Compliance Daily · 2026-11-06. This digest covers compliance news verified for that day from 00:00 to 00:00 the following day, Beijing time, and will not be changed after finalization.
01PBOC responds to the halt of Solana's Shanghai offline event: will investigate the entities and individuals involved
A responsible official of the relevant department of the People's Bank of China stated that Solana placed advertisements on the exterior wall of the Citigroup Tower in Lujiazui, Shanghai, through a domestic entity to conduct marketing and promotion of virtual currency. The People's Bank of China, together with local financial management, public security, market regulation and other departments, halted its "Solana Accelerate China 2026" offline event before it began and will investigate the entities and individuals involved. The official stated that SOL is essentially virtual currency and that Solana also provides technical services for the issuance and trading of USDT and others. According to the Notice issued by eight departments in February this year, promoting Solana constitutes a violation. Next, the focus will be on cracking down on domestic traders and domestic affiliated entities of overseas platforms.
Business impact
The People's Bank of China characterizes SOL as virtual currency and includes the provision of technical services for the issuance and trading of USDT and others within the scope of violations. This directly constrains the domestic promoters and service providers involved in the domestic rollout of overseas public blockchain projects. If domestic entities provide advertising placement, venue, event execution or other services for overseas projects, they may be identified as part of the violation of promoting virtual currency and face joint investigation and handling. The subsequent enforcement focus on domestic traders and domestic affiliated entities of overseas platforms means that structural risks are rising for arrangements in which domestic companies, teams or agents undertake business for overseas platforms. At present, the matter is at the stage of halting the event and initiating an investigation, and no handling results for specific entities or individuals have been announced.
Key points to watch
- Check whether the domestic entity provides advertising, venue or event execution services for an overseas virtual currency project
- Confirm whether the business involves providing technical services for the issuance and trading of stablecoins such as USDT
- Review the structure of domestic affiliated companies, teams and agency cooperation of overseas platforms
02Hong Kong to implement crypto asset reporting from 2027 and establish a dedicated task force to advance it
Joseph Chan Ho-lim, Under Secretary for Financial Services and the Treasury of Hong Kong, stated that, in line with the global trend of strengthening tax regulation of digital assets and combating cross-border tax evasion, the Crypto-Asset Reporting Framework will be implemented in the Hong Kong Special Administrative Region of China starting in 2027, and that crypto assets commonly found in global markets, such as Bitcoin, Ether and Solana, will generally be covered under the ordinary understanding of the term. To ensure the effective implementation of the reporting framework, Hong Kong will introduce a series of arrangements, including mandating reporting crypto-asset service providers that have a reporting nexus with Hong Kong to register with the tax authorities and requiring such service providers to maintain due diligence records; a dedicated task force has already been established to provide technical support to the industry and answer inquiries. The crypto industry is focused on at least two points: the areas that will be covered by the tax authorities' guidance, in particular whether the scope of "covered service providers" will extend to custody, brokerage and over-the-counter trading; and the list of the first batch of exchange partners, which is regarded as directly determining which countries' tax authorities will be able to see transaction data on Hong Kong platforms after 2028. The specific guidance on the above arrangements and the list of the first batch of exchange partners have not yet been published.
Business impact
The reporting obligation attaches to crypto-asset service providers that have a "reporting nexus with Hong Kong", which must register with the tax authorities and maintain due diligence records; failure to comply will directly affect their reporting compliance status in Hong Kong. Whether custody, brokerage and over-the-counter trading platforms will be included as "covered service providers" depends on guidance not yet issued by the tax authorities; at this stage there is no basis for comprehensive preparation on the assumption of a registration obligation, but the capability to retain customer identity and transaction records should be established in advance. The list of the first batch of exchange partners determines which tax jurisdictions data will flow to after 2028, and platforms should not, when contracting with customers or in information disclosure, prematurely commit to a particular scope of information exchange.
Key points to watch
- Verify whether you are a reporting crypto-asset service provider with a reporting nexus with Hong Kong
- Confirm the scope and retention period requirements for maintaining due diligence records
- Track the coverage of custody, brokerage and over-the-counter trading under the tax authorities' guidance
03United States proposes to permit crypto assets in 401(k) retirement plans; final rule submitted to the White House for review
On November 5, the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor submitted final rule No. 1210-AC38 to the White House Office of Information and Regulatory Affairs (OIRA), entering the White House review stage. The rule is intended to clarify the prudence obligations of 401(k) retirement plan fiduciaries when selecting investment products, to provide a clearer regulatory framework for alternative assets such as cryptocurrencies and private equity to enter retirement investment portfolios, and to reduce the litigation risk faced by plan administrators as a result. The rule implements the executive order promoted by the Trump administration in August 2025 to expand alternative asset investment channels for retirement plans. The Department of Labor published a draft rule in March of this year and closed the public comment period in June. The rule is currently at the White House review stage and has not yet taken effect.
Business impact
Once the rule takes effect, it directly binds ERISA section 401(k) plan fiduciaries: when selecting crypto assets and other alternative investments for the plan, they must complete due diligence in accordance with the prudence standard and retain the basis for their decisions, or they may face fiduciary liability litigation. For parties offering crypto products to retirement plans, the clarification of fiduciary duties will change their contractual arrangements and risk allocation with plan administrators, but the rule is currently still under White House review and has not yet formed an enforceable compliance obligation.
Key points to watch
- Whether the final rule will be issued after White House review and its effective date
- The specific standards for applying the fiduciary prudence duty provisions to crypto assets
- The textual requirements for plan administrators' due diligence and record-keeping obligations
04FinCEN and the Federal Reserve withdraw proposal to lower the cross-border transfer threshold, and the US$3,000 "travel rule" threshold remains unchanged
The U.S. Financial Crimes Enforcement Network (FinCEN) and the Board of Governors of the Federal Reserve System will jointly withdraw a proposed rule published on October 27, 2020. The proposal sought to lower the applicable threshold for the "recordkeeping rule" and the "travel rule" for cross-border funds transfers from US$3,000 to US$250, and to clarify that the relevant rules apply to domestic and cross-border transactions involving convertible virtual currency (CVC) and digital assets that have legal tender status. The two agencies stated that they will take no further action on the proposal, and the withdrawal notice is scheduled to be officially published in the Federal Register on November 9; the current US$3,000 threshold remains unchanged.
Business impact
Following the withdrawal of the proposal, financial institutions and money transfer service providers subject to the Bank Secrecy Act recordkeeping and travel rules will continue to fulfill their obligations to retain information and transmit it with transfers for cross-border transfers at the US$3,000 threshold, and transactions involving convertible virtual currency and legal tender digital assets will likewise not be subject to the US$250 standard as a result of the proposal. System modifications and process preparations previously undertaken in response to the US$250 threshold will no longer have a corresponding rule basis after the withdrawal takes effect, but institutions' existing anti-money laundering obligations are not thereby reduced.
Key points to watch
- Confirm whether the institution itself is a covered institution under the recordkeeping and travel rules
- Verify the applicable interpretation of the current USD 3,000 threshold for cross-border transfer business
- Track the formal publication of the November 9 Federal Register withdrawal notice
05Bloomberg: Rule allowing cryptocurrency into 401(k) plans has been sent to the White House for final review
A final rule by the U.S. Department of Labor intended to facilitate the inclusion of alternative assets such as private equity, real estate and cryptocurrency in retirement plans was sent to the White House Office of Information and Regulatory Affairs (OIRA) for review on Thursday. The submission indicates that the rule is close to completion and public release, but it remains under review at this stage. The Department of Labor published the relevant proposal on March 30. Under the earlier proposal, fiduciaries may obtain legal safe harbor protection when including private assets in 401(k) plan investment options if they satisfy six factor requirements, namely investment performance, fees, liquidity, valuation, performance benchmarks and complexity.
Business impact
Once finalized, the rule directly binds 401(k) plan fiduciaries: when including private equity, real estate or cryptocurrency in the investment menu, they must demonstrate, item by item, that they have assessed investment performance, fees, liquidity, valuation, performance benchmarks and complexity in order to fall within the safe harbor. For crypto assets, liquidity and valuation are the two most difficult to satisfy; custody arrangements, pricing sources and redemption mechanisms will become the core of fiduciary due diligence, rather than whether a product can be listed. The rule is currently still under OIRA review and has not yet taken effect, so plan sponsors do not yet have new statutory obligations, but they should anticipate the admission conditions for the investment menu accordingly.
Key points to watch
- Confirm whether the final rule retains the six-factor safe harbor and its specific wording
- Verify the effective date and transition period to determine the timing for adjusting the existing investment menu
- Review whether crypto asset custody and valuation sources can satisfy the liquidity and valuation requirements
06Central Bank of Nigeria issues regulatory rules for non-security virtual assets: at least 40% of stablecoin reserves must be held in cash or highly liquid assets, and existing operators must apply for a licence within 180 days
The Central Bank of Nigeria (CBN) has issued regulatory rules for the operation of non-security virtual assets, and the regulations took effect immediately. Existing operators must apply for a licence or authorisation within 180 days. The rules cover stablecoin issuers, crypto payment service providers, exchanges and custodial institutions. Stablecoin issuers must fully back their tokens with reserve assets and additionally maintain a buffer of at least 2% of the token value; at least 40% of the reserves must be held in cash or qualifying assets. The available material is an excerpt, and the requirements on the composition of the remaining portion of the reserve assets and the specific conditions for licence applications have not yet been presented in full.
Business impact
The rules directly tie a stablecoin's ability to redeem to its reserve structure: institutions issuing stablecoins in Nigeria must back their tokens with full reserves plus a 2% buffer, and at least 40% of the reserves must be held in cash or qualifying highly liquid assets; reserves that fail to meet the standard constitute a violation in the issuance of stablecoins. Crypto payment providers, exchanges and custodial institutions are all brought within the licensing scope, and those that continue to operate without obtaining a licence or authorisation within 180 days will face the risk of operating without a licence. For teams planning to enter or already operating in the local market, what can currently be established is that the licence application window has opened, but the excerpted material does not disclose the list of application materials or the review standards, and on that basis it is not yet sufficient to determine the specific conditions for approval.
Key points to note
- Check whether your own business falls within the scope of stablecoin issuance, payments, exchanges or custody
- Confirm the start date and deadline of the 180-day licence application window
- Verify whether cash and highly liquid assets in reserves reach the 40% minimum
See this issue's daily report in Global Regulatory Developments
