The Scenius State of Regulation (Issue #9)
Crypto Policy & Regulation: April 2023
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
Trio of Canadian Crypto Exchanges Confirms Plans to Merge (April 4)
Canadian crypto exchanges WonderFi (WNDR), Coinsquare and CoinSmart have revealed plans to merge, creating what would be one of the world's largest crypto trading platforms. Between them, the three firms have 1.65 million users and more than $600 million in assets under custody.
Former Coinbase employee ready to settle insider trading case with SEC (April 4)
A settlement could have broader implications for much of the digital asset industry. The charges represent the first major crypto-related insider trading and factor around nine tokens listed by Coinbase that the SEC sees as unregistered securities. It also comes in the context of an ongoing investigation by the markets regulator into multiple aspects of Coinbase’s business.
Texas Senate committee moves forward on bill removing incentives for crypto miners (April 4)
Under the bill, crypto firms participating in a program intended to compensate them for load reductions on Texas’ power grid would be capped for anticipated demand of “less than 10 percent of the total load required by all loads in the program.” Certain crypto mining companies would also not receive an abatement on state taxes for participation in the program starting in September.
The report recommends a number of steps to enhance anti-money-laundering capabilities across the industry. TRM Labs had a helpful summary of the report.
Crypto Tax Reporting Likely To ‘Skyrocket’ — Just Not Yet (April 6)
Exchanges are not yet required to report users’ crypto capital gains and losses to the IRS, leaving that responsibility in the hands of taxpayers. This upcoming requirement is expected to go into effect in 2024 — for tax year 2023 — due to the passage of the Infrastructure Investment and Jobs Act in late 2021.
Treasury Review Acknowledges Traditional Finance, Not DeFi, Preferred by Criminals (April 7)
The US Treasury released a review on April 6, warning that DeFi could pose a risk to national security. It also noted however that the majority of criminals use fiat currency — not digital assets — to conduct illicit transactions, stating “money laundering, proliferation financing, and terrorist financing most commonly occur using fiat currency or other traditional assets as opposed to virtual assets.”
Crypto Derivatives Exchange DYdX Ices Canadian Market (April 10)
Crypto derivatives exchange dYdX said Friday it is exiting the Canadian market. DYdX’s winding down in Canada comes a month and a half after the Canadian Securities Administrators published new regulations that warned crypto exchanges and trading platforms to comply with “enhanced investor protection commitments.”
FTX's latest bankruptcy report outlines dysfunction of SBF's empire (April 10)
A new interim report prepared by CEO John Ray III in the ongoing FTX bankruptcy saga paints a stark picture over how insecure assets of the exchange were and provides more detail on corporate incompetence and possible malfeasance.
Bitcoin Miners Will Have Same Rights as Data Centers, Says New Arkansas Bill (April 10)
The Arkansas Data Centers Act of 2023 seeks to establish guidelines for Bitcoin miners and protect them from discriminatory regulations and taxes, guaranteeing that firms have the same rights as data centers.
Fed-issued CBDC Is a Hot Topic This Campaign (April 11)
US politicians are warning of potential Fed overreach in the form of a CBDC, although there’s no formal proposal for one just yet.
Montana ‘right to mine’ crypto bill passes the House (April 13)
The bill, seeking to enshrine crypto miners’ rights in the United States state of Montana, successfully passed the third reading in the state’s House of Representatives. Now, the only thing required to become law is the governor’s signature.
Utah Law Furthers Adoption of On-chain Credentials and DAOs (April 13)
Two bills, signed into law by Utah’s governor, seek to establish verifiable credentials on-chain as well as afford DAOs similar rights to those of limited liability companies
Silk Road hacker sentenced for multibillion dollar bitcoin fraud (April 14)
James Zhong, 32, of Gainesville, Ga., stole over 50,000 bitcoin from the Ross Ulbricht-run marketplace by using nine accounts to create rapid transactions that tricked the illicit marketplace’s withdrawal processing system. He pleaded guilty to one count of wire fraud and was sentenced to one year and one day in prison.
House Committee Threatens SEC Over Missing Bankman-Fried Documents (April 14)
The SEC is facing pressure from the House Committee on Financial Services to produce documents related to recent charges filed against former FTX CEO Sam Bankman-Fried.
SEC poised to increase its scrutiny of decentralized finance exchanges (April 14)
The SEC removed any doubt that they plan to police decentralized finance by declaring that rules governing trading exchanges in the U.S. also apply to decentralized finance. The procedural move isn’t a change to rules, but rather an effort to make explicit whether existing exchange rules apply to decentralized finance. The proposed clarification and amendments to the definition of an exchange are subject to a vote by the Democratic majority commission that leads the agency, making them likely to pass.
BitPay To Pay $1M to New York’s Financial Services Department (April 14)
An investigation found that BitPay’s cybersecurity and anti-money laundering programs were not in compliance with New York State’s Department of Financial Services regulations
New stablecoin bill draft introduced in US House of Representatives (April 15)
The House Financial Services Committee released a new discussion draft bill with no official notice on Saturday, in apparent anticipation of a hearing on the topic by the committee's new panel focused on digital assets and financial technology.
Tax Day Countdown: Crypto Investors Should Get Their Extensions in, CPA Says (April 16)
Crypto investors who do not have their ducks in a row ahead of next week’s tax deadline are best off filing for an extension, accountants advise. The deadline to file your tax return from 2022 or an extension is April 18. Filers looking for extra time need to make a payment with their extension, the exact liability amount does not need to be paid, but some sort of payment must be submitted. The extension gives filers until October 15 to get their returns in order.
The SEC’s criminal complaint alleges the exchange failed to register as a broker-dealer, exchange, and clearing agency, taking in at least $1.3 billion in illicit revenue between 2017 and 2022. The lawsuit also names six tokens as securities, including Algorand.
NY Financial Regulator Adopts Virtual Currency Assessment Rule (April 17)
The regulation will require companies to meet rigorous standards for capitalization, cybersecurity protection and anti-money-laundering protocols, NYDFS said in a statement Monday.
FTX Crypto Exchange Restart Plan Draws Possible Bid From Tribe Capital (April 18)
FTX’s potential plan to reboot its crypto exchange has attracted interest from Tribe Capital, a venture firm that invested in the platform before FTX collapsed and is now considering a fresh capital injection to jump-start the effort.
Gensler grilled by Republicans over SEC's approach to cryptocurrencies (April 18)
House Republicans grilled SEC Chair Gary Gensler over his agency’s handling of digital assets, especially a lack of clarity over whether or not ether is a security, stablecoins regulations and the agency's handling of FTX. Regardless of your politics, it seems pretty clear that Gensler has a credibility problem. Here’s video of Chairman McHenry Questioning Gensler on Ether at the Hearing to Conduct Oversight of the SEC.
Coinbase gets Bermuda license, could launch offshore derivatives exchange next week (April 19)
Coinbase had been exploring launching an offshore platform to trade perpetual swaps tied to cryptocurrencies. “Bermuda was one of the first financial centers to pass comprehensive digital assets regulation in 2018, and its regulatory environment is long known for a high level of rigor, transparency, compliance, and cooperation,” Coinbase said in its blog post. The company did not immediately respond to a request for comment.
SEC vs CFTC Turf War ‘Unhelpful’ and ‘Unsustainable’: House Subcommittee Chair (April 19)
The newly formed House Subcommittee on Digital Assets gathered to hear from financial experts and members of the crypto industry to discuss stablecoin regulation. In prepared remarks from Subcommittee Chair Rep. French Hill, R-Ark. he stated that “The ongoing turf war between the SEC and the CFTC over digital assets is also just unhelpful, but it’s also unsustainable,” Hill said during the hearing. “When we have two agencies contradicting each other about whether one of the most utilized stable coins in the market is a security or a commodity, we end up with uncertainty.”
U.S. SEC Warns Advisers They Need to Know Crypto Before Recommending to Clients (April 20)
Brokers and investment advisers have to understand crypto and ensure it's in clients’ best interests before pitching investments, the SEC staff said in a bulletin.
‘Safe Harbor’ Proposal Resurfaces in CoinFund President’s Call for Crypto Laws (April 20)
In a white paper published Thursday, Chris Perkins, a member of the CFTC Global Markets Advisory Committee, urged lawmakers to pass crypto laws that encourage sector growth. He also highlighted a years-old proposal from SEC Commissioner Hester Peirce designed to spur crypto entrepreneurs to more freely build decentralized networks. Peirce’s so-called “token safe harbor proposal” looks to give network developers a three-year grace period during which they could participate in or develop a decentralized network — all while exempted from the registration provisions of federal securities laws.
Texas ‘Proof of Reserves’ Bill Advances to Senate (April 21)
The bill could become law by September 1 if it passes the Senate vote and is signed by Governor Greg Abbott. The bill defines a digital asset company as a company that has over 500 customers and $10 million in customer funds. The customer assets, if the bill passes, would be required to be held in a reserve.
Biden’s New Communications Director Has Strong Crypto Connections (April 21)
Ben LaBolt was named White House Communications director in February. He has a history with crypto — including publicly disclosed holdings in BTC and ETH — and prior work for Andreessen Horowitz and Uniswap.
Bored Ape Creator Yuga Labs Claims 'Landmark Legal Victory' Over Copycat NFTs (April 22)
Yuga Labs is entitled to an injunction and damages from Ryder Ripps and Jeremy Cahen over their copycat RR/BAYC NFT collection, a federal judge declared late Friday in a pre-trial summary judgement in a trademark infringement case filed by the startup last summer.
Coinbase sues the SEC for answer on rule specific to digital assets (April 24)
The U.S. crypto giant is taking the markets regulatory agency to court in order to force the SEC to respond to a petition that the company filed aiming for a rule specific to digital assets.
DAOs Could Get Official Standing Under Proposed California Law (April 24)
Assembly Bill 1229 would change the state’s corporate code to include DAOs, blockchain networks, and smart contract protocols. If passed, the bill would enable DAOs to incorporate in California and pay taxes, while providing better protection for Californians participating in the Web3 economy.
Do Kwon Seeks To Dismiss SEC Charges as South Korea Rules LUNA Is Not a Security (April 24)
In his motion to have the SEC charges dismissed, Kwon argued the SEC’s claims are invalid, pushing back against the agency’s position that tokens including MIR, LUNA, and UST are securities.
US Treasury Sanctions 3 Lazarus Group Members (April 24)
The US Treasury’s Office of Foreign Assets Control announced sanctions against three individuals who have alleged ties to North Korea’s Lazarus Group on Monday. Lazarus has been tied to numerous hacks, including the 2022 Ronin Network attack — which is widely believed to be the largest crypto heist to date.
Crypto group DCG says bankrupt unit Genesis' creditors renege on deal (April 25)
DCG said on Tuesday some creditors of its bankrupt unit Genesis Capital have decided to walk away from a prior restructuring agreement for the cryptocurrency lender.
Stablecoin Policy Progress Impeded by Partisan Disagreements (April 25)
A draft of the long-awaited bipartisan stablecoin legislation Congress members have been promising hit the wire last week, but top Democrats say the bill is nothing like what was discussed.
What the SEC’s Proposed ‘Exchange’ Definition Could Mean for DeFi (April 25)
The SEC’s proposal to expand the definition of an exchange would rattle the DeFi industry, but industry players are likely to strike back.
CFTC Commissioner: Crypto Companies Should ‘Distance’ Themselves From Anonymity Tech (April 25)
The commissioner of the Commodity Futures Trading Commission, Christy Goldsmith Romero, recently gave a speech on crypto in London which focused on the illicit financial use cases of digital assets. She noted “It is essential for governments and the industry to address that which makes crypto so attractive to illicit finance—the allure of anonymity. While the public blockchain can provide some traceability and transparency, the use of mixers and technology designed to enhance anonymity presents a substantial risk,” she said.
Voyager Lawyers ‘Surprised’ Binance.US Canceled $1B Deal (April 26)
Voyager Digital was taken by surprise when Binance.US canceled a $1 billion deal to buy its assets on Tuesday. The exchange was still showing interest as recently as last week, Voyager's attorneys said in a New York courtroom on Wednesday.
Bahamas DARE Bill Clamps Down on Crypto After FTX Debacle (April 26)
The Bahamas’ securities watchdog has opened up a consultation period for the country’s Digital Assets and Registered Exchanges (DARE) Bill following months of FTX damage control. The bill, which is expected to come into effect by the end of Q2, aims to be one of the most “advanced” pieces of digital asset legislation globally, according to a Wednesday statement.
21Shares and Ark Invest Again Try for Spot Bitcoin ETF — But Why Now? (April 27)
The refiling of a spot bitcoin ETF application this week could signal the start of a new queue ahead of an anticipated court ruling, industry watchers said — though other prospective issuers might not be so quick to follow suit.
Coinbase Warns SEC About Launching Litigation Against the Exchange (April 27)
Coinbase has fired back at the SEC after the securities regulator targeted the crypto exchange for potential alleged securities violations. In a response to the SEC’s Wells notice issued to Coinbase last month, the company said it would defend itself against a regulator it says is going beyond its authority.
Sens. Warren, Marshall Delay Reintroducing Crypto Bill Due to Lack of Sponsors (April 27)
Senators Elizabeth Warren, D-Mass., and Roger Marshall, R-Kan., have pushed back reintroducing their crypto anti-money laundering bill in an effort to recruit more cosponsors, according to two people familiar with the matter.
Former CFTC Chair Massad Also Can’t Say if ETH Is a Security (April 27)
The House Committee on Agriculture Subcommittee on Commodity Markets, Digital Assets and Rural Development gathered Thursday to discuss “regulatory gaps” in cryptocurrency spot market regulation. Hearing witness former CFTC Chair Timothy Massad used his prepared testimony to advocate for what he called an “alternative approach” to the crypto token classification issue: Congress should direct the SEC and CFTC to “develop joint rules” to determine what constitutes both commodities and securities. When asked whether ether is a security or a commodity, Massad said in response, “I don’t have enough information.
CFTC Fines Forex Fraudster $3.4B in Its Largest Ever Bitcoin Case (April 28)
The CFTC has ordered an unregistered bitcoin commodity pool operator to pay $3.4 billion, in the agency’s largest ever fraud case involving BTC. Cornelius Steynberg, the founder and CEO of South Africa-based Mirror Trading International Proprietary Limited, was found liable for a range of infractions, including illegally handling retail forex transactions, fraud by an associated person of a commodity pool operator and registration violations.
U.S. House Will Have Crypto Bill in 2 Months: McHenry (April 28)
The U.S. House Financial Services Committee and House Agriculture Committee will put together legislation to oversee the crypto sector in the "next two months" after holding joint public hearings starting May, said Rep. Patrick McHenry (R–N.C.), chair of the House Financial Services Committee.
The war won't last forever, but probably will continue for the next 18-20 months, Kristin Smith said. Smith, however, provided a glimmer of hope for the industry during the panel, saying that a pro-crypto "army," including the Blockchain Association, are fighting "in Washington every day" for the industry. "There's a reason that Elizabeth Warren has stalled her bill that's because she lost co-sponsors," Smith said. "And that was because of the lobbying effort and education effort that went on," from the pro-crypto groups."
Crypto Tax Guidance Could Come 'in 12-ish Months,' Says IRS Official (April 28)
The US Internal Revenue Service hopes to issue crypto tax guidance ready "in 12-ish months," Julie Foerster said from the stage at Consensus 2023 on Friday. Foerster, who stressed her views are her own and not necessarily those of the IRS, said her five-person team was with her at Consensus, presumably moving through the convention center, talking to people about taxes and what the US agency can do better.
Crypto-friendly Cross River Bank faces FDIC scrutiny over 'unsafe' practices (April 28)
The FDIC issued a consent order to crypto-friendly Cross River Bank regarding “unsafe or unsound banking practices.”
Latin America 🌎
Bitfinex Securities El Salvador Granted El Salvador’s First-Ever Digital Assets License (April 11)
The license granted by El Salvador’s National Digital Asset Commission will allow Bitfinex Securities to issue and trade secondary assets on a regulatory-compliant platform.
Binance and Brazilian Football Federation launch free NFT aimed at wooing new customers (April 14)
A day ahead of Brazil’s pro football season kicking off, Binance and the Brazilian Football Federation are launching a non-fungible token aimed at not only boosting fan engagement but also attracting more consumers.
Middle East & Africa 🌍
Israel Wants to See ‘Significant’ Use of Stablecoins for Payment Before Considering Digital Shekel (April 18)
Israel says that a decision by the EU or the US to issue a centrally controlled digital asset would be an ‘important factor’ in considering its own CBDC
Crypto Companies Can Now Apply for Licenses Under UAE’s Securities Regulator (April 18)
The United Arab Emirates said that its federal securities regulator will be accepting applications from companies that want to provide crypto services in the country with the exception of virtual asset companies that are already operating in financial free zones.
Zimbabwe to Introduce Gold-Backed Digital Currency (April 24)
The country's central bank wants people to be able to exchange Zimbabwe dollars for the gold-backed token so that they can hedge against the currency's volatility.
Europe 🌍
Circle VP: UK Banks 'Actively Unbanking People, Not Just Companies' Over Crypto (April 3)
Actions taken by UK banks to restrict customer access to crypto are “not in the spirit of consumer protection.” Amid concerns that crypto firms are facing difficulties accessing banking services in the UK, Circle’s European policy lead, Teana Baker-Taylor, said individual customers were also being affected.
DeFi Divided on French Regulator’s Bid to Rein In Sector (April 4)
The French Prudential Supervision and Resolution Authority (ACPR), the country’s financial regulator under the central bank, released new DeFi regulatory guidance, and it has the industry divided. In a paper published Monday, the ACPR proposed treating DeFi “interfaces,” such as applications and landing pages, as intermediaries from a regulatory perspective.
Major Crypto Firms Need Extra Rules, Global Cooperation, ECB’s McCaul Says (April 5)
Major global crypto companies like FTX and Binance need to be subject to tougher rules with more international regulatory cooperation, Elizabeth McCaul, a member of the European Central Bank's supervisory board, said in a blog post.
Ripple Pens Deal With Montenegro Central Bank for CBDC Pilot (April 11)
Central bankers opted to partner with Ripple because of the blockchain’s “proven track record of successfully connecting disparate payment systems and championing blockchain’s utility,” said James Wallis, Ripple’s vice president of central bank engagements and CBDCs.
Spain’s Crypto Tax Warnings Mirror Broader Effort in US, UK (April 12)
The Spanish Tax Administration Agency’s warnings to crypto holders in Spain are part of a larger crackdown as governments seek to combat the potential underreporting of taxable dealings in the sector.
Stablecoins Offer ‘Efficiency and Functionality’ in Payments, Says Bank of England (April 17)
Stablecoin use cases — specifically stablecoins for payments — were likened to the evolution of the iPhone by Bank of England Deputy Governor John Cunliffe in a recent speech. “Systemic stablecoins will need to be backed with high quality and liquid assets to be able to meet these expectations and standards, as set out by the Financial Policy Committee,” Cunliffe said in the speech. The BOE is working on a regulatory framework that would focus on stablecoins used for payments.
Permissioned vs Permissionless: Why Polygon Is Telling the EU to Know the Difference (April 17)
Polygon is calling for the European Parliament to amend Article 30 of the Data Act to clarify that permissionless systems are excluded from certain regulations. Specifically, Polygon would like to see the language updated to “ensure it accounts for the ways in which smart contracts operate and the potential negative consequences of imposing a requirement for ‘safe termination or interruption’ of such smart contracts in permissionless systems,” the team wrote in the letter.
UK Could See Live Crypto Regulation Within 12 Months (April 18)
Crypto-specific regulations are well on their way in the UK, while the US is opting for an enforcement-heavy approach.
Terra co-founder Do Kwon reportedly indicted for document forgery (April 20)
While Terraforms’ Do Kwon and Han Chang-jun are facing charges in Montenegro, the other co-founder, Shin Hyun-seung, still walks free in South Korea.
EU lawmakers approve world’s first comprehensive framework for crypto regulation (April 20)
The EU Parliament voted 517 in favor and 38 against to pass the Markets in Crypto Act, or MiCA. It is the most comprehensive regulatory framework for digital assets to date. The parliamentary blessing paves the way for MiCA to become law in 2024, putting the EU a step ahead of the U.S. and U.K.
EU’s MiCA Framework Could Help Crypto Firms Get Banked (April 20)
The framework’s licensing requirements are likely to spur banks that previously steered clear of crypto to service firms in the space, industry participants say.
Romania plugs into Web3 with national NFT marketplace (April 24)
The institutional NFT platform, dubbed ICI D|Services, was to go live on April 26 and aims to create a link between private and public sector institutions and users. The platform is primarily an NFT marketplace, allowing public and institutional users to mint, manage and trade NFTs.
Digital Euro Will Have ‘Maximum Level of Privacy’—But Not as Much as Cash: ECB Board Member (April 24)
The digital euro will aim to “complement” cash and mimic its best features, a European central banker has told lawmakers, but it may not afford the same level of privacy.
French Regulator Considers ‘Fast-Track’ to MiCA For Registered Firms (April 24)
Regulators in France are considering a “fast-track” system to get registered crypto firms approved under new European Union-wide rules, L'Autorité des marchés financiers (AMF) said on Friday.
UK FCA Wants to Work With the Crypto Industry to Develop Regulation, Executive Says (April 25)
The U.K. has been looking to construct a new regime for "crypto – that one-time symbol of alternative rebellion – [that] has become more widespread," FCA Executive Director Sarah Pritchard said. In February the U.K. government's financial arm, the Treasury, launched a crypto consultation where it is seeking feedback from stakeholders on how to regulate the sector.
UK Charities Offered Guidance for Accepting Crypto Donations (April 27)
Nonprofits need to weigh the risk of volatility and hacks, and follow money laundering norms, the Charity Commission said.
UK Tax Authority Proposes Changes to Treatment of DeFi Lending, Staking (April 27)
The proposed changes would ensure DeFi transactions are not treated as a disposals for tax purposes. That would occur only when crypto assets are "economically disposed of in a non-DeFi transaction," the consultation said.
Crypto Exchange Binance Is Back in Russia, Lifts Restrictions on Russian Users (April 27)
Binance, the world’s largest cryptocurrency exchange by trading volume, quietly lifted restrictions on Russian citizens and residents it had imposed over a year ago. In March 2022, after the European Union placed sanctions on Russia in response to its attack on Ukraine, Binance announced it would not support deposits from Visa and Mastercard cards issued in Russia, as well as any Visa and Mastercard deposits made from the Russia.
ECB Mulls Decentralized Settlement for Wholesale Financial Markets (April 28)
The ECB is pondering whether to issue a retail central bank digital currency for use by regular traders and citizens, but it also wants to use blockchain technology in wholesale financial transactions.
UK Government Wants to Change Tax Laws to Better Suit DeFi (April 28)
The UK government has launched a consultation period seeking views on modifying the tax treatment of decentralized finance (DeFi) activity — particularly lending and staking.
Asia 🌏
Hong Kong’s Crypto Ambitions Get a Boost From U.S. Crackdown (April 1)
Hong Kong’s attempt to attract cryptocurrency companies is getting help from an intensifying crackdown by American regulators. More than 20 crypto and blockchain companies from mainland China, Europe, Canada and Singapore have told the government they are planning to establish a presence in Hong Kong, while over 80 firms have expressed interest in doing so, according to official figures.
Alchemy Pay Raises $10M at $400M Valuation to Push South Korean Expansion Plans (April 2)
The company, which provides a way for crypto companies to access the fiat payment system, aims to capitalize on South Korea's "high level of crypto acceptance" and assist local firms in achieving greater internationalization, according to a statement shared with CoinDesk.
Japan Regulator Flags 4 Crypto Exchanges Including Bybit for Operating Without Registration (April 3)
The regulator said at the time of the notice the exchanges were violating the country's fund settlement laws by "conducting crypto asset exchange business without registration" and also said the list of unregistered traders "does not necessarily indicate the current state of unregistered business." Although Japan is working on new regulations for the crypto and Web3 sectors, the country hasn't cracked down on the industry as hard as some other larger economies such as the U.S.
Singapore Plans New Guidance for Banks to Vet Crypto Clients (April 6)
Singapore banks are working with the city-state’s authorities to set uniform standards on screening potential customers from the crypto and digital assets sectors, amid various global fallouts in the industry.
Japanese Political Faction Signals Potential Thaw in Crypto Winter (April 6)
Japan’s Liberal Democratic Party and its Web3 project team have released a white paper to push crypto-friendly initiatives in the country. The sudden arrival of crypto winter may serve as an opportunity for Japan to once again take center stage in creating a safe space for cryptocurrency innovation, Japan’s Web3 project team said in the white paper.
Head of Thailand’s Opposition Party Promises $300 Crypto Airdrop if Elected Prime Minister (April 7)
A contender to be the prime minister of Thailand is promising every citizen 10,000 Thai baht (approximately US$300) in digital currency if his party forms a government following a general election scheduled for May.
Hong Kong Financial Secretary Pushes Web3 Adoption via Blog Post (April 9)
Financial Secretary Paul Chan Mo-po said in a blog on April 9 that global competition in the development of Web3 is strengthening, and Hong Kong plans to adopt a strategy embracing proper regulation and promoting development.
Hong Kong’s ZA Bank Offers Crypto Conversions, Accounts in City’s Push (April 11)
Hong Kong’s biggest virtual bank is pushing into transfers of crypto and fiat currencies and to provide account services for the city’s burgeoning digital asset sector.
Bhutan’s Investment Arm Invested Millions in Crypto, According to Celsius Documents (April 17)
Druk Holdings and Investments, which is the Kingdom of Bhutan’s sovereign investment arm, was a customer of both Celsius and BlockFi before the bankruptcies
Hong Kong's Central Bank Digital Currency Could Be on Permissioned Blockchain (April 18)
Hong Kong is stepping up efforts to develop its own central bank digital currency this year, but the regulator has left the nature of the ledger itself – fully centralized or decentralized – up to the banks. At least one major bank is leaning toward developing an e-HKD on a permissioned blockchain, an official within the bank told CoinDesk.
Citi India processes letter of credit on blockchain, cuts time by 90% (April 18)
Citi India has completed its first blockchain-enabled Letter of Credit transaction on Contour - a global digital trade network powered by blockchain - for its client Cummins India Limited. This is the first domestic end-to-end blockchain-enabled LC transaction completed on Contour in India.
Hong Kong Court Declares Crypto as Property in Case Involving Defunct Gatecoin (April 19)
The ruling would give Hong Kong liquidators more clarity on how to treat crypto assets caught up in winding down procedures, law firm Hogan Lovells said.
Chinese city public servants to receive digital yuan salaries starting May (April 23)
The Chinese city of Changshu has stated that all civil servants in its jurisdiction will be paid their full salaries in digital yuan starting May 2023, according to local reports.
Luna Is Not a Security Claims South Korean Court (April 24)
Luna’s status as a potential crypto asset security is not only being questioned by Do Kwon’s lawyers, but also allegedly by South Korean courts. According to South Korea’s Ilyo Shinmun, a court judgment has ruled that luna is not a security.
Terra co-founder Daniel Shin and nine others formally charged by South Korea (April 25)
South Korean prosecutors indicted Terraform Labs co-founder Shin Hyun-Seung (aka Daniel Shin) and nine others on multiple charges, including violations of capital markets law.
Hong Kong SFC to Issue Crypto Exchange License Guidelines in May (April 26)
Hong Kong’s Securities and Futures Commission plans to shed more light on the city’s evolving cryptocurrency framework next month.
Hong Kong Regulator Reminds Local Banks There Is No Ban on Crypto Firms (April 28)
Hong Kong is reminding banks that they can provide services to virtual asset companies amid complaints about the difficulty of opening bank accounts in the jurisdiction, its de facto central bank said on Thursday.
Australia 🇦🇺
Binance Australia's Derivatives License Cancelled Following Request by Exchange (April 6)
The Australian Securities and Investments Commission (ASIC) has cancelled Binance Australia's derivatives license, according to a press release on Thursday. The move comes following a request from Binance on April 5.
ANZ Bank Completes Carbon Credits Trading as Part of Australia's CBDC Pilot (April 6)
Australia and New Zealand Banking Group Limited (ANZ) have completed the first use-case of carbon credit trading as part of Australia's central bank digital currency (CBDC) pilot, the Melbourne headquartered bank said.
Using Crypto for Crime? Australia Will Give You a Harsher Sentence (April 12)
Using crypto to commit a crime in Australia typically results in harsher fines and prison time, an RMIT University study has found. The study’s lead author noted that “The use of cryptocurrency in the commission of a criminal offense is seen by courts as a factor that indicates sophistication or seriousness of the offense.”