The Scenius State of Regulation (Issue #27)
Crypto Policy & Regulation: October 2024
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
The Next U.S. President Won’t Define Crypto’s Future, Congress Will (October 1)
Congress, as the first branch of government, holds the key to determining the future of digital assets in the U.S.
The SEC order found that Galois violated the Custody Rule by failing to maintain certain crypto assets of the Fund with a qualified custodian.
Gemini To Exit Canadian Market By End Of 2024 Amid Regulatory Shifts (October 1)
Canada's securities regulator recently extended the compliance period for crypto platforms to the end of the year.
OpenSeason: The SEC’s Enforcement Activity Threatens OpenSea and NFTs (October 1)
In addition to a potential enforcement action by regulators, OpenSea is now facing a putative class action prompted by the SEC’s efforts to regulate digital assets as securities.
Why Trump Wants to Make America the ‘Crypto Capital of the Planet’ (October 2)
Donald Trump’s views of the cryptocurrency industry have shifted markedly in recognition of the emergence of that sector as a major player in the world of campaign finance.
Wall Street’s Crypto-ETF Boom Gathers Pace on First XRP Filing (October 2)
Since launched earlier this year, the cohort of Bitcoin funds have amassed more than $18 billion in net inflows, while the Ether group has around $570 million in outflows.
SEC Appeals Decision That Restricted Its Crypto Oversight (October 2)
Wall Street's main securities regulator will ask the 2nd U.S. Circuit Court of Appeals in Manhattan to review a July 2023 decision that the XRP token sold by Ripple Labs on public exchanges did not meet the legal definition of a security.
The judge ruled that the SEC plausibly alleged that at least some of the cryptocurrency transactions that Kraken facilitates constitute investment contracts and are subject to securities laws.
Crypto.com Files Suit Against SEC After Getting Wells Notice (October 8)
The lawsuit seeks to prevent the SEC from “unlawfully expanding its jurisdiction to cover secondary-market sales of certain network tokens sold on Crypto.com’s platform.”
California Lawyer Ordered To Pay $14 Million Over Crypto Ponzi Scheme (October 8)
An 86-year-old, disbarred California attorney has been sentenced to five years of probation and to pay nearly $14 million in restitution for his role in a $9.5 million cryptocurrency Ponzi scheme.
FBI Creates Its Own Crypto Token To Nab Suspects In Alleged Fraud Scheme (October 9)
The sting operation has already led to three arrests for ‘on-demand market manipulation’ on trading platforms.
FTX Investors Drop Lawsuit Against Law Firm Sullivan & Cromwell (October 9)
Plaintiffs' lawyers last week reached a deal with the FTX bankruptcy estate over who owns the rights to sue on behalf of customers of the crypto exchange.
FBI Accused Of Violating MIT License In Smart Contract Code Usage (October 10)
The FBI has faced claims over the improper use of OpenZeppelin’s libraries in its smart contracts, sparking legal concerns.
SEC Sues Crypto Unit of High-Speed Trading Firm DRW (October 10)
The regulator is expanding its clampdown on digital currencies by going after a major trading firm.
Opinion: The SEC Has Been Wrong About ‘Crypto Asset Securities’ All Along (October 10)
Crypto tokens were never securities, and the SEC’s backtrack proves it.
Bitnomial Exchange Sues SEC, Challenging Agency's Authority Over XRP Futures (October 11)
"This is about future contracts and who has jurisdiction over the trading of futures contracts," said Matthew F. Kluchenek, a partner at Katten Muchin Rosenman.
The SEC alleges that NexfundAI, the crypto asset created at the direction of the FBI, was offered and sold to the public on a crypto trading platform, which raises some interesting questions.
Crypto Litigation and Enforcement: Q3 2024 – Key Takeaways and Updates (October 11)
Civil and criminal litigation heated up this summer in high-profile crypto matters that will affect crypto projects moving forward.
Adviser Loses Customer Crypto: Wallet Key Custody Not Airtight (October 11)
The court directed the adviser to refrain from violating Rule 206(4)-2 under the Investment Advisers Act of 1940, also known as the “custody rule.”
TD Bank Failed To Disclose ‘Suspicious’ Crypto Transactions Tied To Unnamed Customer Group (October 14)
As part of last week’s FinCEN settlement, TD Bank allegedly failed to report transactions related to crypto to relevant law enforcement agencies.
Are Non-KYC Exchanges Riskier? Understanding Legal Implications (October 15)
Non-KYC crypto exchanges can operate as custodial, non-custodial or hybrid forms.
The SEC Moves Against A Major Crypto Market Maker (October 16)
The Complaint marks the first time the SEC has moved against a dedicated market maker, rather than an exchange, for allegedly acting as an unregistered dealer.
Jump Trading Accused of Crypto 'Pump and Dump' Scheme (October 16)
An established trading firm is accused of facilitating the offering on behalf of the crypto-gaming developer.
FBI Arrests Alabama Man for Alleged Role in Fake SEC Bitcoin Post (October 17)
The DOJ alleged that Eric Council Jr. conspired with others to take control of the SEC’s X account and published a fake post in the name of the SEC Chair Gary Gensler.
The Rising Political Power of the Crypto Voter (October 17)
According to a national poll conducted by The Digital Chamber, 1 in 7 likely voters identify as part of the Crypto Voting Bloc.
Are Sales Of Nonfungible Tokens 'Investment Contracts' Subject To Regulation Under Federal Securities Laws? (October 23)
Whether transactions in NFTs may constitute "investment contracts" and thus "securities" for purposes of the federal securities laws remains an open question subject to an evolving legal landscape.
How Two Allies Wrestled Over a Crypto Giant and a Prisoner (October 24)
The United States and Nigeria often collaborate. But the arrest of an American worker strained their diplomatic relations.
Chainalysis Beats $650 Million Lawsuit for Report Labeling Crypto Company 'Scam' (October 24)
A blockchain analysis firm beat a $650 million defamation and tortious interference case over the labeling of a crypto company as a "scam" in a ruling the Manhattan Supreme Court held is "a clear example of SLAPP litigation."
Federal Investigators Probe Cryptocurrency Firm Tether (October 25)
The authorities are looking at possible violations of anti-money-laundering and sanctions rules, according to people familiar with the matter.
Coinbase Scores Arbitration Win Under New Federal Precedent (October 25)
A recent ruling in favor of Coinbase Global clarified a recent U.S. Supreme Court precedent finding that when a party requests a stay in a dispute subject to arbitration, the district court has no discretion to deny it.
Policymakers On Privacy: Highlights From The DC Summit (October 25)
The industry sometimes glosses over the uphill battle involved in getting crypto issues in front of lawmakers.
Crypto Industry Joins Forces to Thwart SEC's Airdrop Crackdown (October 29)
Multiple crypto industry heavy hitters submitted amicus briefs in a federal district court in western Texas supporting an apparel company and a decentralized finance advocacy organization in their preemptive lawsuit against the SEC.
MyTrade Founder Is First to Plead Guilty Among Group of Firms Accused of Gaming Markets (October 30)
MyTrade was among more than a dozen targets of U.S. authorities in cases earlier this month focusing on crypto market manipulation, including alleged wash trading.
Nishad Singh, a Top FTX Executive, Is Given No Prison Time After Cooperation (October 30)
Mr. Singh, who was a top executive in Sam Bankman-Fried’s business empire, had pleaded guilty to fraud and campaign finance violations that contributed to the collapse of FTX.
SEC And DOJ Back NVIDIA Crypto Case, But Digital Chamber Fights Back (October 30)
The SEC and DOJ’s involvement highlights the growing emphasis on corporate transparency in rapidly evolving sectors like cryptocurrency.
Florida Official Wants Bitcoin Included In State Pension Funds (October 30)
Florida’s elected Chief Financial Officer and Fire Marshal Jimmy Patronis says his letter follows Donald Trump’s plans for a national stockpile of Bitcoin.
Judge Sentences IcomTech Promoter To 8 Years To Deter ‘Crypto Frauds’ (October 31)
Judge Jennifer Rochon initially allowed a delay in Gustavo Rodriguez’s sentencing to allow additional testimony but ultimately ordered the IcomTech promoter to prison.
The Crypto Nugget In Reddit’s SEC Filing (October 31)
Plus, Coinbase predicts a “massive source of inflow of capital” once the industry receives regulatory clarity
SEC Crackdown Continues With Immutable Latest To Receive Wells Notice (October 31)
Immutable challenged the SEC's vague allegations and said it will continue to innovate despite regulatory hurdles.
Bitcoin Exempt From Capital Gains? Bitcoin Becomes ‘Money’ In U.S. (October 31)
In a recent post on X, Microstrategy Executive Chairman Michael Saylor posted a quote from a purported conversation with Donald Trump where he discussed his evolving views on bitcoin.
US Crypto Industry Expects Friendlier Washington, Whoever Wins White House (October 31)
Crypto asset managers including Bitwise and Canary Capital are planning new products ahead of what many execs expect to be a more crypto-friendly administration, while others including Ripple are planning a fresh push for crypto legislation in the new Congress.
Middle East & Africa 🌍
UAE Regulatory Approval Bolsters Ripple’s Quest To Rival SWIFT In Cross-Border Payments (October 1)
Ripple's approval by Dubai Financial Services Authority enhances its global reach and bolsters its businesses.
Why Crypto-Loving Nigerians Slashed Their Use Of Stablecoins By $14bn (October 3)
The sharp decline in Nigeria’s stablecoin utilization flies in the face of the country’s ailing economy and devalued currency, the naira.
African Nation Of Eswatini Releases Design For Tokenized Retail CBDC (October 10)
The tiny kingdom, formerly known as Swaziland, is looking at better domestic accessibility and cross-border trade with a proposed CBDC.
South Africa’s Tax Authority Warns Crypto Holders: Declare Assets Or Face Audits (October 13)
South Africa tax authority ramps up crypto audits on undeclared assets, as crypto exchanges will be ordered to share data on request.
African Potential: The Intersection Of AI, Crypto, And Digital Inclusion (October 21)
Africa, particularly Sub-Saharan Africa, is emerging as a global leader in cryptocurrency adoption and innovation.
UAE Introduces Legal Framework for DAOs (October 22)
The United Arab Emirates (UAE) has introduced a structured legal framework for Decentralized Autonomous Organizations (DAOs) through the RAK Digital Assets Oasis (RAK DAO).
Zanzibar’s New Blockchain Sandbox Aims To Drive Tech Startup Growth (October 23)
The semi-autonomous region of Tanzania is taking advantage of a sandbox regulatory framework adopted in July.
Kazakhstan CBDC Pilot Drastically Reduces VAT Refund Wait (October 30)
The National Bank's latest project again shows the advantages of programmable central bank digital currency.
Europe 🌍
UK’s City Minister Pushes For Blockchain Gilts Despite Concerns (October 1)
The government’s Debt Management Office (DMO), an executive agency of the Treasury that is responsible for issuing and managing the government’s debt, has resisted the move, according to several department officials.
Tradias Secures Funding, BaFin License, Eyes European Expansion (October 8)
The Bankhaus Scheich subsidiary got its own BaFin license after using the parent company’s for several years.
Bitcoin Bribe Worth $73 Mln Lands Russian Investigator In 16 Year Jail Sentence (October 8)
Russian media said the amount that Marat Tambiyev was accused of receiving was five times larger than the previous record for a bribery case in the country's modern history.
French Jurisdictions Rulings on the Liability of Digital Asset Service Providers in Managing Clients’ Crypto-assets (October 11)
DASPs do not fall under the Markets in Crypto-Assets (MiCA) regulation and, consequently, these decisions do not carry the same legal implications for other EU member states as those regulated by MiCA.
Bitcoin Amsterdam: Flawed Research Drives Harmful Bitcoin Policies (October 11)
Speakers at the Bitcoin Amsterdam 2024 conference discussed how flawed academic studies on Bitcoin fuel misinformation, affect media coverage and lead to misguided policies.
EU’s MiCA Bill Set To Shape Global Stablecoin Regulations — Binance (October 15)
While MiCA is seen as a net positive for stablecoin regulation, it introduces consolidation concerns, especially among small crypto firms.
Italy to Raise Capital Gains Tax on Bitcoin to 42% From 26% (October 16)
The tax increase is part of Italy’s efforts to finance expensive election promises while cutting the fiscal deficit, amidst the EU’s preparation to implement the bloc’s sweeping crypto regulations, known as MiCA, at the end of this year.
Ireland Drafting Urgent Crypto Laws Before EU Money-Laundering Rules (October 17)
Ireland’s finance minister wants to act quickly before the EU imposes strict Anti-Money Laundering standards.
Cyprus Freezes Crypto Applications Ahead Of EU-Wide MiCA Transition (October 17)
The CySEC has warned crypto asset service providers of coming changes as the continent braces for MiCA.
Why UK Tax Hikes Risk Sending Crypto Businesses Elsewhere (October 21)
Crypto industry insiders warn that a hike to fill the £22 billion “black hole” in the nation’s finances risks triggering a mass exodus of innovative companies.
Experts Challenge ECB’s Claims On Bitcoin And Wealth Inequality (October 23)
Recent actions from central banks and governments have raised questions about whether a coordinated effort exists to suppress bitcoin.
Denmark Tax Council Recommends Bill To Tax Unrealized Crypto Gains (October 24)
Denmark’s Tax Law Council has recommended introducing a bill that would tax unrealized gains and losses on crypto assets beginning as early as 2026.
Netherlands Seeks Input On Crypto Tax Monitoring Laws To Align With EU (October 25)
The Dutch government wants to align its data collection rules for crypto service providers with the rest of the EU, saying it would “create more transparency.”
BIS Project Demonstrates Automated Cross-Border Transaction Compliance (October 28)
Project Mandala uses zero-knowledge proofs to complete compliance checks across different jurisdictions.
UK Capital Gains Hike Seen As Missed Opportunity To Boost Crypto Industry (October 30)
Crypto industry representatives said Labour’s decision to hike the top capital gains tax to 24% will increase the burden on small business and investors.
Italy's Finance Minister Defends Tax Hike On Cryptocurrencies Amid Party Spat (October 31)
Giancarlo Giorgetti said savers should make a distinction between investments that finance tangible projects and cryptocurrencies, whose value he said is completely disconnected from underlying assets.
Australia 🇦🇺 & Oceania
Australian Feds ’Deciphered' Seed Phrase To Access Suspect’s Crypto (October 2)
The Australian Federal Police said an analyst cracked the seed phrase to a crypto account belonging to the alleged creator of an organized crime messaging app.
Palau Introduces Blockchain Savings Bonds With Soramitsu (October 8)
Palau Invest savings bonds will raise money for local infrastructure and provide a new means of saving.
Opinion: Australia, Canada And Colombia Were Right To Pause CBDC Plans (October 10)
Maybe CBDCs are less inevitable than some people think.
Australian Police’s ‘New Powers’ Lead To $142.6K Crypto Seizure (October 30)
First crypto seizure by Victoria Police underscores a new legal framework empowering officers to confiscate digital assets via search warrants.
Latin America 🌍
IMF Pressures El Salvador To Overhaul Bitcoin Regulations (October 3)
According to the International Monetary Fund, El Salvador has an annual GDP growth rate of 3% and roughly $144 million in outstanding loans.
Brazil Tests Defi Elements, Compatibility In Drex CBDC Pilot (October 4)
Brazil’s central bank is developing a synthetic central bank digital currency that blends decentralization, privacy and programmability.
Binance Secures VASP Registration in Argentina, Ripple Expands in Brazil, and More (October 6)
This week's Latam Crypto Roundup highlights Binance's registration as a VASP in Argentina, and other key stories and trends from across Latin America.
Cardano Hosts First Legally Enforceable Contract In Argentina (October 10)
The milestone moment comes 10 months after the country legalized crypto for payments in commercial contracts last December.
Argentina Introduces New Tax Guidelines, Venezuela’s Market Soars 110%, and More (October 12)
This week’s roundup features Argentina’s new crypto tax guidelines, Worldcoin’s expansion to the Dominican Republic, and other key stories.
Brazil To Regulate Stablecoins In 2025, Says Central Bank Chief (October 15)
Brazil's central bank chief Roberto Campos Neto said that stablecoins and asset tokenization should be regulated in the country next year.
Bolivia Continues Crypto Momentum As Bank Launches USDT Custody (October 28)
Bolivian bank Banco Bisa has introduced a stablecoin custody service, allowing clients to buy, sell and transfer USDT.
Asia 🌏
Taiwan’s New AML Laws Put Crypto Firms On Notice (October 3)
The Taiwanese FSC has released new Anti-Money Laundering laws that will replace its current regulations and require full compliance of VASPs.
Thai SEC Floats Allowing Crypto Products In Mutual, Private Funds (October 10)
Thailand’s high-net-worth investors would get more access to crypto funds than retail investors under the proposed changes.
South Korea Allows Division Of Crypto In Divorce Settlements (October 10)
South Korean law allows spouses to claim cryptocurrency and Bitcoin holdings during divorce proceedings, recognizing them as marital assets, law firm says.
India’s Crypto Tax Is A Gov’t Attempt To ‘Displace’ The Tech — Lawyer (October 17)
Legal practitioner Amit Kumar Gupta told Cointelegraph that the Indian government’s stance on crypto reflects a lack of understanding of the technology.
Japanese Authorities Trace Monero, Arrest 18 In $670K Laundering Case (October 21)
The group of scammers had been under investigation since August by Japan’s new cybercrime unit.
Japan Maintains Cautious Stance On Crypto ETFs (October 22)
Tax and regulatory restrictions continue to loom large even as firms make preparations to launch digital asset products.
Vietnam Releases Blockchain Strategy, Aims For Regional Leadership (October 23)
Vietnam’s new blockchain strategy focuses on legal frameworks, infrastructure and international cooperation, as it aims to boost innovation and build a thriving ecosystem.
South Korea’s Crypto Market Faces Volatility With 34.9% Delisting Rate (October 23)
Regulatory gaps give exchanges control over listings, amplifying volatility and investor risks in South Korea.
South Korea To Regulate Cross-Border Crypto Trades By 2025 (October 25)
South Korean authorities said 81% of forex crimes are linked to crypto.
Hong Kong Pledges More Licenses for Crypto Exchanges by Year-End (October 27)
A finalized list of the platforms graduating from a provisional permit to fully licensed will be published by year-end.
HKMA Project Ensemble Partners With Brazil, Thailand For Tokenization (October 28)
The Hong Kong Monetary Authority launched Project Ensemble in March and now has at least three countries participating.
Gemini Crypto Exchange Receives Preliminary Approval In Singapore (October 29)
Gemini has received in-principle approval for a Major Payment Institution license in Singapore.
Hong Kong Court Rules For Investors In JPEX Cryptocurrency Fraud Case (October 30)
This was the first case against JPEX, which operated in Hong Kong without a license.