Financial Industry Regulatory Authority (FINRA) regarding its supervisory and compliance practices. This settlement comprises a $26 million civil penalty and $3.75 million in customer restitution. FINRA criticized Robinhood for not addressing significant "red flags" indicating potential misconduct, leading to violations in anti-money laundering, supervision, and disclosure. The investigations revealed that Robinhood Financial inadequately supervised its clearing processes, which resulted in notable delays during the heightened trading activity from March 2020 to January 2021. The settlement highlights serious concerns about Robinhood's operational oversight.

Kraken Gains UK EMI License to Boost Payment Services and Expand Offerings

Kraken has secured an Electronic Money Institution (EMI) license from the UK's Financial Conduct Authority (FCA), enabling the exchange to issue electronic money and improve deposit and withdrawal services for UK customers. This regulatory approval allows Kraken to collaborate with traditional financial institutions and expand its offerings, coinciding with a rise in crypto adoption in the UK, where over seven million adults (12% of the population) hold crypto assets. Additionally, Kraken has noted increased GBP-denominated trading volumes, marking the UK as a crucial market. This license follows their recent compliance under the EU’s MiFID framework, enhancing their position as a bridge between crypto and traditional finance. With plans for an initial public offering (IPO) in Q1 2026 and a favorable regulatory climate following the dismissal of SEC charges against them, Kraken aims to introduce new products and strengthen its operations in the UK market.

Coinbase Makes Comeback in India After Securing Regulatory Approval

Coinbase is set to re-enter the Indian market after securing regulatory approval from the Financial Intelligence Unit (FIU), signaling a significant shift in India's evolving crypto landscape. Following its exit in 2022 due to pressure from the Reserve Bank of India, Coinbase aims to launch retail trading services and expand into investment products by the end of 2025. Despite a 30% tax on crypto profits and a 1% tax on transactions, India has become the fifth-largest nation for crypto adoption, with millions actively engaged in trading. Major exchanges like CoinDCX and WazirX dominate the local scene, while platforms such as Binance have found ways to operate despite regulatory hurdles. Coinbase's return could enhance market confidence, foster innovation, and establish best practices in compliance and security within India's growing digital finance sector, further shaping the future of cryptocurrencies in the country.

OKX Denies EU Probe Over Alleged Bybit Hack Fund Laundering Claims

OKX has refuted claims of an EU investigation over allegations that hackers tied to the Bybit breach funneled $100 million in stolen funds through its Web3 platform. Reports indicate that the European Securities and Markets Authority (ESMA) and national regulators met on March 6 to discuss the applicability of the EU's Markets in Crypto-Assets (MiCA) regulations to OKX amid rising regulatory scrutiny. OKX labeled the accusations as "misleading" and asserted that it is not being investigated, emphasizing that its self-custody wallet services are standard industry offerings. Despite these denials, regulators are scrutinizing the exchange's services, which could potentially be linked to the laundering of thefts from the February 2025 Bybit security breach, where around 400,000 Ethereum tokens valued at approximately $1.5 billion were stolen by North Korea's Lazarus Group. Bybit is now managing its crisis, seeking emergency liquidity from partners to stabilize operations.

Ripple Lawsuit Nears Conclusion as SEC Weighs XRP vs. Ethereum Comparison

The long-running lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs may soon conclude, with crucial discussions comparing Ripple's XRP to Ethereum (ETH). Fox Business reported that while both XRP and ETH were issued through ICOs to fund platform development, ETH has evolved into a commodity, unlike XRP, which the SEC continues to view as a security following allegations of raising $1.3 billion unlawfully. A critical ruling by Judge Analisa Torres in July 2023 stated that Ripple's programmatic XRP sales were not securities violations, but institutional sales were. Ripple is negotiating the implications of a $125 million fine and a permanent injunction against selling XRP to institutional investors. With new SEC leadership, there are hopes for clearer regulatory guidelines. Notably, Franklin Templeton recently filed for a spot XRP ETF. As of now, XRP's price is up 1% at $2.25, indicating ongoing market interest amidst legal uncertainties.

OKX Europe Secures MiFID II License, Expanding Regulated Derivatives Across EEA

OKX Europe has made significant strides in expanding its services by acquiring a Markets in Financial Instruments Directive II (MiFID II) license, enabling it to offer regulated derivatives across the European Economic Area (EEA). This acquisition facilitates secure institutional trading for clients in 30 EU member states, with operations set to commence upon receiving the final licensing agreement from the MFSA. OKX is also the first global crypto exchange to secure a full Markets in Crypto-Assets (MiCA) license, which allows it to provide localized services in 28 EEA markets. The platform offers extensive trading options, including over 240 cryptocurrencies and 300 trading pairs. OKX aims to boost customer satisfaction through improved KYC procedures and payment methods while establishing a strong local presence in Europe via partnerships and events. This move underscores the company's commitment to regulatory compliance and creating a secure digital asset ecosystem in the region.

Vermont Drops Legal Case Against Coinbase’s Staking Services

Vermont has dropped its legal case against Coinbase regarding its staking services, marking a significant win for the exchange following the SEC's dismissal of its lawsuit in February 2025. Coinbase's chief legal officer, Paul Grewal, emphasized that staking services are not securities and praised Vermont for providing clarity for digital asset owners. Vermont was among ten states that took legal action against Coinbase in 2023, arguing that its staking services violated securities laws. The dismissal follows a shift in the SEC's regulatory approach under new leadership, moving towards a more pro-crypto stance. The Vermont Department of Financial Regulation rescinded its Show Cause Order, stating it was in the best interests of justice to do so due to anticipated federal regulatory guidance. This change reflects a wider trend as the new administration in the White House alters the regulatory landscape for cryptocurrency-related services.

Court Approves 3AC's $1.53B Claim Against FTX, Complicating Bankruptcy Proceedings

A U.S. Bankruptcy Court in Delaware has granted Three Arrows Capital (3AC) the right to expand its claim against FTX to $1.53 billion, up from $120 million, in a landmark ruling that dismisses FTX’s objections due to their failure to provide financial records. This decision, potentially influencing future cryptocurrency insolvency cases, raises concerns about FTX’s creditor repayments and complicates its bankruptcy proceedings. Notably, FTX had secretly liquidated $1.53 billion of 3AC’s assets weeks before 3AC's collapse, challenging prior narratives of reckless trading. FTX’s legal team warns that this ruling could reduce creditor recoveries by up to 20%. The ruling could force FTX to reassess its payout strategy, as Teneo estimates creditors are still owed $3.3 billion from various bankrupt entities. Additionally, regulatory scrutiny may increase, especially regarding asset liquidations, as 3AC also pursues a $1.3 billion claim against Terraform Labs amid ongoing legal challenges in the crypto sector.

This article has been refined and enhanced by ChatGPT.