The Scenius State of Regulation (Issue #22)
Crypto Policy & Regulation: May 2024
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
US Courts Sentenced REvil Ransomware Mastermind for $700 Million Extortion (May 2)
Yaroslav Vasinskyi, a hacker affiliated with REvil, was extradited from Poland and sentenced to 14 years after pleading guilty to major ransomware crimes like the one it did on Kaseya.
Stablecoin Tether Steps Up Monitoring In Bid To Combat Illicit Finance (May 3)
Tether and blockchain analytics company Chainalysis have launched new tools to identify transactions associated with sanctioned entities and analyze the activity of major holders of the token.
Cryptofinance: Stablecoins Encroach On Shadow Banking System (May 3)
The nightmare scenario for global monetary authorities is not that they will eventually be replaced by crypto but that one day they will have to bail the market out.
DOJ Crypto Crackdown: Cartier Heir Charged; BTC-e Operator Pleads Guilty (May 6)
The US Department of Justice (DOJ) has escalated its crackdown on international money laundering.
Robinhood Faces SEC Scrutiny Over US Crypto Operations (May 6)
Robinhood has officially responded to a Wells Notice from the US Securities and Exchange Commission (SEC), which challenges its operations.
The SEC Can’t Stop Suing Crypto Companies (May 6)
Robinhood apparently made strenuous efforts to comply with the SEC, and the agency is likely to sue for alleged securities violations in any case.
SEC vs Ripple: Defense Attorney Exposes Sealed Documents (May 7)
Renowned defense attorney James Filan recently disclosed that the regulator has sealed its latest reply brief and supporting exhibits.
Regulatory Tensions Escalate: CFTC Signals Crypto Crackdown, SEC Faces Criticism (May 7)
Rostin Behnam, chair of the US Commodity Futures Trading Commission (CFTC), expects increased scrutiny as investor interest in the crypto sector remains robust.
U.S. Charges Russian National with Developing and Operating LockBit Ransomware (May 7)
The DOJ charged a Russian national for his alleged role as the creator, developer, and administrator of the LockBitransomware group, which stole more than $100 million in ransomware payments.
Robinhood Will Likely Win in SEC Legal Battle: KBW Report (May 8)
Keefe, Bruyette & Woods (KBW) indicated that Robinhood, known for its cautious approach to cryptocurrency offerings, stands a strong chance of prevailing in a potential legal skirmish with the SEC.
FTX Customers Poised to Recover All Funds Lost in Collapse (May 8)
Bankruptcy lawyers for FTX said customers of the cryptocurrency exchange were set to get all their money back, plus interest.
Canada Imposes Administrative Monetary Penalty On Binance Holdings Limited (May 9)
Canada’s financial intelligence unit fined Binance CAN$6 million ($4.3 million) for failing to register as a foreign money services business and failing to submit large virtual-currency transaction reports with prescribed information.
Binance Pledged to Thwart Suspicious Trading—Until It Involved a Lamborghini-Loving High Roller (May 9)
Former company insiders say the firing of an internal investigator showed that the crypto exchange neglected evidence of market manipulation.
Peter Brandt Warns of Imminent Crypto Staking Regulation (May 10)
Brandt’s prognosis paints a rather grim future, anticipating a regulatory “bloodbath” that could reshape the industry.
Who Is Afraid Of The SEC? Not Robinhood Investors (May 13)
Investors should not be so quick to dismiss the regulatory risks, as crypto has emerged as a source of growth for Robinhood, which recently reported record quarterly revenue and net income.
Biden Bans Chinese Bitcoin Mine Near U.S. Nuclear Missile Base (May 13)
An investigation identified national security risks posed by a crypto facility in Wyoming. It is near an Air Force base and a data center doing work for the Pentagon.
7-Year Jail Term For Jebara Igbara, Crypto-Scam Artist Targeting Muslims (May 14)
Claiming to be a crypto millionaire, Jebara Igbara leveraged his fame on social networks to promote crypto scams that netted him nearly $8 million.
FTX Law Firm Sullivan & Cromwell Says Crypto Customers' Lawsuit Is 'Innuendo Masquerading As Facts' (May 14)
The U.S. law asked a Florida federal judge on Monday to dismiss a lawsuit by FTX customers who accuse the firm of helping the crypto exchange cheat them out of billions of dollars.
FalconX Fined $1.7 Million by CFTC for Regulatory Violations (May 14)
This penalty stems from their failure to register as a futures commission merchant (FCM) while providing US customers access to trading platforms for crypto derivatives.
Two Brothers Arrested for Attacking Ethereum Blockchain and Stealing $25M in Cryptocurrency (May 15)
The DOJ charged two brothers with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering in connection with a scheme to exploit a flaw in the open-source software MEV-Boost used by validators.
Canadian Self-Proclaimed 'Crypto King' And Associate Charged With Fraud (May 15)
The two received more than C$40 million ($29.4 million) from investors and have been charged with fraud over C$5,000 and laundering the proceeds of crime.
Binance Gets Two Compliance Monitors in Settlements With U.S. Authorities (May 17)
Consultant Forensic Risk Alliance and law firm Sullivan & Cromwell have been selected as outside monitors as part of the crypto exchange’s $4.3 billion settlements with U.S. regulators.
US Arrests Two Chinese Nationals In $73 Million Crypto Scam (May 17)
The U.S. accused the two of being involved in a type of cryptocurrency investment scam known as pig butchering, which has become a global billion-dollar industry.
The Crypto Industry Is Trying to Elect Political Allies. The Stakes Couldn’t Be Higher. (May 21)
Coinbase, Kraken and others are fighting for survival after a regulatory crackdown.
House To Vote On Who Will Regulate Crypto (May 22)
The Bill would put tokens of centralized blockchains under the SEC while the rest go to the CFTC.
SEC Widens Accessibility of Crypto Investing With Approval of ETFs for Ether (May 23)
New funds will allow mainstream investors to buy and sell the cryptocurrency as easily as stocks or mutual funds.
Whistleblowers, Yachts and Lawyers: FTX Examiner’s Key Takeaways (May 24)
A report by former prosecutor Robert J. Cleary largely cleared FTX bankruptcy counsel Sullivan & Cromwell of wrongdoing.
Crypto Influencer Ian Balina Found in Violation of US Securities Laws by Texas Court (May 24)
Balina failed to disclose a 30% bonus for his SPRK token endorsement, earning SEC charges and agreeing to a $35.1 million payment without admitting claims.
‘A Slow And Painful Death’—Donald Trump Accuses Joe Biden Of Trying To Kill Bitcoin And Crypto (May 25)
A report by former prosecutor Robert J. Cleary largely cleared FTX bankruptcy counsel Sullivan & Cromwell of wrongdoing.
New York Attorney General Vows to Go After Crypto Companies (May 27)
New York Attorney General Letitia James has reiterated her firm stance against deceptive practices within the crypto sector.
Crypto Super PACs Get $25M Boost (May 28)
Ripple Labs’ announcement follows a surprising month of Washington wins for crypto firms and investors.
FTX’s Ryan Salame, One of Sam Bankman-Fried’s Associates, Is Sentenced to 7½ Years (May 28)
U.S. District Judge Lewis Kaplan’s decision was harsher than the five to seven years that prosecutors had sought.
‘Elizabeth Warren’s Anti-Crypto Wing Is A Shrinking Iceberg’, Says Former Top Regulator (May 28)
Forbes speaks with the 13th chairman of the U.S. Commodity Futures Trading Commission, J. Christopher Giancarlo, about the current regulatory landscape in crypto, and the outlook for new pieces of crypto legislation.
Trump’s Suddenly All About Crypto. What Changed? (May 28)
The blockchain industry is trying to decipher whether they can trust their new supposed ally.
FTX Examiner’s Report Reveals Lingering Exposure For Law Firm Fenwick & West (May 28)
The California law firm that acted as lead outside counsel for crypto exchange FTX until just before its collapse in 2022 remains under investigation in the FTX Chapter 11 bankruptcy.
Crypto Firm Triumphs: SEC Hit With $1.8 Million in Legal Costs Over Misconduct (May 29)
In a decisive legal setback for the Securities and Exchange Commission (SEC), a federal judge has mandated that the agency pay $1.8 million in legal costs.
Ex-Beverly Hills Lawyer Admits To Role In $9.5 Mln Crypto Ponzi Scheme (May 29)
David Kagel, who practiced law in Beverly Hills, pleaded guilty to one count of conspiracy to commit commodity fraud in Las Vegas federal court.
Block.One Investors Try, Try Again For Final OK On $22 Million Class Settlement (May 29)
Judge Kaplan's final assessment of the deal is the only thing standing between those investors and a $22 million payout.
Ex-Deutsche Bank Investment Banker Gets 41 Months Prison In Crypto Fraud (May 30)
The U.S. Department of Justice said Rashawn Russell, 28, of Brooklyn, was sentenced eight months after admitting to wire fraud and access device fraud, and three months after his bail was revoked.
BlackRock Amends S-1 Filing For Spot Ethereum ETF (May 30)
The filing comes a week after the SEC approved 19b-4 forms for eight spot Ether ETFs.
Ex-Law Firm Partner Fights US Conviction Over $400 Mln Crypto Scam (May 30)
Mark Scott argued in a brief to the 2nd Circuit U.S. Court of Appeals that his conviction should be reversed or vacated in part because the government's case relied on a witness who perjured himself.
Elon Musk To Advise Donald Trump On Crypto Strategy During Election Campaign (May 31)
Musk’s involvement could help reshape political dialogue, influence tech policy, and integrate crypto advocacy into Trump’s campaign.
How Crypto Companies Can Avoid Compliance Pitfalls (May 31)
Nicola Massella, a Web3 Lawyer at Storm Partners, shared invaluable insights with BeInCrypto on how crypto companies can avoid compliance pitfalls.
Coinbase Slams SEC In Closing Brief Over Refusal To Provide Clear Regulation (May 31)
Coinbase filed its closing brief on May 31, slamming the SEC for its refusal to provide regulatory clarity for the digital asset industry.
NYDFS Establishes New Guidelines For Crypto Companies To Enhance Customer Service Standards (May 31)
The guidelines will come into force starting Nov. 1 and represent the NYDFS' expectations for timely and fair resolution of customer service requests and complaints.
Lawmakers Urge Biden Administration To Reconsider Veto For SAB 121 Repeal (May 31)
A bipartisan coalition of lawmakers has urged the Biden Administration to abandon its plan to veto the Congressional proposal to repeal the SEC’s controversial Staff Accounting Bulletin No. 121 (SAB 121).
U.S. President Biden Vetoes Resolution Overturning SEC Guidance (May 31)
SAB 121 is a controversial piece of SEC accounting guidance that directs financial institutions holding crypto for customers to keep the assets on their own balance sheets.
Middle East & Africa 🌍
South African Crypto Exchange VALR Picks Poland For Expansion In Europe (May 1)
Pantera-backed crypto exchange VALR will now offer services in Poland as part of its global expansion efforts.
Behind Nigeria’s Arrest of Binance Employee, Claims of a Bribe Request (May 7)
A compliance officer for the cryptocurrency exchange told senior executives and Nigerian contacts that the company had been asked to pay $150 million in crypto.
Nigeria to Ban P2P Crypto Trades Amid Economic Turmoil (May 7)
Nigeria seeks to gain control over crypto space through increased regulation and crackdown on exchanges.
Nigeria Sets Dangerous Precedent By Detaining Binance Execs, CEO Says (May 7)
CEO Richard Teng said in a statement it was time to speak out against the detention of Tigran Gambaryan, a U.S. citizen and Binance head of financial crime compliance.
Turkey Announces Proposed Law to Regulate Cryptocurrencies (May 17)
Draft law mandates licenses for crypto firms from Turkey's Capital Markets Board, aiming to boost FATF compliance.
Nigerian Court Adjourns Binance, Executives' Tax Evasion Trial To June 14 (May 22)
The matter stalled because authorities failed to bring Tigran Gambaryan, a U.S. citizen and Binance head of financial crime compliance, to court.
Abu Dhabi Prohibits Crypto Mining on Farms (May 24)
Abu Dhabi bans cryptocurrency mining on farms, imposing penalties up to AED 10,000 for violators.
Europe 🌍
UK Minister Says Government Only Has Time to Implement Stablecoin, Staking Legislation (May 8)
Economic Secretary Bim Afolami said that the government could put through stablecoin and staking legislation in the coming weeks but will outline what more is coming later.
Developer Of Tornado Cash Gets Jail Sentence For Laundering Billions Of Dollars In Cryptocurrency (May 14)
A court of Dutch judges found Tornado Cash developer Alexey Pertsev guilty of money laundering and sentenced him to 64 months in prison.
The AMF Reminds The Public That The Cryptoasset Trading Platform BYBIT Is Blacklisted (May 16)
France’s AMF issued a notice reminding the public that crypto exchange ByBit is not registered as a digital asset service provider and is therefore not authorized to provide its services in the country.
Kraken Denies Plans To Delist USDT In EU (May 20)
Global Head of Asset Growth & Management Business Mark Greenberg said the company is examining “all options to offer USDT under the upcoming regime.”
FCA Decision Offers More Regulatory Clarity for Professional Crypto Investors (May 22)
The global law firm Latham & Watkins provides an update on cryptoasset Regulation in the UK.
What A Return To Labour Could Mean For Crypto Policy In The UK (May 23)
The United Kingdom will hold its first election in five years, potentially changing the landscape of crypto policy in the region.
EU Threatens To Regulate MEV As ‘Market Abuse’ (May 28)
The latest draft regulation from the EU securities regulator may require regulated crypto firms to identify and report MEV.
Binance France Forced To Turn Its Back On CZ To Comply With Regulations (May 30)
In an effort to comply with French regulations, the world’s largest crypto exchange platform Binance has extensively overhauled the governance of its French subsidiary.
SEC Commissioner Hester Peirce Proposes US-UK Digital Securities Sandbox (May 31)
This initiative builds on the Bank of England’s (BoE) and Financial Conduct Authority’s (FCA) efforts to provide a secure environment for experimentation while maintaining regulatory standards.
Australia 🇦🇺 & Oceania
Australia Court Sets Precedent For Crypto In Non-Cash Payments (May 3)
A new legal precedent has been set after the Federal Court found that BPS Financial (BPS) engaged in unlicensed conduct when offering the Qoin Wallet, a non-cash payment product that used a token called Qoin
Australia Seeks Client Data From Crypto Exchanges In Tax Crackdown (May 7)
Australia's tax office has sought from crypto currency exchanges the personal data and transaction details of up to 1.2 million accounts as it looks to crack down on users who may be failing to pay their taxes.
Latin America 🌍
Worldcoin Expands to Mexico While Argentina Considers Regulation (May 2)
Worldcoin marked its recent move into Mexico, yet simultaneously faces fines and proposed legislation in Argentinaregarding biometric data.
Tether-Parent Ifinex To Aid El Salvador’s Crypto Rules (May 13)
The parent company of Bitfinex exchange and Tether (USDT), iFinex, reached a partnership with El Salvador to realize the vision of President Nayib Bukele for comprehensive crypto legislation.
Brazil Central Bank Plans Year-End Proposal For Crypto Regulation (May 20)
Brazil's central bank announced that it has decided to divide the process of regulating crypto-assets and virtual asset service providers into phases, with regulatory proposals expected by the end of 2024.
New Bitcoin Mining Firm Sets Up Headquarters In El Salvador (May 29)
El Salvador's allure for companies and global brands continues to grow, with Bitcoin mining company OCEAN making a strategic move to establish its global headquarters in the country.
Asia 🌏
South Korea’s New Donation Law: Crypto Is Not Yet Included (May 6)
Interestingly, the South Korean government will not currently include cryptocurrencies like Bitcoin in its donation scope.
Indonesia Regulator Forms Crypto Committee to Monitor Industry's Operation, Compliance (May 8)
The committee was established by the Commodity Futures Trading Supervisory Agency, known as Bappebti, because crypto is considered a commodity in Indonesia.
Philippine’s BSP Grants Coins.ph Approval to Pilot PHPC Stablecoin (May 8)
Crypto exchange Coins.ph announced that the Philippines’ central bank had given it approval to pilot a Philippine Peso-backed stablecoin called PHPC.
Binance And Kucoin Can Now Return To The Indian Market (May 12)
The decision to approve the two crypto exchange giants to operate as registered virtual asset service providers marks a turning point in India’s approach to the crypto industry.
Expanding The Cross-Boundary e-CNY Pilot In Hong Kong (May 17)
The Hong Kong Monetary Authority and the People’s Bank of China expanded the scope of China’s digital yuan (e-CNY) pilot in Hong Kong to facilitate the use of e-CNY wallets by Hong Kong residents.
Hong Kong Regulators Plan to Allow Staking For Ethereum ETFs (May 23)
The SFC and local issuers are in talks to integrate staking, aiming to revive interest in struggling ETFs.
China, South Korea, And The U.S.: How INTERPOL Is Involved In The Rise Of Cryptocurrency (May 28)
What is different about the criminal charges involving cryptocurrency is that jurisdictions don’t always know how–or have not yet agreed on a common scheme–to regulate the financial transactions.
Beijing Asks WeChat To Lower Its Mobile Payment Share Amid Digital Yuan Pilot (May 31)
China’s regulators have asked Tencent Holdings to lower the mobile payment market share of WeChat just a few weeks after Beijing started the digital yuan pilot in Hong Kong.