The Scenius State of Regulation (Issue #20)
Crypto Policy & Regulation: March 2024
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
Department Of Energy Drops Emergency Survey Of Bitcoin Miners After Legal Backlash (March 1)
The federal government is scrapping its emergency survey of the Bitcoin mining industry’s power usage, following a lawsuit by the publicly traded miner Riot Platforms and the Texas Blockchain Council.
US Lawmakers Fight CBDC, Advocate Crypto Custody For Banks: Law Decoded (March 4)
Five United States senators have joined hands to fight President Joe Biden’s plans to issue a “digital dollar.”
Virginia Passes Crypto-Friendly Bill To Foster Blockchain Expansion (March 5)
U.S. Virginia Senate Bill No. 339, which aims to create a work group dedicated to studying cryptocurrencies, blockchain and crypto mining, received majority support from the Senate.
US Supreme Court Case Could Change Crypto Industry Regulation (March 5)
Two court cases before the U.S. Supreme Court could impact the blockchain industry, taking power away from agencies like the SEC.
Terra’s Do Kwon Wins Extradition Appeal in Montenegro as Case Heads for Retrial (March 5)
Do Kwon, the founder of Terraform Labs, may not be extradited to the U.S. after a Montenegro court overturned a previous extradition ruling.
‘Playing Politics To Win’: Crypto Spends Big On Super Tuesday (March 5)
The Super Tuesday primaries are the first big test of the cryptocurrency industry’s effort to rebuild its Washington influence operation.
DCG argues that it acted under the advice of top accountants and investment bankers, including for a controversial $1.1 billion promissory note issued to Genesis, and that the company did nothing wrong.
BlockFi Settles With FTX, Alameda Estates for $874.5M (March 6)
The settlement with FTX and Alameda Research is a key part of BlockFi's bankruptcy and reorganization plan.
Canadian Securities Administrators Propose Amendments to Rules for Public Crypto Asset Funds (March 6)
The CSA recently published proposed amendments to National Instrument 81-102 Investment Funds and changes to its companion policy relating to reporting issuer investment funds that seek to invest directly or indirectly in crypto assets.
This 10-Year-Old Crypto Firm Hit With $275,000 Unregistered Securities Fine by SEC (March 6)
The SEC’s charges against ShapeShift came before the firm ceased its exchange activities in the US in 2021.
Binance.US Says It’s ‘Radioactive’ To Banks, SEC Dealt ‘Near-Mortal Blow’ (March 7)
A deposition from Binance.US’ chief operating officer claims the SEC’s suit last year caused banks to pull support from the exchange, “effectively choking the business.”
CFTC Chair Warns Of Conflict With SEC Over Prometheum’s ETH Play (March 7)
SEC-registered broker Prometheum could force the agency to decide if Ether is a security and CFTC chair RostinBehnam says that could lead to conflicting rules.
Wyoming Governor Signs Into Law A Bill To Give DAOs Legal Standing In The State (March 8)
The future of DAOs in Wyoming is progressing with the signing of a bill which grants them legal status, enabling DAOs to open bank accounts, appear in court, pay taxes etc.
Coinbase-Backed $85 Million Crypto Super PAC Sets Its Sights on Senate Races (March 8)
Fairshake PAC will target key general elections and primaries in four states that could reshape the Senate’s makeup.
How Bitcoin Made a Believer Out of BlackRock (March 10)
CEO Larry Fink’s U-turn illustrates Wall Street’s growing desire to capitalize on generating fee income in a market long considered the Wild West of finance.
US Should Soften Stance on Digital Assets, FDIC Vice Chair Says (March 11)
Travis Hill, the vice chairman of the Federal Deposit Insurance Corp., criticized US restrictions on banks handling digital assets for their clients.
Roman Sterlingov, founder of the crypto mixer Bitcoin Fog, was found guilty today of operating among the longest-running and most prolific bitcoin money laundering services on the darknet.
8 State AGs Argue That SEC’s Crypto Enforcement Action Is Unlawful (March 13)
The state of Montana, supported by seven other states, filed an amicus brief arguing that the Securities and Exchange Commission (SEC) lacks authority to regulate crypto assets.
Judge Orders Former Binance CEO Changpeng Zhao To ‘Surrender’ Canadian Passport (March 13)
Zhao—a Canadian citizen—was ordered to surrender his Canadian passport to a third-party custodian employed by his lawyers.
Terraform Can Retain Its Law Firm Despite SEC Objections Of ‘Slush Fund,’ Court Rules (March 13)
The ruling comes after the Securities and Exchange Commission challenged the bankrupt company’s retainer of $166 million for the lawyers.
A $300M Ponzi Scheme That Targeted Latinos Falsely Claimed to Buy Crypto, SEC Says (March 14)
The SEC charged 17 individuals for their roles in a $300 million Ponzi scheme that involved Houston, Texas-based CryptoFX LLC and targeted more than 40,000 predominantly Latino investors in the U.S. and two other countries.
Potential Impact of the SEC’s Rulemaking Agenda on Crypto (March 15)
Attorneys from the Blockchain and Cryptocurrency Working Group at US law firm WilmerHale address how certain SEC rule proposals could impact existing crypto market participants.
Empower Oversight Sues SEC for More Crypto Conflict Documents (March 18)
Empower Oversight has filed a lawsuit against the SEC over its failure to comply with a Freedom of Information Act (FOIA) request seeking documents related to cryptocurrency conflicts of interest at the agency.
Judge Slams SEC For ‘Gross Abuse Of Power’ In Crypto Case, Imposes Sanctions (March 18)
A federal judge took the unprecedented step of imposing sanctions on the Securities and Exchange Commission related to a lawsuit the agency brought against the Utah-based crypto company DEBT Box in July.
Bankrupt Crypto Lender Genesis Agrees to Pay $21 Million to Settle SEC Charges (March 19)
The Regulator says company engaged in unregistered offer and sale of securities by failing to register its Gemini Earn program.
The Real Agenda: Why Joe Biden Targets Crypto Now (March 19)
The Biden administration's proposed tax on crypto miners sparks concerns about stifling innovation and driving the industry out of the US.
Regulatory Rift: Crypto Industry Demands Clear Guidelines in Face-Off with SEC (March 20)
The Crypto Council for Innovation (CCI), investment firm Paradigm, and the Chamber of Digital Commerce are backing Coinbase in its legal battle for regulatory clarity against the SEC.
US Crypto Bill Might Pass Before Presidential Elections (March 21)
Rep. McHenry, the Republican chair of the House Financial Services Committee, highlighted the improved chances of passing legislation designed to bring regulatory clarity to the crypto market.
Ethereum’s Future Under the SEC’s Magnifying Glass (March 24)
The US Securities and Exchange Commission (SEC) has launched an investigation into the Ethereum Foundation, raising concerns about the future of ETFs on Ether.
SEC Fines Arista Co-Founder $1 Million Over Insider Trading Claims (March 26)
The Wall Street Regulator alleges Andy Bechtolsheim profitably traded on confidential information about an impending deal for Acacia Communications.
The US law firm Shearman & Sterling analyze the recent case Williams v. Binance, No. 22-972 (2d Cir. Mar. 8, 2024).
KuCoin and Its Founders Face Criminal Charges Over Money-Laundering Violations (March 26)
U.S. prosecutors also allege the cryptocurrency exchange operated an unlicensed money-transmitting business.
SEC Seeks $1.9B From Ripple In Proposed Final Judgment (March 26)
Ripple CEO and chief legal officer said that the SEC was seeking nearly $2B in its case.
CFTC Calls ETH A Commodity In KuCoin Complaint (March 26)
The complaint charges KuCoin illegally dealt in off-exchange commodity futures transactions and leveraged, margined, or financed retail commodity transactions, among other violations.
Court Largely Rules Against Coinbase’s Dismissal Efforts In SEC Case (March 27)
Judge Failla found that Coinbase didn’t operate as an unregistered broker in offering its wallet service.
How Sam Bankman-Fried’s Sentence Compares With Other White-Collar Cases (March 28)
Before the sentencing, prosecutors sparred with Sam Bankman-Fried’s defense lawyers over the appropriate punishment.
Crypto Auditor Contests US Oversight Board’s Enforcement Powers (March 28)
An unnamed public accounting firm is suing to halt a US regulator’s demand for documents as part of an ongoing probe of the firm’s crypto-related audit work.
Amid Bitcoin Fog Operator Conviction, Are Crypto Mixers Now Illegal? (March 28)
With the recent prosecution against the founder of Bitcoin Fog, operating any kind of cryptocurrency mixer is a risky enterprise.
Justice Rendered? SBF Sentenced To 25 Years In Prison For FTX (March 29)
CEO Sam Bankman-Fried has been sentenced to 25 years’ imprisonment with a prison sentence that is considered too lenient by many victims.
What The Coinbase Dismissal Denial Says About Staking And Securities (March 29)
The Blockworks’ Policy Team gives a breakdown of Judge Katherine Polk Failla’s findings in the SEC’s case against Coinbase.
CFTC Commissioner Pham Says KuCoin Complaint ‘Undermines’ SEC (March 29)
The CFTC’s complaint classifies KuCoin’s “leveraged tokens” as digital asset commodity derivatives.
SEC’s Spot Ether ETF Concerns Unfounded, Consensys Asserts (March 31)
Consensys highlighted that Ethereum boasts a larger developer community than Bitcoin and operates on a fully transparent and public blockchain.
Tornado Cash Co-Founder Requests Dismissal Of Money Laundering Charges (March 31)
Roman Storm’s lawyers argued that the charges are “fatally flawed” and must be dismissed, given “there was nothing” Storm could have done to prevent sanctioned entities from using the crypto mixer.
Middle East & Africa 🌍
Binance Slapped with a $10 Billion Fine by Nigerian Regulatory Authorities (March 1)
This decision underscores Nigeria’s intensified efforts to regulate the crypto market and safeguard its economic stability.
Binance Will Discontinue Its Nigerian Naira Services After Government Scrutiny (March 5)
Two Binance executives were recently detained in the country, and the exchange’s CEO Richard Teng, has been summoned to appear before a committee.
Nexo Puts Recent Woes Behind It With Middle East License Approval (March 6)
The company must now navigate through the subsequent phases — obtaining a preparatory license followed by the final operating license — to fully offer its crypto services to regional clients.
South African Regulator Set to Issue Licenses to 60 Crypto Platforms by End of March (March 15)
Sixty crypto platforms are set to be licensed by the end of the month in South Africa, with many more waiting as the country’s Financial Sector Conduct Authority embraces regulating crypto assets.
Dubai’s DIFC Unveils Groundbreaking Digital Assets Law, Enhancing Legal Clarity For Global Investors (March18)
The Dubai International Financial Centre is introducing legislative reforms designed to introduce laws around digital assets and their regulation.
Uzbekistan Increases Fees For Crypto Operations (March 20)
The National Agency for Prospective Projects anticipates the revenue generated from the sector to double once the new structure is in place.
Nigeria Accuses Binance Of Tax Evasion As Detained Executive ‘Escapes’ Custody (March 25)
Tax authorities alleged that Binance, which is unregulated in Nigeria, has not filed tax returns nor paid value added or corporation tax.
Kenya Resists US Pressure Over Worldcoin (March 28)
The US government has pleaded with Kenya in favor of Worldcoin, a project suspended by the authorities since last year.
Binance Executives Sue Nigeria For Human Rights Violations (March 30)
The two executives who came to the country to negotiate have finally lodged a complaint against the authorities for alleged violation of fundamental rights.
Europe 🌍
UK Set to Empower Law Enforcement with New Crypto Seizure Capabilities (March 3)
The UK is set to introduce new laws allowing law enforcement to seize crypto assets linked to crime without a conviction, enhancing efforts to combat economic crimes involving digital currencies.
Ministry for National Economy to Propose a Law for Cryptocurrency Regulation (March 5)
A new law in Hungary will see domestic banks able to offer crypto to customers and the Hungarian National Bank supervising new crypto assets and overseeing the domestic trading of tokens.
Worldcoin Files Lawsuit To Appeal Spain’s Ban (March 8)
Spanish authorities banned Worldcoin on March 6 after receiving several complaints about the project.
UK Regulator To Allow Crypto-Related Securities (March 11)
The UK’s financial regulator will permit bitcoin and ethereum-backed exchange traded notes to be listed on the stock market, in a softening of its tough stance on digital assets.
EU Parliament Passes Sanctions Law Including Crypto, Aiming To Seal Loopholes Across 27 States (March 12)
Legislation covering crypto assets introduced by the EU is designed to standardize how sanctions are enforced across the member states, seeking to close loopholes that can be exploited.
European Banking Authority Takes Next Step In Finalizing Stablecoin Policy (March 13)
The EBA released a final draft of regulatory technical standards outlining how issuers should respond to holder complaints.
Russia Regulates Use of Digital Assets for International Settlements (March 15)
Russia has approved the use of digital assets in making payments in international transactions with the introduction of a law that sees them regulated under the authority of the Central Bank of Russia.
DNB (Dutch Central Bank) Fines Crypto.Com €2.85 Million (March 16)
The exchange is accused of operating in the Netherlands last year without registering as required by Dutch law.
Estonia Introduces Legislation To Regulate Cryptocurrency Providers (March 21)
New Legislation in Estonia introduces stricter regulatory standards for crypto businesses and will see companies come under the supervision of the FSA in the next few years.
Tornado Cash Founder Alexey Pertsev Charged With Massive Money Laundering In The Netherlands (March 24)
The developer of popular crypto mixer Tornado Cash, Alexey Pertsev is facing serious charges from Dutch authorities who accuse him of laundering $1.2 billion in crypto.
Russian Binance Alternative, CommEX, Closes Down (March 25)
The move comes after Binance sold its Russian operations to CommEx amidst increasing regulatory scrutiny.
Polish Crypto-Assets Act: A Move Towards Tightening The Market (March 26)
The Polish government published a draft act on crypto-assets (the Draft Act) that aims to align the national legal framework with the EU regulation on crypto-assets.
‘Starkly Fraudulent’ Scottish Scheme Revealed In Crypto Laundering Case (March 26)
The London trial of a woman convicted of laundering bitcoin from a £5bn fraud in China highlights the role of land use in Scotland.
UK Court Freezes Over $8M Of Craig Wright’s Assets (March 30)
The judge endorsed a “worldwide freezing order” by the Crypto Open Patent Alliance to address its total court expenses amounting to 6.7 million British pounds ($8.4 million).
Australia 🇦🇺 & Oceania
The court found that The Australian Securities and Investment Commission (ASIC) did "not establish that the Finder Earn product is a debenture" and ordered it to pay the defendant’s costs.
Latin America 🌍
El Salvador Axes Income Tax for Investments From Abroad (March 13)
The nation, which is attempting to attract foreign capital, removed income tax on investment from overseas.
Argentina Approves Crypto Regulation That Requires CNV Register (March 14)
New regulations for Virtual Asset Service Providers which promote KYC and AML have come into play in Argentina, requiring VASPs to register with the country’s Comisión Nacional de Valores.
Honduras Gains New Support In $11B Tussle With Crypto Island Próspera (March 21)
Economists wrote a letter to “commend” Honduras’ decision to withdraw from an international court where it has been fighting the U.S.-based firm behind Próspera.
Asia 🌏
Taiwan To Introduce New Digital Currency Laws In September: Report (March 4)
The Financial Supervisory Commission (FSC) has announced that it will propose a new draft of digital asset regulations for Taiwan in September 2024.
Philippine Gov’t Blocks Unlicensed Crypto Exchange Sites, Binance Unaffected (March 7)
Binance is still accessible in the country even after a three-month countdown imposed by the Philippines SEC for banning unlicensed crypto trading platforms.
How South Korea Plans to Build a Robust Crypto Taxation System (March 11)
South Korea’s National Tax Service (NTS) is spearheading the creation of a ‘Virtual Asset Integrated Management System’ to combat crypto tax evasion and promote fair taxation.
Thailand Allows Spot Bitcoin ETF Exposure, But There’s a Catch (March 12)
Only institutional and ultra-high-net-worth individuals will be eligible for this investment opportunity.
This Crypto Exchange Was Labeled “Suspicious” by Regulators (March 15)
Hong Kong's SFC labeled Bybit as "suspicious," citing unlicensed offerings like futures and options.
Hong Kong’s Central Bank Begins New Phase Of Its CBDC Pilot (March 15)
The Hong Kong Monetary Authority has launched phase two of its e-HKD pilot program.
OKX Leaves India Due To Regulatory Uncertainty (March 24)
While India advocates international cooperation in crypto regulation, the domestic regulatory landscape remains uncertain, prompting exchange platforms like OKX to cease operations in the country.
Indonesia to Enforce Strict Crypto Regulation in 2025 (March 28)
The new regulations mandate that all financial service institutions undergo a regulatory sandbox program.