The Scenius State of Regulation (Issue #12)
Crypto Policy & Regulation: July 2023
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
BlockFi Bankruptcy Plans Opposed by FTX, Three Arrows, and SEC (July 6)
Multiple defunct crypto companies are now scrambling to resolve complex financial ties as they seek to repay creditors and customers.
Bittrex Faced Enforcement Action From Florida Regulator Ahead of Bankruptcy (July 6)
The state's financial regulator accused the U.S. firm of violating multiple state laws, and advised the company on how to explore settlement avenues, court filings show.
Big Banks, NY Fed’s Innovation Group See Merit in Digital Ledgers for Global Payments (July 6)
NY Fed’s innovation center worked with Citi, HSBC and other banks on the concept of a network for wholesale payments on a shared ledger, finding the idea has potential benefits.
FBI agents searched Powell's Los Angeles home as it probes whether he interfered with computer accounts of Verge Center for the Arts. A lawyer for Powell said he's done "nothing wrong" and unrelated to "his conduct in the cryptocurrency arena."
BOND Token Slumps 10% as BarnBridge Faces SEC Investigation (July 6)
Team members of the decentralized finance (DeFi) protocol BarnBridge are being investigated by the U.S. Securities and Exchange Commission (SEC) in the latest regulatory tussle faced by a crypto company in the country.
Gemini Sues Digital Currency Group and Founder Barry Silbert Alleging 'Fraud' (July 7)
The lawsuit is the latest escalation by Gemini, which is trying to recover funds for its Earn program held by DCG subsidiary Genesis.
Coinbase Knew It May Have Been Violating the Law Prior to the SEC's Lawsuit, Regulator Claims (July 7)
Coinbase acknowledged the possibility that federal securities laws would apply to its listings years ago, the U.S. Securities and Exchange Commission (SEC) argued in a new filing Friday.
U.S. Senator Tuberville Asks DOJ, SEC to Investigate Crypto Broker Prometheum (July 10)
U.S. Senator Thomas Tuberville (R-Ala.) wrote an open letter on Monday to Attorney General Merrick Garland and SEC Chair Gary Gensler asking them to investigate Prometheum, a special-purpose broker that recently secured federal permissions to offer crypto trading services.
Grayscale Argues Leveraged Bitcoin Futures ETF Approval Shows Spot ETF Should Be Approved (July 10)
Lawyers for Grayscale, a crypto asset manager, criticized regulators on Monday for approving a leveraged bitcoin-based exchange traded fund (ETF) amid the company's lawsuit over the SEC’s rejection of its own spot bitcoin ETF application, according to a letter the company tweeted.
DOJ Charges Moroccan Man With Stealing $450K in OpenSea Spoofing Scam (July 10)
The indictment, issued by the United States Attorney for the Southern District of New York, alleges Soufiane Oulahyane, a Moroccan national, operated a look-alike website of popular NFT marketplace OpenSea to obtain unauthorized access to digital assets and NFTs in a cybercrime technique known as "spoofing."
Former FTX Executive Linked to Campaign-Finance Probe of New York GOP Race (July 11)
Federal prosecutors in Manhattan are investigating former FTX executive Ryan Salame and his girlfriend, ex-congressional candidate Michelle Bond, for possible violations of campaign-finance law, according to people familiar with the matter.
U.S. Department of Justice Arrests Engineer Over $9M Crypto Theft (July 11)
The DOJ alleged that Shakeeb Ahmed was able to "fraudulently obtain" $9 million worth of crypto from an unnamed decentralized cryptocurrency exchange (DEX) by creating fake pricing data to generate fees that he was then able to withdraw. Police arrested Ahmed on Tuesday.
Celsius Sues StakeHound for Failing to Return $150M Worth of Tokens (July 12)
Bankrupt crypto lender Celsius is suing liquid staking platform StakeHound over the platform's alleged failure to return $150 million worth of ether (ETH), Polygon's MATIC, Polkadot's DOT, and other tokens.
U.S. Senate Finance Committee Asks Crypto Industry for Tax Guidance (July 12)
In a letter made public on Tuesday, Chairman Ron Wyden and Ranking Member Mike Crapo posed a series of questions around nine subjects including loans of digital assets, wash sales and staking and mining.
A Second Round of the Lummis-Gillibrand Crypto Bill Elevates CFTC, Defines DeFi (July 12)
The crypto industry needs the U.S. Senate if it’s going to get U.S. regulation, and this bill represents the widest-reaching effort to yet emerge from that body. Last year’s inaugural bill from the bipartisan duo failed to make significant progress, and the wishes of key figures such as Sen. Sherrod Brown (D-Ohio), the chairman of the Senate Banking Committee, remain murky this year.
Digitex Founder Ordered to Pay $16M to Resolve CFTC Action, Banned From Trading (July 12)
The founder of crypto exchange Digitex, Adam Todd, has been ordered by a federal court to pay almost $16 million to resolve accusations that he ran an illegal platform and sought to manipulate its native token, DGTX, the U.S. CFTC said in a Wednesday statement.
FTX Bankruptcy Lawyers Ask Court for $323M Recovery From FTX Europe Leadership (July 13)
Lawyers on behalf of FTX Trading Ltd. and Maclaurin Investments Ltd. (owned by Alameda Research, the hedge fund arm of the bankrupt FTX empire) asked the court to order the return of funds transferred to Patrick Gruhn, Robin Matzke, Brandon Williams, and Lorem Ipsum UG, the leadership of FTX Europe.
Celsius Network’s Alex Mashinsky Is Arrested as SEC, CFTC, FTC Sue Bankrupt Crypto Lender (July 13)
Alex Mashinsky, co-founder and former CEO of insolvent crypto lender Celsius, was arrested in New York on Thursday following an investigation into the company's collapse, the U.S. Department of Justice (DOJ) confirmed to CoinDesk.
Ripple, Crypto Industry Score Partial Win in SEC Court Fight Over XRP (July 13)
Ripple scored a partial victory in its fight with the U.S. Securities and Exchange Commission in a court ruling that brought a modicum of regulatory clarity for the cryptocurrency industry. The sale of Ripple’s XRP tokens on exchanges and through algorithms did not constitute investment contracts, the U.S. District Court of the Southern District of New York ruled Thursday. But the institutional sale of the tokens did violate federal securities laws, the court said.
Coinbase, SEC Spar Over Definition of Securities, Nature of Staking in First Court Hearing (July 13)
In a pre-motion hearing Thursday that lasted over two hours – including a brief recess where both parties huddled to digest a federal judge’s ruling on the SEC’s separate Ripple lawsuit – Judge Katherine Polka Faila, of the U.S. District Court for the Southern District of New York, questioned both sides on a range of topics, from the definition of staking to Coinbase’s IPO filings to the use of the major questions doctrine.
Celsius Reorganization Not Affected by $4.7B Settlement With U.S., Bankrupt Crypto Lender Says (July 13)
Bankrupt crypto lender Celsius Network said its $4.7 billion settlement with the U.S. over fraud allegations won't affect its reorganization or the amount it recovers for customers.
Ex-Celsius CEO Alex Mashinsky's Bail Set at $40M, Travel Restricted (July 14)
Mashinsky pleaded not guilty to seven counts, relating to misleading investors and manipulating the price of his CEL token after being arrested on Thursday, the court document said.
Congressman Torres Calls for Investigation Into SEC Over its Approach to Crypto (July 14)
Rep. Torres (D-N.Y.) requested investigations into the SEC granting a special purpose broker-dealer (SPBD) license to Prometheum, "a trading digital assets platform that does not trade digital assets," under unusual circumstances, and for its failure to create a rigorous but workable process for registering real-world digital assets platforms.
SEC Launches Review of Latest Bitcoin ETF Applications (July 17)
The SEC has asked for comments on all five of Cboe’s ETF applications: Wise Origin, WisdomTree, VanEck, Invesco Galaxy and ARK 21Shares. In separate documents, it also asked for comments on BackRock's iShares Bitcoin Trust, filed on Nasdaq, and Bitwise's Bitcoin ETP Trust, filed on NYSE Arca.
BlockFi Bet Big on FTX and Alameda Even After Seeing Infamous Balance Sheet, Creditors Say (July 17)
Cryptocurrency lender BlockFi misled investors, cut corners and bet big on FTX even after seeing a secret balance sheet that revealed fundamental flaws in Sam Bankman-Fried’s empire, BlockFi creditors said.
Ron DeSantis Promises to Ban CBDCs if Elected President (July 17)
“Done, dead, not happening in this country,” said DeSantis at the Family Leadership Summit in Iowa last Friday. “If I am the president, on day one, we will nix central bank digital currency.”
SEC's Gensler 'Disappointed' by Part of Ripple's XRP Judgement, Still Assessing Opinion (July 17)
SEC Chair Gary Gensler said Monday that he was disappointed with a district court's decision in the Ripple case regarding retail investors, but pleased with the part of the order which found that institutional sale of the tokens did violate federal securities laws.
Coinbase CEO Brian Armstrong to Meet House Democrats About Crypto Legislation: Bloomberg (July 17)
Coinbase (COIN) CEO Brian Armstrong will meet Democrats from the House of Representatives in Congress behind closed doors Wednesday morning with the crypto exchange embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC), Bloomberg reported Monday citing Democratic aides familiar with the plans.
Coinbase Earn Is Particularly Vulnerable to Being Defined as a Security: Berenberg (July 18)
Investors were reminded of Coinbase’s significant regulatory challenges after Friday’s market close, when the crypto exchange disclosed it had suspended retail staking services in four of the 10 states that say its staking offerings represent securities, investment bank Berenberg said in a research report Monday.
Ripple Court Ruling Unlikely to Impact Celsius Wind-Up, Crypto Lender’s Counsel Says (July 18)
A landmark judgment about whether the Ripple-linked XRP token is a security is unlikely to impact plans for the wind-up of bankrupt crypto lender Celsius, the bankrupt crypto lender’s counsel told a New York court on Tuesday.
Deadlines for U.S. Spot Bitcoin ETF Approvals Come Into Sight (July 18)
The clock starts ticking this week for the SEC’s decision on whether to approve or reject six applications – including BlackRock's – to list a spot bitcoin exchange-traded funds (ETFs).
U.S. Secret Service Seizes Funds From Bahamian Bank Deltec Amid Fraud Investigation (July 18)
U.S. authorities seized funds belonging to Deltec, a Bahamian bank that serves crypto firms, in June amid an investigation into international money laundering, wire and bank fraud, federal documents show.
GOP Lawmakers Suggest Gensler's SEC Is Gaming News Cycle to Thwart Crypto Legislation (July 19)
Two Republican members of the U.S. House of Representatives criticized the SEC’s approach to regulating cryptocurrency and suggested the regulator's actions were timed to overshadow and undermine efforts to write comprehensive legislation.
RFK Jr. Vows to Back Dollar With Bitcoin, Exempt BTC From Taxes (July 19)
The Democratic presidential hopeful also reiterated a May stance defending the right to self-custody bitcoin, run blockchain nodes at home and promising industry-neutral energy regulation.
Nasdaq Halts Plan for Crypto Custody Service Due to U.S. Regulatory Conditions (July 19)
Nasdaq (NDAQ) is dropping its plans for a crypto custody service, which was slated to go live in the second quarter of this year, CEO Adena Friedman said in an earnings call on Wednesday.
New U.S. Senate Bill Wants to Regulate DeFi Like a Bank (July 19)
The U.S. Senate is poised to take another crack at regulating the crypto industry with a new bill that would place stringent anti-money laundering (AML) requirements on decentralized finance (DeFi) protocols. The bipartisan bill, the Crypto-Asset National Security Enhancement Act of 2023, would require DeFi protocols to impose bank-like controls on their user base, according to a description of the bill reviewed by CoinDesk.
SEC Chair Gensler Cites 'Wild West' of Crypto in Case to Increase Agency's Budget (July 19)
SEC Chairman Gary Gensler made a pitch for tens of millions of dollars in additional funding for his agency’s multi-billion budget at the U.S. Senate Committee on Appropriations on Wednesday, telling lawmakers the agency must expand to, among other things, protect investors against a crypto industry “rife with noncompliance.”
FTX Seeks to Recover $71M From Its Philanthropic and Life Science Arms (July 20)
Defunct crypto exchange FTX and its sister firm Alameda want to retrieve more than $71 million from FTX's philanthropic arm and other life science entities, according to court documents filed on Wednesday.
SEC’s Stuttering Litigation Strategy Draws Comment From France (July 20)
Officials in France are boasting of the regulatory certainty they can offer, as U.S. enforcers wage a fierce – if not entirely successful – war on crypto. With a crypto registration regime in effect for years, new EU laws known as MiCA set to take effect in 2024, and lawmakers discussing a regime for gaming involving non-fungible tokens (NFTs), officials are bullish about the country’s preparedness for Web3, a conference organized by lobby group ADAN was told.
Fed Dramatically Speeds Up U.S. Payments With FedNow, but Downplays Any Tie to CBDCs (July 20)
The U.S. Federal Reserve officially opened its new instant payments service, FedNow, on Thursday, significantly speeding up how long it takes to send money in the world's largest economy. The central bank said 35 banks and credit unions are participating. Early adopters include JPMorgan Chase and Wells Fargo, with 16 other institutions supporting processing of payments that the Fed argues will offer just-in-time access to paychecks and invoices.
U.S. House Republicans Introduce Crypto Oversight Bill With Changes From June Draft (July 20)
“Today's introduction of the Financial Innovation and Technology for the 21st Century Act marks a significant milestone in the House Committees on Agriculture and Financial Services efforts to establish a much-needed regulatory framework that protects consumers and investors and fosters American leadership in the digital asset space,” said Chairman of the House Committee on Agriculture Rep. Glenn “GT” Thompson (R-Pa.) in a statement.
SBF Accused of Leaking Caroline Ellison's Private Diary by U.S. DOJ (July 21)
The accusation comes after the NYT published an article which had Ellison's private musings, leading to the DOJ seeking a ban on all out-of-court statements made by witnesses and other parties in the case.
FTX Leadership Seeks Return of Over $1B in Cash, Stocks From Former Executives (July 21)
A lawsuit alleges that fraudulent transfers of cash and shares were used to finance political donations, real estate buys, Sam Bankman-Fried’s criminal defense, and even potentially an island.
'Razzlekhan,' Husband Agree to Plea Deal in Bitfinex Hack Laundering Case Worth Billions (July 21)
A couple accused of laundering funds drained from crypto exchange Bitfinex in the 2016 hack have agreed to enter a plea deal with U.S. authorities, according to a person familiar with the matter.
Implications of Ripple-SEC Court Ruling for Wider Crypto Industry Are Unclear: Bank of America (July 24)
A comprehensive regulatory framework is crucial for mainstream adoption of digital assets and institutional engagement, Bank of America (BAC) said in a research report Friday.
Judge in FTX Case Mulls Gag Order on Contact with Media (July 24)
A federal judge is considering forbidding “parties and witnesses” in the FTX case from speaking to the media, days after the U.S. Department of Justice alleged that FTX founder Sam Bankman-Fried leaked private documents from one of his co-conspirators to the press, according to court filings.
Binance Says It Intends to File Motion to Dismiss CFTC Complaint (July 24)
The CFTC sued Binance, its founder Changpeng Zhao and compliance officer Samuel Lim in a U.S. court in Illinois in March, alleging that the exchange operated a derivatives trading operation in the U.S.
Federal Regulators Are Needed for Crypto Oversight: U.S. Accountability Office (July 25)
A report by the United States Government Accountability Office (GAO), which was commissioned by Rep. Maxine Waters (D-Calif.) and Rep. Stephen Lynch (D-Mass.) of Financial Services Committee, has found that there’s a significant regulatory gap for crypto assets and has suggested a whole-of-government approach to addressing it.
U.S. DOJ Needs 6-8 Weeks to Process Evidence Against Celsius's Former CEO, Attorneys Tell Judge (July 25)
The U.S. Department of Justice (DOJ) asked a federal judge for six to eight weeks to produce evidence for its case against Alex Mashinsky, the founder and former CEO of crypto lender Celsius.
Canada Unveils New Bank Capital Rules for Crypto Holdings (July 26)
The Office of the Superintendent of Financial Institutions said it was basing its proposals on those put forward by the Basel Committee on Banking Supervision in December, which could determine the extent to which the traditional financial system gets on board with blockchain innovations.
FTX’s Bankman-Fried Should Be Jailed Heading Into Trial, U.S. Argues (July 26)
The U.S. Department of Justice wants FTX founder Sam Bankman-Fried to spend the remainder of his time before his criminal trial in jail, alleging he has tried multiple times to tamper with witnesses.
House Financial Services Committee Votes in Favor of Crypto, Blockchain Bills (July 26)
The votes mark the first time crypto-specific bills were advanced on their own merits and not as part of broader legislation.
Sam Bankman-Fried Won't Face Campaign Finance Charge, U.S. DOJ Says (July 26)
The Justice Department said late Wednesday that the campaign finance charge was not included in an extradition document with The Bahamas, and so it would not proceed on the charge.
White House Derailed Negotiation on U.S. House Stablecoin Bill: McHenry (July 27)
House lawmakers have failed to reach a bipartisan deal on stablecoins legislation, with Financial Services Committee Chair Patrick McHenry (R-N.C.) blaming White House intransigence for the stalemate while the panel’s top Democrat said it was McHenry who shut down the talks.
The 69-year-old longtime environmental lawyer and Kennedy family scion made the comments during a 90-minute Twitter Spaces event on Wednesday. During the conversation, he also hailed bitcoin as a “currency of freedom” and revealed that he recently bought two bitcoins (BTC) for each of his seven children.
Crypto Bill Advances Out of House Agriculture Committee (July 27)
The vote means both the House Financial Services and Agriculture Committees have endorsed the legislation, which aims to create federal rules for crypto.
Disgraced U.S. Congressman George Santos Involved Crypto in Nigerian Prince-Like Scheme: NYT (July 27)
A campaign donor told The New York Times that Santos and two others appeared to be trying a crypto-centric version of the classic Nigerian scam on him.
U.S. Stablecoin Bill Takes Big Step Despite Fight From Democrats, White House (July 27)
A long-awaited stablecoin bill graduated from a House committee in a Republican push, leaving the chair of the House Financial Services Committee lamenting that a bipartisan deal was strangled by the White House.
CFTC Overreached in Suing Binance, Crypto Exchange Says (July 27)
The filing leans heavily on the view that the CFTC is overreaching in suing Binance, which does not operate in the U.S., and its CEO Changpeng "CZ" Zhao, who does not reside in the U.S., the filing said.
U.S. Senate Passes $886B Military Spending Bill With Crypto AML Provision (July 27)
The U.S. Senate on Thursday evening passed the 2024 National Defense Authorization Act (NDAA), which included a provision that tightens oversight over financial institutions engaged in crypto trading and takes aim at crypto mixers and “anonymity-enhancing” crypto assets.
FTX and Genesis Reach Agreement in Ongoing Bankruptcy Dispute (July 27)
Crypto lender Genesis Global Capital is FTX’s largest unsecured creditor, with $226 million in claims.
Sam Bankman-Fried Wants to Seal Caroline Ellison's Diary, Inner City Press Opposrd (July 28)
FTX founder Sam Bankman-Fried has asked the court to seal the private diary of his sometimes girlfriend and ex-Alameda Research CEO Caroline Ellison, while Inner City Press has opposed the move, according to court filings.
U.S.-Listed Crypto Firms Will Need to Report Cybersecurity Breaches (July 28)
The new rule requires companies to disclose any "material" cybersecurity incidents within four business days in a bid to deepen trust between investors and public companies. Companies must detail how the cyberattack would impact their business, along with a report detailing the incident and the timing.
SEC Case Had 'Almost No Impact' on Ripple's Talks With Central Banks, Says Exec (July 28)
Ripple's long legal saga with the SEC had "almost no impact" on its conversations with central banks, the firm's vice president of central bank engagements told CoinDesk TV on Friday.
Sam Bankman-Fried's Attempts to Influence Witnesses Show He Must Be Jailed Before Trial: DOJ (July 28)
U.S. prosecutors moved to revoke FTX founder Sam Bankman-Fried's bond and move him to prison ahead of his October trial, alleging he has now repeatedly tried to influence witness testimony and his bail conditions are insufficient to protect the public.
SEC Told Coinbase to Stop Trading in All Cryptos Except Bitcoin Before Suing: FT (July 31)
The SEC had asked Coinbase to stop trading in all cryptocurrencies other than bitcoin (BTC) prior to suing the crypto exchange, according to a Financial Times report, citing Coinbase CEO Brian Armstrong.
U.S. SEC Sues Richard Heart, Hex, PulseChain on Unregistered Securities, Fraud Allegations (July 31)
The SEC sued internet marketer Richard Schueler, known online as Richard Heart, and his projects Hex, PulseChain and PulseX, alleging he raised over $1 billion across three different unregistered securities offerings beginning in 2019.
DeSantis Accuses Biden of 'War on Bitcoin,' Vows to Stop It if Elected President (July 31)
Presidential candidate and Florida Governor Ron DeSantis (R-Fla.) called out the Biden Administration for its “war” on bitcoin and cryptocurrencies and vowed to end it should he become President.
Judge Rejects Ripple Ruling Precedent in Denying Terraform Labs' Motion to Dismiss SEC Lawsuit (July 31)
A federal judge denied stablecoin issuer Terraform Labs' motion to dismiss a lawsuit from the U.S. Securities and Exchange Commission (SEC) on Monday. More importantly, perhaps, Judge Jed Rakoff, of the U.S. District Court for the Southern District of New York, also rejected the use of a ruling from fellow Judge Analisa Torres, who recently ruled that Ripple Labs – another defendant against the SEC – did not violate securities law in making XRP available on secondary platforms for retail investors to purchase.
IRS: Crypto Staking Rewards Taxable Once Investor Gets Hands on Tokens (July 31)
A cryptocurrency investor given rewards for validation activity on a proof-of-stake network should count the rewards as income in the year the investor gets control of those tokens, according to a ruling issued Monday by the Internal Revenue Service (IRS).
Middle East & Africa 🌍
Israeli Lawmakers Support Axing Crypto Capital Gains Tax for Foreigners (July 5)
A bill to extend certain tax benefits afforded to Israel's high-tech firms to the country's crypto sector passed a preliminary reading in the Knesset, the country's parliament, on Wednesday. If passed into law, the bill would exempt foreign residents from capital gains taxes on the sale of digital currencies and reduce tax on crypto options for employees – similar to stock options – to about 25% from 50%, the Israel Crypto, Blockchain and Web3 Companies Forum (ICBW3) told CoinDesk.
Dubai Regulator Suspends Crypto Exchange BitOasis' Conditional License (July 11)
Dubai's digital assets regulator suspended BitOasis' conditional license and initiated enforcement action just three months after issuing one, saying the cryptocurrency exchange had failed to meet certain conditions.
Kuwait Cracks Down on Crypto, Banning Payments, Investment and Mining (July 20)
Kuwait has prohibited the use of crypto for payments or investment to combat money laundering, according to a circular by the country's financial regulator issued on Monday. The Capital Markets Authority also placed an "absolute" ban on all digital asset mining, prohibited the recognition of crypto as decentralized currency, and also warned the public that companies are not allowed to provide any type of crypto-related services.
Crypto Exchange Rain Obtains License to Operate Virtual Asset Brokerage, Custody Service in UAE (July 25)
Rain's Abu Dhabi-based entity can now offer institutional clients and some retail clients in the UAE the ability to buy, sell and store virtual assets.
Nigeria Is Altering eNaira Model to Promote Use of the Digital Currency: Central Bank (July 26)
The west African country has been working to push for broader adoption of the currency, which was introduced in October 2021. Even though the number of eNaira wallets jumped more than 12-fold to 13 million between October 2022 and March this year, that's a small number for a country with a population of close to 224 million.
Israel Consults Public on DAO Regulation, Sets Up Special Examination Team (July 27)
The Israeli government has set up a special examination team to explore the regulation of decentralized governance organizations, known as DAOs, and will be consulting the public on the matter until September, according to an official announcement.
Binance Wins Operational License in Dubai (July 31)
Binance, the world's largest cryptocurrency exchange, has won a license to operate in Dubai after meeting the pre-conditions since receiving a preparatory license in September 2022, the company announced on Monday.
Binance's Activities Are Illegal in Nigeria, Securities Regulator Says (July 31)
Crypto exchange Binance's activities are illegal in Nigeria, the country's Securities and Exchange Commission said in a Friday notice that also ordered all crypto platform providers to stop soliciting Nigerian citizens.
Europe 🌍
Belarus Looks to Ban Peer-to-Peer Crypto Transactions to Reduce Fraud (July 3)
Belarus plans to issue legislation banning peer-to-peer (P2P) crypto transactions to reduce fraud, the Ministry of Internal Affairs said in a Sunday Telegram post. Citizens of the east European country will be allowed to conduct crypto transactions only through exchanges based in the Belarus Hi-Tech Park (HTP) "for the sake of transparency and control."
UK Lords Pass Bill to Help Seize and Freeze Crypto Used for Crime (July 4)
The U.K.'s Economic Crime and Corporate Transparency Bill, which will help law-enforcement agencies seize and freeze crypto used for crime, took a step closer to entering the statute book after being passed by Parliament’s upper chamber on Tuesday.
Denmark's Financial Watchdog Orders Saxo Bank to Shed Its Crypto Holdings (July 5)
Danish bank Saxo has been ordered by Denmark's financial regulator to shed its own crypto holdings, the authority announced on Wednesday. The Danish Financial Supervisory Authority's (FSA) explained that it isn't legal for banks to conduct such activity as ancillary bank business for reasons of financial stability under current regulations.
Payments Platform Nuggets Working With Bank of England on Privacy Layer for Digital Pound (July 5)
Payments platform Nuggets is working with the Bank of England to develop a privacy and identity layer for a potential digital pound, according to a press release on Wednesday. The platform, which enables decentralized identity, plans to design a private and secure system to prevent the tracking and correlation of transactions, as well as prevent fraud and money laundering.
EU’s Leaked Metaverse Strategy Proposes Regulatory Sandbox, New Global Governance (July 6)
The metaverse requires a new kind of global governance to stay open and lawful, according to a leaked European Commission paper. The draft document, seen by CoinDesk, also proposes relaxing regulations to aid innovation, and says it wants to look at the legal barriers to new forms of digital cooperation like decentralized autonomous organizations (DAOs).
Binance Refers Dutch Users to Rival Coinmerce as It Exits Netherlands (July 6)
The world’s biggest crypto exchange said it would quit the Netherlands in June after failing to secure regulatory approval.
UK Regulator Ramped Up Campaign Against Crypto ATMs in May and June (July 11)
The financial watchdog conducted inspections in conjunction with the South West Regional Organized Crime Unit and the police forces of Greater London, Bedfordshire and Hertfordshire.
UK Treasury Starts Consultation on Five-Year Digital Securities Trial (July 11)
Digital bonds and equities could benefit from lighter regulations for a period of around five years, under plans set out by the U.K. Treasury in a consultation published on Tuesday.
EU’s Metaverse Vision Focuses on Standards, Governance and Funding (July 11)
The commission isn’t proposing any new laws and is vague about funding for what it sees as the next generation of the internet, but politicians are eager for the bloc to make the most of a technology they see as having economic and ethical salience.
EU Securities Agency Issues First Batch of Detailed Crypto Rules Under MiCA Law (July 12)
The European Securities and Markets Authority (ESMA) issued a set of detailed proposals on how crypto companies within the European Union should be authorized, the first use of new powers given under the bloc’s Markets in Crypto Assets (MiCA) law.
Stablecoin Issuers Urged to Anticipate MiCA Rules by EU Banking Agency (July 12)
Stablecoin issuers should start preparing for new European Union rules, even though they only take effect in June of next year, the European Banking Authority (EBA) said Wednesday. MiCA regulation sets governance and reserve requirements for cryptocurrencies tied to the value of other assets with related provisions set to take effect six months ahead of other rules on licensing for crypto wallet providers and exchanges.
UK's New Online Safety Bill Applies to the Metaverse, Lawmakers Agree (July 13)
A U.K. bill on online safety, which has measures to prevent children experiencing harm online, will apply to the metaverse, lawmakers in the upper house of Parliament agreed on Wednesday.
Financial Stability Board Calls for Tougher Global Crypto Rules After Year of Turmoil (July 17)
The Financial Stability Board (FSB), which groups regulators from some two dozen jurisdictions, including the U.S., EU, China and the U.K., published recommendations to ensure “consistent and comprehensive” regulation of the sector. The recommendations build on proposals originally floated in October and are focused on preventing the kind of behavior alleged to have been carried out by companies such as FTX and Celsius.
EU's Data Act Final Draft Still Contains Controversial Smart Contract Kill Switch (July 17)
A final version of new European Union Data Act rules largely ignores pleas from the blockchain industry, which worries they could make most smart contracts unlawful, according to a text seen by CoinDesk.
Even Unpaid Social Media Crypto Promotions May Breach UK Ad Rules: Financial Regulator (July 18)
Unpaid social media influencers fall within the scope of U.K. financial advertising rules and may be breaking the law if they fail to get appropriate approval, according to the Financial Conduct Authority (FCA), which gained oversight of crypto promotions with the approval of the Financial Services and Markets Act at the end of June.
Societe Generale Becomes First Company to Win French Crypto License (July 19)
Societe Generale's (GLE) cryptocurrency division, SG Forge, has become the first company to receive a license to offer crypto services in France from the country's financial regulator. SG Forge is licensed to provide buying and selling, exchange and custody of digital assets as of July 18, according to the Autorité des Marchés Financiers (AMF)'s website.
UK FCA Chief Warns Against Judging Crypto Firms by Size for Approval Decisions (July 19)
The FCA is in charge of registering and overseeing crypto companies that wish to operate in the country under existing anti-money laundering requirements. The financial regulator has received over 300 applications from crypto firms since opening its register two years ago but only 42 firms have managed to register with the regulator so far.
UK Government Rejects Lawmaker Plan to Regulate Crypto as Gambling (July 20)
The U.K. government rejected lawmaker plans to regulate crypto like gambling, saying its existing proposals better address the risks posed by events such as the FTX collapse, in a document published Thursday.
UK Financial Regulator to Introduce Isolated Environment for Testing Financial Applications (July 20)
The U.K. Financial Conduct Authority (FCA) plans to provide access to a digital sandbox, or testing environment, for firms to see how their products perform at an early stage of development, the regulator said on its website on Thursday.
UK's FCA Is Designing Prudential Requirements for Firms Carrying Out Crypto Activities (July 20)
The regulator, in charge of maintaining a registry of crypto firms approved for operations under the country's anti-money laundering requirements, will also consult on prudential rules for companies engaged in crypto activities once the "Treasury and Parliament bring those activities under our regulation," according to an annual report published Thursday.
Wholesale CBDC Would Improve Cross-Border Payments, French Central Bank Tests Show (July 21)
The French Central Bank has determined that its wholesale central bank digital currency (wCBDC) would improve cross-border payments, settlement finality and security for a vast range of financial assets after conducting numerous tests using technologies that power crypto, it announced on Friday.
Craig Wright Will Be Able to Fight Bitcoin Copyright Claim in UK After Winning Appeal (July 21)
Craig Wright, who claims to be Bitcoin inventor Satoshi Nakamoto, will be able to argue his case that the Bitcoin file format should receive copyright protection under UK law after a bench of three UK judges accepted his appeal to a previous court denial, according to a court filing.
EU Stablecoin Issuers With Bank Assets in Reserve Will Get Extra Regulation, EBA Draft Says (July 24)
European stablecoin issuers would face extra rules if their reserves have a lot of derivatives or covered bonds under draft rules circulated by the European Banking Authority Monday.
Putin Signs Digital Ruble Law Making a CBDC Possible in Russia (July 24)
The digital ruble, which the Bank of Russia has long been mulling over, will be used for payments along with other methods, according to the new amendments to Russia's Civil Code. The digital ruble accounts will be managed by the central bank, the law says.
UK Information Commission to Make Inquiries About Worldcoin (July 25)
"We note the launch of WorldCoin in the U.K. and will be making further enquiries," a spokesperson for the Information Commissioner's Office told CoinDesk. Organizations "need to have a clear lawful basis to process personal data. Where they are relying on consent, this needs to be freely given and capable of being withdrawn without detriment."
Craig Wright Must Pay $516K to Pursue Case Against Kraken, Coinbase: UK Judge (July 26)
Craig Wright, an Australian computer scientist who claims he is blockchain innovator Satoshi Nakamoto and owns the concepts underpinning Bitcoin, must pay 400,000 British pounds ($516,000) in security for legal costs to pursue claims against crypto exchanges Coinbase and Kraken.
Binance Withdraws German Crypto License Application (July 26)
Binance has withdrawn its application for a license from German financial regulator BaFin, the company told CoinDesk. The move follows a retrenchment from markets including Austria, Belgium and the Netherlands, and as its U.S. arm is sued by regulators for operating an unregistered exchange.
Craig Wright’s ‘Lies and Deception’ Justify Minimal Damages Claim, UK Judges Say (July 26)
Craig Wright has failed in a legal bid to gain more than token damages from a libel claim against bitcoiner and podcaster Peter McCormack, relating to Wright’s claim to be Bitcoin inventor Satoshi Nakamoto.
Crypto.com Trumps Binance, Securing Netherlands Registration as Larger Rival Withdraws (July 28)
Crypto.com has been officially registered as a crypto service provider by the Dutch central bank (DNB), the latest in a series of regulatory recognitions hailed by the company.
Worldcoin Being Probed by French Privacy Regulator for ‘Questionable’ Practices (July 28)
Worldcoin (WLD), the crypto project launched by OpenAI’s Sam Altman, is being investigated by French data protection regulator CNI for “questionable” practices, the regulator told CoinDesk.
German authorities probe Worldcoin project over privacy: Reuters (July 31)
Bavaria's State Office for Data Protection Supervision has been looking into the Worldcoin crypto project since last year over concerns about how sensitive data might be used, Reuters reported.
Asia 🌏
South Korea Passes Crypto Bill for User Protection (July 3)
South Korea's National Assembly passed the Virtual Asset User Protection Act on Friday, marking the country's first step towards building a legal framework for virtual assets.
Singapore's MAS Orders Crypto Firms to Keep Customer Assets in a Trust by Year-End (July 3)
Crypto service providers in Singapore would need to deposit customer assets under a statutory trust before the end of the year for safekeeping, the Monetary Authority of Singapore (MAS) announced on Monday.
Hong Kong Sets Up Task Force for Web3 Development (July 3)
Hong Kong wants to be a Web3 hub , Financial Secretary Paul Chan said.
Singapore Bank DBS Starts e-CNY Collection Platform for Corporate Clients in China (July 5)
Clients of Singapore bank DBS can now collect payments from customers in e-CNY, China's central bank digital currency (CBDC), according to an announcement on Wednesday.
China Should Consider Yuan-Backed Stablecoins Instead of CBDCs, Circle's Allaire Says (July 11)
Circle CEO Jeremy Allaire touted the advantages of stablecoins over central bank digital currencies (CBDC), in an interview with South China Morning Post.
South Korea Wants Companies to Disclose Crypto Holdings (July 12)
Under the new (draft) rules, companies will need to disclose information about the quantity, characteristics, business models and accounting policies regarding the sale of virtual currencies as well as profits, volume and market value of their crypto.
Stablecoins are an existential threat to policy sovereignty and are only useful to a few countries, said Reserve Bank of India Deputy Governor Rabi Sankar at an event, according to the local news platform The Hindu.
G20 Nations Welcome FSB's Tougher Crypto Rules, Says Presidency Holder India (July 18)
The Group of Twenty (G20) welcomed the high-level recommendations of the Financial Stability Board (FSB) on crypto asset activities and global stablecoin arrangements, said Nirmala Sitharaman, Finance Minister of India, which currently holds the G20 presidency, during a press conference on Tuesday.
Myanmar Shadow Government to Start Neobank With Crypto Rails to Fund Fight Against Military Junta (July 20)
Myanmar’s shadow government, the National Unity Government (NUG), is set to start a neobank, which will run on Polygon and do currency swaps via Uniswap v3 pools and USDT stablecoins.
Indonesia's New Crypto Exchange Opens After Long Delays (July 21)
Indonesia's new exchange and clearinghouse for cryptocurrencies is finally operational after multiple delays, according to a Thursday announcement from the country's commodities regulator.
Japan Signals More Web3 Promotion Policies Are Coming (July 25)
Japan's Prime Minister Fumio Kishida said that the country's annual broad policy outline includes measures that take user protection into account while also improving the environment for utilizing Web3 tokens and revitalizing the content industry.
Singapore High Court Declares Crypto as Property in Case Involving Bybit (July 26)
Singapore’s High Court has recognised crypto as a property capable of being held on trust, in a case involving Seychelles-based exchange Bybit and a contractor, according to a court judgement published on Tuesday.
Japan Blockchain Association requests crypto tax revision: CoinPost (July 29)
The Japan Blockchain Association has reportedly requested the country's government revise the tax system to accommodate crypto. Specifically, it requested the tax on personal transactions be set to a flat rate of 20%, and taxes on profits stemming from crypto transactions be canceled, according to CoinPost.
Bank of Korea to Exclude Seoul From CBDC Pilot Study Next Year: Report (July 31)
The Bank of Korea is set to exclude the South Korean capital Seoul from potential areas being used to test its central bank digital currency (CBDC), news outlet It.chosun reported on Monday.
Australia 🇦🇺 & Oceania
Pacific Island Group of Palau Starts Stablecoin Trial on XRP Ledger (July 26)
Palau, a country comprising some 340 islands in the Pacific Ocean, is running a trial of a stablecoin linked to the U.S. dollar, Jay Hunter Anson, a member of the board of directors at the Ministry of Finance, told CoinDesk in a direct message.