ECOVIS ProventusLaw brings you a curated selection of global crypto news and updates from the digital currency markets and provides viewers a look at what’s ahead high-profile insights from the ever-changing crypto industry.
ASIA / PACIFIC
Taiwan Updates Money Laundering Law to Cover Digital Assets
Taiwan has amended its Money Laundering Control Act to encompass digital assets. The revisions require virtual asset service providers to register with authorities and enhance oversight and penalties for non-compliance. The updated law aims to align with international standards, closing regulatory gaps and bolstering the island’s financial system against money laundering threats by ensuring stricter controls over digital assets and cross-border transactions. Read more
Hong Kong Expands Cross-Boundary e-CNY Pilot
The HKMA and PBoC are expanding the e-CNY pilot in Hong Kong, allowing residents to set up and top-up e-CNY wallets via the Faster Payment System. This marks the first linkage of a faster payment system with a central bank digital currency, enhancing cross-border payments. The initiative facilitates merchant payments and aims to improve e-CNY wallet functionalities and acceptance, boosting efficiency and user experience in cross-boundary retail payments. Read more
Hong Kong to Inspect Crypto Platforms Amid Compliance Deadline
As a critical compliance deadline approaches, Hong Kong will inspect cryptocurrency platform offices to ensure adherence to new regulatory standards. The inspections enhance market transparency and protect investors by ensuring platforms meet legal requirements. This move aligns with Hong Kong’s broader strategy to establish itself as a leading hub for digital assets while maintaining robust regulatory oversight. Read more
PCPD Issues New Data Privacy Guidelines for Online Platforms
The Office of the Privacy Commissioner for Personal Data (PCPD) has released new guidelines to enhance data privacy for online platforms. These guidelines focus on user consent, data security, and transparency, aiming to protect personal information in the digital age. They encourage platforms to implement robust data protection measures and educate users about their privacy rights. The PCPD emphasises the importance of compliance with these standards to foster trust in online services. Read more
China Targets Crypto Millionaires in Social Media Crackdown
China’s internet regulator has banned displays of wealth on social media, targeting crypto millionaires to enforce communist cultural norms. The Cyberspace Administration deleted several high-profile accounts, including celebrities and influencers, to curb materialistic influence on teenagers. Platforms like Douyin and Xiaohongshu removed thousands of wealth-boasting posts. This effort highlights China’s strict control over online content and aims to prevent luxury lifestyles from spreading among its youth. Read more
Korean Universities Unable to Convert Crypto Donations
South Korean universities cannot convert donated cryptocurrencies to cash as financial authorities prohibit them from opening corporate accounts for such transactions. Under regulatory guidance, banks do not issue virtual asset exchange accounts to institutions, fearing verification issues and money laundering risks. Despite requests, authorities maintain their stance, allowing only certain government agencies to hold corporate accounts for public interest purposes, leaving universities with unconvertible crypto donations. Read more
AFRICA
IMF Endorses Crypto to Address Nigeria’s Forex Issues
The IMF supports using regulated cryptocurrencies to address Nigeria’s foreign exchange challenges despite a local crackdown on crypto activities. The IMF suggests that proper licensing and regulation of international crypto exchanges could enhance transaction security and efficiency, boost foreign investment, and improve remittance processes. This recommendation comes amid Nigeria’s stringent measures against crypto trading due to concerns over market volatility and illegal financial activities. Read more
MIDDLE EAST
Israel Launches Digital Shekel Challenge
Israel is initiating a “Digital Shekel Challenge” to explore innovative payment use cases for its central bank digital currency (CBDC). The Bank of Israel seeks to develop and test new applications that enhance financial systems and payment solutions. This initiative aligns with global trends in countries exploring CBDCs to modernise financial infrastructures and ensure secure, efficient, and inclusive digital payments. Read more
AMERICAS
NYDFS Issues Guidance for Virtual Currency Businesses on Customer Service
The New York State Department of Financial Services (NYDFS) issued guidance on customer service expectations for virtual currency entities (VCEs). The guidance mandates timely and fair resolution of customer requests and complaints, requiring VCEs to maintain monitored communication channels, provide regular updates, and ensure transparency in handling issues. The guidelines also stress the importance of human customer service representatives and the clear identification of AI tools in interactions. Effective compliance with these standards is expected by November 1, 2024. Read more
Oklahoma Passes Law Protecting Crypto Activities
Oklahoma has enacted HB 3594, safeguarding crypto-related activities, including spending, mining, and self-custody. Effective November 1, the law prevents state and local governments from banning or imposing extra taxes on crypto. It also protects home and industrial crypto mining operations, ensuring fair treatment by utilities and no need for a money transmitter license for crypto activities. This move positions Oklahoma as a leader in crypto rights protection. Read more
NY Attorney General Warns Crypto Companies
New York Attorney General Letitia James has warned cryptocurrency firms, emphasising strict adherence to regulations. This follows a $2 billion settlement with Genesis, highlighting the state’s crackdown on unregulated crypto activities. James has a history of targeting crypto companies for non-compliance, aiming to protect investors and ensure market integrity. The warning comes as regulatory scrutiny increases, with significant legal actions against several major crypto firms. Read more
Order to Divest Chinese-Owned Property Near Air Force Base
President Biden has ordered the divestment of a property near Francis E. Warren Air Force Base owned by MineOne, a Chinese-majority-owned entity. The acquisition poses national security risks due to its proximity to a strategic missile base and the presence of specialised cryptocurrency mining equipment. The order mandates the sale and removal of all related assets within 120 days, with ongoing compliance monitoring by CFIUS. Read more
U.S. Treasury to Enhance Crypto Regulations to Combat Illicit Financing
The U.S. Treasury Department released its 2024 “National Strategy for Combatting Terrorist and Other Illicit Financing,” emphasising enhanced anti-money laundering and counter-terrorist financing measures for digital assets. Priorities include updating regulations, leveraging technology, and boosting law enforcement capabilities. Treasury aims to close regulatory gaps, enforce global standards, and seek Congressional support for greater oversight, ensuring robust measures against illicit finance activities involving cryptocurrencies. Read more
Oklahoma Enacts Comprehensive ‘Bitcoin Rights’ Bill
Governor Kevin Stitt signed the ‘Bitcoin Rights’ bill, HB3594, into law, securing Oklahomans’ rights to mine, transact, and self-custody cryptocurrencies. Introduced by Republican state Rep. Brian Hill and state Sen. Bill Coleman, the law positions Oklahoma as a crypto-friendly state amid federal regulatory uncertainty. The legislation, inspired by the Satoshi Action Fund, preempts potential federal bans on self-custody and ensures tax-free crypto transactions for legal purchases. Read more
Senator E. Warren Warns National Security Chiefs on Iranian Crypto Mining
Senator Elizabeth Warren has raised concerns about Iran’s use of cryptocurrency mining to circumvent sanctions. She warns that Iranian activities in crypto mining pose risks to national security by potentially funding terrorism and evading economic sanctions. Warren urges national security leaders to address this issue, emphasising the need for stringent regulations to prevent Iran from exploiting the crypto market for illicit purposes. Read more
Former Binance CEO CZ Begins Prison Sentence
Changpeng Zhao, former CEO of Binance, has started serving a four-month prison sentence in California. The conviction follows charges related to regulatory violations and financial misconduct. This marks a significant moment in the crypto industry’s regulatory landscape, highlighting the increasing scrutiny and enforcement actions against major players in the sector. Zhao’s imprisonment serves as a cautionary tale for compliance in the crypto world. Read more
Biden Vetoes Resolution to Overturn SEC Guidance
President Biden vetoed a resolution that sought to overturn SEC guidance on environmental, social, and governance (ESG) investment criteria. The veto supports the SEC’s stance on considering ESG factors in investment decisions, aiming to promote sustainable and ethical investing. Critics argue it may lead to politicised investment decisions, while supporters believe it ensures long-term financial stability and responsible corporate behaviour. Read more
House Passes FIT21 Act for Digital Asset Regulation
The U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) with strong bipartisan support. The legislation aims to provide regulatory clarity and consumer protections for the digital asset ecosystem. It establishes federal requirements for digital markets, clarifies SEC and CFTC jurisdictions, and enhances transparency and accountability. The bill’s passage highlights a significant step towards ensuring the U.S. leads in digital asset innovation and consumer safety. Read more
SEC’s Commissioner Hester M. Peirce Supports Cross-Border Digital Securities Sandbox
SEC Commissioner Hester Peirce endorses a cross-border digital securities sandbox in response to the UK regulators’ proposal. She suggests the sandbox includes US firms to enhance regulatory collaboration and innovation in digital asset securities. The initiative aims to streamline securities issuance, trading, and settlement using distributed ledger technology (DLT), fostering legal certainty and market integrity. Peirce highlights the potential benefits for firms, regulators, and the public from this international regulatory sandbox approach. Read more
SEC Warns of Crypto Asset Scams
The SEC’s Office of Investor Education highlights five common tactics fraudsters use in crypto scams: contacting victims via social media or text, exploiting emerging technologies like AI, impersonating trusted sources, manipulating crypto asset prices, and demanding additional fees to withdraw funds. Investors are urged to exercise caution, avoid sharing personal information, and not make investment decisions based on unsolicited advice. The alert emphasises the difficulty of recovering funds once they’re lost to crypto scams. Read more
More about European Crypto Licence and MiCA.
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