AI summaryAccording to incomplete statistics compiled by Mankun Law Firm, from July 8 to July 14, 2024 (UTC+8), a total of 31 key crypto-related policies and related actions were disclosed worldwide. These developments reflect diverse and dynamic strategies ranging from strict regulation to supportive measures across major countries and regions, as well as efforts to strike a balance between innovation and financial risk management. Specifically: There were four items of information regarding China’s crypto policies, including two enterprises approved by the Hong Kong Securities and Futures Commission to provide relevant services to virtual asset investors in Hong Kong; there were eleven policy developments and actions involving the crypto industry in the United States, notably including remarks by the Chairman of the U.S. Commodity Futures Trading Commission (CFTC) concerning the cryptocurrency market’s seven
According to incomplete statistics compiled by Mankun Law Firm, from July 8, 2024, to July 14, 2024 (UTC+8), a total of key crypto-asset policies and related actions were disclosed across countries and regions worldwide31characterized by major countries and regionsadopting diverse and dynamic strategies ranging from strict regulation to supportive measuresandefforts to strike a balance between innovation and financial riskSpecifically:
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There were four items of information regarding crypto-asset policies in China, among which two enterprises were approved by the Hong Kong Securities and Futures Commission to provide relevant services to virtual asset investors in Hong Kong;
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There were eleven policy developments and actions involving the crypto-asset industry in the United States. Notably, the Chair of the U.S. Securities and Exchange Commission stated that 70%–80% of the cryptocurrency market consists of non-securities, and the U.S. SEC determined that BUSD is not a security;CFTCChair stated that 70%–80% of the cryptocurrency market consists of non-securities, and the U.S. SEC determined that BUSD is not a security;
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There were eight policy-related consultations in Europe concerning the crypto-asset industry. The most notable development was that the BTC balance of the “German Wallet” address has been reduced to zero after multiple transfer transactions;
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In other countries and regions, there were six noteworthy policy updates. Among them, Argentina became the country with the highest cryptocurrency adoption rate in the Western Hemisphere, with many Argentinians turning to purchase and hold stablecoins such as Tether (USDT) to hedge against domestic inflation.
The following is a summary of policies from July 8 to 14, compiled by Mankun Law Firm:
Changzhi City Successfully Cracks Case of Money Laundering Using Virtual Assets, Arresting 11 Individuals
The Shangdang Branch of the Changzhi Public Security Bureau successfully cracked a criminal case involving a syndicate engaged in money laundering using virtual assets, arresting 11 suspects. The amount involved exceeded RMB 2 million. The syndicate members profited by purchasing virtual assets at low prices and selling them at higher prices, subsequently withdrawing funds from banks in cities such as Xi’an and Taiyuan.
Futu Securities Approved to Provide Virtual Asset Trading Services to Hong Kong Investors
According to Oriental Daily News, the Securities and Futures Commission of Hong Kong (SFC) recently approved Futu Securities to upgrade its Type 1 regulated activity license (securities trading), enabling it to provide virtual asset trading services to both professional and retail investors in Hong Kong.
Taiwan Advances Central Bank Digital Currency Research and Establishes Prototype Platform
The Central Bank of Taiwan has established a prototype platform for its central bank digital currency (CBDCCBDC), and plans to hold multiple hearings next year to promote the research and development of the project. This initiative aims to establish a unified and effective implementation framework to prevent money laundering and the financing of terrorist activities.
Pandoo Financial’s License Approved for Upgrade by Hong Kong SFC, Expanding Virtual Asset Services
Pandoo Financial has received approval from the Securities and Futures Commission of Hong Kong (SFC) to upgrade its Type 1 and Type 4 licenses, allowing it to now provide distribution and advisory services for virtual asset funds with an allocation exceeding 10%.
U.S. Department of Justice examines whether Tornado Cash developers are suspected of controlling an illegal service
At a hearing in New York, the U.S. Department of Justice explored whether Roman Storm, a developer of Tornado Cash, controlled the crypto assets service he created. Storm faces charges of money laundering and violations of the International Emergency Economic Powers Act. The defense argues that Storm merely developed privacy software, that its operations are decentralized, and that he should not be held liable for user conduct. This case raises key legal questions regarding developer liability and the nature of decentralized technology.
North Carolina Attorney General warns of surge in Bitcoin ATM scams
North Carolina Attorney General Josh Stein issued a consumer alert warning the public to be vigilant against scams involving Bitcoin ATMs, particularly in light of a large volume of complaints. The alert provides several recommendations to avoid such scams, including remaining alert to unsolicited requests for crypto assets payments, verifying the authenticity of investment advice, and avoiding get-rich-quick schemes. Victims should report scam incidents to local law enforcement agencies and consumer protection authorities.
U.S. CFTC, DOJ, and other federal agencies to jointly crack down on crypto fraud
The U.S. Commodity Futures Trading Commission (CFTC) and the National Cryptocurrency Enforcement Team of the Department of Justice (DOJ) (NCET) held the inaugural Fraud Disruption Conference to address crypto scams such as pig-butchering schemes. Participating agencies included the Federal Bureau of Investigation (FBI), the Social Security Administration, the U.S. Department of the Treasury, the Drug Enforcement Administration (DEA), the U.S. Postal Inspection Service, the U.S. Secret Service, the U.S. Attorney’s Office for the District of Columbia, the U.S. Attorney’s Office for the District of Massachusetts, and the U.S. Securities and Exchange Commission (SEC).
U.S. SEC permits certain companies to exempt themselves from controversial crypto accounting guidance
The U.S. Securities and Exchange Commission (SEC) allows certain companies to be exempt from complying with the controversial crypto assets accounting guidance (SAB 121) based on their business practices. These companies have demonstrated specific procedures and technologies that enable customers to recover their crypto assets in the event of bankruptcy, thereby eliminating the need to record customer crypto assets as company liabilities under SAB 121.
U.S. House of Representatives fails to override President Biden’s veto of resolution related to SAB 121
On Wednesday, the U.S. House of Representatives voted on whether to override President Joe Biden’s veto of the resolution related to SAB 121, but the motion failed, leaving the U.S. Securities and Exchange Commission’s crypto assets accounting policy unchanged. First issued in 2022, SAB 121 requires crypto custody providers to record crypto assets held on behalf of customers as liabilities on their balance sheets. The crypto industry has expressed concern that this requirement may deter banks from safeguarding digital assets.
U.S. CFTC Chairman urges Congress to act promptly to enact crypto regulations
At the urgent urging of the Chairman of the Commodity Futures Trading Commission (CFTC), the U.S. Senate Committee on Agriculture, Nutrition, and Forestry is accelerating the legislative process for crypto asset regulation. Although Committee Chair Debbie Stabenow stated that a legislative proposal would soon be presented to committee members, John Boozman, the senior Republican on the committee, revealed that discussions with the digital asset industry indicated insufficient support for the current proposal.
BitMEX Admits Violation of the Bank Secrecy Act and Pleads Guilty
The crypto asset trading platform BitMEX has pleaded guilty in the U.S. District Court for the Southern District of New York to violating the U.S. Bank Secrecy Act by failing to establish and implement adequate anti-money laundering procedures. The charges against the company relate to its operations in the United States from 2015 to 2020 and carry potential penalties of up to five years’ imprisonment and fines.
U.S. SEC Determines That BUSD Is Not a Security
According to Fortune magazine, the U.S. Securities and Exchange Commission (SEC) has decided to conclude its investigation into Paxos, a New York-based stablecoin issuer, determining that the U.S. dollar-backed stablecoin BUSD, issued in collaboration with Binance, does not constitute a security.
Illinois Court Confirms That BTC and ETH Are Digital Commodities Under the Commodity Exchange Act
According to Fox Business reporter Eleanor Terrett, Rostin Behnam, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated that an Illinois court has confirmed that BTC and ETH are digital commodities as defined under the Commodity Exchange Act. Behnam further stated that 70%–80% of the crypto asset market consists of non-securities assets.
U.S. Senate Recommends That the Department of Defense Test Blockchain Applications
The U.S. Senate Committee on Armed Services has directed Secretary of Defense Lloyd Austin to explore the potential applications of blockchain technology in supply chain management and national security. This directive is part of the National Defense Authorization Act for Fiscal Year 2025, aiming to enhance the security and transparency of defense supply chains. The Committee also requires a detailed report on the application of blockchain in the field of national security by April 2025.
Republican Party Pledges to Prevent Crypto Asset “Crackdowns” and Oppose Central Bank Digital Currencies
The Republican Party, associated with former President Trump, has pledged in its latest policy platform to support crypto asset innovation and explicitly stated its opposition to the creation of central bank digital currencies. However, crypto asset-related items were not included among the 20 most important policy “pledges” listed in the announcement; digital assets appeared in the economic section under innovation initiatives.
Bitcoin balance in the “German Government” wallet address has reached zero
During this week, the wallet labeled as “German Government” transferred BTC multiple times over several days to multiple centralized exchanges (CEXs), including Kraken, Coinbase, Bitstamp, and Flow, as well as to the market maker Cumberland DRW and certain unknown addresses. As of July 13, the BTC balance in this wallet address was cleared to zero.
United Kingdom conducts first disposal of confiscated Monero
The Cheshire Cyber Crime Unit in the United Kingdom confiscated Monero (XMR) worth £15,000 from a convicted drug trafficker and sold it for British pounds through the UK Food Standards Agency. This marks the first time in the United Kingdom that Monero, a privacy-focused crypto asset, has been converted into cash.
Law Commission for England and Wales considers no need for specific DAO regulations at present
The Law Commission for England and Wales stated that, due to the structural diversity of decentralized autonomous organizations (DAOs), they can currently be governed by existing laws, making specific legislation for DAOs unnecessary for the time being. The Commission noted that DAOs may fall within the regulatory scope of the Financial Services and Markets Act 2000 depending on their specific activities, and further suggested that DAOs might be subject to tax obligations, such as corporation tax, in certain circumstances, highlighting the complexity of applying legal frameworks to this new organizational form.
UK lawyer regulator warns of fake lawyer Bitcoin scam emails
The Solicitors Regulation Authority (SRA), the regulator for lawyers in the United Kingdom, issued a warning alerting the public to a new email scam in which fraudsters impersonate lawyers and demand payment in Bitcoin. These scam emails use fictitious lawyer names and email addresses not associated with law firms, claiming to possess the recipient’s personal information and threatening to release damaging videos unless Bitcoin payments are made.
Lithuania imposes €9.3 million fine on crypto company Payeer
The Financial Crime Investigation Service of Lithuania recently imposed a record fine of €9.3 million (approximately USD 10.1 million) on the crypto company Payeer. The penalty was levied due to suspected violations of international sanctions against Russian clients and anti-money laundering regulations. Additionally, Lithuania is reducing the number of crypto companies through a new licensing scheme to prevent digital assets from being used for money laundering or fraud.
Bank of Italy to issue crypto guidelines soon
Fabio Panetta, Governor of the Bank of Italy, announced that Italy will issue a series of guidelines in the coming days aimed at effectively implementing the EU’s Markets in Crypto-Assets Regulation (MiCA) and safeguarding the interests of certain crypto asset holders. Panetta pointed out that, under MiCA, only electronic money tokens (EMTs) pegged to a single official currency can fully perform the function of a means of payment and maintain public trust.
Tulip Siddiq Officially Assumes Office as UK City Minister, Responsible for Regulating Crypto Assets
According to Bloomberg, UK Prime Minister Keir Starmer has appointed Tulip Siddiq as the City Minister, responsible for overseeing the City of London and the broader financial services industry, including fintech and crypto assets. Tulip Siddiq maintains a cautious stance toward crypto assets. She emphasizes the need for robust regulation to prevent fraud and criminal activities associated with cryptocurrencies.
French General Election Results in a Hung Parliament, Making It Difficult for Any Party to Form a Majority
The results of France’s recent general election failed to secure an absolute majority in the National Assembly for any single party or coalition, resulting in a hung parliament. This political landscape may pose greater challenges to policy-making, including the formulation of cryptocurrency regulations.
CEO of Singapore Exchange Comments onBitcoin ETFsPost a comment
Loh Boon Chye, CEO of the Singapore Exchange (SGX), stated that Singapore’s current ecosystem is not yet ready to launch spot Bitcoin ETFs. However, he also noted that as the market matures and develops, the exchange, as one of the most innovative platforms globally, will remain open to future possibilities.
Thai Government to Soon Open Registration for Digital Wallets
According to Jinshi News, the Thai government will launch a registration program for digital wallets and simultaneously publish a negative list for the digital wallet scheme. Previously, the Prime Minister of Thailand stated that the digital wallet scheme aims to stimulate economic development in less developed provinces and regions.
Other Countries and Regions
Nigerian Securities and Exchange Commission Recommends Regulating Bitcoin and Ethereum as Commodities
Relevant stakeholders in Nigeria have called on the Nigerian Securities and Exchange Commission (SEC) to adopt a similar approach within its regulatory framework, recommending that Bitcoin and Ethereum be treated as commodities to provide the clarity and stability needed by the market, thereby encouraging innovation while ensuring compliance with regulatory requirements.
Paraguay Senate Passes Law Imposing Up to 10 Years’ Imprisonment for Crypto Miners Engaged in Electricity Theft
The Senate of Paraguay has passed a series of reforms imposing stringent penalties for electricity theft in cryptocurrency mining activities. The new law provides that individuals and companies using stolen electricity for cryptocurrency mining shall face imprisonment of up to 10 years. By contrast, electricity theft unrelated to cryptocurrency mining carries a maximum penalty of three years’ imprisonment or an indeterminate fine.
Russian Ministry of Finance Proposes Opening Cryptocurrency Trading to Certain Investors
In its draft response to two proposed laws, the Russian Ministry of Finance recommended allowing all participants in foreign economic activity (FEA) to use digital assets for settlement, and further recommended that cryptocurrency trading be permitted only on exchanges and platforms included in an officially registered list. This proposal aims to approve digital currency settlement for FEA participants while restricting cryptocurrency purchases on Russian exchanges to selected investors.
Cyprus Strengthens Anti-Terrorism Regulation of Cryptocurrencies
The Institute of Certified Public Accountants of Cyprus (ICPAC) issued an alert on anti–money laundering and counter-terrorist financing, emphasizing the need to monitor five methods of fund transfers, including cryptocurrencies. ICPAC encourages audit and accounting professionals to actively participate in overseeing and reporting suspicious transactions to prevent terrorist financing.
Nigerian Finance Minister Urges Newly Formed Board of the Country’s SEC to Address Complexities of Cryptocurrency Regulation
Wale Edun, Nigeria’s Minister of Finance, urged the country’s Securities and Exchange Commission (SEC) to address the complexities of cryptocurrency regulation. He emphasized that strict regulatory measures must be implemented to uphold the integrity of the capital markets, with particular attention to rapidly evolving areas such as artificial intelligence and digital currencies.
Argentina’s High Inflation Drives Rise in Cryptocurrency Adoption
According to Forbes, Argentina has become the country with the highest cryptocurrency adoption rate in the Western Hemisphere, facing inflation rates as high as 276%. To combat the depreciation of the national currency, many Argentines have turned to purchasing and holding stablecoins such as Tether (USDT). Although this provides Argentines with a new means to hedge against currency depreciation and access U.S. dollars, the unreliability of exchanges and the overall lack of regulation in the crypto market remain significant risks.
