The Scenius State of Regulation (Issue #31)
Crypto Policy & Regulation: February 2025
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United States 🇺🇸, Canada 🇨🇦, & Caribbean 🌎
Politician Convicted Of Corruption Once Called Bitcoin The Criminals’ Choice (February 1)
The former US senator Bob Menendez has just been sentenced to 11 years in prison for accepting bribes in gold and cash.
Trump’s Washington Embraces Crypto With Meme Coins and Black-Tie Galas (February 2)
Crypto and blockchain investors celebrate a warmer welcome in the U.S. capital.
How the Current SEC Could Affect Ongoing Crypto Enforcement and ‘Impact Litigation’ (February 3)
The Securities and Exchange Commission could influence crypto industry rules and norms by dismissing or settling ongoing enforcement action, as well as “impact litigation” the industry has brought against the SEC.
Canadian ‘Pirate’ Stole Millions in Cryptocurrency, U.S. Prosecutors Say (February 3)
Andean Medjedovic, a former graduate student, is on the run.
S.E.C. Moves to Scale Back Its Crypto Enforcement Efforts (February 4)
Some in a special unit of 50 lawyers and staff members that had been assigned to regulate cryptocurrency are being reassigned in the agency.
US Prosecutors Must Rethink DeFi Stance — DeFi Education Fund (February 4)
DEXs like Uniswap should not be held liable for user actions they can’t control, they said.
SEC Ousts Top Litigator Who Battled With Crypto Giants (February 5)
The agency reassigned its head of litigation to a job in its IT office.
FDIC Releases Several Documents on Crypto Debanking and Choke Point 2.0 (February 5)
FDIC released 175 documents exposing past efforts to restrict banks from working with crypto businesses under Operation Choke Point.
Crypto Industry Looks to New SEC Task Force for Quick Action in Its Favor (February 5)
Industry groups have a wish list they say could bring more regulatory clarity around cryptocurrencies and allow for growth.
Canadian Regulator Excludes Crypto Funds From Reduced Margin Eligibility (February 6)
Canada’s equities regulator has excluded crypto funds from reduced margin eligibility, citing volatility, liquidity risks and regulatory concerns, making leveraged trading more expensive.
As One State Gets Closer on a Crypto Reserve, Others Jump Into the Fray (February 7)
Utah cleared its digital assets bill through the state house, and Kentucky and Maryland introduced their own efforts, making it 18 states working on such bills.
The SEC’s Crypto Task Force: Mapping the Road Ahead (February 7)
Commissioner Peirce’s statement outlined at least some of the Task Force’s goals; including, firstly, resolving “the status of crypto assets under the securities laws.”
The Lessons Learned At Operation Chokepoint 2.0 Congressional Hearings (February 9)
The new majority party cast the former administration’s bank regulators as bullies operating in the shadows, yet surprising agreements were found.
American States Jockey In BTC Reserve Race (February 10)
ProChain Capital’s David Tawil noted that the strategic bitcoin reserve race “is on and it is real.”
Man Behind Fake SEC Bitcoin ETF Post Pleads Guilty (February 10)
Eric Council Jr., a 25-year-old from Alabama, was arrested in October for his role in the hack of the SEC’s X account.
US Administration, Congress, and SEC and CFTC Leadership Push for Unified Digital Asset Framework (February 10)
Members of the SEC and US Congress made significant announcements regarding the proposed pathway toward a new and more unified digital assets regulatory framework.
Court Ruling on SEC’s Crypto Regulation Approach: A Turning Point? (February 10)
The 3rd Circuit Court of Appeals ruling in Coinbase’s challenge against the SEC clarifies that significant deference must be given to the SEC’s discretion in deciding on whether or not to proceed through rulemaking or on a case-by-case enforcement basis, marking an important moment in crypto regulation.
NYDFS Warns Against Risks Of Sentiment-Based Cryptoassets (February 11)
Recently, NYDFS published an industry letter to “all virtual currency business entities licensed under 23 NYCRR Part 200 or chartered as limited purpose trust companies under the New York Banking Law,” disclosing that it is closely monitoring the rise of sentiment-based cryptoassets.
Powell Guarantees No CBDC As Long As He Leads The Federal Reserve (February 11)
Powell remarks align with the Fed cautious stance regarding a CBDC.
How To Protect Investors While Giving Crypto Room To Innovate (February 11)
The technology’s transformative potential cannot be realized in an atmosphere of regulatory uncertainty, says Jan van Eck is chief executive officer of the investment management firm VanEck.
HashFlare Co-Founders Plead Guilty To Wire Fraud In US (February 12)
Sergei Potapenko and Ivan Turogin, both Estonian nationals, agreed to forfeit all claims in digital assets frozen by US authorities as part of a plea deal with prosecutors.
Pi Network’s Open Network Launch Sparks Legal Warnings from Experts (February 12)
Pi Network's transition to an Open Network in February 2025 sparks legal concerns, with experts warning about its pyramid-like structure.
CFTC Alum, Crypto Lobbyist Tapped To Lead Agency (February 12)
President Donald Trump nominated Brian Quintenz, a former commissioner at the Commodity Futures Trading Commission (CFTC) and current Global Head of Policy for a16z crypto, to chair the CFTC.
Election Contracts and Sports Event Contracts: The Future of Regulated Event-Based Trading (February 13)
This Holland & Knight alert explores the legal, regulatory and economic considerations surrounding election contracts and sports event contracts, analyzing how the CFTC's evolving stance could shape the future of event-based trading.
Prominent Cryptocurrency Investor Faces Senate Tax Inquiry (February 14)
The Finance Committee’s top Democrat sent a letter last month to Dan Morehead, the founder of Pantera Capital, about the investigation.
Will Trump’s Crypto Cops Still Bring Fraud Cases? This Flashy Startup Poses a Test (February 16)
Unicoin was among the last firms targeted by former SEC Chair Gary Gensler’s crypto crackdown.
The SEC May Be Stalling to Dismiss the XRP Lawsuit (February 16)
The SEC is delaying key crypto lawsuits, possibly to buy time before dismissing them, as seen in its Coinbase case.
Objection To DeFi ‘Broker Rule’ Returns To Focus (February 19)
The Blockchain Association’s latest letter comes with a warning to Capitol Hill lawmakers.
A Lingering Question at Coinbase: Who Really Owns the Customers’ Crypto? (February 19)
Coinbase’s accounting change significantly affects its numbers and highlights an old worry.
Coinbase Says S.E.C. Will Drop Crypto Lawsuit (February 21)
The end of a court fight with the largest U.S. crypto company would be a big win for an industry that financially backed President Trump.
Big Day for Crypto Goes South in a Hurry After a Giant Hack (February 22)
Hours after Coinbase said the S.E.C. was dropping a lawsuit against it, another major cryptocurrency exchange reported a potentially record-setting theft.
SEC’s Report On Hinman Remains Under Wraps As Review Continues (February 23)
President Donald Trump’s administration has yet to release a report on alleged conflicts of interest by a former U.S. Securities and Exchange Commission director.
Crypto Firm Pleads Guilty to Operating Illegally in U.S. (February 24)
Federal prosecutors said OKX, based in Seychelles, violated anti-money laundering laws for years, and the company agreed to pay more than $500 million in fines and penalties.
SEC Launches Cyber and Emerging Technologies Unit Aimed at Safeguarding Investors (February 24)
The new unit aims to protect retail investors and foster innovation by addressing cyber-related misconduct and emerging technology fraud.
Robinhood Plans Ambitious Crypto Expansion Under Trump Administration (February 24)
Trading platform made famous during meme-stock mania wants to diversify its digital-currency business into areas including potential tokenization of equities.
Robinhood Markets Says SEC Closes Investigation of Crypto Unit (February 24)
The regulator in May had said it was preparing to sue the crypto unit.
SEC Drops Investigation Into DeFi Firm Uniswap Labs (February 25)
The move is the latest example of a switch from hard-line enforcement against the crypto market to softer treatment under the Trump administration.
Stablecoins Have a UCC Problem (February 25)
Stablecoins are likely to be characterized as general intangibles under the UCC of non-Article 12 states and upstream security interests may continue to attach to stablecoins received downstream and make them vulnerable to upstream creditors.
Opinion: Crypto’s Big Win In Court Is Just The Beginning (February 25)
After years of what critics decried as “regulation by enforcement,” lawmakers are finally poised to write some rules for the industry.
Elizabeth Warren’s Crypto Conundrum (February 26)
Washington’s pro-crypto turn is primarily being driven by Republicans, but a growing number of Democrats appear eager to join in, despite concerns from skeptics like Warren.
Cryptocurrency Firm Founder Extradited From Portugal To Face US Fraud Charges (February 26)
Aleksei Andriunin, the founder and CEO of cryptocurrency "market maker" Gotbit, was ordered detained following an appearance in Boston federal court.
S.E.C. Declares Memecoins Are Not Subject to Oversight (February 27)
The agency said the novelty digital assets were not securities, a month after President Trump issued his own memecoin.
Gemini’s Winklevoss Demands Triple Legal Costs From SEC After Dropped Investigation (February 27)
SEC's pattern of retracted cases draws criticism for halting industry's creative momentum.
Tokenizing Securities Inches Toward Reality With Rule Updates (February 27)
Latham & Watkins attorney examines the future of securities and how the technology to move securities trading onto the blockchain is in place, and some rules, like the Uniform Commercial Code’s Article 12, are catching up.
SEC and Justin Sun Pause Tron Fraud Lawsuit for Settlement Talks (February 27)
Sun, the Tron Foundation and BitTorrent are also accused of selling unregistered securities.
U.S. Congress Introduces MEME Act Targeting TRUMP Memecoin (February 27)
The Democrat-proposed legislation would prohibit government officials from issuing cryptocurrencies and force Trump to forfeit any profits made from the token.
Stablecoin Legislation Is Subcommittee’s First Priority, Says Lummis (February 27)
Subcommittee Chair Cynthia Lummis said a market structure bill will follow.
Under Trump, U.S. Increasingly Pulls Back From Crypto Crackdown (February 28)
Going case by case, regulators have halted investigations and withdrawn or paused lawsuits against top crypto companies and their executives.
SEC Staff Signs Off on Meme Coins (February 28)
The SEC Staff at the Division of Corporation Finance issued a statement which said “It is the Division’s view that transactions in the types of meme coins described in this statement, do not involve the offer and sale of securities under the federal securities laws.”
SEC Commissioner Dissents On Agency’s Memecoin Stance (February 28)
Commissioner Caroline Crenshaw said that the agency’s working definition of memecoins was vague and could be easily misconstrued.
Middle East & Africa 🌍
The Million-Dollar Mistake: Bad Advice Can Destroy Your UAE Crypto Company (February 3)
Founders have relied on advice from people who weren’t equipped to advise on the nuances of the UAE’s regulatory framework for virtual assets and financial services.
UAE Embrace Shiba Inu as Web3 Project Platform (February 5)
The United Arab Emirates’ Ministry of Energy and Infrastructure has signed a deal to build projects designed to unify development on ShibOS.
Africa Is The Key To Crypto Mass Adoption (February 5)
Africa’s unique challenges and vast potential drive crypto innovation, potentially catalyzing global adoption and refining blockchain technology for everyday use.
Central African Republic’s Trump-Style Memecoin Crashes After Launch (February 11)
‘$CAR’ crypto token plunges in value amid concerns over project’s authenticity.
Dubai Tightens Up Memecoins Regulations (February 17)
Dubai’s VARA (Virtual Assets Regulatory Authority) has issued a strong warning on memecoins, requiring all virtual assets issued in the emirate to comply with its strict regulations.
Nigeria Reportedly Advances Crypto Tax Plan While Grappling With Binance Dispute (February 18)
Nigeria's crypto tax policy could reshape the digital asset landscape amid high adoption rates.
Nigeria Sues Binance for $81.5 Billion in Economic Losses, Back Taxes: Report (February 20)
The Federal Inland Revenue Service is looking for $79.5 billion for economic losses and $2 billion plus interest in back taxes.
Dubai Makes USDC And EURC History As The First Regulated Stablecoins (February 25)
From now on, companies operating within the Dubai International Financial Center (DIFC) can legally integrate these digital assets into their day-to-day operations.
Why Kyrgyzstan Is Betting On A Gold-Backed Stablecoin In The Digital Currency Race (February 27)
Kyrgyzstan launches a gold-backed stablecoin that prioritizes transparency, financial inclusion and real-world utility over centralized control.
UAE’s Proactive Regulations Fuel Real-World Asset Tokenization Boom (February 28)
Tokinvest founder and CEO Scott Thiel said that in his seven years in the RWA sector, there’s been “no lack of demand” from asset owners wanting to tokenize their properties.
Europe 🌍
Coinbase Obtains VASP Registration in the United Kingdom (February 3)
This registration will allow Coinbase to offer a better suite of retail, institutional, and ecosystem products and services to users across the UK as the largest registered VASP.
CRR III – Prudential Treatment Of Crypto Exposures (February 3)
In parallel with MiCAR’s implementation, the country is also rolling out the Blockchain IV law, which seeks to further integrate distributed ledger technologies (DLT) into the national legal framework.
Kraken Secures License to Enter EU Derivatives Market (February 4)
The license was obtained through the acquisition of a Cypriot firm.
Czech Republic to Eliminate Taxes on Long-Term Crypto Gains (February 6)
The country's central bank is also looking at whether or not to add bitcoin to its reserves.
Gemini Joins Europe’s Crypto Race With Malta’s Regulatory Approval (February 11)
Malta's in-principle nod propels Gemini's ambition to meet surging institutional demand for derivative trading in the EU.
Luxembourg Strengthens Its Regulatory Framework for Crypto-Assets with the Implementation of MiCAR (February 14)
In parallel with MiCAR’s implementation, the country is also rolling out the Blockchain IV law, which seeks to further integrate distributed ledger technologies (DLT) into the national legal framework.
Crypto Exchange Bybit Is No Longer Operating Illegally in France (February 14)
After more than two years of working with the French regulator, Bybit has come off France AMF's blacklist, the CEO of the exchange said.
Italy Engages With Crypto Firms On Regulatory Safeguards (February 17)
Italy’s Banca d’Italia and Consob are in talks with crypto firms to ensure compliance, as regulatory gaps widen between the EU and US.
The EUs Markets in Crypto-Assets MiCA Regulation – A Status Update (February 21)
The process of finalizing Level 2 and Level 3 measures (e.g. delegated and implementing acts, as well as guidelines, setting out in more granularity how the obligations laid down in MiCA are to be complied with) is ongoing.
UK Lawmakers Advance Bill To Strengthen Crypto Seizure Powers (February 27)
New UK bill empowers law enforcement to seize crypto assets preemptively to disrupt unlawful gains.
Illegal Crypto ATM Operator Given Four-Year Prison Sentence (February 28)
First conviction in UK as authorities crack down on what they allege is a way to launder money.
Australia 🇦🇺 & Oceania
Australian Regulator’s ‘Blitz’ Hits Crypto Exchanges, Money Remitters (February 17)
Crypto exchanges were among 50 firms that received an alert from the Australian Anti-Money Laundering watchdog over possible compliance issues.
Latin America 🌍
What’s The Status Of Bitcoin In El Salvador After Its IMF Deal? (February 14)
The vague language of El Salvador’s $1.4 billion deal with the IMF may imply that it might stop buying Bitcoin at some point, according to Samson Mow.
Argentine Leader Draws Fire After Cratering of Crypto Coin He Promoted (February 15)
Javier Milei posted about the coin on social media, then deleted it and announced an investigation into whether any laws were broken.
Argentina Opposition Threatens Milei With Impeachment Over LIBRA Token Tweet (February 20)
An opposition lawmaker said the president should be impeached after promoting and then withdrawing his support for the token.
Asia 🌏
Ripple’s XRP Omitted From Hong Kong Regulator’s Approved List Of Cryptos (February 2)
While Ripple eyes broader adoption through ETFs and futures, Hong Kong's caution clouds XRP's regional prospects.
Indian Crypto Holders Face 70% Tax Penalty On Undisclosed Gains (February 3)
India will impose tax penalties of up to 70% on undisclosed crypto gains as part of new regulations under Section 158B of the Income Tax Act.
India Revisits Crypto Policies Amid Global Digital Asset Shifts (February 3)
India reassesses its crypto stance as global adoption grows, with countries like the US, Japan, and Russia exploring Bitcoin integration.
Hong Kong Doubles Down on Crypto Regulation With Staff Hires (February 4)
The securities regulator wants to hire staff for market surveillance and enforcement investigations.
Bybit Fined $1M By India’s Financial Regulator Over Compliance Violations (February 5)
India’s financial regulator has fined Bybit $1 million for failing to register under the Prevention of Money Laundering Act, leaving its compliance status unclear.
Japan Requests Apple, Google Block Access To Unregistered Crypto Exchanges (February 7)
According to sources familiar with the matter, Apple removed the apps from its App Store in response, while Google has not yet commented on whether it will follow suit.
Japan Financial Services Agency Prepares Regulations for Bitcoin ETF Launch (February 9)
The Japan Financial Services Agency has announced that it is reviewing the treatment of virtual assets as financial products equivalent to securities in preparation for the launch of a Bitcoin ETF.
Japan’s FSA Mulls Lifting Ban on Bitcoin ETFs and Implementing Tax Cuts (February 10)
Japan may reclassify crypto as similar to securities, enabling ETFs and lowering taxes from 55% to 20%.
India's Directorate of Enforcement Seizes $190M in BitConnect Fraud Case (February 17)
BitConnect's founder, Satish Kumbhani, is wanted in both India and the U.S.
Hong Kong Plans Major Crypto Regulatory Overhaul Highlighting $3 Trillion Opportunity (February 19)
ASPIRe introduces five-pillar approach for market integration and enhanced investor safeguards in Hong Kong's digital asset landscape.
Former Bybit Payroll Manager Sentenced To 10 Years In Prison For $5.7M Fraud (February 21)
A story of meticulous fraud has reached its judicial conclusion in Singapore.
Upbit Faces Partial Suspension Over Regulatory Violations: What You Need to Know (February 25)
South Korean authorities impose a 3-month partial suspension on Upbit for regulatory violations, including unregistered transactions and inadequate customer verification.
China’s Crypto Loophole: Hong Kong’s Role in Regulated Bitcoin Access (February 28)
China maintains strict crypto regulations while embracing blockchain, banning trading but building infrastructure. However, with Hong Kong offering regulated crypto markets, a potential loophole is emerging.