The Scenius State of Regulation (Issue #10)
Crypto Policy & Regulation: May 2023
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
Crypto Exchange Poloniex Agrees to $7.6M Fee to Settle Sanctions Violation Charges (May 1)
Poloniex LLC, a U.S. entity previously affiliated with the Poloniex crypto exchange, will remit $7.59 million to settle sanctions violations allegations with the U.S. Treasury Department's Office of Foreign Asset Control (OFAC), the sanctions watchdog said.
Coinme, Subsidiary and CEO Fined $4M by SEC Over UpToken Offering (May 1)
The bitcoin kiosk company, its subsidiary Up Global and the CEO of both entities were accused of conducting "unregistered offers and sales of securities."
Celsius Seeks to Merge UK, U.S. Entities Amid Allegations Distinction Was a ‘Sham’ (May 2)
Crypto lender Celsius Network is seeking to mingle its U.K. and U.S. entities as court filings allege the distinction between the two was a “sham.”
White House Pushes for Punitive Tax on Crypto Mining (May 2)
The Biden administration is campaigning for a tax first sought in a recent federal budget proposal, advocating that crypto miners pay an amount equal to 30% of their energy costs.
Ron Desantis Renews Attack on CBDCs as Part of 'Woke Politics' (May 2)
Florida Governor Ron DeSantis took another swing at a U.S. digital dollar today even as he defended crypto as a whole, unveiling a series of state legislative proposals that would combat "woke politics."
Celsius CEO Mashinsky Denies ‘Baseless’ Fraud Claims by New York State (May 3)
N.Y. Attorney General Letitia James said Mashinsky misled investors about the health of the now-bankrupt crypto lender.
Montana governor signs pro-cryptocurrency mining bill into law (May 4)
The legislation includes revisions to laws aimed at prohibiting discriminatory electrical rates for mining firms and not allowing taxation for crypto used as a method of payment.
U.S. Justice Department Investigating Binance for Russia-Related Sanctions Violations (May 5)
The DOJ’s national security division is conducting an inquiry into whether Binance allowed Russian customers to access the exchange in violation of U.S. sanctions related to Russia's invasion of Ukraine, according to a Bloomberg report that cites five people familiar with the matter.
Voyager Digital Plans to Liquidate Assets, Wind Down After Sale Dreams Crushed (May 5)
Voyager’s creditors will recover an estimated 36% of their assets – a far smaller slice of the pie than they would have received if the platform’s sale to FTX or Binance US went through.
Craig Wright Shows ‘Prima Facie Evidence’ of Contemptuous Conduct, U.S. Judge Says (May 5)
Craig Wright, who has claimed to be the founder of Bitcoin, has shown “prima facie evidence” of contemptuous conduct in court proceedings for failing to correctly provide information linked to $143 million in disputed cryptocurrency.
New York Attorney General Seeks New Crypto Powers for State Regulators (May 5)
The New York Department of Financial Services would have stronger authority to regulate digital assets, with exchanges having to reimburse customers if they’re the victims of fraud, under a bill proposed by Attorney General Letitia James on Friday.
FTX's Sam Bankman-Fried Moves to Dismiss Most Criminal Charges Against Him (May 8)
FTX founder Sam Bankman-Fried filed pretrial motions to dismiss a majority of the charges he faces late Monday.
U.S. Crypto Exchange Bittrex Files for Bankruptcy in Delaware (May 8)
Crypto exchange Bittrex has filed for bankruptcy in the U.S. state of Delaware on Monday, months after announcing it would wind down operations in the country and weeks after being sued by the SEC.
Ripple's Tussle With SEC to Cost the Firm $200M, CEO Garlinghouse Says (May 8)
Garlinghouse reportedly told onlookers at the Dubai Fintech Summit that he would not advise crypto entrepreneurs to set up in the U.S., adding that the country puts politics ahead of policy.
SEC Blasted on Custody Proposal by JPMorgan, Crypto Firms and a Fellow Agency (May 9)
The SEC went too far when it proposed a new rule demanding investment firms safeguard all of their clients’ assets – including crypto – with approved custodians, according to an array of critics not often in alignment.
Jane Street, Jump Pull Back Crypto Trading Over US Regulatory Uncertainty (May 9)
Jane Street Group and Jump Crypto — two of the world’s top market-making firms — are pulling back from trading digital assets in the US as regulators crack down on the industry.
Ex-Coinbase Product Manager Sentenced to 2 Years in Prison for Insider Trading (May 9)
Ishan Wahi was arrested in July 2022 and charged with insider trading for providing his brother with insider information about upcoming crypto listings at Coinbase.
Bittrex’s U.S., Maltese Arms Processed $425M in Withdrawals Since April 1, Attorney Says (May 10)
The company filed for bankruptcy protection earlier this week, but says no customer funds were re-used and that liabilities meet assets.
Watchdog sues SEC over FOIA access to docs on potential crypto conflict of interest (May 11)
Watchdog group Empower Oversight Whistleblowers & Research has filed suit against the SEC to force the agency to comply with a Freedom of Information Act request for access to communications between former SEC officials and their former and future employers.
McHenry to U.S. SEC: Which Crypto Firms Have Tried to Register? (May 11)
The SEC has so far disregarded congressional requests for information on its interactions with crypto platforms seeking registration as exchanges, according to Republican lawmakers in the House of Representatives, who threatened a hearing if they’re ignored any longer.
IRS, Chainalysis and Ukraine Targeting Russian Crypto Sanctions Evaders Jointly (May 11)
The IRS Criminal Investigation division is supporting Ukrainian investigators by providing blockchain analysis tools.
Coinbase’s SEC Complaint Draws Allies Depicting U.S. Regulator as Crypto Bully (May 11)
As the exchange tries to force an answer from the Securities and Exchange Commission on digital assets regulation, crypto groups and the Chamber of Commerce leap in.
BlockFi Customers Can Be Repaid $300M Held in Custodial Accounts, Judge Says (May 11)
A further $375 million that users tried to transfer out of interest-bearing accounts after Nov. 10 still belongs to the estate, Bankruptcy Judge Michael Kaplan said.
U.S. Internal Revenue Service Files Claims Worth $44 Billion Against FTX Bankruptcy (May 11)
The largest of the claims includes a $20.4 billion claim against Alameda Research LLC, which details nearly $20 billion in unpaid partnership taxes.
Kraken’s Top Lawyer Says Signs of Progress in U.S. Congress Put SEC in Legal Bind (May 12)
While the SEC continues to rain enforcement fire onto the crypto industry, Kraken’s chief legal officer, Marco Santori, says a specific legal doctrine could undermine the regulator’s authority.
House Democrats Consider New Stablecoin Bill Proposal (May 12)
House Democrats are considering their own version of a long-anticipated stablecoin bill. The proposal, a successor to a version spearheaded by Reps. Maxine Waters (D-Calif.) and Patrick McHenry (R-N.C.) last year, comes weeks after Waters said lawmakers need to start from scratch on legislation addressing this corner of the crypto market.
Binance Announces Exit from Canada, Citing Regulatory Tensions (May 12)
The world’s largest crypto exchange by volume said new guidance related to stablecoins and investor limits prompted the exit.
Texas Introduces Bill to Ban CBDC Over Cyber Risk and Govt (May 13)
Texas state legislators are introducing a bill to ban CBDC due to cyber risk and unprecedented government surveillance.
U.S. crypto firms set sail to Bermuda amid dark and stormy US regulatory environment (May 14)
As the regulatory environment in the U.S. grows dark and stormy, American crypto companies are looking east to Bermuda and its friendlier digital asset framework.
U.S. Prosecutors Drop Extortion Charges Against Early Adviser to Ethereum Network (May 15)
Criminal extortion charges against Steven Nerayoff, an early adviser to the Ethereum network, were dismissed by a New York judge on May 5, ending a three-and-a-half year legal battle that included explosive allegations he made against U.S. investigators.
BlockFi Claims Against FTX, Alameda 'Largest Driver' of More Than $1B in Asset Recoveries, Firm Says (May 15)
Fund recoveries for clients and creditors of bankrupt crypto lender BlockFi will depend heavily on the firm's claims against its commercial counterparties including FTX and Alameda, court filings from Friday show.
G-7 Finance Ministers Discuss Crypto Regulation Ahead of Japan Summit Next Week (May 15)
Representatives for the seven advanced economies signaled a commitment to following norms set by standard-setters FSB and IMF on crypto and central bank digital currencies.
SEC Seeks to Slash $22M Fine on Crypto Firm LBRY to $111K (May 15)
The regulator cited LBRY's "lack of funds and near-defunct status," as reasons for withdrawing its previous request for fine.
Conservative Think Tank Stamps an ‘F’ on Biden’s Crypto Tax Proposal (May 15)
The American Institute for Economic Research, in fact, was evidently displeased enough with the Biden administration’s latest crypto initiative that it gave a failing grade to the president’s Council of Economic Advisors (CEA) — the federal agency that put out the proposal on May 2.
Coinbase Hasn't Proven SEC Needs to Create Crypto-Specific Rules, Regulator Says (May 16)
The SEC told an appeals court that crypto exchange Coinbase hadn't proven the regulator needs to create a new regulatory framework for the digital asset industry late Monday.
Senators slam bank execs for blaming collapses on crypto, pocketing millions (May 17)
During a Senate Banking Committee hearing on May 16, United States Senator Cynthia Lummis lashed out at Scott Shay, the former chairman of the now-defunct bank, in relation to his prepared statement on what led to his bank’s collapse.
Filecoin Price Drops After SEC Asks Grayscale to Withdraw Application to Make Trust Reporting (May 17)
Grayscale announced last month that the SEC suggested FIL might be a security.
Grayscale, Bitwise Rescind Plan for Ether-Futures-Based ETFs (May 17)
Asset managers Grayscale Investments and Bitwise appear to be pulling back on plans for Ether-futures ETFs, just days after their applications for such a product made a splash in the exchange-traded-funds world.
Bitcoin Companies Must Provide 'Proof of Reserves' in Texas (May 18)
Crypto exchanges that want to do business in Texas will need to maintain enough reserves to fulfill all obligations to their customers, according to a newly-approved piece of legislation.
U.S. Hearing Highlights Stablecoin Rift in Competing House Bills (May 18)
Republicans focused on the chances for legislative compromise while Democrats characterized their stablecoin positions as a deepening divide.
G-7 Must Take Charge in Ending 'Lawless' Crypto Space, FATF Chief Says (May 18)
President of the global financial crimes watchdog, T. Raja Kumar, urged G-7 leaders to "effectively" implement FATF's crypto anti-money laundering norms ahead of their meeting this weekend.
U.S. Court Asked to Reverse Decision to Not Appoint Independent Examiner in FTX Bankruptcy (May 18)
A Delaware bankruptcy court judge had previously denied a motion to appoint a neutral examiner to avoid a lengthy and costly investigation that would slow the progress of the bankruptcy proceedings.
NY Fed, Singapore Regulator Verify CBDC Interoperability, Payment Speeds in Latest Test (May 18)
Central bank digital currency (CBDC) systems operating on different types of networks can be used for cross-border and cross-currency payments, a new report published by researchers with the New York Federal Reserve and Monetary Authority of Singapore (MAS) said on Thursday.
Coin Cafe Ordered By New York AG to Pay Back $4.3M in Fraudulent Fees (May 18)
Brooklyn-based crypto trading platform Coin Cafe is paying back $4.3 million to defrauded investors, according to a Thursday statement from the New York Attorney General’s office, which accused the company of misleading customers about “exorbitant and undisclosed” fees.
Congressman Emmer Introduces ‘Securities Clarity Act’ (May 19)
“The Securities Clarity Act inserts a key term, the ‘investment contract asset,’ into existing securities law to enable crypto projects to reach their full potential in a compliant way,” Emmer tweeted.
Gemini Says Genesis Parent DCG Missed $630 Million Payment (May 22)
Gemini says it is working with Genesis, DCG, and creditors to provide forbearance to DCG in order to avoid a default.
Come in and Register? These Firms Say They Found an SEC-Friendly Crypto Path (May 23)
As the industry fights with the U.S. regulator over “impossible” demands, Prometheum Capital and others win approvals to deal in crypto securities.
A U.S. bankruptcy court ordered the estate to issue a letter saying that statements relating to a May 13 disclosure were not authorized, and that it was not allowed to solicit support for a reorganization plan at the time.
Crypto Execs Give Washington Influence Another Go With FTX Anchor Around Necks (May 24)
When Washington, D.C., lawmakers tune into their favorite Sunday morning political shows this week, they’ll also get a dose of crypto messaging, thanks to a Coinbase (COIN) campaign that’s part of the next stage in the industry’s attempt to influence U.S. policy.
DeSantis promises to protect bitcoin in presidential campaign launch event (May 24)
Florida Governor Ron DeSantis, who launched his presidential campaign in a Twitter Spaces event with Elon Musk on Wednesday, said he’d protect bitcoin if he’s elected.
Fahrenheit Wins Bid to Acquire Assets of Insolvent Crypto Lender Celsius (May 25)
The Arrington Capital-backed grouping beat fellow bidder NovaWulf for Celsius’ assets, with the Blockchain Recovery Investment Consortium selected as back-up.
Gemini and Bankrupt Lender Genesis Ask U.S. Court to Dismiss SEC Lawsuit Targeting Earn Program (May 29)
Bankrupt crypto lender Genesis Global Capital and exchange platform Gemini are asking a U.S. court to dismiss a lawsuit by the Securities and Exchange Commission alleging the two sold unregistered securities, court filings from Friday show.
Fresh Set of Crypto Bills Make Hill Debut (May 30)
As lawmakers scramble to get to an agreement before the June 5 deadline to raise the debt ceiling, two new crypto-focused bills debuted on Capitol Hill last week.
Former Coinbase Employee, U.S. SEC Settle Insider Trading Charges (May 30)
The SEC settled charges with a former Coinbase (COIN) product manager and his brother tied to 2022 allegations of insider trading on certain cryptocurrencies listed by Coinbase, the regulator announced Tuesday.
U.S. CFTC Warns About Clearing Derivatives Tied to Digital Assets (May 30)
The derivatives agency said that clearing organizations need to address risks as they move into the crypto space, and Commissioner Johnson suggests it's time for agency rules on this point.
FTX Examiner Appointment Referred to Court of Appeals by District Judge (May 30)
The government has joined a bipartisan grouping of Senators to call for an independent inquiry into the fall of Sam Bankman-Fried’s empire, despite warnings from FTX’s new management the probe could cost the estate around $100 million in legal costs.
U.S. Sen. Elizabeth Warren Calls for Shutdown of Crypto Funding for Fentanyl (May 31)
U.S. Sen. Elizabeth Warren (D-Mass.) cited the rampant use of cryptocurrency in the Chinese fentanyl trade during a Wednesday Senate hearing, arguing for legislation to help break that pipeline.
Latin America 🌎
Argentina Slams Brake On Crypto, Banning Purchases Through Banks (May 5)
Argentina’s central bank dealt cryptocurrencies a blow Thursday, prohibiting financial institutions in the South American country from offering clients any operations involving unregulated digital assets.
Brazil's Central Bank Selects 14 Participants for CBDC Pilot (May 25)
The Central Bank of Brazil selected 14 selected institutions to participate in the pilot of the digital real, the country’s central bank digital currency (CBDC).
Stablecoin issuer Tether to mine bitcoin in Uruguay (May 30)
The company will begin operations in Uruguay in partnership with an unnamed "local licensed company," it announced Tuesday. Tether declined to comment on the name of the local company.
Middle East & Africa 🌍
Nigeria's SEC Mulls Allowing Tokenized Equity, Property but Not Crypto (May 1)
Nigeria’s SEC is considering allowing tokenized coin offerings backed by equity, debt or property – but “not crypto” – on licensed digital asset exchanges.
3AC Founders’ OPNX Exchange Formally Reprimanded by Dubai Crypto Regulator (May 2)
OPNX, a bankruptcy claims exchange set up by the founders of collapsed hedge fund Three Arrows Capital (3AC), has been formally reprimanded by Dubai's crypto regulator for operating an unregulated exchange.
Israel Has Seized 190 Binance Accounts With Alleged Terrorist Ties Since 2021 (May 4)
Israeli authorities say the accounts on crypto exchange Binance belonged to individuals affiliated with Daesh and Hamas.
3% Tax on Crypto Transfers Part of Kenya's Proposed Budget (May 4)
Kenya's Finance Ministry, the National Treasury, has proposed a 3% tax on the transfer of digital assets for the coming budget year, according to a Bloomberg report that cites proposals presented to lawmakers. The nation's budget will be presented on June 8.
Zimbabwe Central Bank Wants Citizens to Subscribe to Its Gold-Backed Digital Currency (May 8)
The Reserve Bank of Zimbabwe (RBZ) invited individuals and financial institutions in the country to subscribe to its upcoming gold-backed digital token, which is meant to combat volatile local inflation.
Coinbase execs visit UAE to test potential of 'strategic hub' for international operations (May 8)
“I think the U.S. right now is a little bit behind in terms of regulatory clarity and some of the rhetoric from the top," said Brian Armstrong at the Dubai FinTech Summit.
Singaporean family office to set up digital bank in Bahrain (May 18)
The Whampoa Group, a family office based in Singapore, will open a digital bank in Bahrain, the kingdom’s Economic Development Board said on May 18. The Group expects to open the bank by the end of the year and is aiming for a global client base.
Pakistan Announces Fresh Ban on Crypto, but Adoption as a Hedge Remains Popular (May 18)
Pakistan's government has hardened its stance against cryptocurrencies, even as retailers continue to hedge their financial bets against a devaluing Pakistani rupee partly due to a volatile political situation in the nation.
FATF Did Not Require Pakistan to Ban Crypto to Stay Off Its 'Grey List' (May 24)
The Financial Action Task Force (FATF) does "not require countries to indiscriminately ban virtual assets and virtual asset service providers," it told CoinDesk in an email after Pakistan's finance minister reportedly said the global money laundering watchdog had set such a condition for the South Asian nation.
South Africa’s Crypto Firms Will Soon Need to Apply for Registration or Face a Heavy Fine (May 25)
Crypto companies looking to operate in South Africa will need to apply for a license from the country’s Financial Sector Conduct Authority (FSCA) in the six months starting June 1.
UAE central bank issues AML/CTF guidance for dealing with virtual assets (May 31)
The UAE Central Bank has issued new anti-money laundering and counter-terrorism financing guidance for financial institutions when dealing with virtual assets, such as cryptocurrencies and non-fungible tokens, it said on Wednesday.
Europe 🌍
UK Set to Ban Cold Calls Selling Financial Products, Including Crypto (May 3)
The move is part of Prime Minister Rishi Sunak's strategy to tackle financial fraud in the country.
Allow Influencers to Promote Registered Crypto Firms, French Senators Say (May 3)
Lawmakers in the French National Assembly are seeking to effectively ban social media crypto promotions, but a key Senate committee appears to favor lighter restrictions.
Registered UK Crypto Firms Can Approve Their Own Ads, Lawmakers Decide (May 3)
The amendment would allow crypto companies that are already registered with the country’s financial watchdog under its anti-money laundering regime to be able to approve their own ads, something they would otherwise not be able to do.
RFK Jr. Raises Crypto Taxes, Regulation as Issues in Opening Days of 2024 Presidential Race (May 3)
Robert F. Kennedy Jr., the latest presidential candidate and a member of one of the most famous U.S. political families, raised a number of crypto issues in his newly announced campaign to challenge President Joe Biden.
Ex-OpenSea Exec Convicted of Wire Fraud, Money Laundering in Insider Trading Case (May 3)
Nate Chastain, the former head of product at non-fungible token (NFT) platform OpenSea, was convicted of money laundering and wire fraud in a federal court in New York. He made approximately $50k by buying and trading NFTS with insider knowledge gained from his position at OpenSea.
FTX Seeks to Claw Back Nearly $4B in Ongoing Bankruptcy Case (May 3)
FTX wants to claw back nearly $4 billion in funds from similarly bankrupt Genesis Global Capital, the company said in a court filing.
U.S. SEC Changes Its Mind on Officially Labeling Digital Assets (May 3)
The SEC took one small step backwards in regulating the crypto sector on Wednesday when it erased what would have been its first formal definition of “digital asset” from its latest hedge fund rule.
Supposed AI-Based Crypto Token Using Elon Musk's Image Targeted by Texas Securities Board (May 4)
Five U.S. states are ordering TruthGPT Coin promoters to cease and desist using images of Elon Musk, Changpeng Zhao and Vitalik Buterin to promote what they describe as an investment scam.
UK’s FCA Continues Crackdown on Unregistered Crypto ATMs (May 5)
The regulator, along with local police, raided sites in Exeter, Nottingham and Sheffield, saying that the cash-to-crypto converters are unlawful and a money laundering threat.
Liechtenstein Plans to Accept Bitcoin for Payments to State, Prime Minister Says (May 8)
Under the plans, any crypto received will immediately be exchanged for Swiss francs, Prime Minister Daniel Risch told German news publication Handelsblatt.
Bit4You Affairs in Doubt Even Before CoinLoan Collapse, Belgian Regulator Says (May 8)
Bit4You, the oldest crypto exchange in Belgium, was already facing loss of its registration or prosecution, even before it announced it was suspending activities in April, according to a Monday statement by the country’s financial regulator.
Estonia’s Registered Crypto Firms Drop 80% as Tough New Checks Reveal 'Suspicious' Behavior (May 8)
Regulators in the tech-friendly nation say they’ll now return to business-as-usual monitoring after money laundering fears led it to take a tough line.
German Fintech Unstoppable Finance to Launch Europe’s First 'DeFi-Native Bank' (May 9)
Berlin-based fintech startup Unstoppable Finance, currently most well known for its self-custodial crypto wallet called Ultimate, announced today it will be rolling out Europe’s first compliant "DeFi-native bank" alongside a fiat-backed Euro-pegged stablecoin following MiCA’s guidance.
New Rules on Sharing Crypto Tax Data ‘Unanimously Supported’ by EU Members (May 10)
New European Union rules allowing tax authorities to share data on people's crypto holdings have been unanimously supported by the bloc’s member states, meaning formal agreement on the law is likely next week, a senior official has said.
Hungarian Central Bank Sees No Imminent Need for e-Forint (May 10)
Hungary sees no urgent need for a widely available central bank digital currency (CBDC) but is experimenting to see if one could help the unbanked, a senior official said on Wednesday.
EU Could Veto Large Stablecoins During MiCA Approval Process, Regulator Signals (May 11)
Central banks should veto large stablecoins if they have fears they could upend monetary policy, the chair of the European Banking Authority (EBA) has said, citing fears that the use of permissionless blockchains could prove financially unsound.
Crypto Lender Nexo Takes Steps to Dissolve UK Units (May 11)
Crypto lender Nexo is dissolving two of its UK-based entities as it faces a period of legal uncertainty elsewhere in Europe.
Do Kwon Set to Be Released on Bail in Montenegro Travel Document Forgery Case (May 12)
Bail conditions prohibit Kwon from leaving his apartment in the country as the trial continues.
EU’s Crypto Legal Framework Inches Towards Law With Finance Ministers’ Sign-Off (May 16)
The EU’s Council, which represents 27 member states, unanimously approved the Markets in Crypto Assets regulation (MiCA), making the bloc set to be the first major jurisdiction in the world with a crypto licensing regime. It also agreed new anti-money laundering measures on crypto funds transfers.
UK Lawmaker Group Clashes With Treasury Over Treating Unbacked Crypto as Gambling (May 16)
The U.K. Treasury Committee seemingly opposed the government’s proposal to treat crypto as regulated financial activities in a Wednesday report.
Fleeing U.S. Crypto Firms ‘Welcome,’ French Regulator Says (May 17)
Crypto companies fleeing U.S. regulatory uncertainty have been offered a welcome in France, by officials boasting a regulatory framework that offers relative predictability.
The Treasury is still adamant it will regulate digital assets like financial services but its plans will rely on parliamentary support.
EU Banks Could Access Stablecoins More Easily Under Leaked Plans (May 23)
The European Commission's plans could moderate a push from Parliament to discourage crypto holdings as it debates new capital requirements for banks.
Sorare Carves Out Unique Entry Method for France Due to NFT Regulations (May 23)
The Web3 fantasy sports game is collaborating with the French National Gaming Authority to create a framework for France-based players who face a tighter regulatory regime.
Montenegro High Court Says No Bail for Terra's Do Kwon in Fake Passport Case (May 24)
A Montenegro high court has annulled a decision by a lower court to release Terraform Labs co-founder Do Kwon on bail as he faces charges of attempting to travel with falsified documents.
Tornado Cash Dev Facing Dutch Charges to Question Chainalysis Data Alleging Criminal Links (May 24)
Lawyers for the privacy protocol developer facing money laundering charges in the Netherlands have disputed the evidence purporting to prove links to criminal money.
Norway Should Consider a National Strategy for Crypto Regulation (May 25)
Norway should consider a national strategy for crypto regulation, said Norges Bank, the country's central bank, in a Thursday report.
French Lawmakers Strike Softer Deal on Crypto Influencer Law (May 25)
A final compromise appears to allow registered crypto firms to advertise through social media influencers, potentially easing industry fears.
Crypto Conglomerates, DeFi Targets of EU Financial Stability Watchdog Concerns (May 25)
Risks from smart contracts, high leverage and crypto staking and lending may imply a need for new regulations, the European Systemic Risk Board said.
Do Kwon's Detention in Montenegro Extended After High Court Decision to Revoke Bail (May 25)
A lower court had determined the value of Kwon's property based on "statements" and not concrete evidence, a high court cited in a decision to scrap his bail approval.
WEF publishes crypto asset regulation recommendations for government, industry (May 25)
The World Economic Forum has released a white paper on crypto asset regulation, assisted by its Digital Currency Governance Consortium. The need for regulation is urgent and cooperation is key, the paper found.
EU watchdog calls for curbing leverage in crypto trading (May 25)
European Union authorities should curb leveraged bets on crypto assets by introducing limits for investment funds, exchanges and other firms to stop shocks in that industry from jeopardising financial stability elsewhere, an EU watchdog said on Thursday.
EU Investment Firms Should Clearly State Crypto Is Unregulated, Watchdog Says (May 26)
Investment firms in the European Union that offer crypto alongside more traditional products could be misleading their consumers into a false sense of security, the European Securities and Markets Authority (ESMA) said in a Thursday statement.
ECB Finalizes Digital Euro Prototypes as Development Decision Looms (May 30)
The European Central Bank (ECB) has finalized prototypes for a digital euro as it prepares to take a decision later this year over whether to develop the EU's fiat currency in a new format, according to reports released on Friday.
EU Formally Signs New Crypto Licensing, Money Laundering Rules Into Law (May 31)
The European Union formally signed its landmark Markets in Crypto Assets (MiCA) regulation into law on Wednesday, taking the bloc closer to becoming the first major jurisdiction in the world with tailored rules for the sector.
EU’s Banking Regulator Highlights AML Risks in Privacy Coins, Self-Hosted Wallets (May 31)
Crypto companies should watch out for customers using privacy coins or self-hosted wallets as they try to spot potential money laundering activity, the European Banking Authority said in draft guidance published Wednesday.
Asia 🌏
Bhutan Plans a $500 Million Fund for Crypto Mining in the Himalayas (May 3)
Bhutan’s investment arm and Nasdaq-listed company Bitdeer Technologies Group plan to seek investors for a fund worth up to $500 million that will be used to develop green crypto mining in the Himalayan kingdom.
South Korea Authorities Investigate Lawmaker Over Suspicious Crypto Transfers (May 8)
Local media reports Democratic Party lawmaker Kim Nam-kuk had previously co-sponsored a bill seeking to defer taxation on crypto profits.
The order, dated May 5 prohibits Hayes from using "threatening, abusive or insulting words" and "making any threatening, abusive or insulting communication, that would cause the Su Zhu harassment, alarm or distress."
China opens blockchain research centre with plans to train 500,000 industry professionals (May 14)
The Chinese government continues to push blockchain development for industrial use, signalling a belief in the technology despite Beijing’s cryptocurrency ban.
South Korea Probes Crypto Exchanges Upbit, Bithumb on Ex-Lawmaker's Transfers (May 15)
South Korean prosecutors searched accounts at major exchanges Upbit and Bithumb, relating to the transfers made by former lawmaker Kim Nam-kuk on Monday.
Coinbase expands Singapore services amid international expansion drive (May 16)
The move comes as Coinbase takes steps to bolster its international presence, in direct response to a crackdown by regulators in the U.S. — where the company is based.
Indian Authorities Asked to Restore Crypto Exchanges' Access to UPI (May 17)
An Indian crypto exchange and a policy firm have separately asked the government to let crypto firms access the national Unified Payments Interface (UPI) after it was ostensibly suspended in 2022.
China's Top Prosecution Agency Says Although Not Banned NFTs Have Crypto-Like Attributes (May 17)
NFT collections, targeted in new published guidelines, have been gaining popularity in China since the country prohibited the trading of cryptocurrencies.
Malaysia’s Securities Commission Orders Crypto Exchange Huobi to Halt Operations (May 22)
Malaysia’s leading securities regulator, the Securities Commission announced that it has ordered Seychelles-based crypto exchange Huobi to shutter operations in the country.
Hong Kong Lets Retail Investors Trade Crypto in New Rules (May 22)
Hong Kong said retail investors can trade crypto under its new rulebook for the sector, stepping up a drive to develop a digital-asset hub even as the industry and regulators clash elsewhere in Asia.
Gemini Issued Warning in Philippines Over Crypto Derivatives Exchange (May 22)
A derivatives exchange launched by crypto trading platform Gemini Trust Co. last month has allegedly been operating without authorization in one of its jurisdictions, the Philippines’ Securities and Exchange Commission said in a warning to investors.
South Korea's Ruling Party Calls to Expedite Bill on Lawmakers' Crypto Disclosures (May 23)
The parliamentary floor leader of South Korea's ruling People Power Party wants a new bill requiring lawmakers and high-level government officials to declare their cryptocurrency-related assets to take effect within two months, earlier than originally planned.
Hong Kong Securities Regulator to Accept License Applications for Crypto Exchanges Starting June 1 (May 23)
The regulator has agreed to allow licensed virtual asset providers to serve retail investors, provided that operators assess understanding of the risks involved, according to a report on its consultation on policy recommendations released Tuesday.
International Securities Regulator IOSCO Proposes Policy Recommendations for Crypto (May 23)
The International Organization of Securities Commissions (IOSCO) opened up its policy recommendations for crypto and digital asset markets for public comment on Tuesday.
Japan to Enforce Tougher Crypto Anti-Money Laundering Laws Next Month (May 24)
Japan is set to implement stricter anti-money laundering measures, including the so-called "travel rule" of the Financial Action Task Force (FATF) from June 1, according to local news outlet Kyodo News.
Enhanced OKX App Offers Safe and Secure Spot Virtual Asset Trading to Hong Kong Customers (May 25)
The world's second-largest crypto exchange by trading volume and a leading Web3 technology company, has enhanced its app to offer safe and secure spot trading of virtual assets to Hong Kong users in accordance with the requirements for virtual asset service providers (VASPs) in the city.
South Korea Lawmakers Pass Law Requiring Officials to Disclose Crypto Holdings (May 25)
Lawmakers in South Korea passed legislation on Thursday that will require officials to report their crypto holdings, local outlet News1 reported.
Binance Expects to Launch New Thai Crypto Exchange in Q4 2023 (May 26)
Binance announced that its joint venture with Gulf Innova Co., Ltd. has received digital asset operator licenses from the Ministry of Finance of Thailand, opening the way for the launch of a crypto exchange and broker.
Beijing releases white paper for web3 innovation and development (May 27)
Beijing, China's capital city, reportedly released a white paper this morning aimed at promoting innovation and development of the web3 industry.
Indian Crypto Exchanges Are in Survival Mode, Trying to Extend Their Runways (May 28)
Indian crypto exchanges are in survival mode, cutting costs wherever possible, re-negotiating partner contracts, suspending employee pay-hikes, conducting lay-offs, exploring new revenue models and rebranding themselves, all in an effort to extend their financial runways – when they run out of money.
Huobi HK offers crypto trading in Hong Kong to retail, institutional clients (May 29)
Huobi HK is now offering crypto spot trading to retail and institutional clients in Hong Kong, having now applied for a virtual asset exchange license.
Crypto Exchange bitFlyer Aligns Itself With FATF 'Travel Rule' With New Restrictions (May 30)
Japan-headquartered crypto exchange bitFlyer is implementing tough anti-money laundering measures in line with global financial crime watchdog FATF's "Travel Rule" for information sharing on transfers, the company announced on Tuesday.
India's RBI Intends to Push G-20 to Focus on Crypto's Macro Risks (May 30)
The Reserve Bank of India (RBI) is trying to expand the global narrative around cryptocurrencies beyond "financial stability and integrity to macro-financial and cross-sectoral implications and risks of crypto-assets," the central bank said in its annual report published on Tuesday.
Stablecoin issuer Trust Reserve's team detained by police in China (May 31)
The core team of Trust Reserve (formerly CNHC Group), which issues two stablecoins, was detained by police in China on May 29, according to PANews.
Hong Kong-based First Digital introduces USD stablecoin (May 31)
Hong Kong-based qualified custodian and trust company First Digital is introducing a new stablecoin that will be pegged to the U.S. dollar but regulated in Asia.