According to incomplete statistics compiled by Mankun Law Firm, from August 12 to August 18, 2024 (UTC+8), a total of significant crypto-asset policies and related actions from countries and regions worldwide were disclosed36Since then, governments in multiple countries and regions, represented by the United States and the European Union, have been vigorously advancing the formulation and passage of relevant legislation. Among these:
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There were six items of information regarding crypto-asset policies in China. Notably, the Chief Corporate Development Officer of Hong Kong Cyberport announced that more than 250 Web3 enterprises had settled in Cyberport;
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There were nine policy developments and actions involving the crypto-asset industry in the United States. Among these, participants in the U.S. crypto-asset industry and certain officials are taking action to urge Vice President Harris to adopt clearer crypto-asset monetary policies and promote related legislation;
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In Europe, there were five noteworthy policy updates. Among these, Germany’s state-owned development bank is preparing to issue tokenized bonds, and its Federal Office for Information Security has recommended using hardware wallets to protect virtual assets.
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In other countries and regions, there were ten noteworthy policy updates. Among these, the Nigerian government disclosed four items, covering Bitcoin regulation, NFT applications, and anti-money laundering measures.
Below is a summary of policies from August 12 to August 18, compiled by Mankun Law Firm.
China
Hong Kong Legislative Council Member Tam Yue-heng Proposes Improvements to Hong Kong’s Financial Policies to Support Regional Development
Hong Kong Legislative Council Member Tam Yue-heng recently put forward several reform proposals to enhance liquidity in the Hong Kong stock market and support the development of new financial business models. Mr. Tam emphasized the need to further reducestamp duty on stock transactions, and suggested developing more renminbi-denominated asset management products to support financial needs under the Belt and Road Initiative. He also paid special attention to the financial service needs of the elderly and the young, advocating for the issuance of more silver bonds and the introduction of education savings plans.
Man defrauded of RMB 1.65 million after renting servers for "mining"; court declares contract void and orders refund of RMB 1.62 million
The Intermediate People's Court of Changsha, Hunan Province, recently heard a case involving virtual currency "mining," which has attracted widespread attention. The plaintiff, Mr. Luo, entered into a contract with the defendant for the procurement of server equipment and software systems, under which the defendant promised mining returns and assumed liability for losses caused by technical issues. After the servers and software systems were not delivered and no returns were received, Mr. Luo sued the defendant. The court ultimately ruled that the contract was void for violating public order and good morals, and ordered the defendant to refund RMB 1.62 million to Mr. Luo.
Jiaozhou Police Solve Virtual Currency Money Laundering Case, Arrest Nine Suspects
The Jiaozhou Public Security Bureau recently solved a case involving money laundering using virtual currencies, arresting nine criminal suspects with involved funds exceeding RMB 8 million. In February this year, the Madian Police Station of the bureau, through surveillance operations, arrested Xue, an online fugitive suspected of telecommunications fraud, and discovered suspicious transaction records on his mobile phone involving a male individual. These transactions involved transferring funds through corporate bank accounts registered under the guise of "study abroad" companies and purchasing virtual currency "USDT" for money laundering purposes. The case is currently under further review for prosecution. The public security authorities remind citizens not to lend their personal information, identification documents, bank cards, or corporate accounts to others, to avoid becoming involved in illegal and criminal activities.
OSL CFO Hu Zhenbang: Some Listed Companies Have Begun Allocating Crypto Assets Through Licensed Exchanges
Hu Zhenbang, CFO of OSL Group, shared his views on the current development status of licensed exchanges in Hong Kong at the "FireNow" Asia Web3.0 Institutional Summit. He mentioned that since June 1, some traditional financial listed companies and fund management firms have begun allocating crypto assets through licensed exchanges to meet compliance and various audit requirements. Furthermore, in the fields ofRWAreal-world assets (RWA) tokenization and Security Token Offerings (STO), Hong Kong has made numerous attempts.
OSL Executive Director Diao Jiajun: Hong Kong Holds Advantages in Approval Efficiency for New Digital Asset Products and Regulatory Flexibility
At the "FORESIGHT 2024" Annual Summit, Diao Jiajun, Executive Director and Head of Regulatory Affairs at OSL, stated that Hong Kong holds significant advantages in the approval efficiency for new digital asset products and the flexibility of its regulatory environment. This provides market participants with more efficient and convenient conditions for development. Meanwhile, Hong Kong's spot digital asset ETFs offer investors reliable channels for participation.
Georgina Chu, Chief Corporate Development Officer of Hong Kong Cyberport: Over 250 Web3 Companies Have Settled in Cyberport
At the "FORESIGHT 2024" Annual Summit, Georgina Chu, Chief Corporate Development Officer of Hong Kong Cyberport, delivered a keynote speech titled "Leading the New Wave of Web3.0 in Hong Kong." She mentioned that "over 250 Web3 companies from 19 countries, including three unicorns, have settled in Cyberport."
United States
U.S. Securities and Exchange Commission Accuses NovaTech of Operating a $65 Million Crypto Ponzi Scheme
The U.S. Securities and Exchange Commission (SEC) has charged NovaTech and its key principalsCynthiaand Eddy Petion with orchestrating a cryptocurrency fraud scheme involving more than 200,000 global investors, including many Haitian Americans. The SEC’s complaint details how, under the leadership of the Petions, NovaTech was marketed as a multi-level marketing (MLM) and crypto assets investment program. The SEC alleges that instead of investing the majority of funds as promised, NovaTech used them to pay existing investors and commissions to promoters, which are hallmark features of a Ponzi scheme.
U.S. Federal Trade Commission Bans Fake Reviews and Testimonials Through New Rule
The Federal Trade Commission (FTC) announced a final rule aimed at combating fake reviews and testimonials. The rule prohibits the sale or purchase of fake reviews and allows the agency to seek civil penalties against knowing violators. On August 14, the FTC stated that its commissioners voted 5-0 to approve the new federal regulation, which will take effect 60 days after publication in the Federal Register. This means the rule could take effect in October, potentially impacting Web3 project promotions and key opinion leader (KOL) marketing.
U.S. Lawmakers Urge Vice President Harris to Clarify Cryptocurrency Policy
Florida Congressman Darren Soto and his colleagues in the Congressional Blockchain Caucus have called on Vice President Kamala Harris to take significant steps to regulate the cryptocurrency industry. They advocate for repealing and reforming the SEC’s Staff Accounting Bulletin (SAB) 121, passing the FIT21 Act, and working closely with Congress to establish clear industry rules. Additionally, they encourage Vice President Harris to recognize the importance of cryptocurrencies in facilitating cross-border remittances, emphasizing their potential impact on global financial inclusion.
U.S. Government Transfers 10,000 Bitcoin Seized in Silk Road Case to Coinbase Prime
On the 14th, the U.S. government transferred 10,000 bitcoin (BTC) linked to the Silk Road case to Coinbase Prime, the institutional platform of exchange giant Coinbase. This move is likely for custody purposes rather than for sale, reflecting a strategic adjustment by the government in managing large-scale digital assets. The transfer is part of the U.S. Department of Justice’s (DOJ) collaboration with Coinbase Prime to “protect and transact” large amounts of digital assets.
NYSE Arca Withdraws Application to List Options on Commodity Trusts and Crypto ETFs
Arca, the electronic trading platform of the New York Stock Exchange (NYSE), has withdrawn a rule change application that sought to allow options trading on commodity-based trusts, including cryptocurrency exchange-traded funds (ETFs). According to filings dated August 13, the previous proposal aimed to “allow the listing and trading of options on shares of commodity-based trusts,” including options on crypto ETFs such as the Grayscale Bitcoin Trust (GBTC). The withdrawal by NYSE Arca marks a sudden decrease in its activities related to listing options on crypto ETFs.
Senate Majority Leader Schumer Committed to Passing Crypto Legislation by Year-End
U.S. Senate Majority Leader Chuck Schumer stated that he plans to pass legislation aimed at regulating crypto assets before the end of this year. Speaking at the Crypto4Harris community event that evening, Schumer said his goal is to “make it law by the end of the year” and expressed confidence that this is achievable. The New York Democrat emphasized that the legislation will provide necessary regulatory safeguards while promoting innovation. Currently, lawmakers in Washington are addressing multiple crypto asset bills aimed at establishing a framework and norms for this evolving industry.
U.S. Court Revives Lawsuit Alleging Binance.US Manipulated HEX Token Prices
A U.S. appellate court overturned a prior decision dismissing a class-action lawsuit against Binance.US, which alleged that the exchange illegally manipulated the price of the Hex (HEX) token. Plaintiff Ryan Cox accused Binance.US of artificially suppressing HEX’s ranking on CoinMarketCap, a cryptocurrency price-tracking platform owned by the exchange, thereby causing its trading price to be abnormally low. The appellate court ruled that the district court had personal jurisdiction over the case and that the allegations of price manipulation against Binance.US were plausible.
U.S. SEC Charges NovaTech and Its Executives with $650 Million Crypto Fraud
The U.S. Securities and Exchange Commission (SEC) filed charges today against Cynthia Petion, Eddy Petion, and their company, NovaTech Ltd., alleging that they illegally raised more than $650 million in crypto assets from over 200,000 investors worldwide through a multi-level marketing and crypto asset investment scheme. The scheme primarily operated by using funds from new investors to pay existing investors and commissions to promoters, with only a small portion of the funds actually used for trading. The SEC also accused several promoters, including Martin Zizi, Dapilinu Dunbar, and James Corbett, of participating in the fraud. The SEC is seeking legal remedies such as permanent injunctions, disgorgement of ill-gotten gains, and civil penalties.
U.S. Democratic Crypto Supporters to Hold Online Town Hall on August 15
According to official announcements, “Crypto4Harris,” an organization composed of Democratic crypto supporters in the United States, will hold an online town hall meeting from 8:00 to 9:30 on August 15. Several guests, including entrepreneur Mark Cuban and SkyBridge Capital founder Anthony Scaramucci, are scheduled to speak and discuss ways to support the Harris campaign and fundraising efforts.
Europe
Germany’s Federal Office for Information Security Recommends Hardware Wallets to Prevent Crypto Theft
In response to the rise in crypto asset theft incidents, Germany’s Federal Office for Information Security (BSI) has recommended that users employ hardware wallets to protect their digital assets. In a LinkedIn post, the BSI noted that hardware wallets store users’ private keys offline and represent the most secure method currently available for storing digital assets. The agency warned that although exchange custody offers greater convenience, such platforms are more susceptible to hacking attacks.
United Kingdom Sees Up to $5.1 Billion in Illegal Crypto Transactions Annually
According to the annual report of the UK National Crime Agency, illegal crypto asset transactions in the UK amount to as much as USD 5.1 billion per year. As crypto assets become more widespread, related criminal activities are also increasing. The report, based on law enforcement, government, and private intelligence data, notes that crypto assets are not only used for money laundering but also for purchasing goods and services on the dark web or as a means of payment in extortion schemes.
Switzerland Launches Public Consultation on Tax Information Sharing for Crypto Assets
Switzerland is considering incorporating crypto asset tax data into its international information exchange agreements. On Wednesday, the Swiss Federal Council initiated a consultation process on a new bill aimed at facilitating the sharing of crypto asset information with 111 jurisdictions that have already joined the Automatic Exchange of Information mechanism, in accordance with the OECD’s Crypto-Asset Reporting Framework. The consultation period for this legislative proposal will end on November 15, 2024.
German State-Owned Development Bank Partners with Boerse Stuttgart Digital to Prepare for Issuance of Tokenized Bonds
KfW, Germany’s largest development bank, has partnered with Boerse Stuttgart Digital (BSD) as an infrastructure provider to prepare for its upcoming blockchain-based digital bond issuance. This issuance will form part of the European Central Bank’s pilot project on blockchain transaction settlement. KfW plans to issue these bonds under the German Electronic Securities Act (eWpG) in the coming weeks, with BSD overseeing crypto wallets and safeguarding private keys during the issuance and redemption processes.
Russia Requires Bloggers and Telegram Channel Owners with Over 10,000 Followers to Register with Regulatory Authorities
One of the laws signed by Russian President Vladimir Putin on August 8 stipulates that bloggers and Telegram channel owners with at least 10,000 subscribers must register with the Federal Service for Supervision of Communications, Information Technology and Mass Media (Roskomnadzor). Under this law, bloggers who fail to report to Roskomnadzor will be prohibited from placing advertisements, collecting donations, or having their content reposted by other channels. Web3 key opinion leaders (KOLs) in Russia should register promptly to avoid compliance issues.
Japan and South Korea
South Korea’s National Pension Service Expands Indirect Bitcoin Investments
According to Yonhap News Agency, the National Pension Service (NPS) of South Korea disclosed in its Form 13F filing with the U.S. Securities and Exchange Commission (SEC) that it newly purchased 245,000 shares of MicroStrategy in the second quarter of 2024, with an investment value of USD 33,748,260 (approximately KRW 460 million), accounting for 0.04% of its direct U.S. equity portfolio. This move demonstrates the National Pension Service’s strong confidence in the Bitcoin market.
Southeast Asia
Indian Police Arrest Man Involved in Crypto Asset Extortion Case
According to law enforcement authorities, Shailesh Babulal Bhatt from Gujarat was arrested and prosecuted under anti-money laundering laws for alleged kidnapping and extortion, including a crypto asset-related crime involving more than 12 billion Indian rupees (approximately USD 144 million). The investigation stems from the case filed by the Surat Police CID against Satish Kumbhani, a promoter of Bitconnect Coin, who is suspected of defrauding investors and fleeing after shutting down the Bitconnect platform in January 2018.
WorldcoinCollaborating with MIMOS to Verify Human Identity and Advance Malaysia’s Digital Infrastructure
MIMOS Berhad, a research institution under the Malaysian government, has signed a memorandum of understanding with the Worldcoin Foundation to promote digital identity verification in Malaysia using Worldcoin’s technology. This collaboration aims to integrate advanced iris imaging technology to enhance the security and efficiency of digital credentials, strengthen personal information protection, while ensuring the technology remains open and provided free of charge. This marks a significant step for Malaysia in the global field of digital identity verification.
Binance Successfully Registers as a Reporting Entity in India
Binance announced that it has successfully registered as a reporting entity with the Financial Intelligence Unit-India (FIU-IND), marking Binance’s 19th global regulatory milestone. Registration with the FIU-IND demonstrates Binance’s compliance with anti-money laundering (AML) standards in India and other jurisdictions in which it operates.
Thai Prime Minister Removed from Office; Crypto Asset Policy Expected to Remain Stable
Despite the recent removal of Thai Prime Minister Srettha Thavisin by the court, experts predict that this political change is unlikely to affect domestic crypto asset policies. While certain details of policy implementation may be impacted, Thailand’s regulatory approach to digital assets is expected to continue. The Securities and Exchange Commission (SEC) of Thailand has maintained a consistent supportive stance toward the crypto industry over the past six years, unaffected by changes in the ruling party.
DBS, Singapore’s Largest Bank, Collaborates with Ant International to Launch Blockchain-Based “DBS Treasury Tokens” Pilot Project
DBS, Singapore’s largest bank by assets, has collaborated with Ant International to launch the “DBS Treasury Tokens” pilot project, aimed at improving treasury and liquidity management. Operating on DBS’s permissioned blockchain, the pilot supports multi-currency treasury and liquidity management for various entities of Ant International across different markets. DBS stated that this initiative will help Ant International reduce the settlement time for intra-group transactions from potentially several days to mere seconds, thereby optimizing intra-group liquidity and working capital, and providing corporate treasurers with greater visibility, predictability, and control over cash positions.
Other Countries and Regions
Nigerian Tax Regulatory Agency Proposes Comprehensive Crypto Asset Legislation
The Federal Inland Revenue Service (FIRS), Nigeria’s tax authority, plans to seek support from the National Assembly to enact comprehensive new legislation regulating crypto assets in the country. FIRS Executive Chairman Zacch Adedeji announced this news at a recent stakeholders’ meeting with the House Committee on Finance. The proposed legislation, intended to be introduced in September, is part of broader efforts to reform Nigeria’s tax system.
Crypto Companies Such as Coinbase and KuCoin Submit Operating License Applications in Turkey
As the Capital Markets Board of Turkey (CMB) recently updated its crypto asset regulatory framework, prominent companies such as Coinbase and KuCoin have submitted applications for licenses to operate in Turkey. According to reports dated August 9, the number of crypto asset companies applying for licenses has increased from 47 to 76, reflecting the robust growth of Turkey’s crypto market and its strategic importance in the global market. Although Turkey has not yet enacted comprehensive crypto asset legislation, existing regulations already govern market activities, and relevant legislative drafts remain under deliberation in parliament.
Nigeria Freezes $37 Million in Crypto Assets Linked to Protest Organizers
The Federal High Court of Nigeria, upon the application of the Economic and Financial Crimes Commission (EFCC), froze crypto assets valued at over USD 37 million, which are believed to belong to certain organizers of the #EndBadGovernance protests. According to the EFCC, these assets are suspected to be derived from money laundering and terrorism financing activities. The Nigerian government’s action aims to combat illegal conduct associated with the protests and to safeguard national economic security and social stability.
Dubai Court Affirms Legality of Crypto Asset Salary Payments
A recent ruling by the Dubai Court of First Instance recognized the legality of paying salaries in crypto assets under employment contracts. This ruling, bearing case number 1739/2024, marks a progressive stance by the UAE judiciary toward digital currencies, standing in sharp contrast to its earlier position in 2023, when it refused to accept crypto asset payments due to valuation concerns. This acceptance of crypto assets indicates that Dubai is integrating digital currencies into its legal framework, thereby fostering innovation in the region’s business environment.
Bank of Ghana Releases Draft Rules for Crypto Exchanges
The Bank of Ghana (BoG) recently released draft rules for crypto asset exchanges, proposing an eight-pillar framework that primarily strengthens registration and reporting requirements for crypto asset exchanges or virtual asset service providers (VASPs). Under these proposals, exchanges are required to monitor and report suspicious transactions and comply with the Financial Action Task Force (FATF) Travel Rule. The Bank of Ghana also plans to collaborate with the Securities and Exchange Commission (SEC) to develop a complementary regulatory framework covering various applications and use cases of digital assets.
Iran Launches Reward Program for Reporting Illegal Crypto Mining
In response to severe heatwaves and power shortages, the Iranian government has adopted new measures to incentivize the public to report illegal crypto mining activities. According to Mostafa Rajabi Mashhadi, CEO of Tavanir, Iran’s national electricity company, the government will reward reporters with 1 million tomans (approximately USD 24) for each unauthorized crypto mining device reported.
Binance Reaches Agreement with Brazilian Securities Regulator to Resolve Dispute Arising from 2020 Derivatives Ban
Binance announced a settlement agreement with the Brazilian Securities and Exchange Commission (CVM), agreeing to pay a fine of BRL 9.6 million (approximately USD 1.75 million). Previously, in 2020, the CVM prohibited the crypto exchange Binance from offering derivative products in Brazil. This settlement signifies that Binance has gained CVM recognition after responding to regulatory requirements and making necessary adjustments; however, Binance continues not to offer derivative product services in Brazil.
Lagos State Government of Nigeria Plans to Convert Real Estate into NFTs
The Lagos State Government of Nigeria plans to tokenize real estate on the blockchain, converting it into easily transferable non-fungible tokens (NFTs). This initiative aims to increase the government’s internally generated revenue and is expected to be completed within 16 months. The Ministry of Science and Technology will collaborate with other agencies and partners to tokenize Lagos’s real estate under a budget of 500 million naira.
Venezuelan Government Blocks Binance and Social Media Platform X Amid Presidential Election Dispute
Amid unrest triggered by disputed presidential election results, the Venezuelan government has blocked multiple online services, including the crypto asset exchange Binance and the social media platform X. The local anti-censorship organization VE sin Filtro reported detecting DNS blocking targeting Binance, which affected the normal operation of its website and mobile application. Furthermore, Venezuelan President Nicolás Maduro announced in a televised address that he had ordered the telecommunications regulatory agency Conatel to block access to the X platform for 10 days. This measure was taken following a public dispute between Maduro and Elon Musk, the owner of X. Meanwhile, the encrypted messaging application Signal was also blocked on the same day.
Securities and Exchange Commission of Nigeria Indicates Consideration of a Bitcoin Regulatory Framework
The Securities and Exchange Commission (SEC) of Nigeria has expressed a cautiously open attitude toward developing a regulatory framework for bitcoin, which may signal a shift in the country’s stance on digital assets. The SEC’s primary concerns are investor protection and maintaining market integrity, and any regulatory developments will align with these objectives. The Securities and Exchange Commission of Nigeria stated that its current focus is on raising public awareness regarding crypto asset trading and digital asset transactions.
This article is an original work of Mankun Law Firm. It reflects only the personal views of the author and does not constitute legal advice or a legal opinion on any specific matter.
Recommended Reading
Summary of Global Crypto Industry Regulatory Policies (July 1–7, 2024)
Summary of Global Crypto Industry Regulatory Policies (June 24–30, 2024)
Summary of Global Crypto Industry Regulatory Policies (June 17–23, 2024)
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