Today's Highlights
🌐 Joint provisional liquidators appointed over Prince Group BVI entities: Chinese victims may be able to file claims; over 90,000 BTC once flowed through affiliated entities
📋 French Senate passes on first reading a bill on automatic exchange of tax information on crypto assets
📌 Bank of Russia approves NAUFOR as the country's first crypto industry self-regulatory organization
🌐 Crypto Innovation Council submits a 238-page report to the SEC, recommending that the application of securities law to on-chain vaults be defined by the degree of control exercised by the operator
🔎 Brazilian crypto exchanges must submit licence applications by Friday; those that fail to do so must cease services within 30 days
📌 OKX to partner with ICE and Trade.xyz, with plans to bring perpetual contracts into the U.S. compliant market
Joint provisional liquidators appointed over Prince Group BVI entities: Chinese victims may be able to file claims; over 90,000 BTC once flowed through affiliated entities
In relation to 30 British Virgin Islands (BVI) entities effectively controlled by Chen Zhi, the local court has appointed joint provisional liquidators (JPLs) to investigate and preserve the relevant assets. The liquidation list comprises 30 BVI companies, including Prince Global Group Ltd, most of which are effectively controlled by Chen Zhi, whereas the U.S. Treasury sanctions list names only 28 BVI companies; Amber Hill Ventures Limited (AHV) and Lateral Bridge Global Limited (LBG), which are not sanctioned but appear on the liquidation list, are mentioned in U.S. judicial proceedings, where prosecutors stated that of the more than 120,000 bitcoin forfeited in the United States, more than 90,000 flowed through AHV, LBG and Future Technology Investment, registered in the Cayman Islands; AHV's chairman and shareholder is Fan Yang, and LBG's chairman and shareholder is Minyi Tang, referred to in the U.S. indictment as Chen Zhi's "Co-conspirator 6" and "Co-conspirator 7". BVI insolvency proceedings are collective in nature, and eligibility to file claims is not determined by nationality or jurisdiction; potential victims in any jurisdiction may file claims, and victims of telecom fraud and online gambling from China may also submit claims at some point in the future. No claims filing and distribution process has yet been established; if liquidation proceedings commence in the future and sufficient funds are available to support distributions to creditors, the liquidators will establish a claims procedure, adjudicate claims and make distributions in accordance with BVI insolvency law.
Business impact
Once the BVI joint provisional liquidation proceedings are commenced, they bind counterparties that have fund transfers, equity or contractual relationships with these 30 BVI entities, with the consequence that the relevant assets are subject to investigation and preservation, and that disposal and recovery must proceed through a collective process led by the liquidators. For institutions that have transferred funds to these entities or settled through them, what they can do now is not wait for a distribution but secure transaction records and evidence of fund flows, so as to assert claims once a claims procedure is established; before the liquidators publish filing rules, there is no procedural channel for proactive filing.
Source: ChainCatcher · 2026/10/29 00:04
French Senate Passes Bill on Automatic Exchange of Tax Information on Crypto Assets at First Reading
On October 29, the French Senate passed a bill at first reading authorizing tax authorities to automatically exchange crypto asset transaction data with foreign counterparts. The bill was subsequently submitted to the National Assembly for review as Bill No. 3421 and has yet to complete the full legislative process. The bill covers agreements on the exchange of tax information on crypto assets and updates existing agreements on the exchange of financial account information; the crypto asset portion is based on the Crypto-Asset Reporting Framework (CARF) developed by the Organisation for Economic Co-operation and Development, which sets common standards for participating jurisdictions to collect and automatically exchange crypto transaction information. France has already implemented the EU's Eighth Amendment to the Administrative Cooperation Directive (DAC8) through its 2025 finance law, requiring crypto service providers to report client identity and transaction data to tax authorities, which then share the information with the EU country where the user resides. In addition, French lawmakers are discussing crypto tax adjustments in the 2027 budget; an amendment passed by the National Assembly on October 16 would, from January 1, 2027, tax gains arising from conversion into certain fiat-pegged stablecoins, and this measure has not yet become law.
Business Impact
What the French Senate passed at first reading is a bill authorizing tax authorities to automatically exchange crypto asset transaction data across borders; it has only completed first reading in the Senate and been submitted to the National Assembly, and has not become law in force, so at this stage it does not create new reporting or exchange obligations. For crypto asset service providers offering services in France, the obligations already in force stem from DAC8 as implemented by the 2025 finance law, namely reporting client identity and transaction data to the French tax authorities; if the current bill is ultimately passed, what it affects is the cross-border exchange between tax authorities, not the scope of reporting on the enterprise side. The stablecoin gains tax amendment passed by the National Assembly on October 16 remains under discussion, and pricing or tax treatment should not be adjusted on that basis before formal legislation.
Source: ME News · 2026/10/29 23:25
Russian Central Bank Approves NAUFOR as the Country's First Crypto Industry Self-Regulatory Organization
On October 29, the Russian Central Bank approved the National Association of Stock Market Participants (NAUFOR) as the country's first industry self-regulatory organization for crypto exchanges and digital custodians. The move aims to implement the Law on Digital Currency and Digital Rights, passed by the Russian State Duma in July, as an operational system; the law requires exchange operators and digital custodians to enter the Central Bank's register and to join a self-regulatory organization. The Central Bank register currently includes 23 crypto exchanges and 8 digital custodians, including institutions under VTB, Sberbank and T-Technologies, the parent company of T-Bank, and entities on the register must complete joining within 90 days. The self-regulatory organization is responsible for setting industry standards, supervising members and representing the industry in communications with regulators. NAUFOR said it will participate in setting standards for the digital asset market and push the Central Bank to adjust rules; earlier this month the association obtained the same type of qualification in the field of information system operators, and it currently has 725 members. The law prohibits the use of Bitcoin for everyday payments, and crypto payments within the country remain prohibited; it also licenses exchanges and custodians, limits retail purchase amounts, and opens a state-regulated cross-border trading channel. Non-qualified retail investors are capped at 300,000 rubles per year, about US$3,800, through a single intermediary. In addition, the Moscow Exchange has tested crypto trading with professional market participants and plans to launch it in December; Sberbank has also been approved to custody crypto assets such as Bitcoin.
Business Impact
The Law on Digital Currency and Digital Rights makes joining a self-regulatory organization a precondition for exchanges and digital custodians to enter the Central Bank register, and institutions that fail to complete joining within 90 days will be unable to continue the relevant business in a lawful capacity. As a self-regulatory organization, NAUFOR will hold the functions of setting industry standards and supervising members, and the content of its standards will directly affect the operating rules of exchanges and custodians and their channels of communication with the Central Bank. For entities already on the register of 23 exchanges and 8 custodians, what needs to be implemented at present is the membership procedure itself; for institutions not yet on the register, the sequencing of membership and registration remains subject to Central Bank rules.
Source: ChainCatcher · 2026/10/29 23:06
Crypto Council for Innovation Submits 238-Page Report to SEC, Proposing to Define Application of Securities Law to On-Chain Vaults by Degree of Operator Control
The Crypto Council for Innovation (CCI), together with members including Bitwise, Galaxy Digital and Morpho, submitted a 238-page report to the U.S. Securities and Exchange Commission (SEC), proposing that the degree of an operator's actual control over investor assets serve as an important basis for determining how securities law applies to on-chain vaults. The report holds that the greater an operator's discretion over investment choices, lending terms and the flow of funds, the stronger the grounds for applying securities regulation. For vaults that meet the definition of an investment company, CCI recommends that the SEC draw on the ETF regulatory approach, first granting exemptions on a case-by-case basis and then considering broader rules, and clarify when vault operators must register as investment advisers and the custody rules applicable when smart contracts manage assets. The foregoing constitutes industry recommendations, and whether the SEC will adopt them remains unclear.
Business impact
This report seeks to shift the securities-law characterization of on-chain vaults away from product names and toward the operator's actual discretion: with the same set of smart contracts, if the operator can determine investment targets, lending terms or the destination of funds, the arrangement is closer to one that must be treated as an investment company or investment adviser; otherwise, it may fall outside existing regulation. For issuers, what truly needs to be clarified first is how much discretion they retain over investment decisions and asset custody, because this directly determines whether registration is required, whether an exemption can be relied upon, and how custody arrangements should be designed. Until the SEC adopts it, the report creates no exemption or registration obligation, and case-by-case exemptions along the ETF path remain merely a proposal.
Source: Wu Blockchain · 2026/10/29 22:03
Brazilian crypto exchanges must submit licence applications by Friday; failure to do so requires cessation of services within 30 days
Crypto exchanges in Brazil must submit licence applications to the regulator by Friday in order to continue operating during the regulatory review, which may last up to two years. Entities that fail to submit applications on time must cease providing services within 30 days from Friday. From 6 November, banks and payment institutions are also prohibited from conducting crypto transactions with unauthorised service providers. The Central Bank of Brazil (Banco Central do Brasil, BCB) introduced a crypto regulatory framework in November 2025. The available materials do not specify the particular authority to which the licence application must be submitted, the application documentation requirements or the review standards.
Business impact
This market-access arrangement of the Central Bank of Brazil directly ties eligibility to continue operating to whether an application is submitted on time: exchanges that fail to submit by Friday must cease services within 30 days, and from 6 November banks and payment institutions may no longer conduct crypto transactions with them. Accordingly, once an exchange misses the deadline, what is affected is not only its own business but also the inflow and outflow of client funds that depend on banking and payment channels. The review period may last up to two years, meaning that even if an application is submitted on time, the exchange remains without formal authorisation throughout the review period, and its contractual arrangements with banks, payment institutions and counterparties need to be designed around this interim status.
Source: Odaily · 2026/10/29 21:39
OKX to collaborate with ICE and Trade.xyz, with plans to bring perpetual contracts into the US regulated market
Star, founder and CEO of OKX, stated on social media that OKX will promote the entry of perpetual contracts into the regulated US market, a project to be advanced jointly by Intercontinental Exchange (ICE, the parent company of the NYSE), on-chain perpetual contract platform Trade.xyz and OKX. ICE has signed a definitive agreement with Trade.xyz and plans to build an independent trading and clearing system in the United States to support 7×24-hour perpetual contract trading in equities, indices, commodities, foreign exchange and crypto assets. Under the disclosed division of roles, ICE will serve as the exclusive operator of that US market, Trade.xyz will be ICE's exclusive partner for implementing the business in the United States, and distribution to retail users will be conducted through a joint venture between ICE and OKX. The project is currently at the stage of cooperation and agreement signing, and no regulatory approval or launch timetable has been disclosed.
Business impact
This arrangement splits the US perpetual contract business into three layers of legal relationships: operations, technology and retail distribution. ICE, as exclusive operator, bears the primary responsibility for market operations and the clearing system; Trade.xyz, as exclusive partner, provides implementation capability; and OKX reaches retail users through the joint venture. For prospective participants, it is necessary to determine which layer they fall into and who bears the licences, client suitability, marketing parameters and cross-border data arrangements corresponding to that layer. Before regulatory approval and the specific contract rules are clarified, whether retail distribution can actually be carried out still depends on the licensing status of the joint venture, and at this stage it should not be treated as already capable of commencing business.
Source: Foresight News · 2026/10/29 20:42
This daily report was compiled with AI assistance based on publicly available information and is provided for reference only. It does not constitute legal advice or recommendations.
