The Scenius State of Regulation (Issue #17)
Crypto Policy & Regulation: December 2023
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
Understanding the DOJ’s Groundbreaking $4.3B Settlement with Foreign Cryptocurrency Exchange Binance.com (December 1)
The American law firm Troutman Pepper states that the DOJ has put crypto-related money transmitting businesses on notice: unlicensed money transmission activities and deficient AML programs will be met with stringent scrutiny.
Judge Scolds SEC For Apparent Deception In Crypto Case, Threatens To Sanction Agency (December 1)
A federal judge has rebuked the SEC over its treatment of a crypto firm, expressing concern the agency had made “materially false and misleading representations” to freeze millions of dollars in assets belonging to the project.
The offshore law firm Conyers analyzes the seminal decision in the Broad Idea International v Convoy Collateral, which delivered a ground-breaking exposition of the law of injunctions, including a restatement of the test for freezing injunctions.
Ripple's Brad Garlinghouse Is 2023's Comeback King With XRP's Win Over SEC (December 4)
Ripple's CEO emerged triumphant this year in legal cases with big implications for crypto's future, and he couldn't have done it without the XRP Army.
SEC Enforcement Activity: Public Companies and Subsidiaries—FY 2023 Key Trends (December 4)
The SEC noted cooperation by 69% of public companies and subsidiaries that settled in FY 2023, the third highest of any fiscal year in the Securities Enforcement Empirical Database (SEED).
IRS Criminal Investigation Unit Is Taking on More Crypto Tax Cases (December 4)
The Internal Revenue Service’s Criminal Investigations Unit is seeing an increase in its caseload of crypto tax cases, withhalf of active crypto cases involving tax.
Crypto Carnage Looms: SEC Leans On Terraform Case To Hammer Coinbase, Binance (December 4)
The U.S. Securities and Exchange Commission (SEC) is utilizing a recent victory in its case against Terraform Labs to bolster its ongoing legal battles with major cryptocurrency exchanges Binance and Coinbase Global.
Ripple Effects: Developments Following Groundbreaking Decision In SEC V. Ripple Labs (December 5)
The Ripple decision demonstrates that the Howey test is ill-fitted to secondary market transactions between anonymous buyers and sellers, states the co-heads of Skadden’s Web3 and digital assets group.
‘I’d Close It Down’: Jamie Dimon Endorses Crypto Ban In Senate Hearing (December 6)
Lawmakers and bank CEOs aligned in their support of stronger AML regulations in crypto markets at an annual oversight hearing.
Opinion: The Most Influential Folks in Crypto Regulations (December 6)
The CoinDesk regulatory team colleagues recognize key influential regulatory figures who they have been paying attention to in 2023.
New Jersey Bill Seeks To Classify Digital Assets Sold To Institutional Investors As Securities (December 6)
A bill that categorizes cryptocurrencies sold to institutional investors as securities was introduced to New Jersey’s general assembly by Assemblyman Herb Conaway Jr.
Founder and Majority Owner of Cryptocurrency Exchange Pleads Guilty to Unlicensed Money Transmitting (December 6)
The founder of Bitzlato Ltd. processed more than $700 million in illicit funds, including millions in ransomware proceeds, and was primary counterparty of notorious drug bazaar Hydra Market.
Op-Ed: Gary Gensler’s SEC Is Killing Innovators While Sheltering Cronies (December 8)
Attorney and chairman of Consumer Action for a Strong Economy (CASE) Gerard Scimeca argues that Gensler’s Agency has stifled innovation and American’s blockchain future.
Professor J.W. Verret: A Sound Template for Crypto Regulation (December 11)
Associate professor J.W. Verret of the Antonin Scalia Law School at George Mason University argues that the Ripple case invites regulators to recalibrate their approach and align with technological advancements rather than stifle them.
Two Men Charged for Operating $25M Cryptocurrency Ponzi Scheme (December 12)
The Department of Justice (DOJ) charged an Australian national and a California resident with operating a crypto ponzischeme that allegedly defrauded victims of more than $25M.
U.S. CFTC Approves Bitcoin Futures Platform Bitnomial's Derivatives Clearing Application (December 13)
The CFTC’s approval of Bitnomial’s application to launch a derivatives clearing organization makes it the first crypto-native exchange to have acquired a full set of CFTC licenses to operate a derivatives exchange, clearinghouse, and brokerage.
Crypto Exchange KuCoin To Shut In New York, Pay $22 Million To Settle Lawsuit (December 13)
KuCoin has agreed to block New York users from its platform and pay $22 million to settle a lawsuit brought by the state as part of its push to rein in digital assets companies.
SEC Chair Gensler Talks with Bloomberg About Crypto Regulation (December 13)
SEC Chair Gary Gensler speaks to Bloomberg about how many investors in the crypto market are being harmed because there is too much noncompliance.
Lessons Learned from Binance’s Criminal Settlement (December 14)
Partner Matt Stankiewicz of The Volkov Law Group finishes his series on Binance by providing key takeaways for AML compliance programs.
Four Individuals Charged for Laundering Millions from Cryptocurrency Investment Scams (December 14)
The DOJ charged three California residents and a resident of Illinois in connection with a scheme to launder the proceeds of crypto-related investment scams that resulted in more than $80M in victim losses.
CoinList Agrees To $1.2M Settlement Over Apparent US Sanctions Violations (December 14)
The US crypto exchange processed 989 transactions for users in Crimea from April 2020 to May 2022, according to the Office of Foreign Assets Control.
Nirvana Finance Hacker Pleads Guilty, Forfeits $12.3M (December 14)
Nirvana Finance senior security engineer Shakeeb Ahmed pled guilty and agreed to return all of the stolen crypto to his victims including nearly $6M of the sum in crypto.
Statement by Chair Gary Gensler on the Denial of a Rulemaking Petition Submitted on behalf of Coinbase (December 15)
The Securities and Exchange Commission (SEC) Chair Gary Gensler released a statement supporting the Commission’s decision to deny Coinbase’s petition seeking comprehensive crypto rulemaking from the agency.
SafeMoon Files For Bankruptcy, Sending SFM Tumbling (December 15)
The company’s Chapter 7 bankruptcy comes a little over a month after the US Securities and Exchange Commission filed a suit against both SafeMoon and some of its top executives.
Federal Court Enters Order Against Binance and Former CEO, Zhao, Concluding CFTC Enforcement Action (December 18)
A federal court granted final approval to the Commodity Futures Trading Commission’s (CFTC) $2.7B settlement with Binance and $150M settlement with Binance’s former CEO and founder Changpeng Zhao.
FTX Resolves Dispute With Bahamian Liquidators (December 19)
FTX and FTX Digital Markets have agreed to pool their assets and harmonize their approach to valuing customer claims to ensure equal treatment for customers in either country's insolvency process.
Prometheum Earns Final Regulatory Nod to Try Hand at Fully Compliant Crypto (December 21)
The U.S. platform, which drew industry barbs for insisting crypto can comply with SEC rules, is now approved for clearing, though it won't begin for a few months at least.
Consensys Voices Concerns Over IRS Proposed Rulemaking For Crypto (December 22)
Consensys raises concerns that the proposed regulations—if finalized as is—would impose a “new and complex regulatory scheme on software developers and others in a fast-growing industry with unique technical and operational features.”
The State Of Play: Unpacking Crypto Policy Progress In Washington, D.C. (December 22)
Hedera Chief Policy Officer Nilmini Rubin speaks on the state of policy discussions, incentives driving politicians, real world applications, and more in an exclusive interview with CryptoSlate.
SEC ‘Deeply Regrets’ Errors Related To Crypto Firm Enforcement Case (December 22)
The SEC said it had failed to be “accurate and candid” in earlier court filings, claiming software firm Debt Box closed certain bank accounts and planned to relocate to the UAE in an alleged attempt to escape the commission’s jurisdiction.
Navigating the Global Crypto Landscape with PwC: 2024 Outlook (December 25)
In its new crypto regulation report, the professional services firm PwC assessed the status of crypto regulations in a total of 43 countries including the United States and the United Kingdom.
Big Battles Loom in SEC’s War on Crypto (December 28)
The Agency’s push to regulate ‘Wild West’ market could stumble if it loses enforcement cases against Coinbase, Binanceor Kraken.
Crypto Derivatives Have The Hope For Regulatory Framework | Opinion (December 29)
Recent regulatory developments, such as the ISDA’s new standard for crypto derivatives, the proposed evolution of English law, and the UK’s and Dubai’s cryptocurrency-friendly approaches, provide a positive outlook for the industry’s future regulation.
SEC’s Bitcoin ETF Update Deadline Today: Cash-Create Vs. In-Kind (December 29)
The SEC wants to minimize the number of intermediaries in spot Bitcoin ETFs to make them a “little more controllable,” Bloomberg ETF analyst Eric Balchunas said.
Invesco Galaxy, Bitwise, WisdomTree, Fidelity Join BTC ETF Revision Rush (December 29)
Seven of the 13 applicants for spot Bitcoin ETFs filed revised S-1s with the SEC on the day of the deadline, and n official decision is expected by Jan. 9, and trading should begin around Jan. 11.
Komodo Protocol CEO: 'In 2023, The US Government Tried To Kill Crypto' (December 30)
Komodo’s CEO Kadan Stadelmann says that regulators put a thaw over the entire US-based crypto industry.
Crypto Taxes: Major Milestones Of 2023 And Forecast For 2024 (December 31)
The crypto.news team explores the current state of crypto tax and what investors can expect in 2024.
Middle East & Africa 🌍
Binance Reevaluates MENA Strategy, Retracts Abu Dhabi Fund Management Bid (December 7)
Binance's Abu Dhabi retreat signals strategic realignment in the face of evolving global regulations.
Kazakhstan Bans Coinbase Amid Larger Controversy (December 8)
The Ministry of Culture and Information in Kazakhstan has confirmed blocking major cryptocurrency exchange Coinbase in the country, citing local digital asset regulations violation.
Turkey’s Banking Giants Go Big on Crypto as Legislation Looms (December 13)
Turkey’s government is gearing up to introduce new legislation for the crypto sector, and it’s still unclear how restrictive the new laws might be, but it hasn’t spooked adoption even at the institutional level.
Nigerian Central Bank Lifts Ban On Crypto Trading (December 23)
Nigeria's central bank has lifted a ban on transacting in cryptocurrencies, while saying global trends had shown a need to regulate such activities.
Yellow Card Seeks Exchange License After Nigeria Lifts Crypto Ban (December 23)
Pan-African exchange Yellow Card Financial Inc. will “immediately” apply for a license in Nigeria after the country’s central bank lifted a ban on cryptocurrencies that was imposed in 2021.
Nigeria’s Crypto Ban Hindered eNaira Adoption Despite High Global Ranking (December 29)
Nigerian tech and innovation legal expert Chinedu Albert said eNaira adoption will only happen when the government gains the trust of Nigerians, and the naira attains a more trusted status.
Europe 🌍
UK Lawmakers Wary Of Launching Retail CBDC Due To Privacy, Financial Stability Concerns (December 2)
The U.K. Parliamentary Treasury Committee urged the Bank of England and H.M. Treasury to thoroughly consider data privacy and financial stability issues before implementing a CBDC.
European Union Markets in Crypto Assets Legislation (December 6)
The European Union’s (“EU”) “Markets in Crypto-Assets Regulation” (“MiCAR”), expected to be implemented in 2024, would establish harmonized rules for crypto-assets in the EU level, thereby providing legal certainty for crypto-assets not covered by existing EU legislation.
Ukraine To Regulate Crypto With FATF Requirements (December 11)
Yulia Parkhomenko, director of the virtual assets department at the Ministry of Digital Transformation of Ukraine, said that the country will implement crypto standards developed by the Financial Action Task Force (FATF) to comply with international standards.
Coinbase Obtains VASP Registration in France (December 12)
Coinbase announced that it has secured registration as a Virtual Asset Services Provider in France.
IMF Chief Says Rules, Infrastructure Needed To Prevent Crypto Risks (December 14)
The head of the International Monetary Fund (IMF) said at a conference in Seoul that crypto currencies need to be regulated because they pose risks to financial stability.
EU Sanctions Russians From Owning Crypto Businesses (December 19)
The European Commission has imposed a new ban on Russian nationals and residents, preventing them from owning or controlling crypto service providers in response to Russia‘s military offensive against Ukraine.
UK Spearheads Global Commitment to the Crypto-Asset Reporting Framework (December 20)
The Crypto-Asset Reporting Framework (“CARF”) is the OECD’s flagship tax transparency standard to help combat criminal activity using crypto-assets to evade taxation.
Global Securities Regulator Says Governments Need To Know Who Runs DeFi Protocols (December 20)
IOSCO states in its latest report that DeFi’s anti-centralized body nature makes regulating the industry a challenge, so governments should start by identifying the “responsible persons.”
Russia Is Aiming To Legalize Cross-Border Settlements In Crypto In H2 2024 (December 25)
Anatoly Aksakov, the head of the State Duma’s Financial Market Committee, supported the proposal to use crypto for cross-border payments, saying the idea is “absolutely right.”
Latin America 🌍
El Salvador’s Bitcoin Bond Gets Regulatory Approval, Targets Q1 Launch (December 12)
El Salvador’s long-anticipated Bitcoin bonds, also known as “Volcano Bonds,” have reportedly received the regulatory nod for a launch in early 2024.
El Salvador Expects To Sell Out Bitcoin ‘Freedom Visa’ By End Of Year (December 13)
El Salvador’s National Bitcoin Office (ONBTC) says its $1 million Freedom Visa program has already received hundreds of inquiries since its launch on Dec. 7 and expects it to sell out before the end of 2023.
Argentines Will Be Given A Chance To ‘Regularise’ Undeclared Crypto (December 28)
The newly formed government of Argentina said it would ease the path to legalization of crypto holdings even if they’re overdue on tax declarations.
Asia 🌏
Singapore Central Bank Issues Final Guidelines for Crypto Payment Providers (December 5)
The Monetary Authority of Singapore (MAS) has issued final guidelines for crypto payment providers, detailing measures related to consumer access.
DigiFT Becomes Singapore’s First Regulated Public Blockchain Exchange For Asset Tokenization (December 5)
Ethereum-based digital assets exchange DigiFT said it received a Capital Market Services (CMS) license and was recognized as a Recognized Market Operator (RMO) by the Monetary Authority of Singapore.
Hong Kong Regulator Blocks Crypto Websites Over Illegal Token Offerings And False Claims (December 6)
Hong Kong’s Securities and Futures Commission (SFC) said that it had taken steps to block access to the websites of HongKongDAO (also known as Hong Kong Digital Research Institute) and BitCuped.
Japan Mulls New Crypto Taxation Regime For Corporate Crypto Holdings (December 6)
Japan‘s policymakers in the Liberal Democratic Party and ruling coalition partner Komeito are weighing to bring a new proposal that would exempt businesses from paying taxes on unrealized crypto gains.
South Korea Ramps Up Crypto Security With New Investor Protection Laws (December 11)
The Korean Financial Services Commission (FSC) unveiled a comprehensive set of regulations to protect customers of virtual asset services providers, including rules relating to managing and storing customers’ deposits and virtual assets, which is set to come into effect on July 19, 2024.
Taiwan Completes Wholesale CBDC Technical Study, Central Bank Official Says (December 11)
Central Bank of the Republic of China (Taiwan) Deputy Governor Chu Mei-lie says CBDCs "can serve as the operational basis for tokenization" as traditional financial institutions increasingly experiment with digitizing real-world assets.
Bank of Korea Governor Sees CBDC Introduction as Case for 'Urgency:' Report (December 15)
Bank of Korea Governor Rhee Chang-yong said that the widespread usage of stablecoins could reduce the effectiveness of central bank monetary policies and “underscores the urgency for central banks to consider introducing central bank digital currencies, whether retail or wholesale.”
India’s Central Bank Says Government Cannot Ignore Its Concerns Over Crypto (December 25)
The Reserve Bank of India (RBI) and has not changed its stance on crypto and remains convinced that cryptocurrencies should be banned.
South Korea To Mandate Crypto Disclosure For 5,800 Officials In 2024 (December 27)
Nearly 6,000 South Korean officials will be required to disclose their crypto holdings in 2024 as the country wants to enhance transparency and accountability within the public sector.
China To Intensify Crackdown On Stablecoins To Thwart Illegal Forex Trading (December 28)
Chinese prosecutors and forex regulators were told to strengthen supervision over foreign exchange, and cases where the Tether stablecoin was used as an intermediary to trade yuan with other currencies.
South Korean Lawmakers Traded Almost $100 Million Of Crypto In 3 Years (December 29)
South Korea’s Anti-Corruption and Civil Rights Commission investigated the digital asset transaction records of all 298 sitting lawmakers between May 30, 2020, and May 31, 2023.
Indonesian Police Shut Down 10 Bitcoin Mining Operations: Report (December 30)
According to a local report, Indonesian law enforcement confiscated 1,134 Bitcoin machines, claiming an electricity theft nearing $1 million.