Category: Regulations

“The UK’s Financial Conduct Authority could extend the deadline for crypto companies to comply with its marketing rules until January 8, 2024. This move underlines the need for crypto firms to provide transparent and honest marketing. Firms violating regulations could face strict penalties, including suspensions or removal of social media accounts.”

The UK’s Financial Conduct Authority (FCA) has extended the deadline for cryptoasset firms to make changes to their marketing practices. This includes a mandatory 24-hour cooling-off period for new clients and greater transparency. Firms infringing on new directives could face unlimited fines and/or imprisonment. The UK, despite regulatory tightening, remains a growing hub for crypto.

The Financial Accounting Standards Board (FASB) plans to adopt fair-value accounting for cryptocurrencies, allowing businesses to immediately reflect gains and losses in their income statements. This could encourage more businesses to accept digital currencies as assets. However, concerns about their volatility continue to pose hesitations.

Sen. Bill Hagerty critiques SEC Chair Gary Gensler’s stance towards crypto, stating it stifles innovation and drives potential investors and companies overseas. He advocates for basic stablecoin regulations instead of comprehensive measures to improve the environment for U.S. crypto operations.

“The UK’s Financial Conduct Authority (FCA) is set to enforce restrictive measures on crypto promotions from October, potentially extending to January 2024 for technical compliance adjustments. This could impact crypto firms’ ability to advertise with clarity and fairness, redefining the crypto advertising ecosystem. However, these changes raise concerns about stifling innovation within the crypto industry.”

“Ryan Dalame, ex co-CEO of FTX Digital Market, may plead guilty in a campaign finance violation case involving $24 million from FTX users. This development may impact the trial of Sam Bankman-Fried, FTX’s former CEO, and has generated tension in the cryptocurrency world, emphasizing the need for robust regulatory frameworks for blockchain’s future.”

Crypto Facilities, associated with the crypto exchange Kraken, is planning to expand its diversity of client asset custody services but it requires expansion of its multilateral trading license. CEO Mark Jennings projects it may take six to twelve months for such implementation.

China continues its crackdown on crypto activities on Weibo, targeting more than 80 influential crypto personalities. Meanwhile, the IMF and FSB released policy recommendations to manage cryptocurrency-associated financial risks. In other developments, the DFINITY Foundation partners with Lugano’s municipality and Unstoppable Domains added .eth domain support to its messaging service.

“The Open Network (TON) blockchain has pivoted into a Swiss-based non-profit, focusing on fostering the TON ecosystem and broadening its adoption. The TON Foundation plans to stimulate TON-centric scholarly and creative ventures, while making strides towards transparency and community-driven governance in a quest to become the primary platform for Web3 dapps.”

“The Ripple CTO expressed optimism about the U.S. regulatory landscape, citing the court ruling that dismissed the classification of Ripple’s XRP as a security. This decision denotes a potential shift away from the rigorous scrutiny that the cryptocurrency industry faced. Despite previous reluctance, judges are showing skepticism towards SEC cases, which may benefit the industry via prompted legislative changes. These legal triumphs mark potential shifts in the regulatory arena, offering hope to industry participants.”

“The FTX case suggests a turning point for blockchain transparency and ignites concerns about cryptocurrency enterprises’ organization. It could inspire stricter controls within such companies, but it might also deter potential innovators due to intense regulatory pressures.”

Mairead McGuinness, European Commissioner for Financial Stability emphasizes cautious approach to digital euro implementation. As cash loses popularity and commerce digitalizes, a future with digital central bank public money is anticipated. The transition could massively impact cross-border payments and global financial sectors, hence the need for careful scrutiny.

“Taiwan drafts guidelines to regulate unregistered foreign virtual asset service providers (VASPs). The Financial Supervisory Commission (FSC) produced a draft of ten principles, aiming to protect the market from abusive practices while promoting transparency and differentiating custody of assets.”

The upcoming US presidential race sees prominent “crypto candidate” Ron DeSantis in competition with other pro-crypto candidates. Amid this, the potential influence of Donald Trump’s crypto assets for 2024 raises intriguing questions for the future of cryptocurrency in the US.

Co-founder of Ethereum-based “crypto mixer” Tornado Cash, Roman Storm faces severe charges including money laundering and sanctions violations. The charges are closely tied to Tornado Cash’s operations and the allegedly connected North Korean hacker group, Lazarus Group – further leading to international sanction violations complications.

The International Organization of Securities Commissions (IOSCO) urges regulators to understand the real power holders in DeFi despite the system’s decentralized façade. IOSCO suggests these ‘responsible persons’ should comply with investor protection and market integrity standard. Current regulations may prove ineffective due to DeFi’s unique operation models, hence requiring new regulatory approaches.

Google has revised its advertising policy to permit promotion of blockchain-powered non-fungible token (NFT) games, affecting NFT games that abstain from promoting gambling content. However, it maintains its prohibition against game advertisements where players risk NFTs for earning additional digital assets.

The Digital Assets Summit by SIBAN discussed Nigeria’s regulatory stance on blockchain technology. Stakeholders addressed concerns over the Central Bank’s reluctance to adjust crypto policies. National IT Development Agency’s new Blockchain Policy shows government’s progressive stance, focusing on Web3 Education to improve blockchain’s penetration despite language barriers and regulatory uncertainties.

“The IMF and FSB published a joint policy paper regarding the future of crypto regulation, focusing on stablecoins and decentralized finance (DeFi). While it offers guidance, it establishes no new policies, emphasizing the need for an effective balance between paper recommendations and practical application.”

Just a month after launching its U.S. dollar stablecoin, the Pacific nation of Palau has unexpectedly halted the project. The move has sparked curiosity as to why the project, which promised to reduce transaction costs and increase transfer speed for Palau citizens, was abruptly discontinued.

The EU financial services chief, Mairead McGuinness, emphasizes a cautious approach to the digitization of the euro, advocating strategic decision-making post the 2024 EU elections. Amid declining cash usage and rising e-commerce, the need for a digital currency alternative is expressed. Nevertheless, the transition could necessitate compromises some might resist, thereby requiring careful planning to not disrupt our financial foundations.

“The article examines the progress of blockchain regulation from two contrasting perspectives: Nigeria, known for its cryptocurrency-awareness, and the US, with its comprehensive regulatory frameworks. The piece discusses the regulatory challenges in Nigeria and the US’s approach in achieving a balance between enforcement and tech evolution.”

The G20-supported report emphasizes enhancing monetary policies, securing against fluctuating capital flow and clear crypto taxation to counter macroeconomic stress. It indicates broad-spectrum crypto prohibitions might not effectively mitigate potential vulnerabilities. The report also discusses potential risks inherent in stablecoins. Well-designed regulatory measures are advocated as key defenses against crypto disruptions.

The US Treasury and IRS are planning new regulations on digital asset brokers to achieve higher taxpayer compliance. Starting in 2025, they’ll require information about profits, losses, and gross proceeds from cryptocurrency transactions. However, this regulatory step could inadvertently limit the innovation offered by blockchain technology.

“Celsius Network, a bankrupted crypto lending company, is filing an “adversary complaint” against EquitiesFirst to reclaim its assets. Amid fraud allegations, ex-CEO Alex Mashinsky’s assets froze. Reportedly, EquitiesFirst owes Celsius $439m, part of which is repaid monthly in cash and BTC.”

“The Financial Accounting Standards Board (FASB) in the U.S. greenlit new standards requiring firms to apply a fair-value approach to certain cryptocurrencies. These standards promise more transparency for investors and could potentially facilitate broader corporate cryptocurrency adoption despite potential earnings volatility for businesses with substantial crypto assets.”

Former OpenSea manager, Nathaniel Chastain, though appealing his insider trading charges, opted to serve his three-month prison sentence. Using confidential info for personal gain, Chastain’s misconduct highlights contentious boundaries in crypto trading regulation, reflecting on the volatile nature of blockchain technology adoption.

“The crypto world brings to light the importance of regulation. Nathaniel Chastain’s conviction for wire fraud and money laundering at OpenSea exposes the need for internal checks in crypto platforms, while Australia’s debate over a Digital Assets Regulation bill underscores the importance of legislative solutions for this nascent industry.”

The rejection of the Digital Assets (Market Regulation) Bill in Australia could potentially render the market vulnerable, leading to decreased consumer protection. Despite criticism, the event has triggered industry feedback and could shape future, effective crypto regulations, balancing consumer protection and innovation.

“The United States Financial Accounting Standards Board (FASB) is implementing regulations in 2025 that let firms report their digital asset holdings quarterly, eliminating financial misperception caused by impairment losses. This provides optimism for tech firms and digital asset companies, despite existing ambiguity surrounding institutions like the SEC.”

Chris Larsen, Ripple Labs’ Chair, criticized the current Biden administration’s approach to cryptocurrency policy, suggesting its ambiguity has caused confusion within the sector. Larsen also argued that current policies push the industry offshore, naming Dubai, Singapore, and London as emerging global blockchain capitals. Meanwhile, the race for the first US spot Ethereum ETF is heating up.

Genesis Global Capital (GGC) filed legal actions against Digital Currency Group (DCG) and its international arm, DCGI, to retrieve unpaid loans of around $620 million, consisting of approximately 4,550 Bitcoin. Amidst a looming debt of $3.5 billion, GGC demands full repayment plus interest and late fees. After various scuffles, both parties have agreed to pause the legal actions, further complicating the scenario.