AI summaryTrack policy developments and grasp crypto trends
Track policy developments and grasp crypto trends
According to incomplete statistics compiled by Mankun Law Firm, from June 10 to June 16, 2024 (UTC+8), a total of29 instancesof crypto-related policies and significant actions were disclosed by countries and regions worldwide, primarily concerning the regulation of crypto assets and standardization of the crypto industry. Overall, the trend leans towardscompliance and inclusivity. Specifically:
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There were 6 pieces of information regarding crypto policies in China, mainly originating from Hong Kong, Macao, and Taiwan. These jurisdictions are gradually accepting the crypto industry and virtual assets by opening up certain policies and establishing systematic regulations;
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There were 9 policy actions and initiatives targeting the crypto industry in the United States. Notably, during the U.S. presidential election period, both the Trump and Biden campaigns have successively signaled pro-crypto attitudes and engaged with crypto communities. However, whether this will influence the regulatory stance of relevant U.S. agencies such as the SEC remains to be seen;
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Japan and South Korea, as two Asian countries with long-standing pro-crypto stances, released a total of 4 policy signals during the week. In South Korea, various parties are currently calling for the opening of ETF policies. Japan continues to maintain its regulatory stance, issuing public warnings to unregistered crypto institutions;
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There were 5 pieces of policy information regarding the crypto industry in Europe. Of particular note is the announcement of the EU election results, where several pro-crypto parties secured a majority of seats, which may impact the future direction of European crypto policies.
Below is a summary of the major crypto policies from June 10 to 16, compiled by Mankun Law Firm:
A gang in Shaoxing, Zhejiang Province, sentenced to imprisonment for cashing out over RMB 200,000 using digital yuan
The People's Procuratorate of Yuecheng District, Shaoxing City, handled a case involving the use of digital yuan accounts to cash out and conceal criminal proceeds. The court ultimately sentenced Yuan, Zhang, and Kou to fixed-term imprisonment ranging from one year and four months to seven months for the crime of concealing and disguising criminal proceeds, along with fines.
Taiwan establishes a Cryptocurrency Industry Association, with 24 cryptocurrency companies joining
On June 13, the authorities in Taiwan, China, announced the establishment of a Cryptocurrency Industry Association, with 24 cryptocurrency companies having joined. According to the statement, the association is expected to formulate self-regulatory guidelines based on guidance principles, aiming to properly implement classified and graded management for Virtual Asset Service Providers (VASPs).
Taiwan plans to gradually incorporate virtual assets and VASPs into regulation in four stages
Peng Jinlong, Chairman of Taiwan's Financial Supervisory Commission, stated on June 12 that virtual assets and Virtual Asset Service Providers (VASPs) would be gradually incorporated into regulation in four stages. Subsequent steps include formulating self-regulatory norms and adding penalties to strengthen self-discipline. A draft of the special law on virtual asset management is expected to be proposed by the end of December this year, followed by regulatory previews and public hearings. The draft special law will be submitted to the Executive Yuan before June next year.
Binance collaborates with the Macao Judicial Police to conduct its first on-site law enforcement training
Binance was invited to collaborate with the Macao Judicial Police to hold its first face-to-face law enforcement training course in Macao. More than 40 representatives from the Criminal Investigation Department and the Economic Crime Investigation Department related to gaming of the Macao Judicial Police participated.
Macau Secretary for Economy and Finance reveals government is exploring the possibility of opening certain virtual asset activities
On June 13, Li Weinong, Secretary for Economy and Finance of Macao, stated in response at the Legislative Assembly that the Macao government is exploring the possibility of opening certain virtual asset activities under controlled risks. The government's inter-departmental working group on anti-money laundering and counter-terrorist financing will continue to monitor international developments in virtual assets and consider formulating or revising relevant laws and regulatory guidelines.
Hong Kong SFC holds briefing session for virtual asset trading platform applicants
On June 12, 2024, the Hong Kong Securities and Futures Commission (SFC) held a briefing session for applicants of virtual asset trading platforms, announcing that 2 licenses were formally granted and 11 applications were treated as licensed. Dr. Ip Chi Hang, Executive Director of the Intermediaries Division of the SFC, and Ms. Huang Lexin, Director of Licensing and Head of the FinTech Group, outlined the competencies required of these applicants, explained the license application process, and introduced the on-site inspection procedures.
New York regulators recover $50 million for victims of the Gemini Earn program
New York State recovered digital assets worth $50 million from the cryptocurrency exchange Gemini Trust to compensate investors deceived by its Gemini Earn program, while simultaneously prohibiting the platform from offering cryptocurrency lending services.
Two men charged with operating the dark web market Empire Market; $75 million in cryptocurrency seized
Federal prosecutors in Illinois charged two men with owning and operating the dark web market Empire Market. The new charges include conspiracy to distribute narcotics, computer fraud, access device fraud, forgery, and money laundering, carrying a maximum sentence of life imprisonment. Law enforcement seized cryptocurrency worth $75 million, along with an unspecified amount of cash and precious metals, during the investigation.
U.S. judge approves $4.47 billion settlement between Terraform and the SEC
Judge Jed Rakoff of the U.S. District Court for the Southern District of New York approved the settlement agreement between Terraform Labs, Do Kwon, and the U.S. Securities and Exchange Commission (SEC). Terraform will disgorge $3.58 billion in illegal profits, pay a $420 million civil penalty, and nearly $467 million in pre-judgment interest. Its co-founder, Do Kwon, will be barred from serving as an officer or director of any public company.
Federal Reserve issues cease-and-desist order against Evolve Bank
Evolve Bank and Trust entered into a cease-and-desist order agreement with the Federal Reserve. The Fed found that the bank engaged in unsafe and unsound practices in certain fintech partnerships and lacked sufficient anti-money laundering controls. The order requires Evolve to submit a more detailed compliance plan and updated due diligence procedures to ensure adequate customer information is maintained.
SEC Commissioner acknowledges benefits of security tokenization
U.S. Securities and Exchange Commission Commissioner Mark Uyeda acknowledged that asset tokenization, including the tokenization of securities, offers potential benefits. For instance, representing asset rights with digital tokens on a blockchain can provide "security, transparency, and immutability." Tokenization eliminates the need for intermediaries, thereby simplifying transactions and reducing transaction costs.
U.S. SEC demands Ripple pay $102.6 million in settlement
Source @RippleXrpie posted on Twitter that the U.S. SEC has responded to Ripple's letter regarding the Terraform Labs judgment and demanded that Ripple pay a settlement of $102.6 million.
U.S. SEC maintains uncertain stance on ETH status, while CFTC confirms ETH as a "commodity"
On June 13, U.S. time, during a U.S. budget hearing, when SEC Chairman Gary Gensler was directly asked whether ETH is a commodity, Gensler maintained an uncertain stance on the asset. In contrast, when asked the same question, CFTC Chairman Rostin Behnam stated that "ETH is a commodity."
SEC Chairman expects Ethereum ETF S-1 applications to be approved sometime in the summer
According to Fox News reporter Eleanor Terrett, SEC Chairman Gensler expressed to Senator Bill Hagerty that the S-1 applications for Ethereum ETFs would be approved sometime during the summer.
Biden nominates CFTC commissioners for senior positions at FDIC and Treasury Department
On June 13, U.S. time, President Biden announced the nomination of CFTC Commissioner Christy Goldsmith Romero to lead the Federal Deposit Insurance Corporation (FDIC) and nominated CFTC Commissioner Kristin Johnson as Assistant Secretary for Financial Institutions at the Treasury Department. Previously, both commissioners had expressed concerns about the crypto market and are currently urging the CFTC to issue rules or guidelines to protect consumers and address conflicts of interest in the cryptocurrency sector.
South Korea plans to segment VASP businesses to enhance user protection
South Korean financial regulators are taking measures to redefine the operations of Virtual Asset Service Providers (VASPs), suggesting that VASP businesses be segmented into specific functions such as trading, listing, depositary, custody and management, as well as consulting and custodial services. This aims to limit the scope of activities for these service providers.
South Korea issues guidelines defining whether NFTs constitute virtual assets
Guidelines regarding whether NFTs constitute virtual assets have been issued in South Korea. Companies issuing NFTs must report to the official competent authority as virtual asset business operators. NFTs that are issued on a large scale, are divisible, or serve as a means of payment are considered virtual assets. For NFTs with unclear boundaries, the application of law depends on the substance of the NFT, determined in the order of "securities → virtual assets." First, determine if the NFT is a security, then assess its nature to determine if it constitutes a virtual asset.
U.S. approval of Ethereum ETF 19b-4 applications puts pressure on South Korean regulators
The recent decision by the U.S. Securities and Exchange Commission (SEC) to approve Ethereum ETF 19b-4 applications is pressuring Seoul's financial regulators in South Korea to reconsider their stance on digital assets and open up crypto asset ETFs.
Japan's Financial Services Agency warns crypto exchange LBank Exchange for providing unregistered crypto trading services
On June 14, Japan's Financial Services Agency issued a warning to the overseas cryptocurrency exchange "LBank Exchange," stating that it provided cryptocurrency trading services without registration and that its "location and representative are unknown."
Turkey proposes new 0.03% transaction tax on cryptocurrencies
Turkey is preparing to introduce new taxes, including a 0.03% transaction tax on cryptocurrency trades. This move aims to address the national budget deficit caused by last year's earthquake and proposes changes to the regulation of financial transactions.
European Banking Authority releases final draft of technical standards on prudential matters for firms under MiCA
On June 13, the European Banking Authority (EBA) released the final draft of technical standards on prudential matters that firms must comply with under the Markets in Crypto-Assets (MiCA) legislation. The standards establish criteria for stress testing plans and detail liquidity requirements for reserve assets, as well as recovery plans that issuers need to develop.
2024 EU Elections: Several pro-cryptocurrency parties secure seats
From June 6 to 9, over 185 million people in the 27 EU member states voted for candidates in the new European Parliament (the EU's legislative body) for a five-year term. Pro-crypto parties, including the European People's Party (EPP), the Progressive Alliance of Socialists and Democrats (S&D), the centrist liberal political group "Renew Europe," and the European Conservatives and Reformists Group (ECR), secured a majority of seats in the new term.
UK FCA issues urgent warning against crypto investment firm Digital Assets Nest
The UK Financial Conduct Authority (FCA) issued a strong recommendation for investors to avoid contacting Digital Assets Nest due to the risks posed by the company promoting financial services without proper authorization, warning of potential fraud traps.
Crypto.com obtains VASP registration from the Central Bank of Ireland
Crypto exchange Crypto.com announced that it has obtained Virtual Asset Service Provider (VASP) registration from the Central Bank of Ireland, enabling it to further provide services in Ireland, including crypto-to-fiat exchanges and fiat wallets.
Thailand SEC revokes Zipmex's crypto license for non-compliance with orders
In an announcement on June 11, the Securities and Exchange Commission (SEC) of Thailand stated that, effective May 28, Zipmex is no longer authorized to operate as a digital asset exchange and cryptocurrency broker in Thailand due to its failure to "rectify its financial status and operational deficiencies."
Other Countries and Regions
Australia's first Bitcoin ETF to list on the ASX
VanEck disclosed on Saturday that the Australian Securities Exchange (ASX) has approved the VanEck Bitcoin ETF, which will list this Thursday. Additionally, two other companies are awaiting approval to list Bitcoin ETFs on the Australian main board.
Australian Treasury plans to include stablecoin rules in draft crypto bill
The Australian Treasury plans to include stablecoin rules in the draft crypto bill. A representative of the Australian Securities and Investments Commission stated that they have held meetings with regulatory bodies such as the country's SEC regarding the legal stance on crypto technology.
Nigeria withdraws tax charges against Binance executives; Binance remains the sole defendant in the case
The Federal Inland Revenue Service (FIRS) of Nigeria agreed to amend the charges, withdrawing the tax allegations against Binance executives Tigran Gambaryan and Nadeem Anjarwalla. The money laundering trial will proceed as scheduled, with the next hearing set for June 19.
Zimbabwe establishes committee to solicit opinions on regulating crypto operations
The Zimbabwean government is inviting all cryptocurrency service providers serving Zimbabwean customers, whether operating domestically or abroad, to provide suggestions and opinions to formulate regulatory policies for the sector. To this end, the government has established a committee responsible for consulting with operators in the virtual asset ecosystem and hopes to receive feedback by June 26.
Special Statement:
This article is an original work by Mankun Law Firm and represents only the personal views of the author. It does not constitute legal consultation or legal advice on specific matters.
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