The Scenius State of Regulation (Issue #24)
Crypto Policy & Regulation: July 2024
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
Collapsed FTX-Linked Lender Silvergate Pays $63mn To Settle Probes (July 1)
The California-based bank had grown as it drew in crypto customers but later failed after billions were withdrawn.
Hawaii Crypto Firms Exempt From MTL Requirements (July 1)
Crypto firms in Hawaii no longer need a Money Transmitter License (MTL) to operate a business in the state, but firms must still comply with all federal licensing laws.
US Marshals Service Partners with Coinbase for Digital Asset Management (July 2)
In a custody services contract valued at $32.5 mn, the US Marshals Service (USMS) has selected Coinbase Prime to safeguard and trade its large-cap digital assets.
Dan Gallagher As SEC Chair: A Boost For Crypto Regulation? (July 2)
The shared sentiment is that with a Republican in office, crypto would enjoy a more favorable regulatory environment, with key commission members calling it out for problematic laws.
Bahamas Wants To Force Banks To Support Its Sand Dollar CBDC (July 2)
The Bahamas was one of the first countries in the world to launch a central bank digital currency — the Sand Dollar in 2020 — and is now looking for ways to boost its adoption.
VanEck’s Head of Research Explains Steps to Get a Spot Solana ETF Approved (July 4)
Head of research at VanEck, Matthew Sigel, discussed cryptocurrency regulation in the US following the firm’s recent move to file for a Solana spot ETF.
Judge Labels 2 Obscure Altcoins As Commodities In $120M Ponzi Case (July 4)
An Illinois judge has sided with the Commodity Futures Trading Commission in a crypto fraud case, labeling two altcoins, OHM and KLIMA, as commodities.
SEC Charges Ethereum Developer Over Liquid Staking and Swap Programs (July 5)
The SEC’s complaint raises significant questions for liquid staking products and for developers of crypto asset wallet and trading applications, says the global law firm Dechert LLP.
Canada To Sanction Liquitrade For Securities Act Violation (July 8)
The British Columbia Securities Commission (BCSC) finds LiquiTrade guilty of running an illegal exchange, which could result in sanctions ranging from fines to a ban.
BitMEX Pleads Guilty to U.S. Charge Over Anti-Money-Laundering Failure (July 10)
The plea, which the crypto exchange calls ‘old news,’ follows regulatory settlements in 2021.
Goldman Sachs To Launch Three Tokenization Projects By End Of Year, Says Digital Assets Chief (July 10)
Goldman Sachs intends to expand its crypto offerings, including tokenization, where so-called “real-world assets” such as money market funds and real estate holdings are issued on public or private blockchains.
Bahamians Didn't Want CBDCs — Now They're Being Forced To Use Them (July 11)
Regulators in the Bahamas are sick of their citizens' reluctance to adopt a CBDC, so they're forcing commercial banks to get on board.
US Lawmaker Asks Congress To Treat Binance Exec In Nigeria As A ‘Hostage’ (July 11)
Rep. Rich McCormick called on the US government to formally declare Tigran Gambaryan as a hostage if his criminal case in Nigeria was not resolved by mid-July.
Crypto’s $100 Billion in Illicit Flows Swamp Stablecoins, Exchanges (July 11)
Bad actors are making record use of stablecoins, which now account for most of the illicit transaction volume in crypto, Chainalysis said in a study.
SEC Ends Probe Into Paxos Over Binance USD Token (July 11)
Crypto firm said it received a formal investigation termination notice from the SEC this week.
CFTC Chair Declares 70-80% of Crypto Assets Are Not Securities (July 11)
CFTC Chair Behnam advocates for CFTC’s full oversight of crypto, simplifying regulations by redefining securities and commodities.
SEC Ends Years-Long Probe Into Stacks Without Recommending Further Enforcement (July 12)
The investigation, which began more than three years ago, has been a significant chapter in the history of the Bitcoin Layer-2 network.
Taking Steps Toward Federal Blockchain and Cryptocurrency Regulation (July 12)
While enacting the Financial Innovation and Technology for the 21st Century Act may be an uphill battle, the bill’s passage in the House underscores the growing bipartisan support for clear and comprehensive cryptocurrency legislation.
SEC Loophole in SAB 121 Amid Veto Override Failure (July 12)
SEC permits exceptions to SAB 121, aiding banks amidst failed attempt to overturn Biden's veto.
The SEC alleges that since 2020 Consensys Software Inc. brokered over 36 million crypto-asset transactions between investors and third parties, collecting over $250 million in fees.
US Supreme Court Curtails Agency Power: Implications for Fintech and Crypto (July 15)
Recent Supreme Court administrative law rulings change the power dynamic between the executive and the judiciary in critical areas of statutory interpretation, enforcement, and immunity from legal challenge.
Tether Recruits Chainalysis Expert Amidst Ongoing Legal Battle (July 16)
Tether appoints Phillip Gradwell as Head of Economics amid a market manipulation lawsuit.
SEC’s Relaxed Stance on Crypto Guidance Fails to Appease Critics (July 16)
The SEC has moderated its stance on accounting for certain crypto assets, but not enough to satisfy critics who say its two-year-old guidance is still confusing and hampering wider adoption of digital currencies.
Crypto Options Traders Can Soon Target Bets on US Presidential Results (July 18)
Crypto derivatives exchange Deribit is providing Bitcoin and Ether options that enable investors to customize bets for right after the conclusion of the upcoming US presidential election.
The Court of Chancery of the State of Delaware said Thomas Braziel used money recovered while acting as the receiver for Fund.com.
The Polsinelli Law Firm assesses where those cases stand, anticipate what to expect in the upcoming year, and explore their implications for the digital asset industry through 2024 and into 2025.
New York Financial Regulator Hires New Crypto Unit Leaders (July 19)
The New York State Department of Financial Services has brought on Kenneth Coghill, who joins the recently hired John Melican to lead its virtual currency unit.
Binance.US Gets Federal Judge Nod To Invest Customer Assets In Treasury Bills (July 19)
The order frees Binance.US from restrictions levied by the U.S. Securities and Exchange Commission, and Binance will transfer crypto to a third-party custodian not affiliated with the exchange.
Crypto Industry Wants Trump to Win and Call Off the SEC (July 20)
Trump’s crypto embrace sparks visions of softer enforcement, while the fate of outstanding SEC cases against crypto remains uncertain.
Senator Lummis Slams Biden’s ‘Disastrous Proposal’ To Tax Bitcoin Miners In ‘Orange Paper’ (July 23)
Lummis urged policymakers, industry stakeholders, and the public to engage in a constructive dialogue about the future of Bitcoin mining.
Ex-Directors Allege Fraud At Tether-Backed Crypto Group Northern Data (July 24)
Sacked ‘whistleblowers’ launch California court action against Europe’s biggest bitcoin-miner-turned-AI-datacentre-builder.
Finally Final Crypto Reporting Regulations (July 24)
The Cadwalader Tax team reviews the seven key features of the Final Regulations and transitional relief.
SEC Approves Spot Ether ETFs (July 25)
The approvals make Ether only the second digital asset available to be traded on a spot basis in an ETF wrapper.
Trump: Bitcoins Should Be ‘Mined, Minted and Made in the USA’ (July 27)
Former President Trump promised to appoint a bitcoin and crypto presidential advisory council to design transparent regulatory guidance if he's elected president.
Trump, Appealing to Bitcoin Fans, Vows U.S. Will Be ‘Crypto Capital of the Planet’ (July 27)
Donald Trump, speaking at a Bitcoin conference, told cryptocurrency holders that he would end the “persecution” of their industry.
Kamala Harris Campaign Seeks ‘Reset’ With Crypto Companies (July 27)
The Vice-president’s team aims to improve relations after industry criticism of Biden administration.
Trump Adds Crypto to His ‘America First’ Agenda (July 27)
The Republican presidential candidate pledges to create a national bitcoin stockpile and form a council to set regulatory policy.
State AGs’ Claim SEC Went “Too Far” In Crypto Regulation (July 29)
In an amicus brief in the U.S. District Court for the Northern District of Texas, the state AGs asserted their purpose is to protect consumers from unreasonable regulations “imposed by the whims of a rogue federal agency.”
Friendly Fraud: The Crypto World’s Hidden Enemy | Opinion (July 29)
Roenen Ben-Ami, co-founder and Chief Risk Officer of Justt, discusses how crypto chargebacks can be a big deal for exchanges that manage the purchase of crypto using fiat currencies.
Founder of Crypto DeFi Project BitClout Arrested, Faces Wire Fraud, SEC Charges (July 30)
The securities regulator says Nader Al-Naji diverted investor funds toward luxury purchases.
SEC Intends to Amend Complaint in Binance Case (July 30)
Third-party tokens are digital assets alleged to be unregistered securities by the SEC that were issued by various companies not named Binance.
Crypto Regulations in the British Virgin Islands 2024 (July 30)
Recent statements from the BVI Government, including those by Minister Lorna Smith, show a commitment to building a secure and innovative ecosystem for digital assets.
Valuing Crypto In The Bankruptcy Multiverse (July 30)
The Bankruptcy Code does not specifically address how, and as of what date, digital assets are to be valued, and although certain bankruptcy courts have provided guidance, the outcomes appear highly dependent on context.
Wisconsin Unveils Tracker To Fight Crypto Fraud And Investment Scams (July 31)
The Wisconsin Department of Financial Institutions is launching a new scam tracker based on consumer complaints to protect investors from crypto and investment fraud.
Sen. Lummis Introduces Bitcoin Strategic Reserve Bill In Senate (July 31)
The pro-crypto Wyoming senator hopes the United States will purchase 5% of Bitcoin's total supply as a strategic reserve asset.
Middle East & Africa 🌍
Nigerian SEC Mandates Local Offices For Crypto Firms (July 4)
The requirement also states that applicants must report customer complaints and emergent risks and be subject to SEC inspections, audits and monitoring.
Nigerian Central Bank Alleges Unauthorized Transactions By Binance (July 6)
Binance’s alleged illegal operations were highlighted in court on July 5, with a central bank official testifying on the lack of necessary licenses and regulatory approval.
Cyprus Calls For Collective Crackdown On Crypto Terror Financing (July 10)
The alert serves as a reminder of the critical role financial professionals play as gatekeepers in the fight against financial crime.
Europe 🌍
Amendments To Luxembourg Laws To Implement MiCAR and TFR: Key Takeaways And Impact On VASPs (July 9)
The global law firm A&O Shearman review the key takeaways of the bill of law n° 8387 as was recently introduced before the Luxembourg Parliament.
Bank Of Italy To Publish Crypto Asset Guidelines, Governor Says (July 9)
The Bank of Italy will publish guidelines in the coming days on how to apply upcoming European Union rules on crypto assets with a view to preserving the regular functioning of the payment system.
Lithuania Imposes Record Fine on Crypto Company Over Sanctions (July 10)
Lithuania fined crypto company Payeer a record €9.3 million ($10.1 million) for sanctions and money laundering violations involving Russian clients.
UK Election - What Does This Mean For Digital Asset Regulation? (July 11)
The Hogan Lovells Digital Assets and Blockchain practice comments on the implications of the recent general election and change in government for digital asset regulation in the UK.
Fund Giant DWS Launches JV For First German-Regulated Euro Stablecoin (July 11)
Deutsche Bank-owned DWS, which manages 941 billion euros ($1 trillion) globally, plans to go live with the first euro-denominated stablecoin to be regulated by Germany's BaFin watchdog in 2025.
UK Law Commission Sets Roadmap To Identifying Legal Status Of DAOs (July 12)
The Commission noted no immediate need for a DAO-specific legal entity in England and Wales; however this stance arises from the lack of clear parameters defining DAOs’ structure and operations.
Basel Committee Releases Final Disclosure Framework For Banks’ Crypto Exposures (July 18)
The Committee also amended the framework to "tighten criteria" for which stablecoins can receive "preferential regulatory treatment."
Germany Dumping $2.8B Bitcoin Is 'Market Intervention,' Despite Murky Legal Justifications (July 18)
One expert told CoinDesk the law does not provide for an obligation, but merely an opportunity to sell, while another alleged that “How they handled this sell-off moved the market and is intervention in public markets.”
Swiss Banks Aim to Plug Crypto Payments Gap Left by US Collapses (July 22)
A pair of Swiss lenders — AMINA Bank AG and Sygnum Bank AG — have debuted real-time payment and settlement networks to reinvigorate the market for around-the-clock payments in the digital-asset sector.
Coinbase Unit Fined by UK For Taking on High Risk Customers (July 25)
In the first move of its kind in its aim to better grapple with money laundering controls in digital currencies, the Financial Conduct Authority fined CB Payments Limited £3.5 mn ($4.5 mn).
Crypto-Friendly Revolut Finally Earns UK Banking License (July 25)
Revolut has entered a "mobilization stage" designed for new banks to operate with restrictions.
Russia Debates Legalizing Cryptocurrency Exchange Trading (July 26)
Russian Duma debates allowing crypto trading under Central Bank oversight in an experimental regime.
Slovenia Becomes First European Union Nation to Issue Sovereign Digital Bond (July 29)
The 30 million-euro ($32.5 million) bond was settled through the Bank of France's tokenized cash system and coordinated by BNP Paribas.
Dutch Finance Ministry Rejects AFM’s Funding Boost For Crypto Oversight: Report (July 29)
The Dutch finance ministry has denied requests for additional funding to monitor the crypto sector amid new European regulations.
Bank of England to Carry Out CBDC, Digital Ledger Experiments (July 30)
In a new discussion paper, the U.K. central bank also said it wants to ensure stablecoins are interchangeable with the pound.
Russia Adopts Law Regulating Digital Assets: What to Know (July 30)
Russia's new law regulates cryptocurrency mining, requiring registration and adherence to energy limits.
BIS, Bank Of England Unveil Project Pyxtrial For Stablecoin Monitoring (July 31)
The proof-of-concept showed that real-time monitoring of stablecoin reserves could be achieved with cooperation among regulators, technologists and issuers.
Australia 🇦🇺 & Oceania
Australian Promoter Of BitConnect Guilty Of Unlicensed Financial Advice, Regulator Says (July 15)
Bigatton provided unsolicited financial advice while promoting BitConnect in seminars and on social media between August 2017 and January 2018, the Australian Securities and Investments Commission (ASIC) said, disqualifying him from managing corporations for five years.
Recently, a senior regulator warned an audience of industry goers to fall in line with the precedents set in the recent cases it has filed against crypto entities.
Latin America 🌍
Crypto Regulations In Chile 2024 (July 15)
The Ley Fintec law is expected to transform the economic framework of the country using various possibilities of digital finance.
Crypto Regulations in Bolivia 2024 (July 16)
The country is paving the way for future economic stability and innovation by allowing banks to handle crypto transactions.
Latin America Crypto Update: Regulation, Digital Wallet Adoption, and Ponzi Alerts (July 17)
This update covers legislative actions in Brazil and the increasing popularity of Argentina’s football fan tokens.
Argentina Looks To Tame Crypto Market As Money-Laundering Fears Draw Scrutiny (July 18)
In an effort to reduce risks such as money-laundering associated with digital assets, the Argentine government signed a fiscal package that includes tax amnesty for individuals who declare up to $100,000, including registered crypto assets.
Crypto Regulations in Puerto Rico 2024 (July 24)
Puerto Rico’s Act 60 is reshaping the island’s crypto landscape and promises significant economic benefits.
Asia 🌏
South Korea’s DAXA Introduces Guideline for Re-examining 1,300 Cryptocurrencies (July 2)
The guidelines align with the Virtual Asset User Protection Act to foster market security and transparency for investors.
Singapore Raises Risk Level For Digital Payment Token Providers In Counter-Terrorism Update (July 2)
The MAS raised the risk level of DPTs to medium-high from medium-low as part of its review of the Asian country’s Terrorism Financing National Risk Assessment (NRA).
Multichain Foundation To Pay $2.1M To Fantom For Losses (July 9)
The High Court of Singapore ordered Multichain to compensate the Fantom Foundation after a $210 million hack, awarding $2.18 million in damages.
South Korea Moves To Delay Crypto Tax Until 2028 Amid Market Concerns (July 15)
The move aligns with President Yoon Suk-yeol’s campaign promises to voters that he would extend the crypto gains tax during the last general election if elected.
Kazakhstan Pays For Rail Line To China Using Programmable CBDC (July 19)
The second phase of the Kazakhstan central bank digital currency pilot focused on controlling its many potential uses.
Hong Kong Concludes Consultation on Proposed Approach to Stablecoin Legislation (July 29)
The government will enact the new legislation to bring issuers of fiat-referencing stablecoins into the regulatory perimeter.
India’s Web3 Alliance Tightens Cybersecurity After Wazirx Attack (July 31)
The Bharat Web3 Association’s (BWA) initiatives highlight an increasing awareness of the importance of cybersecurity in preserving trust and integrity in digital finance.
Crypto Regulations in Hong Kong 2024 (July 31)
By adopting digital asset ETFs and exploring the tokenization of traditional securities, the city is enhancing its status as a leader in innovation in Asia.