The Scenius State of Regulation (Issue #26)
Crypto Policy & Regulation: September 2024
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
Trump’s Call For A Bitcoin Strategic Reserve Is A Very Bad Idea (September 1)
Crypto promotion by the White House would chip away at the dollar’s reserve currency status.
SEC Charges Fund Adviser Galois Capital For FTX Crypto Custody (September 3)
The fund allegedly lost about half of its assets following FTX's collapse.
Robinhood In $3.9 Mln Settlement With California Over Crypto Withdrawals (September 4)
California’s AG said Robinhood violated California law by failing to deliver cryptocurrencies that its customers had bought, leaving customers unable to withdraw their assets and forcing them to sell the assets.
Binance Executive Detained In Nigeria To Know Bail Decision Next Month (September 4)
Binance's head of financial compliance will know on Oct. 9 whether he will be released on bail or remain in prison custody after a judge deferred ruling on his latest request.
CFTC Settles With Uniswap Labs Over Leveraged Crypto Trading (September 4)
Uniswap received a Wells notice from the SEC earlier this year, and the Company agrees to pay $175,000 fine as part ofthe settlement.
Fed Hits Texas Bank With Cease And Desist Over Servicing Crypto Firms (September 5)
The US Federal Reserve said it identified “significant deficiencies” in the bank’s dealings with crypto clients and its risk management procedures.
Coinbase Must Face Shareholder Lawsuit Over SEC Risks (September 6)
A federal judge said shareholders adequately alleged that Coinbase and top executives defrauded them.
Law Firm Covington Hit With $100 Mln Lawsuit Over Client's Crypto Defense (September 6)
A blockchain consultant and lawyer is accusing the U.S. law firm of advising him not to share exculpatory information with federal prosecutors when he was charged with extortion in 2019.
Crypto Plan Creates Potential Conflicts for Trump (September 8)
Digital-currency efforts bring campaign closer to industry that is spending to limit regulations.
CFTC Submits Emergency Motion To Block Kalshi’s Election Betting Contracts (September 8)
The CFTC asked the court to block Kalshi from offering election betting contracts until it reviews the reasoning for the denial of its order.
US SEC Rakes in $4.68 Billion from Crypto Sector Amid 2024 Crackdown (September 10)
The SEC collected $4.68 billion in crypto fines in 2024, marking a 3,018% increase from the previous year.
North Carolina Stands Firm Against CBDCs, Overrides Governor’s Veto (September 10)
Governor Cooper had vetoed the bill because he considered it to be lacking clarity.
Digital Chamber Urges Lawmakers To Classify Nfts As Consumer Goods Amid SEC Enforcement Concerns (September 11)
The Digital Chamber asserted that consumptive-use NFTs should be classified as consumer goods, not securities.
Federal Agencies Team Up To Fight Surge In ‘Pig Butchering’ Crypto Scams (September 12)
CFTC collaborates with the SEC, FINRA, and others to fight crypto scams exploiting online relationships and draining billions.
Hawaii Emerging As Crypto Hub Following New Crypto Regulations (September 12)
The Aloha state's new regulations already attracted some notable Web3 firms, including Coinbase, Metamask, Transak, BitPay and Trust Wallet.
eToro To Shut Down Nearly All Crypto Trading In Settlement With US SEC (September 12)
The SEC alleged that eToro provided its U.S. customers the ability to trade crypto assets that the regulator deemed to be securities since at least 2020, but did not comply with the registration requirements.
Kraken Challenges SEC Securities Label Against Digital Assets (September 13)
Kraken disputes the SEC's claim that certain digital assets are securities under US law.
Sam Bankman-Fried Targets Sullivan & Cromwell In Appeal Against Conviction (September 13)
Crypto exchange founder says its former lawyers’ ‘work for the prosecution’ denied him a fair trial.
Guarding Crypto Is a Lucrative Business and Wall Street Wants In (September 14)
Coinbase, BitGo have been among the dominant custody service providers, as SEC rule seen making it impractical for banks to do custody.
Prager Metis to Resolve SEC Fraud Charges Over Bankman-Fried’s FTX Audits (September 17)
Prager Metis has agreed to pay $745,000 to the Securities and Exchange Commission to resolve negligence-based fraud charges over its past audits of Sam Bankman-Fried’s trading platform FTX.
Wyoming’s Stablecoin Plan Is Latest Crypto Push by Cowboy State (September 18)
Wyoming announced plans to launch a dollar-backed token by early 2025, which aims to lower consumer payment costs using blockchain technology.
US SEC Settles Charges Against Rari Capital Over Misleading Investors (September 18)
Rari, a supposed decentralized finance (DeFi) protocol, settled for misleading investors and engaging in unregistered broker activity in connection with their operation of two blockchain-based investment platforms.
Court Upholds California’s Daily Transaction Limit For Crypto Asset Kiosks (September 19)
The Superior Court for the State of California found that the daily transaction limit was a reasonable measure to prevent fraud.
2 Stole $230 Million in Cryptocurrency and Went on a Spending Spree, U.S. Says (September 20)
Malone Lam, 20, and Jeandiel Serrano, 21, schemed to obtain 4,100 Bitcoin from a single victim, federal prosecutors said.
Texas Court Dismisses Consensys Case Following SEC Ethereum Ruling (September 20)
Texas court dismisses Consensys' lawsuit against SEC, citing procedural grounds, ending the five-month case.
Binance CEO Invests in Compliance to Move on From Past Mistakes (September 20)
The cryptocurrency exchange said it spent about $213 million on compliance programs in 2023.
Samourai Wallet Founders Face Judge Over Money Laundering Charges (September 21)
Keonne Rodriguez and William Lonergan Hill appeared together in court in the Southern District of New York for a status conference on Tuesday.
US Judge Slaps $36M Fine On Man For 5-Year Crypto Investor Fraud (September 22)
The court order demands approximately 85% of the significant fine to be paid back to victims of William Koo Ichioka’s fraudulent scheme.
Canada Moves Away From Retail CBDC, Shifts Focus to Broader Payments (September 23)
Canada's central bank has said it is shifting its focus to broader payments system research and policy development.
FTX Customers Shouldered ‘Extraordinary’ Costs In Bankman-Fried Conviction, Law Profs Argue (September24)
FTX bankruptcy lawyers from Sullivan & Cromwell billed the bankrupt company “tens of millions of dollars.”
Star FTX Witness Caroline Ellison Sentenced to Two Years in Prison (September 24)
The former head of FTX’s sister investment firm, Alameda Research, pleaded guilty in late 2022 to seven fraud and money-laundering offenses related to the crypto exchange’s collapse.
Coinbase, SEC Battle Over Clear Crypto Regulation (September 24)
Coinbase’s lawyer, Eugene Scalia, told the appeals court that the SEC is refusing to provide information “on how to register with the agency and comply with U.S. laws.”
‘Crypto Mom’ Hester Peirce Admits Flaws in SEC’s Crackdown (September 25)
Hester Peirce, alias ‘Crypto Mom’, joined the Chair of the US Securities and Exchange Commission (SEC), Gary Gensler, before Congress.
‘Crypto Mom’ Hester Peirce Admits Flaws in SEC’s Crackdown (September 25)
Hester Peirce, alias ‘Crypto Mom’, joined the Chair of the US Securities and Exchange Commission (SEC), Gary Gensler, before Congress.
SEC Alleges TUSD Hasn't Been Backed By USD Since 2022 (September 25)
The SEC alleged that 99% of the assets backing TrueUSD were invested into a speculative fund by September 2024.
Recent Developments Could Facilitate Greater Bank and Broker-Dealer Involvement in Cryptoasset Services (September 25)
This evolution in the SEC staff’s stance on accounting for cryptoasset safeguarding activities could open the door to greater involvement of banks and broker-dealers in providing certain cryptoasset custodial services.
42 US Congressmen Demand SEC Allow Banks to Store Cryptocurrency (September 25)
42 US Congressmen urge SEC to allow banks to custody cryptocurrency, challenging SAB 121's guidelines.
Inside the Biden Admin’s Plot to Destroy Silvergate and Debank Crypto for Good (September 25)
New information suggests Biden administration regulators deliberately killed off crypto-friendly Silvergate in an attempt to decapitate the U.S. crypto industry.
BNY Approved by SEC for Crypto Custody Beyond ETFs, Gensler Says (September 26)
It is now up to BNY on expanding beyond Bitcoin, Ether ETF custody, after the SEC Head Gensler says that BYY’s individual wallet structure protects customers.
US DOJ Charges Two Russians Over $1 Billion Crypto Laundering Scheme (September 27)
Sergey Ivanov and Timur Shakhmametov, two Russian nationals, have made millions of dollars by facilitating money laundering, helping fuel a global network of cybercriminals.
Swan Bitcoin Claims Ex-Employees 'Stole' Its Mining Business at Tether’s Direction (September 27)
In a new lawsuit, Swan is looking for financial compensation and legal protections against its former employees.
Binance Founder CZ Is Released From US Custody (September 27)
Biggest crypto exchange founder spent four months in custody and pleaded guilty to US anti-money laundering violations.
US Judge Rules Software Code Does Not Qualify As Free Speech In Tornado Cash Case (September 27)
Judge Failla ruled that while code can be expressive, using it to execute functions like money transmission does not fall under free speech protections.
US SEC Charges Mango Markets With Offering Unregistered Crypto Token (September 27)
The SEC filed settled charges against Mango DAO and Blockworks Foundation for engaging in the unregistered offer and sale of crypto assets called “MNGO” tokens.
The Farce That Is America’s ‘Crypto Election’ (September 28)
This campaign may be awash with crypto money and rhetoric but it’s not clear that either of the candidates really care.
FTX Creditors Angry Over Minimum Payouts They Will Receive (September 29)
FTX creditors will receive only 10-25% of their crypto holdings, causing widespread dissatisfaction.
Senator Lummis Blasts SEC, Predicts Crypto Shake-Up in 2024 (September 29)
Lummis urges Congress to create laws instead of relying solely on SEC enforcement for crypto regulation.
TrustToken And TrueCoin SEC Settlement Admits No Fault Or Denial In TUSD Case (September 30)
The companies have agreed to pay a combined total of $700,000 in penalties and disgorgement without admitting or denying the SEC’s findings.
Ohio Senator Pushes Bill To Enable Crypto Tax Payments (September 30)
Ohio could soon legally accept Bitcoin and other cryptocurrencies for taxes if a new bill by Senator Niraj Antani is enacted into law.
FTX creditors to receive only ‘10–25% of their crypto back,’ CZ walks free: Law Decoded (September 30)
Taiwan’s FSC opens investment channels for professional investors, allowing access to high-risk foreign digital asset ETFs while maintaining a cautious stance on market risks.
Middle East & Africa 🌍
Qatar Introduces Regulatory Framework For Digital Assets (September 2)
Qatar’s central bank governor believes that the framework will bring opportunities to the country’s financial sector.
Kazakhstan Mulls Binance, Bybit For Digital Asset Trading (September 9)
The crypto exchanges have received the consent of the AFSA regulator to be the first fully licensed Digital Asset Trading Facilities in Kazakhstan.
Nigeria To Ramp Up Crackdown On Unregistered Crypto Exchanges (September 9)
Nigeria's SEC said its enforcement actions aim to enhance investor protection and transparency in the country's fast-growing digital asset market.
UAE Regulators To Allow Dubai-Licensed Vasps To Service Entire Country (September 11)
The agreement between UAE regulators covers the mutual supervision of crypto providers, penalty imposition, information exchange and employee training.
Turkey’s $200 Limit On Cash Payments: What Does It Mean For Crypto? (September 12)
Should the Turkish government pass new amendments, all cash payments above $205 would be subject to fines of 10%.
UAE’s Central Bank Approves Custodial Risk Insurance Product For Digital Assets (September 12)
OneDegree executive Robin Scott told Cointelegraph that the insurance covers Web3 asset managers against the risk of losing customer funds.
African Economies Show High Potential For Digital Asset Adoption (September 22)
South Africa emerges as a leading digital asset hub, driving growth in crypto with proactive regulations and expanding platforms like VALR.
Dubai Regulators Enforce New Rule That Mandates Crypto Marketers Add Risk Disclaimer (September 26)
United Arab Emirates’s Virtual Assets Regulatory Authority new rule will require crypto firms to add a disclaimer, warning potential customers about the risks that come with investing in digital assets.
Europe 🌍
New Draft Of Polish Markets In Crypto-Assets Act – Evolution Or Revolution In The Legislative Process? (September 4)
Global law firm A&O Shearman discuss the amendments and the direction for the crypto market in Poland resulting from the publication of the new version of the Draft Act.
New Regulators Are Set To Define Europe's Crypto Policies (September 4)
The European Parliament is set to establish a new European Commission, and it will determine the next five years of crypto policy for the European Union.
Latvia’s Central Bank Opens Pre-Licensing Consultations To Crypto Companies (September 9)
Latvia’s central bank is taking proactive steps to align with the EU’s upcoming crypto regulations by offering free pre-licensing consultations for crypto-asset service providers.
UK Regulator Charges Man With Unlawfully Running Crypto ATMs (September 10)
The move by the Financial Conduct Authority marks first criminal prosecution for activity widely used for money laundering.
UK Presents Bill To Recognize Crypto As Personal Property (September 11)
U.K. authorities plan to clarify how to classify cryptocurrencies under a new bill.
Going Digital in the UK, US, and UAE: The Latest Digital Asset Developments (September 12)
Global law firm Morgan Lewis discusses some recent trends and key developments in tokenization, cryptocurrency markets, and blockchain technologies and discuss global regulatory approaches.
Russia to Regulate Cross-Border Crypto Payments by November (September 13)
Russia permits crypto for foreign trade, with regulations expected by November.
Italian Legislative Decree implementing MiCAR (September 17)
The Italian Legislative Decree implementing MiCAR designates CONSOB and the Bank of Italy as competent supervisory authorities and sets out a transitional regime from the current domestic VASP regime to MiCAR.
German Authorities Shutdown 47 Crypto Exchanges Facilitating Crime, Seize Servers, Data (September 20)
The authorities suggested that they may pursue investigations into the users of these illegal platforms.
Swiss Crypto Bank Sygnum Secures License In Liechtenstein For EU Expansion (September 23)
The crypto bank also expressed interest in expanding its services into Hong Kong.
The Publication of the CSSF’s Annual Report 2023 (September 25)
The CSSF published its 2023 annual report, highlighting key regulatory challenges, particularly in the realm of crypto-assets following the implementation of the Markets in Crypto-Assets Regulation (MiCA).
UK Crypto ATM Operator Pleads Guilty To Fraud, Money Laundering Charges (September 30)
This is the UK’s first prosecution in the country under the money laundering, terrorist financing and transfer of funds regulations.
Australia 🇦🇺 & Oceania
Kraken Criticizes Australia’s ‘Uncertain’ Crypto Rules After Court Ruling (September 9)
Kraken is calling for clearer crypto regulations in Australia after a Federal Court ruled that part of its margin extension product violated local laws.
Crypto Payments Platform Moonpay Secures Australian Registration (September 12)
Kraken is calling for clearer crypto regulations in Australia after a Federal Court ruled that part of its margin extension product violated local laws.
Australia Central Bank to Focus on Wholesale Digital Currency Rather Than Retail (September 17)
The RBA says retail central bank digital currency is challenging and will explore wholesale and tokenized commercial bank deposits use cases with industry players.
Australia Moves To License Crypto Firms To Bolster Market Security (September 23)
Australia's ASIC licensing move will curb scams and protect investors in the country.
Latin America 🌍
Visa and Santander Selected by Brazil’s Central Bank for a Second Phase of CBDC Pilot (September 5)
Brazil's central bank (BCB) selected 13 participants for the second part of the pilot of its central bank digital currency (CBDC), called Real Digital.
Brazil Police Bust $9.7b Crypto Laundering Scheme (September 20)
Brazilian authorities have uncovered a $9.7 billion crypto laundering scheme, arresting suspects in multiple cities as part of a major financial crime investigation.
Bolivia Reports 100% Rise In Virtual Asset Trading Since Lifting Bitcoin Ban (September 27)
The rise came immediately after Bolivia’s central bank lifted a 42-month ban on cryptocurrency payments, allowing financial entities to conduct transactions with digital assets.
Asia 🌏
Binance Unit Tokocrypto Is Third Crypto Exchange to Score Full License in Indonesia (September 9)
More than 30 exchanges still have applications pending.
Indonesia’s Licensing Regime Sparks ‘Monopolistic’ Market Concerns (September 10)
IADERN principal Tuhu Nugraha believes that the prolonged and complex registration process hampers growth and innovation in Indonesia’s crypto ecosystem.
Singapore Probes Illegal Worldcoin Accounts And Token Sales (September 10)
Singapore is investigating unauthorized Worldcoin account sales as regulators raise concerns over data misuse and criminal activity.
India and Nigeria Lead the World in Crypto Adoption Again, but Indonesia Is Fastest Growing: Chainalysis (September 11)
India and Nigeria have maintained the top two positions in the world in terms of grassroots crypto adoption but Indonesia is the fastest growing.
Does Hong Kong’s Slow Approach To Crypto Regulation Risk Stifling Digital Asset Growth? (September 14)
Hong Kong risks falling behind in crypto as the city is urged to speed up regulation to keep pace with the rapidly evolving industry.
Sony Joins a Crypto Push in Japan as Calls Grow for Looser Rules (September 17)
The entertainment giant plans to integrate blockchain technology, as Japan’s digital-asset rulebook is viewed as relatively strict.
China’s Shadowy Crypto Brokers Lure $75 Billion as Economy Toils (September 24)
A recent study signals a record streak of demand for China OTC traders, adding to evidence of Beijing’s crypto ban being flouted.
Binance Says It Helped India's Enforcement Directorate Trace $47.6M Related to a Gaming Scam (September 25)
Victims were lured into online betting and gaming, promising easy earnings before trapping their funds.
South Korea Levies $860K Fine On Worldcoin For Compliance Failures Related To Data Collection (September26)
Worldcoin and Tools for Humanity, which operates WorldApp, violated several provisions of the country's Personal Information Protection Act.
Hong Kong Looks To Become Global OTC Crypto Center With New EU Style Reporting (September 27)
Hong Kong to align crypto derivatives reporting with global standards by 2025.
Japan’s FSA Reviews Crypto Laws, Eyes Tax Cuts Before Election (September 30)
Japan's FSA plans to review crypto laws, potentially lowering capital gains taxes and easing regulations.
Taiwan Regulator Approves Foreign Crypto ETFs For Professional Investors (September 30)
Taiwan’s financial regulator has authorized professional investors to access foreign crypto exchange-traded funds through local brokers.
Hong Kong’s ZA Bank Becomes First Virtual Bank To Get SFC License (September 30)
ZA Bank becomes the first Hong Kong digital-only bank to gain a license from the Securities and Futures Commission for Type 1 regulated activity.
Kasikornbank Launches First Licensed Thai Digital Asset Custodian (September 30)
The new custody service will be just the latest in the bank's new digital asset and AI activities.