The Scenius State of Regulation (Issue #23)
Crypto Policy & Regulation: June 2024
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
A Crypto Bull’s Big Tax Settlement (June 3)
The technology company MicroStrategy and its founder, Michael Saylor, agreed to a $40 million deal to end a lawsuit accusing him of evading income tax.
A Wild New Era For Crypto Politics (June 4)
President Joe Biden and former President Donald Trump are engaging with big crypto questions like never before.
Crypto Industry's Lobbying Drive Will Pay Off In US Elections, Ripple President Says (June 4)
San Francisco-based Ripple is the second-largest donor to Fairshake, a so-called super PAC, which has raised $92.9 million in a bid to influence the congressional elections in November in favor of the crypto industry.
SEC Closing Salt Lake City Office After Failed Crypto Case Against Debt Box (June 4)
The regulator will shift work from its smallest regional office to its Denver office.
Florida Appellate Court Reverses Crypto-Asset Company’s Money License Suspension (June 4)
According to the court, the Emergency Suspension Order (ESO) should have offered an explanation as to why less drastic measures were insufficient or acknowledged the potential harm to Florida consumers.
Robinhood Doubles Down on Crypto With Deal for Bitstamp (June 6)
The move comes a month after SEC notice of a potential lawsuit over the brokerage’s crypto offerings.
New York Sues Over $1 Bln Crypto Frauds Targeting Immigrants (June 6)
The New York AG said investors enticed by promises of weekly profits sent NovaTech Ltd more than $1 billion over nearly four years prior to its May 2023 collapse, yet only $26 million was used for trading.
Digital Assets And DAOs: New Theories Of Liability (June 10)
Attorneys from Skadden’s Web3 and digital assets group discuss a recent and developing legal theory that posits that persons holding governance tokens in a DAO can be considered "partners" in a "general partnership" or "unincorporated association."
As Supreme Court Decisions Loom, A Legal Assault Is Weakening SEC's Power (June 11)
Crypto firms have frequently cited whether federal agencies have the authority to tackle major policy questions—the "major questions" doctrine—when disputing the SEC's authority to regulate them.
The US Crypto Industry Is Bouncing Back After Rough Regulatory Year (June 11)
Matter Labs CEO Alex Gluchowski told Empire’s Jason Yanowitz that crypto in the US has become a “powerful election force.”
President Biden Vetoes SEC Crypto-Asset Rule Nullification Resolution (June 12)
In his veto message to the House, President Biden stated that the resolution would “inappropriately constrain” the SEC’s ability to “set forth appropriate guardrails and address future issues.”
Do Kwon’s Crypto Firm Agrees to Pay $4.5 Billion Penalty to SEC (June 12)
The regulator may end up receiving only a fraction, if any, of the penalty.
Crypto Asset Investigations: Key Considerations and Pitfalls (June 12)
Managing Directors of the financial consulting firm Ankura provide an overview of the constantly evolving regulation and guidance for investigation and enforcement.
Nigeria Drops Tax Charges Against Detained Binance Compliance Executive (June 14)
The health of Tigran Gambaryan, an American, is also deteriorating, his family said.
New York Recovers $50 Mln For Defrauded Gemini Earn Crypto Investors (June 14)
The payout is in addition to James' related $2 billion settlement, opens new tab with crypto lender Genesis Global Capital, which New York Attorney General Letitia James announced on May 20.
How Crypto Money Is Poised to Influence the Election (June 17)
The industry’s political awakening — and enormous pool of cash — is already affecting high-profile races across the country.
Will Crypto Regulation Change After The SEC’s Head Of The Crypto Left? (June 18)
David Hirsh, the former head of the Cryptocurrency and Network Division at the U.S. Securities and Exchange Commission, has left his position.
California’s DFPI Orders Two Crypto-Asset Companies To Stop Operations (June 18)
The California DFPI (Department of Financial Protection and Innovation) issued two desist and refrain orders against securities firms for allegedly offering unqualified securities under California’s Corporate Securities Law (CSL).
Op-Ed: The Dark Side of Tokenisation (June 18)
A law professor at the American University Washington College of Law makes the case for why the financial industry needs to think of resilience as much as efficiency when putting real-world assets on to blockchains.
Hedge Funds Made a Killing on FTX—Then It Got Complicated (June 24)
Investors allege former FTX customers reneged on selling claims to their accounts and are suffering from seller’s remorse.
In FTX Litigation, Feud Escalates Between Bankruptcy And Class Action Lawyers (June 24)
The dispute, pitting lawyers representing FTX’s bankruptcy against attorneys who are leading FTX customer class actions, boils down to a critical question of law: Which court — and which lawyers — should be in charge of claims by FTX’s defrauded customers?
SEC’s Gary Gensler On His Agenda: ‘If The Courts Adjust, We Adjust’ (June 25)
Top securities regulator says he is determined to keep advancing agency’s rulemaking despite pushback.
State Department announces $5M bounty for OneCoin ‘Crypto Queen’ (June 26)
Ignatova is accused of defrauding investors by promoting OneCoin as an investment when it was nothing more than a scam and allegedly stole over $4 billion from victims.
Crypto Firm Abra Reaches Settlement With US States For Operating Without Licenses (June 26)
Financial regulators in 25 U.S. states announced a $82.1 million customer refund settlement with cryptocurrency investment platform Abra and its CEO for operating without required state licensing.
Florida Man Convicted In Cryptocurrency Theft Home Invasions (June 26)
Remy St. Felix of West Palm Beach led violent home invasions to steal cryptocurrencies, targeting multiple states over several months.
Sen. J.D. Vance Floats Crypto Plan (June 26)
The Ohio Republican, a top contender to be former President Donald Trump’s running mate, has started circulating draft legislation that would revamp how the U.S. regulates digital assets.
US Recognizes Crypto as a Security For the First Time: 2 Executives Sentenced (June 26)
Two Hydrogen Technology executives sentenced for cryptocurrency securities fraud, marking a legal precedent where a cryptocurrency was officially recognized as a security by a federal jury.
Crypto Law Firm, Ex-Founder Cyrulnik Settle Lawsuit Before Trial (June 27)
Freedman Normand Friedland LLP – formerly known as Roche Cyrulnik Freedman – and its ex-partner Jason Cyrulniksaid they were dismissing all claims against each other less than two weeks before trial in the case, which involved allegations of stolen crypto tokens and bullying.
U.S. Judge Lets Most of SEC Case Against Binance Proceed, Dismisses Secondary Sales Charge (June 28)
A federal judge ruled the SEC had plausibly alleged Binance, Binance.US and Changpeng Zhao violated federal securities laws.
Crypto to See Tighter Tax Rules Starting in 2026 (June 28)
Treasury finalizes rules to deter crypto tax evasion—but softens them after industry lobbying push.
Europe's MiCA Is Finally Here. How Will the U.S. Respond? (June 28)
It's time for the U.S. to reassert its place as the global leader in financial services regulation and innovation, writes the Chief Strategy Officer and Head of Global Policy for Circle, Dante Disparte.
21Shares Files For Permission To Offer ETF Linked To Cryptocurrency Solana (June 28)
The CBOE, the exchange on which the asset manager plans to list Solana ETFs if approved, must still request regulatory approval to change its rules and allow these new products to trade.
SEC Sues Consensys Over MetaMask Staking and Unregistered Securities (June 29)
The SEC alleges MetaMask facilitated at least 5 million transactions over the past four years that involved tokens the SEC classifies as unregistered securities.
Crypto Crime Involving Deepfakes Seen Surpassing $25bn In Losses This Year (June 30)
Deepfakes generated by artificial intelligence are increasingly being weaponized by criminals, according to a study by crypto derivatives exchange and copy trading platform Bitget.
Financial Times Op-Ed: Crypto Lobbyists Are Polluting The US Election (June 30)
Three years after saying bitcoin seems like a scam, former President Donald Trump appears newly enamoured.
Middle East & Africa 🌍
Turkey To Impose Stocks, Crypto Assets Transaction Tax, Official Says (June 5)
The move is part of tightening measures that Finance Minister Mehmet Simsek is pushing through to boost fiscal discipline and price stability after years of turmoil that fueled soaring inflation.
UAE Central Bank Sets Milestone For Stablecoins (June 8)
In a strategic move designed to reinforce the country’s pioneering status in financial innovation, the Central Bank of the United Arab Emirates (CBUAE) has approved a new licensing system overseeing stablecoins.
Zimbabwe Launches Study To Map And Regulate Crypto Industry (June 12)
The initiative seeks to map and regulate the crypto landscape, inviting insights from local and global firms.
Nigeria Issues 30-Day Deadline For Crypto Firms To Re-Register Under New Regime (June 26)
The SEC's directive comes amid increasing scrutiny and skepticism toward digital assets, which have exacerbated forex and economic issues in the country.
Turkey's Simsek To Speak At FATF Watchdog Meeting In Singapore, State Media Says (June 27)
Removing Turkey from the "grey list" of countries and territories that require increased scrutiny would be a boost to the country's economic turnaround plan, after the FATF task force downgraded Turkey's status in 2021 over concerns about money laundering and terrorist financing.
Europe 🌍
Deutsche Bank Ties Up With Bitpanda In 'Cautious' Crypto Shift (June 4)
But in the latest sign of the crypto world moving closer to mainstream finance, Deutsche will work with the Austrian crypto broker Bitpanda to provide its users in Germany with local bank account numbers.
UK FCA Financial Crime Guide Consultation: More Obligations, Or Old News? (June 5)
The UK Financial Conduct Authority (FCA) continues to emphasise the significance of its Financial Crime Guide (FCG) as part of the overarching regulatory framework for financial crime, which firms are strongly encouraged to consider and follow.
A Token of Appreciation: Cryptoassets and Employee Incentives - a UK Tax Primer (June 10)
The tax implications of crypto-based incentives in different jurisdictions should be carefully considered before adopting a plan and granting awards.
UK Issues Urgent Warning on Crypto Investment Firm Digital Assets Nest (June 11)
The FCA warns that this firm is promoting financial services without proper authorization, posing significant risks to investors.
Swiss Regulator Shuts Down Crypto-Linked FlowBank SA (June 13)
The Swiss Financial Market Supervisory Authority (FINMA) has closed the crypto-linked bank FlowBank SA, citing the lender does not have enough capital to continue operating as a bank.
Under the Markets in Crypto-Assets Regulation, the European Banking Authority has published a package of technical standards and guidelines on prudential matters, namely own funds, liquidity requirements, and recovery plans.
Italy Boosts Crypto Risk Oversight And Toughens Sanctions, Draft Shows (June 20)
Italy plans to adopt measures to beef up surveillance over risks tied to cryptoassets, including high fines for those who manipulate the market.’
UK Authorities Arrest Crypto Exchange’s Co-Founders Over Illicit Operations (June 20)
The UK’s Financial Conduct Authority (FCA) arrested crypto exchange co-founders for unregistered $1.26 billion operations.
The EU and Beyond: How MiCA Can Balance Innovation, Compliance, and Crypto’s Future (June 22)
Ilya Volkov, CEO of crypto platform YouHodler, shares his insights on how MiCA will shape the future of crypto-financial services.
MiCA – ESMA’s Mandates for Crypto Market Abuse, Suitability and Crypto Transfer Services (June 24)
Attorneys for the global law firm Paul Hastings provide an overview of the impact of MiCA on crypto-asset businesses both from the perspective of high-level strategy and in relation to changes to their day-to-day compliance arrangements.
EU Prepares For Crypto Leap Of Faith (June 28)
The EU’s landmark regulation on crypto assets, MiCAR (Markets in Crypto-Assets Regulation) starts to come into effect over the weekend, but its distorting effect is already being felt in the market.
Why Swiss And Hong Kong Crypto Regulations Will Lead The Defi Revolution (June 29)
The CEO of Crypto Valley Exchange, James Davies, argues that regulating permissionless protocols is difficult, and it's even harder for those looking to regulate DeFi.
The Two-Class System Of Regulation Plaguing Europe (June 30)
The Chief Risk and Compliance Officer at Northstake, Sebastian Heine, makes the case for why non-custodial crypto asset providers remain outside the MiCAR framework, posing potential financial crime risks.
Australia 🇦🇺 & Oceania
Australian Casinos Can No Longer Use Crypto! (June 12)
In a determined effort to combat gambling-related problems, Australia recently took the landmark step of banning the use of crypto and credit cards for online betting, joining the restrictions already in place for physical casinos.
Latin America 🌍
Argentina Introduces National Registry For Crypto Exchanges To Enhance Market Integrity (June 5)
With an eye on market integrity, Argentina is rolling out a national registry for crypto exchanges, signaling a tightening grip on the burgeoning sector.
Bitcoin Bank Proposal Gains Momentum In El Salvador (June 15)
The Bank for Private Investment will “diversify the financing options” available to investors in both Dollars and Bitcoin.
Brazil's Tax Authority To Summon Foreign Crypto Exchanges For Information (June 18)
Unlike exchanges formally established in Brazil, crypto exchanges are not obligated to report transactions conducted on their platforms.
Brazil's Current Account Deficit To Shrink After Change To Crypto Rule (June 24)
The purchase of crypto assets will no longer be considered an import affecting the trade balance, as previously cryptoassets have been treated as goods since 2019.
Bolivia Lifts Ban On Bitcoin, Authorizes Crypto Transactions Via Banks (June 28)
The change in regulatory stance marks the end of a ban on crypto use in the country in place since 2014.
Asia 🌏
Hong Kong’s ‘Deemed to Be Licensed’ Crypto Exchange List Sparks Debate on Regulation (June 2)
Importantly, the Securities and Futures Commission (SFC) stated that the exchanges on its list are not yet formally licensed, and investors should remain cautious of them.
Thai Regulators Revoke Zipmex’s Crypto License (June 11)
Beleaguered crypto exchange Zipmex has lost its business license after the Thai authorities found that the exchange had repeatedly failed to comply with orders.
South Korea to Reevaluate 600 Crypto Listings on Local Exchanges (June 17)
This strict review aims to ensure compliance with new regulations under the Virtual Asset User Protection Act, effective July 19.
India Financial Watchdog Imposes $2.25 Million Penalty On Crypto Exchange Binance (June 20)
India requires virtual digital asset service providers like crypto exchanges to be registered with the Financial Intelligence Unit (FIU) as a reporting entity and comply with its anti-money laundering rules.
Singapore Flags Digital Payment Tokens As High-Risk In AML Landscape (June 20)
Singapore said digital payment token service providers, also known as virtual asset service providers, stand out as a high-risk category within the financial sector.