The Scenius State of Regulation (Issue #25)
Crypto Policy & Regulation: August 2024
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
Crypto Shifts The Political Playing Field (August 1)
Cryptocurrency appears to be the star of a political bidding war that’s roiling the Democratic Party while top Republicans embrace it.
NY Authorities Announce Charges Related To ‘Sham’ Crypto Recovery Firm (August 1)
The New York County District Attorney seized roughly $14,000 that Coin Dispute Network operators allegedly stole from users.
Ripple to Allocate $10M to Tokenized U.S. Treasury Bills on XRP Ledger (August 1)
This is part of a larger fund that Ripple will allocate to tokenized T-bills provided by OpenEden and other issuers.
North Carolina Lower Chamber Overturns Governor’s Veto Of CBDC Ban (August 1)
The bill received strong support in the General Assembly. Now, the state Senate will consider overturning the veto.
The SEC Continues To Engage In ‘Strategic Ambiguity,’ Lawyer Says (August 4)
Two NFT artists filed a suit against the SEC earlier this week to push back on the unclear regulatory approach to the environment.
US Legislators Call For CFTC Crackdown On Election Gambling As Polymarket Betting Hits Aths (August 5)
The lawmakers urged the CFTC to take action and prevent the "commodification" of US elections.
US Lawmakers Introduce Legislation To Expand Secret Service Authority In Battling Crypto Crimes (August 5)
The bill aims to address the urgent need for robust measures against the complex landscape of digital asset crimes.
Canadian Crypto Exchanges Face Deadline For CIRO Membership (August 6)
Crypto traders have been on interim rules since March 2021, and it’s time to finalize membership in the securities industry's self-regulatory organization.
The Crypto Paradigm Shift (August 6)
The last six months, beginning with the Bitcoin ETF approvals and culminating in the events of the last two weeks, lead us to believe that the winds have shifted for institutional and regulatory adoption of crypto.
Judge Ends Ripple, SEC Lawsuit With $125 Million Fine, XRP Surges 18% (August 7)
District Judge Analisa Torres partially granted the motion from remedies filed by the SEC against Ripple.
One of the critical aspects of this case involves adversary proceedings, where Celsius is bringing over 2,000 cases, largely against consumer creditors, seeking to recover amounts withdrawn from Celsius in excess of $100,000.
Mango Markets Crypto Trader Seeks Acquittal Or New Trial (August 8)
Avraham Eisenberg, who was convicted in a trial earlier this year, filed for a judgment of acquittal and a motion for a new trial earlier this week.
Crypto Executives Meet White House Officials To Discuss Policy, Grievances During Virtual Roundtable (August 8)
There was a bit of "airing of grievances," but they also spoke about use cases and policy outcomes, including what regulators should be looking for and a focus on jobs and economic impact.
Ripple Hails Major Win Against The SEC—But Looming Appeal Means Celebration May Be Premature (August 8)
The SEC v. Ripple case, which began in late 2020, has been viewed as a bellwether for how courts will rule on a broader anti-crypto enforcement campaign by the agency.
Federal Reserve Found ‘Significant Deficiencies’ In AML, Bank Secrecy Compliance At Customers Bank (August 8)
The Federal Reserve and Customers Bank filed a written agreement on Thursday, with a plan to disclose operations and crypto risk exposure.
SEC And Ideanomics Settle Crypto Revenue Reporting Fraud Charges (August 10)
According to the report, all parties involved have agreed to settle the charges without admitting or denying the SEC’s findings.
Coinbase Opposes SEC Proposal To Redefine Exchanges To Include DEXs (August 12)
The SEC's proposal, which has reopened for public comment, has drawn significant criticism from Coinbase and other industry players.
Customers Bancorp Becomes Latest Crypto-Friendly Bank Hit By Enforcement Action (August 12)
Web3 advocates described the move as the latest chapter in a coordinated attack on U.S. banks providing services to crypto firms.
Three Arrows Liquidators Seek $1.3 Billion Over 2022 Luna Crash (August 12)
Liquidators said Three Arrows acquired $190 million worth of Luna in January 2022 as part of a larger $1 billion deal that included other investment firms.
Canadian Regulators Are Looking To Investor Protection With Stablecoin Rules — CIRO (August 13)
CIRO executive Suzanne Lasrado offered her opinion on the regulatory guidelines affecting Canadian stablecoin users at the Blockchain Futurist Conference.
Canada Needs To Overhaul Crypto Regulations — Coinbase Exec (August 13)
The Canadian government has previously come under fire for undermining the economic freedom of its citizens and freezing crypto donations.
The Unraveling of a Crypto Dream (August 13)
Brock Pierce arrived in Puerto Rico seven years ago, promising to use crypto magic to revitalize the local economy, and now he’s mired in legal disputes and fighting with his business partners.
Crypto Influencers On Notice After FTC Bans Fake Likes And Followers (August 15)
New rules from the FTC mean crypto influencers will face stiff fines for fake followers and likes, while celebrity testimonials are also in the firing line.
Democrats’ 2024 Manifesto Ignores Crypto (August 20)
The 90-page document makes no mention of cryptocurrency at a pivotal time in U.S. politics, despite Trump embracing the industry.
FTX Says Creditors Overwhelmingly Back Reorganization Plan (August 21)
Cryptocurrency-trading platform FTX Trading, which declared bankruptcy in November 2022, said an amended reorganization plan won overwhelming preliminary support from all classes of creditors entitled to vote.
SEC Blocks Cboe’s Solana ETF Filings Amid Regulatory Concerns (August 21)
The SEC has rejected Cboe's 19b-4 filings for two proposed Solana ETFs, citing concerns over Solana's classification as a security, which has stalled the approval process.
The SEC Is Poised To File Fewer Crypto Cases In 2024 (August 21)
The SEC is still considered a major antagonist in the crypto space, with bigger targets increasingly common.
Crypto Lobbyist Charged With Breaking Campaign Finance Rules (August 22)
The charges against Michelle Bond, a former head of a crypto industry trade group, are part of the continuing legal fallout from the collapse of the FTX crypto exchange.
CluCoin Founder Pleads Guilty to Stealing $1.1M of Investor Funds for Online Gambling (August 22)
Austin Michael Taylor, 40, of Miami, Florida faces up to 20 years in prison for wire fraud.
How a Colorful Investor Profited From a Crypto Giant’s Dealmaking (August 25)
Christian Angermayer introduced Tether to companies in which he held stakes, and took cuts of some of the deals.
SEC Secures Settlement from Abra in Unregistered Securities Case (August 27)
In a significant regulatory development, crypto lending firm Abra has agreed to settle charges with the U.S. Securities and Exchange Commission (SEC) for operating its crypto asset lending product, Abra Earn, without proper registration.
FINRA Update on Crypto Asset Activities (August 29)
As noted by FINRA, member firms’ crypto asset-related activities raise “challenges with various FINRA rules,” resulting in a host of potential rule violations.
What An SEC Lawsuit Against OpenSea Could Look Like (August 29)
Could the SEC’s Wells notice to OpenSea target fractional shares of NFTs?
SEC Calls For Better Data For Retail Investors But Fails To Identify Oracles Like Chainlink Are The Solution (August 30)
By leveraging decentralized oracle networks, blockchain technology could prevent retail investors from being disadvantaged by outdated information.
"Same Risks, Same Rules”: The SEC’s Selective Approach To Crypto Regulation (August 30)
When it comes to cryptocurrency regulation, the SEC views most cryptocurrencies as securities, favoring the concept of ‘same risks, same rules’.
Middle East & Africa 🌍
Turkey Sees Surge In Crypto License Applications Amid New Regulations (August 9)
Turkey’s crypto economy is poised for growth as local and international companies show keen interest ahead of new legislation.
Dubai Court Recognizes Crypto As A Valid Salary Payment (August 16)
UAE lawyer Irina Heaver said the ruling shows the growing acceptance of crypto in employment contracts, recognizing the evolving nature of Web3 financial transactions.
Bank Of Ghana Unveils Draft Rules For Cryptocurrency Exchanges (August 16)
The Bank of Ghana introduces draft guidelines to regulate digital assets, focusing on exchanges and consumer protection measures.
Nigerian Lawmakers Eye Economic Boost Through Crypto Taxation (August 19)
Nigeria has a recently adopted a stringent regulatory regime towards the emerging industry.
'Get Him Home': Binance CEO Urges Nigerian Government to Free Detained Exec (August 21)
Tigran Gambaryan, a U.S. citizen who works for Binance, has been held in Nigeria since February.
After Binance, KuCoin And Coinbase Set Out To Conquer The Turkish Market (August 21)
Industry giants including Coinbase and KuCoin are jostling for business licenses in the country, which is emerging as the fourth largest crypto market in the world.
OmegaPro Co-Founder Arrested in Turkey on Suspicion of $4B Ponzi Scheme: Reports (August 22)
The firm said it invested in cryptocurrency and forex, and reportedly collapsed in 2022.
Investing In MENA’s Crypto Future: Opportunities And Challenges | Opinion (August 30)
With a tech-savvy population, progressive regulatory frameworks, and ambitious government-led initiatives, significant strides are being made across the Middle East when it comes to nurturing blockchain and crypto innovation.
South African Finance Minister Says Stable Politics Buoying Rand (August 31)
The swift formation of a new coalition government in South Africa after May elections has bolstered investor confidence and fueled a rally in the nation’s currency and the stock market.
Europe 🌍
Bybit Exits France Over Regulatory Woes (August 2)
Bybit announced the discontinuation of services in France amid new regulatory developments from the country’s regulator.
Bank Capital Standards for Cryptoasset Exposures Under the Basel Framework (August 13)
The Standards set out minimum requirements, which means implementation by Basel Committee on Banking Supervision (BCBS) members may result in stricter standards that may include outright prohibition in bank dealings in certain cryptoassets.
Digital Euro Has Germans Fretting Their Money Won’t Be Secure (August 17)
ECB officials to decide on rollout by end of next year, while half of people in Germany can’t imagine using e-euro.
Germany Seizes $28 Million In Raid On Unlicensed Crypto ATMs (August 20)
The sting was carried out on Aug. 20 and targeted 35 locations where crypto ATMs were reportedly being operated without the necessary licensing.
Russia To Launch Crypto Exchanges For Global Trade In Moscow And St Petersburg (August 23)
Russia is reportedly exploring the establishment of two crypto exchanges to facilitate foreign economic activities, local media outlet Kommersant reported.
UK’s Ambitions For Crypto Hub Status Falter Amid Regulatory Roadblocks (August 30)
Stringent FCA regulations and lengthy wait times have resulted in 186 firms withdrawing applications in three years.
Australia 🇦🇺 & Oceania
Prosecutor Demands Jail For Crypto.Com User Who Received $6.8M By Mistake (August 4)
Australian prosecutors argue that imprisonment should remain a strong possibility for the Crypto.com user who received millions because of an internal error.
ASX Sued Over Prior Statements About Its Now-Abandoned Blockchain Project (August 14)
The Australian Securities and Investments Commission has sued the stock exchange for alleged “misleading statements” it made over its abandoned blockchain upgrade plan.
Australia’s ASIC Shuts Down 615 Crypto Scam Sites Amid $1.3 Billion Fraud Surge (August 19)
The financial regulator decried the proliferation of scam websites luring Australians to invest in fraudulent schemes.
Kraken Hit With Dual Legal, Regulatory Setbacks In US And Australia (August 23)
Judge William H. Orrick ruled in favor of the SEC and rejected Kraken's motion to dismiss the lawsuit filed by the regulator.
New Zealand to Put OECD Crypto Tax Framework in Place by April 2026 (August 27)
New Zealand-based crypto-asset service providers will have to collect information on users' transactions starting April 1, 2026.
Australia Leads the World In Crypto ATM Growth as Kiosks Pour In (August 29)
The number of ATMs has jumped 16-fold over the past two years, and officials globally fret that kiosks are popular with criminals.
Latin America 🌍
IMF Says It’s Willing to Overlook Bitcoin Risk in El Salvador Agreement (August 8)
The IMF said that many potential risks associated with Bitcoin “have not yet materialized.”
Venezuela Blocks Binance, X Amid Presidential Election Dispute (August 12)
Binance has assured its users that their funds are safe after Venezuela cut off access to the exchange and social media platform X.
Binance Reaches $1.7M Agreement With Brazilian Securities Regulator (August 14)
Brazil’s CVM issued a warning to the crypto exchange in 2020 that it was offering residents derivatives products without authorization.
Bybit Receives VASP, Card Operator Registration In Argentina (August 16)
Bybit’s registration as a virtual asset service provider was made possible by a law passed in July.
Brazil Approves Second Spot Solana ETF (August 21)
Meanwhile, analysts believe that approval of spot Solana ETFs in the U.S. is unlikely under the current administration.
Worldcoin Under Fire In Colombia Over Potential Data Protection Lapses (August 22)
The SIC's investigation centers on whether the organizations breached Colombian laws governing the collection and processing of sensitive personal data.
“This Technology Can’t Be Stopped,” Says Top Argentina Regulator About Crypto (August 27)
Daniel Vitolo, General Inspector of Justice for Argentina, is one of many government officials becoming friendly with the crypto movement Crecimiento.
Brazil’s Supreme Court Threatens to Ban X (Twitter), Impact on Crypto Investors Looms (August 30)
The conflict between X and Brazil’s Supreme Federal Court (STF), represented by Minister Alexandre de Moraes, escalated earlier this week after the platform removed its legal representatives from Brazil due to Moraes’ threat of arrest.
Asia 🌏
South Korean Crypto Exchanges Face Unexpected Supervisory Fees (August 1)
Introducing supervisory fees marks a crucial step toward increased regulation and oversight.
Japan’s Top Finance Regulator Hesitant on Crypto ETF Approvals (August 7)
FSA chief said some doubt merits of funds investing in crypto, while regulators globally have softened on crypto ETFs this year.
US Crypto Firm BitGo Wins Payment License In Singapore (August 8)
Before receiving the license, BitGo served users in Singapore and APAC, but the offering included only custody services from the US South Dakota Trust and hot wallets.
Kyrgyz Republic Proposes Digital Som Legislation, CBDC Launch By 2027 (August 9)
The small Central Asian country is currently taking public comments on its framework legislation.
Thailand Launches Crypto Regulatory Sandbox To Kick-Off Adoption (August 9)
The initiative is designed to support the testing and development of services related to digital assets, providing a structured environment where businesses can explore innovative solutions within a regulated framework.
India’s Ministry Of Finance Says No Plans To Regulate Cryptocurrency Sales (August 9)
India’s Ministry of Finance said there are no proposals for legislation governing the sale and purchase of digital assets.
Hong Kong To Enhance Digital Asset Regulation In 18 Months (August 11)
By establishing a comprehensive regulatory framework, the city aims to attract global fintech talent, foster innovation and ensure the security and integrity of digital asset transactions.
Singapore Charges Ex-Citi, Julius Baer Bankers in Money Laundering Case (August 14)
Accused were relationship managers at Citi and Julius Baer, where authorities say the ex-bankers helped to submit forged documents.
Binance Restarts India Business After Getting Local Registration (August 15)
Binance and other global crypto exchanges have begun restarting operations in India, which banished them late last year for not having registered with authorities.
India Gears Up For Sweeping Crypto Regulations With New Consultation Paper (August 22)
Sources familiar with the matter said the first step of the plan is to release a consultation paper in the coming weeks that will invite feedback from stakeholders.
Hong Kong Regulator Finds 'Unsatisfactory Practices' at Some Crypto Entities Seeking Full License: Report (August 26)
As many as 11 entities are applicants for a full license with the regulator.
Thailand’s New PM: Quiet On Crypto, But Her Legacy Speaks Volumes (August 27)
Does Paetongtarn Shinawatra’s ascent to power mark the dawn of a crypto-friendly Thailand, or is her silence on the issue a sign of caution?
Indian rival CoinSwitch said it is likely to sue the hacked crypto exchange, where $9.6 million worth of deposits were held.
Indian Court Orders Scam Websites Using Crypto Exchange Mudrex's Name to Be Taken Down (August 29)
The court ordered India's Ministry of Communication to move against as many as 38 websites.
Hong Kong Accepts Crypto License Application Past Deadline (August 31)
Hong Kong Digital Asset Xchange is the latest firm to apply for a license, having submitted its application on Aug. 27.