The Scenius State of Regulation (Issue #28)
Crypto Policy & Regulation: November 2024
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
Patronis recommended for the state’s retirement fund to diversify into cryptocurrencies earlier this month.
Plan a Crypto Mine Near a U.S. Military Base? Expect a Bigger Hassle Now. (November 1)
The U.S. Treasury Department issued a rule promising extra scrutiny for businesses near military sites, having already targeted a Chinese-backed crypto operation by a Wyoming missile base.
Crypto Super PAC Amasses $78 Million...for 2026 Midterm Elections (November 4)
On the eve of the presidential election, the crypto industry is thinking ahead.
‘A New American Renaissance:’ Crypto Celebrates Trump’s Return (November 6)
Crypto advocates took a victory lap on Wednesday as the vast amounts of money they poured into the US elections yielded huge dividends.
The Crypto Industry Spent Over $130 Million on the Election. It Paid Off. (November 6)
The spending spree fueled a string of victories on Tuesday for congressional candidates who had expressed support for cryptocurrencies.
SEC Seeks Dismissal Of Kraken Defenses In Ongoing Legal Dispute (November 7)
The SEC argued that Kraken’s defenses about the major questions doctrine are a “due process fail as a matter of the law.”
Cryptocurrencies Tainted by SEC Suits Surge After Trump Victory (November 7)
More than a dozen tokens have been designated as securities, such as Uniswap and Polygon, are outperforming Bitcoin.
California Revokes BlockFi License for Unsafe Lending Violations (November 8)
California DFPI revokes BlockFi’s license, citing violations in loan practices and CFL non-compliance post-bankruptcy.
Detroit Residents Will Be Able To Pay Taxes With Crypto From Mid-2025 (November 8)
Detroit says the move to accept crypto as payment for taxes and other city services was part of a broader effort to “modernize and improve” its payment channels.
Crypto Pins Hopes on Reshaped SEC for Deal Revival Under Trump (November 8)
Industry has derided ‘regulation through enforcement’ by SEC as Trump has pledged to fire SEC chair, set up US Bitcoin reserve.
Alchemy Pay Expands US Compliance With Four New State Licenses (November 8)
Alchemy Pay’s new MTL licenses in Minnesota, Oklahoma, Oregon and Wyoming bring its total to eight US states.
CEO of Canadian Crypto Holding Returns Safely After Paying $720K Ransom: Report (November 8)
WonderFi CEO was forced into a vehicle but released after a ransom was paid.
A New Trump Administration May Boost Crypto, But The Devil Is In The Details (November 9)
The next four years should be ‘highly favorable’ to the digital assets sector, but thoughtful legislation will be critical.
FTX Sues Scaramucci to Recoup Money for Creditors (November 9)
The lawsuit says $67 million was invested into Skybridge endeavors, which FTX says investments conveyed ‘little to no benefit.’
Founder Of Bitcoin Fog Crypto Mixer Sentenced To 12.5 Years In Jail (November 9)
Bitfog founder Roman Sterlingov has been sentenced to 12.5 years in prison and forced to “pay a forfeiture money judgment” of around $395.5 million.
SEC Punts Decision On Options Trading For Spot Ethereum ETFs (November 9)
BlackRock, Grayscale, and Bitwise might have to wait until April 2025 for an options trading approval on their Ethereum ETFs.
FTX Sues Binance And Former Chief Changpeng Zhao For $1.8bn (November 11)
The estate of collapsed crypto exchange files lawsuit over an allegedly “fraudulent” share deal that it says was funded mostly by customers’ stolen money.
Alameda Research Files $90M ‘Aggressive’ Lawsuit Against Waves Founder (November 11)
FTX and Alameda’s “aggressive legal strategy” highlights the complexity of their financial issues after suing over 20 entities for funds, according to blockchain experts.
Judge Denies Ex-Celsius CEO’s Bid To Dismiss Fraud, Manipulation Charges (November 11)
A federal judge ruled that Alex Mashinsky’s legal team’s arguments to dismiss two of his seven criminal charges were “either moot or without merit.”
‘Bitcoin Jesus’ Fights IRS Tax Evasion Case From Spanish Island (November 12)
The longtime crypto investor Roger Ver, who renounced US citizenship in 2014, is charged with underreporting value of token holdings.
US Asks to Seize Crypto Tied to Bankman-Fried Bribery Charge (November 12)
Prosecutors sued to obtain digital currency that the government said was in an account connected to bribes paid to Chinese officials before FTX collapsed.
Crypto Industry Lobbies Trump and His Allies to Capitalize on Election Wins (November 13)
As Bitcoin soars to record highs, cryptocurrency executives are maneuvering to influence Donald J. Trump’s transition and secure their policy goals.
SEC Approves Coincheck As First Japanese Crypto Exchange On Nasdaq (November 13)
The move, set to occur through a merger with Thunder Bridge Capital Partners (TBCP), marks the first time a Japanese crypto exchange will be listed on a US stock exchange.
Trump Victory Tipped To Break Logjam Of Exotic US Crypto ETF Filings (November 14)
The SEC has only allowed spot bitcoin and ether ETFs, while Europe has ETPs invested in about 30 cryptocurrencies.
18 States Sue SEC, Gensler For ‘Regulatory Overreach’ On Crypto (November 14)
The states, led by Kentucky Attorney General Russell Coleman, argue that the SEC has sought to “unilaterally wrest regulatory authority away from the States” on crypto enforcement.
Pennsylvania Introduces Bill To Use $7 Billion State Fund For Bitcoin Strategic Reserve Purchases (November 14)
Satoshi Action Fund announced up to 10 more states are likely to follow suit this year.
Trump Administration 2.0: How the SEC's Approach to Crypto Could Change (November 15)
President Trump will be able to appoint a new chair of the Securities and Exchange Commission who could decide to take a different approach to crypto than has been taken under the leadership of the current chair, Gary Gensler.
Founder of Crypto ‘Mixer’ Helix Sentenced to Three Years (November 15)
Larry Dean Harmon was also ordered to forfeit more than $400 million worth of assets.
Crypto Policy Outlook in the Trump Administration (November 15)
Changes to the SEC’s approach to enforcement around digital assets are likely to be the first meaningful steps the Trump administration will carry out in this space.
New SDNY US Attorney to Cool Down Crypto Crackdowns after Bankman-Fried Conviction (November 15)
The SDNY plans to scale back crypto prosecutions, focusing instead on high-profile cases like Sam Bankman-Fried'sappeal.
Helix Mixer Founder Sentenced to 3 Years for $300 Million Laundering (November 16)
Larry Harmon, creator of the darknet mixer Helix, received a three-year sentence for laundering $300 million, aiding illicit transactions.
BIT Mining to Pay $10 Million Penalty Over Bribery Allegations (November 18)
The cryptocurrency-mining company’s former top executive was indicted in connection with the allegations.
Trump Considers Former Binance.US CEO to Head Several Regulator Agencies (November 18)
Trump considers ex-Binance.US CEO Brian Brooks for financial regulator positions, excluding CFTC Chair.
California Judge Rules DAO Members Liable Under Partnership Laws (November 19)
A16z Crypto’s Miles Jennings posted on X that the ruling is a “huge blow” to decentralized governance.
Looking For A Crypto Scam? You Might Find It Here (November 20)
The California Department of Financial Protection & Innovation has created an online "Crypto Scam Tracker" that allows the public to by search company name, scam type, or keywords.
FDIC Chair, ‘Architect Of Operation Chokepoint 2.0’ Martin Gruenberg To Resign Jan. 19 (November 20)
Martin Gruenberg is set to exit as FDIC chair, with Representative Tom Emmer blasting him as “an architect of Operation Chokepoint 2.0.”
SEC Distributes $4.6M to BitClave Investors (November 20)
The SEC sued BitClave in 2020, alleging that it violated securities laws in the course of its $25.5 million initial coin offering in 2017.
CFPB Spares Self-Hosted Crypto Wallets From New Fintech Regulations (November 21)
The CFPB's strategic choice reflects a cautious approach to crypto regulation, focusing instead on traditional fintech platforms.
US Cracks Down on Cartel-Linked Crypto Laundering Syndicate (November 22)
A Florida grand jury indicted nine individuals for laundering drug cartel funds through crypto, spanning 2020 to 2023.
Trump Team Considers Creating First-Ever White House Crypto Role (November 22)
Bloomberg reported major crypto players are pushing for the role to have a direct line to the president himself.
SEC Dealer Rule Overturned: Hedge Funds and Crypto Groups Win (November 22)
Judge Reed O’Connor rules the SEC overstepped its authority, striking down a dealer registration rule for US Treasuries trading.
CFTC Report Endorses Tokenizing Trading Collateral (November 22)
Distributed ledger technology can help solve longstanding challenges in US financial markets, the report says.
Frozen Crypto (November 25)
The IRS released an Office of Chief Counsel memorandum, which detailed when frozen digital asset rewards held on bankrupt digital asset platforms should be included in gross income.
Tether Was An Outlaw For Years. Now The $132 Billion Stablecoin Has A Key Ally In Trump’s Cabinet (November 25)
Tether has a key ally in the highest corridors of power: Howard Lutnick, CEO of U.S. financial services firm Cantor Fitzgerald, and President-elect Donald Trump’s pick for commerce secretary.
SEC Nets Record $8.2B In Enforcement, Mostly From Terraform Labs (November 25)
Terraform Labs’ $4.5 billion settlement with the SEC contributed to a record year for the agency’s financial penalties.
Court Overturns US Sanctions Against Cryptocurrency Mixer Tornado Cash (November 27)
A U.S. appeals court ruled the U.S. Treasury Department acted outside its authority when it sanctioned cryptocurrency mixer Tornado Cash in 2022 and accused it of helping launder over $7 billion for North Korean hackers.
Bitcoin Gets Boost as Crypto Supporters Vie to Head US Regulators (November 27)
Crypto supporter Paul Atkins has emerged as a top candidate to replace Gary Gensler as SEC chair.
Lawsuits Could Be Catastrophic For DAOs If Denied ‘Limited Liability’ (November 27)
The VC firms sued in a California case were active in DAO management, much like general partners, said the court. They could face hefty lawsuits.
US Judge Supports Crypto Miner In Chinese Ownership Dispute (November 27)
A federal judge has temporarily halted Arkansas laws targeting foreign crypto mining firms, citing potential constitutional violations.
Trump Administration Mulling Giving CFTC Reins To Crypto Regulation (November 27)
Donald Trump’s incoming administration is mulling handing over the regulation of crypto exchanges and spot markets for cryptocurrencies deemed commodities to the Commodity Futures Trading Commission (CFTC).
Judge Denies Appeal From Promotor Accused In $18M Crypto Fraud Case (November 27)
Kristoffer Krohn unsuccessfully argued in his appeal that the SEC had not established that the Green Boxes were securities offerings or investment contracts in its complaint.
US Treasury Under Trump Could Take A Different Approach To Tornado Cash (November 27)
Tornado Cash developers are facing criminal charges and affected parties have civil lawsuits pending against the US Treasury over sanctioning the crypto mixer.
Former CFTC Chair Predicts SEC Will Drop Ripple Case (November 28)
Former Commodity Futures Trading Commission (CFTC) Chair Chris Giancarlo has predicted that the United States Securities and Exchange Commission will drop the case against Ripple.
Why Costa Rica Is Taking a Hands-Off Approach to Regulating Crypto (November 28)
The Costa Rican government is keeping a watchful eye on crypto experiments in the country, says former deputy Jorge Eduardo Dengo Rosabal.
Celsius To Distribute Additional $127M From ‘Litigation Recovery Account’ (November 28)
The debtor’s estate for the failed crypto lending platform announced a second payout of $127 million to creditors, but some are still unhappy.
Brian Armstrong, Elon Musk Slam Biden Administration Over ‘Mass Debanking’ (November 29)
They accused prominent political figures, including Senator Elizabeth Warren and SEC Chair Gary Gensler, of orchestrating a “mass debanking” campaign targeting the technology and cryptocurrency sectors during the Biden administration.
'Government Has Become Addicted To Indirect Regulation' — Ripple CTO (November 30)
Ripple chief technical officer David Schwartz recently joined the list of tech founders speaking out against Operation Chokepoint 2.0 — a government-run debanking operation against the crypto industry.
Middle East & Africa 🌍
Pakistan Moves To Regulate Cryptocurrency, CBDCs As Legal Tender (November 4)
The proposed amendments would allow for sweeping changes to the country’s financial sector.
Morocco Preparing Law To Allow Cryptocurrencies, Central Bank Chief Says (November 26)
Cryptocurrencies have been banned in Morocco since 2017, but the public continues to use them underground, circumventing restrictions.
New Memorandum Of Law Regulating The Crypto Sector In Israel (November 26)
This memorandum recognizes digital assets for the first time as capital assets subject to capital gains tax and is the first in a series of intended to advance the regulation of this sector.
Irani Central Bank Eyes CBDC, Fintech Progress To Combat Sanctions (November 26)
Iran's digital rial will leverage Shetab network for rapid transactions, boosting the nation's modern banking status within the region.
Europe 🌍
Has Russia Really ‘Legalized’ Cryptocurrency Mining? (November 1)
Russia’s crypto mining laws have filled the “regulatory vacuum,” but there is still a lot of legal uncertainty about many aspects of regulation.
Crypto.Com Faces Scrutiny In Poland As Regulator Issues Public Warning (November 7)
Polish authorities have issued a cautionary alert on Crypto.com’s operations, citing possible regulatory noncompliance but stopping short of a ban.
France Considering Polymarket Ban After Local Trader Makes $80 Million On Trump Win (November 7)
National Gaming Authority may block Polymarket, citing gambling concerns despite platform's blockchain appeal.
Norway Supports MiCA, Considers CBDC For Financial Stability (November 9)
Norges Bank backs the EU’s MiCA regulation while considering a CBDC to enhance cross-border payments and support financial stability in Norway.
Italy Poised to Water Down Proposed 42% Tax on Crypto Trading (November 12)
The League, a junior partner in Meloni’s coalition, has put forward an amendment to limit the increase to 28%.
Bitget Relaunches UK Platform After Compliance Update With FCA Rules (November 12)
Bitget’s app relaunch in the UK comes a few months after the exchange restricted its website in the UK in accordance with the Financial Promotions regime in May 2024.
EU’s New Guidance: Travel Rule to Combat Money Laundering in Crypto (November 12)
This guidance can be expected to affect the activities of cryptographic asset service-providers (CASPs) in the European Union, including crypto exchanges, crypto wallet-providers, cryptocurrency issuers and intermediary CASPs.
The Italian Law Implementing the EU MiCar Regulation: A "MiFIDisation" of Crypto-Assets? (November 13)
The approach adopted by the Italian legislator – which does not seem to us to deviate from the approach of the European Union - follows in the wake of principles used for other categories of supervised entities.
UK Government Plans Pilot for a Digital Gilt Instrument Using Distributed Ledger Technology (November 14)
Chancellor Rachel Reeves will mention the DLT-based digital gilt instrument in her first annual speech laying out her long-term vision.
Crypto Exchange Gemini Starts Up in France With EU's MiCA Laws Weeks From Kicking In (November 19)
Companies registered in EU nations by year-end will be able to continue operating while they secure licenses under MiCA regulations that take effect at the end of the year.
Polymarket Blocks French Users Amid Regulatory Probe (November 22)
Polymarket has chosen a cautious approach toward compliance as French authorities scrutinize its operations amid soaring user interest.
What The UK’s FCA Is Focused On While Drawing Up Its Crypto Regime (November 26)
The FCA’s director of payments and digital assets shared some takeaways from chats with crypto companies and law firms.
Ex-Binance Executive Brings Whistleblower Claim Alleging Bribery (November 28)
The executive sued the cryptocurrency exchange in the UK for whistleblowing, claiming a colleague asked for a bribe from a customer in order to give them preferential treatment.
Coinbase To Halt USDC Earn Program On MiCA Compliant Regions (November 28)
The exchange mentions the new requirements for e-money tokens as the reason behind the USDC-related service shutdown.
Russia Formalizes Taxation Framework For Crypto, Mining (November 28)
The legislation provides legal clarity and incentives, exempting certain crypto activities from VAT to boost Russia's digital economy.
Court Blocks ‘Faketoshi’ Craig Wright’s Appeal In Bitcoin Creator Case (November 29)
The UK Court of Appeal suggested that Craig Wright’s appeal grounds contained “multiple falsehoods,” including reliance upon some “fictitious authorities.”
Central Banks Favor Legacy Instant Payment Systems Over CBDCs (November 29)
TradFi looks safe on the international payments market for the foreseeable future, despite advances in blockchain solutions.
Australia 🇦🇺 & Oceania
Kraken Launches Licensed Crypto Derivatives In Australia (November 4)
Kraken expands into Australia’s crypto derivatives market with a regulated broker service for wholesale investors.
Australia Begins Consultation On OECD Crypto Reporting Framework (November 24)
Australia’s Treasury seeks input on implementing the crypto-asset reporting framework within its domestic tax laws.
Latin America 🌍
In El Salvador, Crypto Investors Cheer Trump-Powered Bitcoin Rally (November 15)
The Central American country is hyping its status as a hub for the promotion of digital currency trading.
An Interview With El Salvador’s Top Crypto Regulator: ‘Developing Countries Can Lead the Financial Revolution’ (November 18)
The National Commission of Digital Assets is the agency in charge of regulating crypto in El Salvador, the first nation to accept bitcoin as legal tender.
Bitfinex Securities Debuts Tokenized US T-Bills Under El Salvador Laws (November 19)
Bitfinex Securities’ initial offering targets to raise a minimum of $30 million to proceed with the issuance of the token that will be traded under the ticker USTBL.
Brazilian Congressman Introduces Bill For National Bitcoin Reserve (November 29)
Eros Biondini’s proposal parallels US politicians’ efforts to similarly create a national bitcoin reserve.
Asia 🌏
Singapore Advances Asset Tokenization With New MAS Frameworks (November 4)
The Monetary Authority of Singapore is pulling together the projects and participants needed for the next step in its asset tokenization trials.
Chinese Nationals Gain Access to Stablecoins in Hong Kong Via New Trial (November 8)
The Hong Kong-based trials will allow for registration on a regulated stablecoin app and the purchase of tokenized financial products.
Singapore, France Monetary Authorities Test Quantum-Proof Security (November 8)
The MAS and BDF experimented with post-quantum email security as a first step in securing payment networks.
South Korean Police Arrest 215 in Suspected $232M Crypto Investment Scam Investigation: Yonhap (November13)
The scheme promised 20x returns through investing in tokens that in reality had little value.
SCB 10X Debuts Rubie Wallet With Thai Baht And US Dollar Stablecoins (November 14)
SCB rolled out a convenient and inexpensive stablecoin wallet that is sure to appeal to tourists in Thailand.
Bengali Man Arrested In Connection With $235M WazirX Crypto Heist (November 14)
Delhi Police made a breakthrough in the WazirX hacking case, arresting a key suspect in West Bengal.
Hong Kong Watchdog Issues Warning About Foreign Entities Pretending To Be Crypto ‘Banks’ (November 15)
The HKMA warned that overseas crypto firms illegally posing as banks may mislead consumers about licensing.
Nepal To Fight Crypto Fraud With Public Awareness, Transaction Monitoring (November 18)
The Financial Intelligence Unit of Nepal has identified growing crypto-related fraud despite a trading ban and proposed transaction monitoring, awareness campaigns and stricter regulations.
South Korean City Threatens To Sell Crypto Of Tax Debtors (November 18)
Paju city officials in South Korea targeted citizens with unpaid taxes, threatening to seize and sell their crypto assets if debts are not cleared by the end of November.
Indian Central Bank In ‘No Hurry’ To Rollout CBDC Nationwide (November 20)
India's cautious CBDC strategy focuses on financial stability as Reserve Bank assesses long-term impacts of e-rupee.
Shanghai Judge Says Cryptocurrency Is A Commodity, Legal To Own (November 20)
Shanghai Judge Sun Jie calls virtual currency a commodity with property attributes in a commentary on a 2017 business dispute.
Japan Passes Stimulus Package, Commits To Crypto Tax Reform (November 20)
Proposed changes include taxing cryptocurrency at a 20% flat rate instead of the current variable ‘miscellaneous income’ rate.
BitGo Launches Singapore Services, Eyes Other Crypto-Friendly Regions in Asia (November 21)
The company received a license from the local regulator in August.
South Korea’s Virtual Asset Deposit Platform Delio Declared Bankrupt With $1.75B In Assets Lost (November22)
A creditors' meeting will be held in March, but their funds reportedly disappeared into the chaos of the FTX collapse.
Hong Kong Plans Crypto Tax Break For Hedge Funds And Billionaire Families (November 27)
The Chinese territory is competing with Singapore and Switzerland to become the top offshore finance hub.
Taiwan Enforces AML Registration Mandate For Crypto Providers (November 29)
Taiwan accelerates its crypto AML mandate, imposing stricter registration rules and penalties for noncompliance.