The Scenius State of Regulation (Issue #15)
Crypto Policy & Regulation: October 2023
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
CFTC Chair Rostin Behnam Disagrees With Gary Gensler On The State Of Digital Asset Regulation (October 2)
The CFTC chair issued some of his firmest statements to date on the need for new crypto regulation in stark contrast to his SEC counterpart.
US SEC Asks Judge To Deny Coinbase Motion To Dismiss Its Lawsuit (October 3)
Tuesday's filing showed that the SEC is seizing on the Terraform Labs ruling to raise questions about the ruling in the Ripple case, which the crypto industry had hailed as a victory.
SEC’s Motion to Appeal Loss in Ripple Case Is Denied (October 4)
A federal judge has rejected the U.S. Securities and Exchange Commission’s bid to appeal its ground-shaking loss against Ripple, the crypto company associated with the XRP token.
‘Lied to the World’ or Acted in ‘Good Faith’: Sam Bankman-Fried’s Trial Opens (October 4)
Prosecutors said the FTX founder had lied to customers. Defense lawyers said he had just been trying to prevent his cryptocurrency exchange from melting down.
Canadian Regulatory Body Clarifies Stablecoin Rules For Exchanges And Issuers (October 6)
The umbrella organization for Canada’s securities regulators has set conditions for trading and issuing stablecoins.
US Considering Application Of Electronic Fund Transfer Act To Crypto Accounts (October 8)
The move aims to bolster consumer protections in a market plagued by recent significant hacks on platforms like Axie Infinity, Crypto.com, and FTX.
Crypto Needs Congress, But U.S. Lawmakers Have Opted for Pandemonium (October 9)
While Congress stares down the barrel of a Nov. 17 government shutdown, the rudderless House remains the focus of the crypto industry’s hopes for regulatory progress.
Crypto Sector Seeks Lawyers, Compliance Officers After Reputational Hits (October 10)
Attracting compliance workers is harder than ever for crypto firms—just when the industry needs them the most.
Crypto Is Still the Wild West Almost a Year After FTX Collapse (October 11)
Regulations aren’t happening as digital currencies have endangered individual investors—not the whole financial system.
State Regulator Joins SEC In Lawsuit Against Coinbase (October 11)
The North American Securities Administrators Association (NASAA) filed a brief supporting the SEC’s lawsuit against Coinbase.
Drama In U.S. Congress Over Speaker Of The House Leaves Crypto Legislation On Pause (October 12)
Prospects for a more permanent U.S. House speaker are not looking up, which could kick cryptocurrency legislation further down the road.
Across U.S., Chinese Bitcoin Mines Draw National Security Scrutiny (October 12)
A recent surge in Chinese Bitcoin mines across the US have signaled national security concerns among US government officials.
US Lawmakers Urge Treasury, IRS To Hasten Implementation Of Crypto Tax Rules By 2 Years (October 12)
In a joint letter addressed to the two regulators, the senators raised concerns over a two-year delay in enforcing the rules, which is expected to cost the federal government billions in tax revenue.
Voyager Settles With FTC For $1.65B While CFTC Charges Former CEO With Fraud (October 12)
The U.S. Federal Trade Commission (FTC) announced on Oct. 12 that it has settled with the failed crypto lending company Voyager Digital.
Crypto Trader Pleads Guilty To ‘Cherry Picking’ Futures Scheme (October 13)
The former CEO of Systematic Alpha Management faces up to five years in prison for his role in a fraudulent scheme tied to crypto futures contracts.
Insights: Due Diligence With Crypto Staking Providers (October 15)
Assessing counterparty risk and compliance in crypto staking: questions to guide your due diligence.
California Governor Approves Strict Crypto Regulatory Framework For 2025 (October 15)
The legislation — known as the Digital Financial Assets Law — will mandate individuals and businesses engaged in digital asset activities to obtain a regulatory license, similar to banks and money transmitters.
SEC Publishes 2024 Assessment Metrics For Crypto Industry Registrants (October 16)
Written and published by the SEC's Division of Examinations, the standards are meant to prioritize risk areas that pose emerging threats to investors or market integrity.
US Federal Reserve Governor Michelle Bowman On Innovations In Money And Payments (October 17)
Bowman warned that the potential benefits of a US central bank digital currency (CBDC) remain unclear, and that the introduction of a US CBDC could pose significant risks and tradeoffs for the financial system.
The SEC voted to dismiss charges with prejudice against Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen - a stunning capitulation by the government.
New York Attorney General Sues Crypto Firms in $1 Billion Fraud Case (October 19)
Letitia James has accused Gemini Trust, Genesis Global Capital and Digital Currency Group of misleading investors in a program promising low risk and high returns.
Thor Technologies Hit With $1.05m Fine Over Unlicensed Securities (October 20)
The U.S. Securities and Exchange Commission (SEC) has slapped Thor Technologies and its CEO, David Chin, with a $1.05m fine for promoting securities without the required license.
Paradigm, DEF Urges Protection of Fourth Amendment Rights in IRS Case (October 22)
Crypto investment firm Paradigm has filed an amicus brief urging the reversal of a district court’s decision in the James Harper lawsuit against the U.S. Internal Revenue Service (IRS).
Regulators Around The Globe Assert More Control Over Crypto: Law Decoded (October 23)
From Hong Kong to Europe and the United States, regulators are pushing for more oversight and control over digital assets.
Genesis Says NY AG Lawsuit May Force "No Deal" Bankruptcy Liquidation (October 24)
Crypto lender Genesis Global said a New York civil fraud lawsuit could lead to a bankruptcy liquidation that does not resolve its claims against parent company Digital Currency Group (DCG).
Blackrock Bitcoin ETF Added To Eligibility File, Says Clearing House DTCC (October 24)
BlackRock's proposed bitcoin exchange-traded fund (ETF) was added to a clearing-house eligibility file in August, but the move is not indicative of any regulatory approval, clearing house DTCC said.
National Security In Question: SEC’s Crypto Approach Sparks Concern in Congress (October 25)
The Digital Asset Subcommittee broadens its focus to include fintech and AI, driven by the SEC's increased oversight under Chairman Gensler.
Blackrock Fined $2.5M By SEC For Incorrect Investment Disclosure (October 25)
The SEC’s charges for the world’s largest asset manager came on the same day as a DTCC listing of its spot Bitcoin ETF was spotted; however, a spokesperson from DTCC confirmed that the listing has been there since August.
Crypto Lender BlockFi Begins Post-Bankruptcy Wind-Down (October 25)
BlockFi wind down operations and begin returning crypto assets to customers 11 months after it was swept away by the turbulence in the cryptocurrency industry following FTX's collapse.
Coinbase Makes Final Stand Against SEC Lawsuit (October 25)
The SEC’s classification of Coinbase-listed cryptocurrencies as securities is an overreach, argues Coinbase in its final attempt to dismiss the lawsuit.
Gary Gensler Teases Details Of SEC’s $5B Take From Enforcement Actions, Shades Crypto (October 26)
Gensler revealed that the SEC took 780 enforcement actions, including 500 standalone cases, and distributed $930 million to harmed investors.
Cynthia Lummis Leads The Charge Calling For DOJ Action Against Binance And Tether (October 26)
U.S. Senator Cynthia Lummis and Representative French Hill urged the Justice Department to take “swift action” against Binance and Tether over facilitating funds for Hamas.
How Ripple Execs' Grit & Litigation Forced SEC To Back Down (October 27)
The SEC called off a looming trial against Ripple executives earlier this month after counsel at Cleary and Paul Weiss made clear their clients were eager for their day in court.
US Says Some Crypto Firms Not Doing Enough To Stop Illicit Finance (October 27)
U.S. Deputy Treasury Secretary Wally Adeyemo, speaking at an event in London, said the "there are those, especially (in) the digital asset space, who wish to innovate without regards to its consequences, including protecting against illicit finance."
After Mounting Court Defeats, the SEC Needs to Change Course on Crypto (October 27)
The SEC and its allies in the Biden administration have been fighting to halt bipartisan cryptocurrency regulation, arguing that the SEC is “the cop on the beat” and already has full authority over digital assets.
Commissioner Hester Peirce Objects To SEC’s Handling Of LBRY Case (October 27)
The commissioner said the case "illustrates the arbitrariness and real-life consequences" of what she held was disproportionately severe penalization.
Gemini Sues Genesis Over GBTC Shares Used As Earn Collateral, Now Worth $1.6B (October 27)
Genesis wants to use the shares’ initial value in claims and is not releasing additional collateral transferred by DCG, the suit claims.
Bittrex's US Wind-Down Approved In Bankruptcy Court (October 30)
Bittrex received bankruptcy court approval on Monday to shut down its U.S. operations, clearing the company to emerge from bankruptcy with a wind-down plan that would pay remaining creditors in full.
Gary Gensler’s Bitcoin ETF Position Is ‘Inconsistent’… Says Gary Gensler (October 30)
During a panel at the 2019 MIT Bitcoin Expo, Gensler called out the securities regulator for its “inconsistent” approach to spot Bitcoin ETF approvals.
Kraken Will Share Data Of 42,000 Users With IRS (October 30)
United States-based cryptocurrency exchange Kraken said it will share the data of 42,000 users with the U.S. Internal Revenue Service (IRS) in compliance with a court order.
Do Kwon And Terraform Labs Ask Judge To Toss SEC’s Lawsuit (October 31)
Do Kwon, the co-founder of the now-collapsed Terra ecosystem, maintains he and his firm did not skirt U.S. securities laws.
Sam Bankman-Fried Denies Knowing FTX Money Was Missing, as He Concludes Testimony (October 31)
The founder of the FTX crypto exchange was grilled by a federal prosecutor for a second day, just before both sides rested their case in the criminal fraud trial.
Middle East & Africa 🌍
Parliamentary Committee Calls For Shutdown Of Worldcoin In Kenya (October 2)
The Committee’s recommendations included having the Kenyan government consider implementing a comprehensive framework for digital assets and virtual asset service providers.
Kazakh Crypto Miners Plead With President To Cut Energy Prices (October 3)
Eight major cryptocurrency mining operators signed an open letter to the President of Kazakhstan, Kassym-Jomart Tokayev.
Centralized Crypto Platforms Forced To Freeze Arab Countries’ Funds (October 11)
As the conflict between Israel and Hamas escalates, the former CEO of Paxful calls on users to stay away from centralized crypto platforms.
Turkey Plans To Announce Crypto Regulation And Taxation In 2024 (October 26)
Turkey sets its sights on implementing cryptocurrency taxation and other regulatory measures as part of its 2024 Presidential Annual Program.
Europe 🌍
Head Of Portugal Central Bank Deems Crypto Unsustainable, Calls For Global Regulation (October 3)
Mário Centeno praised the European Union’s first comprehensive crypto framework, MiCA, but insisted on further international consolidation of regulatory efforts.
Central Bank Test Lab Develops Global Bitcoin Mapping System (October 4)
A global central bank test lab has designed a prototype bitcoin monitoring system aimed at giving authorities a clearer picture on how, when and where the cryptocurrency is used.
HTX, Kucoin Among Exchanges On UK’s FCA Unauthorized Operators List (October 9)
The regulator stated that all financial firms serving UK customers must be authorized or registered with it.
Report: Cyprus To Impose Stricter Compliance Requirements On Crypto Business (October 10)
Cyprus wants to align with international standards set by the Financial Action Task Force.
UK Financial Regulator Blocks Company From Approving Binance Marketing (October 11)
Britain's financial regulator on Tuesday said it was stopping peer-to-peer platform rebuildingsociety.com from approving financial promotions for Binance and other crypto asset firms.
UK Parliament Calls For NFT Copyright Protection Rights (October 11)
A cross-party committee of the UK Parliament has called on the government to protect the rights of artists and consumers in the NFT market.
Russia’s Stock Exchange Ready To List Bitcoin Under One Condition (October 12)
Russia’s second-largest bourse is ready to be the first in the country to add support for cryptocurrencies.
The Crypto Exchange Moving Money for Criminal Gangs, Rich Russians and a Hamas-Linked Terror Group (October 13)
Garantex’s international pipeline helps defy Treasury sanctions by channeling rubles to crypto to dollars. Customers line up with bags of cash.
French Regulator Publishes Guide On Defi Regulatory Framework (October 13)
The Autorité de contrôle prudentiel et de résolution (ACPR) published some guidelines on DeFi regulatory framework based on a public consultation.
G20 Finance Heads Adopt Roadmap For Crypto Regulation (October 13)
G20 finance ministers say the document is necessary to achieve macroeconomic and financial stability goals.
Binance Stops Accepting New UK Customers After Regulatory Crackdown (October 16)
Crypto exchange makes move after watchdog blocked company’s plan to market itself to British consumers.
Basel Committee Introduces Draft Guidelines On Crypto Asset Disclosure (October 17)
Basel Committee on Banking Supervision consultation paper on disclosure of cryptoassets exposures, which proposes a standardized disclosure table and set of templates for banks' cryptoasset exposures.
Analysis: Time For Central Bank Digital Currencies To Prove Their Worth (October 22)
A milestone move by the European Central Bank toward launching a digital euro within a few years means the time has come for the newest incarnation of money to prove its worth.
Tougher UK Crypto Regime Sparks Boom For Compliance Advisers (October 23)
The UK’s increasingly tough regulatory regime for cryptocurrencies has sparked a cottage industry in advice and compliance for the handful of companies that have successfully navigated the system.
Largest DeFi Protocol On Solana Reportedly Quits UK Market, Citing FCA Rule (October 23)
Marinade Finance holds over $265 million in total value locked, accounting for 70% of all funds locked on the Solana blockchain.
Britain To Push Ahead With Rules For Cryptoassets (October 30)
Britain said on Monday it would legislate to implement its first set of rules to regulate the crypto sector, requiring market participants to be authorized before they can offer services to consumers.
Financial Conduct Authority Warns UK Investors Not To Engage With Bitfinex (October 31)
The FCA has listed the exchange as a noncompliant entity and warned the investing public that it will have no recourse in the event of losses.
Asia 🌏
Coinbase Crypto Exchange Obtains Payment License In Singapore (October 2)
The new MPI license comes one year after Coinbase’s initial in-principle approval in Singapore, enabling it to expand digital payment token services.
Hong Kong Could Be A ‘Tailwind’ For Lagging Crypto Activity In Asia — Chainalysis (October 3)
Crypto activity in East Asia fell from its perch after China began its crusade against crypto in 2019. Recent moves by Hong Kong could help reverse that trend, said the blockchain analytics firm.
Singapore Awards Major Payment Institution License To Sygnum Bank Subsidiary (October 3)
Sygnum Singapore plans to expand its regulated offering to Asia-Pacific (APAC) markets, such as Hong Kong, a spokesperson told Cointelegraph.
Taiwan To Propose Crypto Regulation In November (October 6)
Taiwan is moving forward with plans to regulate the crypto industry by proposing a draft special law for first reading by the end of November, according to a lawmaker.
Hong Kong Official States Retail Stablecoins Trading Not Yet Allowed (October 6)
Hong Kong official reinforces that retail investors cannot trade stablecoins until they are regulated, likely in 2024.
Hong Kong’s Regulatory Approach Criticized As “Licensed To Be Killed” (October 11)
The Vice-President of HKUST criticizes Hong Kong’s current virtual asset licensing system as “Licensed to Be Killed,” advocating for a new public blockchain for real-world assets.
Singapore Establishes New Forces To Control And Confiscate Crypto (October 18)
Singapore’s Attorney General’s Office has officially established two forces dealing with crypto, including assisting police in tracking and confiscating cryptocurrencies.
Taiwan Introduces Bill Aiming To Create Regulatory Framework For Crypto (October 29)
The bill's primary goal is to establish rules for virtual asset service providers to protect investors and maintain financial stability.
Singapore Partners With UK, Japan, And Switzerland On Digital Asset Initiative (October 30)
The authorities are developing a Project Guardian initiative, focusing on asset tokenization of financial products.
Australia 🇦🇺 & Oceania
Australia To Introduce Crypto Regulation Mandating Licenses For Crypto Exchanges (October 16)
Crypto exchanges holding more than $5 million in aggregate or exceeding $1,500 for any individual user will be mandated to obtain an Australian Financial Services License.
Australia’s Central Bank Seeks To Explore CBDC Use (October 17)
The Reserve Bank of Australia (RBA) has expressed its openness to explore the potential role of a central bank digital currency (CBDC).
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