TronWeekly

Crypto World News

You are here: Home / Search for "cryptocurrency regulation"

Search Results for: cryptocurrency regulation

Surging Cryptocurrency Exchange Volumes Break 3-Year Record in November

by

November saw a surge in cryptocurrency exchange volumes, hitting a three-year-high, driven by several factors. New Hedge said spot crypto exchange volumes reached $2.9 trillion, the highest since May 2021. Industry leaders attribute this spike to Donald Trump’s election win, alongside growing hopes for a more favourable regulatory environment in the US and abroad.

The strong performance came as investors responded to Trump’s victory and the prospect of a more crypto-friendly US government. With increased interest in cryptocurrency, many exchanges recorded record-high monthly trading volumes. A spokesperson from Crypto.com confirmed that November was the platform’s “strongest month in the last year,” with heightened trading activity across markets.

US Election Sparks Surge in Cryptocurrency Trading Activity

The US election results have been a major factor in the recent uptick in crypto trading activity. Pro-crypto candidates gained significant ground in Congress, suggesting a more favourable regulatory environment for the industry. These political developments have generated positive market sentiment, particularly regarding cryptocurrency regulations.

Several industry leaders, including Crypto.com, have pointed out that the US government will likely adopt more supportive digital asset policies. This shift is expected to provide greater regulatory clarity, further encouraging investments in the cryptocurrency space. With a pro-crypto government, the industry anticipates a more stable and predictable environment moving forward.

Beyond the US, countries worldwide are taking steps to introduce regulatory frameworks for digital assets. These frameworks are seen as crucial for fostering adoption and ensuring the long-term viability of cryptocurrency markets. As a result, global trading volumes have also significantly boosted, reflecting growing confidence in the sector.

Perpetual Contracts Fuel Crypto Exchange Volume Growth

Cryptocurrency Exchanges like Kraken and Binance also reported strong trading volumes in November, particularly in perpetual contracts. Kraken’s Jonathon Miller stated that Bitcoin perpetual contracts saw a substantial increase in trading activity. Solana (SOL) and Dogecoin (DOGE) also set new monthly all-time highs, contributing to a broader market rally.

Miller explained that this surge was fueled by traders seeking leveraged exposure or looking to hedge their positions. With increased volatility in major cryptocurrencies like Bitcoin and Dogecoin, traders found new profit opportunities. The success of these assets, especially Dogecoin, has been driven by an ongoing market interest in memecoins.

Binance, on the other hand, observed an influx of new participants in the crypto market. The platform attributed this growth to various factors, including approving Bitcoin exchange-traded funds (ETFs) in significant markets. These developments will likely shape trading behaviours and boost overall market volumes.

Crypto ETFs Surge as Bitcoin Interest Grows

Bitcoin ETFs also significantly contributed to driving up exchange volumes in November. These ETFs saw inflows of $6.87 billion during the month, alongside $411 million in outflows. This surge in interest highlights the growing mainstream acceptance of cryptocurrency investments through traditional financial channels.

The approval of Bitcoin ETFs in significant markets has made it easier for investors to gain exposure to digital assets. This is a key factor behind the increased participation in the crypto space. As more investors enter the market, the demand for cryptocurrency-related products like ETFs will remain strong.

Crypto Regulation Set for Quick Passage with Trump in Office, Says Coinbase Exec

by

Key Takeaways:

  • Faryar Shirzad expects fast movement on digital assets legislation after Trump takes office.
  • The pro-crypto Congress and Trump’s support are key to passing legislation.
  • Shirzad remains optimistic about stablecoin and market structure bills in 2025.

Faryar Shirzad, Chief Policy Officer at Coinbase, is very optimistic about the outlook of cryptocurrency legislation in the U.S. under a Trump administration. In an interview recently, he had said that digital assets regulation would be fast-tracked in Congress with Donald Trump as president and the Republican Party in control of the House and Senate.

Shirzad stressed that some important digital assets legislation may get passed in the next couple of years and that the pro-crypto Trump administration would be at the forefront of the legislative push. “We have the most pro-crypto Congress ever,” he said, citing the combination of political will and a clear pro-crypto agenda.

image 3 3

Stablecoin and Market Structure Bills in Progress

This has been a couple of the big legislative pieces moving through Congress. First, the Financial Innovation and Technology for the 21st Century Act would put into place a legal framework for digital assets. It has already moved through the House of Representatives.

While the second, the Clarity for Payment Stablecoins Act, deals with the regulation for issuers of stablecoins and ensuring that the rules are followed in the space for digital currency. The bill for the stablecoin has not passed a vote in the House, though Shirzad remains hopeful the bills will pass in 2025 and mark the first major regulation for the industry.

Crypto’s Growing Political Influence

The digital assets industry has increasingly made its presence felt in the political arena, with crypto PACs and advocacy groups raising substantial funds to support candidates aligned with pro-crypto policies. Data shows these groups have raised over $245 million to back political campaigns.

Shirzad added that close to 300 lawmakers friendly toward digital assets will be sworn into the next Congress, a factor that speaks to the growing clout of the crypto sector-not just in legislation, but in shaping the political landscape.

With Trump now preparing to take over the presidency, his nominees for various positions, including the replacement for SEC Chair Gary Gensler, would be sure to continue in this vein by setting a solid base for digital asset’s future in the US.

Related Reading | Altcoins Eye for December Rally As Bitcoin Dominance Breaks 2-Year Support

18 U.S States File Lawsuit Against SEC, Gensler Over Alleged Regulatory Overreach in Cryptocurrency Sector

by

Key Insights:

  •  Eighteen states challenge SEC’s authority over crypto, spotlighting a clash between federal and state regulatory roles.
  • Led by Kentucky, the lawsuit advocates for state-driven crypto regulation, emphasizing innovation and tailored governance.
  • The case could reshape U.S. crypto regulations, aligning with Trump’s vision to make America a global crypto leader.

On Thursday, 18 U.S. states filed a lawsuit against Securities and Exchange Commission (SEC) Chair, Gary Gensler. In the legal suit the 18 states accuse Gensler of excessive regulation especially in the cryptocurrency sector. This move highlights the emerging conflict between state and federal regulators over the $3 trillion crypto industry.

Legal Challenge to SEC’s Crypto Jurisdiction

The 18 republican states led by Kentucky Attorney General Russell Coleman, argue that SEC has been overstepping to take away the mandate of states to regulate the crypto sector in the jurisdictions. The lawsuit which was filed in the Kentucky district court seeks the help of DeFi Education Fund that advocates for reasonable regulations in the decentralized finance sector.

The complaint also accuses the SEC of excessive and unauthorized claims of regulatory authority over digital assets. This, according to the 18 states, undermines the constitutional separation of powers that allows states to enforce their cryptocurrency regulations.

States’ Stance on Crypto Regulation Calls for Gensler’s Response

The states also claim that the lack of a clear federal regulatory framework has led to uncertainty “regulatory limbo” in the cryptocurrency industry. The lawsuit raises concerns on whether the state governments or federal agencies should oversight the regulation of digital assets. The attorneys general advocate for a pro-states regulation to promote innovative regulations that are tailored to the unique environments of their individual states.

Speaking at ‘56th Annual Institute on Securities Regulation’ organized by Practicing Law Institute, Gensler defended the actions of SEC. He claimed that courts have consistently recognized the authority of SEC to enforce securities laws on conventional and digital assets. The response comes amid SEC’s enforcement actions against major crypto frms for allegedly selling unregistered securities.

Broader Political, Legal, and Industry Implications

The lawsuit represents an important development in the debate over digital asset regulation in the United States. It highlights the reaction of state officials against federal encroachment and sets a benchmark for reassessment of cryptocurrency regulation across different government levels. Regulators, crypto investors, and legal experts are closely following the case to determine the impact of future regulation of digital assets in the U.S.

This legal challenge also implies broader political responses including those on the part of President-elect Trump who recently embraced cryptocurrency. Trump promised to place the U.S.A as a world cryptocurrency capital. Moreover, following Trump’s re-election the cryptocurrency industry anticipates new SEC chairs who would enforce favourable crypto regulations.

Reviewing the Top Cryptocurrency Staking Sites: Top 10

by

hrough staking, one actually locks up their crypto assets in order to earn rewards by contributing to the security and efficiency of blockchain networks. This is not only a passive means for the growth of one’s investments, but rather it incentivizes participation in the network. Staking is a process of locking a certain number of cryptocurrencies in a special wallet to perform some functions within a blockchain network. In other words, staking is related to proof-of-stake blockchains that validate transactions and secure their networks with the help of active network members. With more and more use of PoS models by cryptocurrencies, crypto staking is now easier and becoming more attractive to a wide class of investors.

This article will discuss the top 10 staking platforms in 2024 to earn passive income as follows.

  1. Staking Bonus
  2. Binance
  3. Kraken
  4. Coinbase
  5. Gemini
  6. eToro
  7. Crypto.com
  8. Huobi
  9. PancakeSwap
  10. Aave
  1. StakingBonus: Your Premier Staking Platform

StakingBonus is one of the best platforms tailored to facilitate users in gaining maximum benefits from staking. It helps facilitate an easy decision on which type of staking is most suitable for an investor by providing all information at one spot. It gives them a chance to view and compare the different staking plans, rewards, and features offered by several platforms in one place.

Key Features:

t1
Reviewing the Top Cryptocurrency Staking Sites: Top 10 5
  • Real-time Data: Keep stats about staking yields and fees updated, and this will go a long way in helping you make your choice of the right staking platform.
  • User-Friendly Interface: The platform is user-friendly, fully adapted for both new and experienced stakers.
  • Rich Staking Info: Compare a variety of staking options and rewards with ease.
  • Multiple Variations of Staking: Ability to stake popular cryptocurrencies such as Ethereum (ETH), Polkadot (DOT), and Cardano (ADA).
  • Flexible Lock-in Periods: You can set the period for which to stake your asset.

How to sign up

  • Getting signed up on StakingBonus.com gets you up and running in no time-easy as it gets, really:
  • Visit Website: Go to the StakingBonus.com homepage.
  • Create Account: Sign up by typing in your email and creating a password.
  • Stake Options: After your registration is complete, you will be able to view many staking platforms and offers.
  • Choose a Staking Platform: Go to the listed platform that best fits your needs and follow the procedure online to stake directly from there.

Available staking plans in stakingBonus

t3
Reviewing the Top Cryptocurrency Staking Sites: Top 10 6

The above table shows the staking plans of stakingBonus.com with their staking times,  investment amount and rewards. It is very easy to have a look and get an idea about the staking plans.

t4
Reviewing the Top Cryptocurrency Staking Sites: Top 10 7

Bitcoin (BTC)

Bitcoin works on a Proof of Work system, so it is never really staked directly. Still, a number of platforms offer “BTC savings” or lending programs in which you can gain passive interest by lending your BTC.

Litecoin (LTC)

Like Bitcoin, Litecoin uses Proof of Work and isn’t really staked in the traditional sense. However, with many platforms, you can lend LTC out to earn passive returns, similar to staking rewards.

Ethereum (ETH)

Ethereum 2.0 implemented the proof-of-stake consensus, enabling staking through this mechanism. You can stake ETH on some platforms, like StakingBonus, and earn rewards for securing the network; normally, you need to stake at least 32 ETH on your own.

Bitcoin Cash (BCH)

Bitcoin Cash is based on a PoW consensus algorithm, just like BTC, and thus cannot be staked directly. Some platforms allow earning interest or rewards by lending BCH or using its savings programs.

Dogecoin (DOGE)

As a PoW-based cryptocurrency, DOGE does not natively support staking. However, much like both BTC and LTC, passive income can be generated by lending your DOGE on platforms that support the feature.

Ripple (XRP)

XRP is not conventionally staked due to it not depending on the PoS. However, many platforms have interest-earning accounts in which you can deposit XRP and earn a passive return.

TRON (TRX)

TRON works on a DPoS model, and as such, TRX holders can stake their tokens and vote for Super Representatives with a block reward for staking.

Tether (USDT)

USDT is a stablecoin, not utilizing PoS in any way, but many platforms give the ability to earn interest by lending or staking USDT and will not attach any volatility to it.

  1. Binance

A renowned, large cryptocurrency exchange around the world, offering various staking options for numerous different cryptocurrencies. The rewards are competitive, hence allowing users to get considerable returns upon staking assets. It also has a user-friendly interface, making it easy for the end user to navigate through the available options, and stringent security measures put in place in order to protect the funds.

  1. Kraken

Kraken is among the most popular and secure regulated platforms that offer customized staking options for a wide variety of cryptocurrencies. The platform educates its users through highly detailed guides and resources on how investors can learn staking mechanics.

  1. Coinbase

Coinbase has grown synonymous with cryptocurrency trading, and its staking features add to its appeal. Users can easily stake well-liked cryptocurrencies directly from the platform, benefiting from ease of use. Coinbase offers competitive staking rewards and even better equips its users with the necessary education to make informed decisions.

  1. Gemini

Gemini is pivotal to security and adherence to the set regulation, and it has gone out of its way to ensure the staking process is seamless for their clients. The type of cryptocurrencies supported on the website is diverse, making it easy to enable users to quickly diversify their staking portfolios with many more supported assets.

  1. eToro

This social trading network has integrated staking features with traditional trading options. Here, users can share their insights and staking options in a number of ways, building up a community of traders. eToro’s social trading functionality enables users to follow and copy the strategies of more experienced investors, amplifying such staking.

  1. Crypto.com

It is among the most popular places for staking, with a complete suite of services on offer. The nature of rewards being competitive, along with a range of cryptocurrencies making it popular. Furthermore, it provides additional features to users, including a Visa card, making the use of crypto rewards seamless.

  1. Huobi

Huobi is an exchange that has spread to every corner of the globe and is famously noted for its liquidity. Huobi offers a great number of different choices of staking across a wide range of multiple different cryptocurrencies. Its high transaction speeds and competitive rewards for staking are very welcome for its users. Currently, it has a fully packed suite for staking management in an efficient way. The interface is easy to use even for a beginner.

  1. PancakeSwap

A DEX or decentralized exchange running on the Binance Smart Chain, PancakeSwap allows for a different kind of staking through its liquidity pools. One is able to stake his or her assets for rewards, and often at higher yields when compared to traditional platforms. This is a user-friendly platform with an easy interface for investors of any level.

  1. Aave

Aave represents one of the largest DeFi platforms in the world, allowing the lending and borrowing of cryptocurrencies with strong staking options. They incentivize users by rewarding them for staking AAVE tokens and contributing to the platform’s Safety Module, which protects against risks. Aave boasts competitive APYs, and it will remain an attractive choice for users seeking to grow their assets.

Conclusion

With these added platforms, this 2024 list of the best staking options includes a well-rounded array, with each platform touting unique features and benefits-there can be something to really fit just about any user’s taste or investment strategy. With StakingBonus, exploring options means one gets to make informed decisions that will grow investments in cryptocurrencies pretty effectively.

Top 9 Ways to Earn Passive Income Through Cryptocurrency in 2024

by

Cryptocurrency offers various avenues for earning passive income, but none stand out more than crypto staking. As the blockchain world continues to develop, staking platforms like STAKING AI allow investors to grow their assets seamlessly. In this article, we will explain the top 9 ways one can earn passive income through cryptocurrency in 2024 using the unique benefits of staking on STAKING AI.

Key Takeaways:

STAKING AI simplifies staking for investors, providing a secure and regulated environment.

Investors can earn rewards daily, with flexible staking plans to suit various investment needs.

A $100 free staking bonus is available upon sign-up, with additional rewards for referrals.

STAKING AI also supports liquid staking, offering investors liquidity over their staked assets.

1. Staking with STAKING AI

One of the easiest and most effective ways to earn passive income in 2024 is through staking with STAKING AI. The platform is an infrastructure operator for PoS blockchains, allowing users to earn interest on their digital assets. STAKING AI stands out because of its commitment to securing investors’ assets and its user-friendly platform that caters to beginners and experienced crypto enthusiasts. With STAKING AI, you can select from a wide variety of staking plans that offer high daily returns.

unnamed 1
Top 9 Ways to Earn Passive Income Through Cryptocurrency in 2024 10

Why Choose STAKING AI for Staking?

$100 free staking bonus on sign-up.

Daily payouts, meaning you can track your rewards in real time.

A globally distributed team ensuring 24/7 monitoring of validator nodes for maximum security.

2. Liquid Staking

Liquid staking allows you to keep your assets liquid while still earning staking rewards. Traditionally, staking would lock up your assets for some time, but STAKING AI partners with leading liquid staking providers to give investors flexibility. With liquid staking, you can use derivative tokens that represent your staked assets to participate in other DeFi activities without interrupting your staking rewards.

3. Referral Program

STAKING AI offers an enticing referral program that allows you to earn up to 4% of the staking amount from users you invite to the platform. There’s no cap on how much you can earn through referrals, making this a powerful tool for those with a large network.

How It Works:

Sign up for STAKING AI.

Share your referral link with friends, family, or your social media audience.

Earn commissions on every stake your referrals make, for a lifetime.

4. Daily Staking Rewards

The ability to earn daily rewards is another feature that sets STAKING AI apart. Depending on the staking plan you choose, rewards are settled into your platform account balance every 24 hours. The platform allows you to withdraw or reinvest those funds as you see fit. Whether you’re staking small or large amounts, you’ll receive consistent earnings.

Examples of Staking Plans:

Fantom Staking Pool: Stake $800 for 2 days and earn $8.8 daily, plus $9.6 in referral rewards.

Cosmos Staking Pool: Stake $58,000 for 15 days and earn $1,044 daily, plus $2,088 in referral rewards.

unnamed 2
Top 9 Ways to Earn Passive Income Through Cryptocurrency in 2024 11

5. Long-Term Staking

For those who are looking to commit more significant amounts of cryptocurrency, long-term staking plans will offer some of the highest returns. On STAKING AI, staking pools like Ethereum Staking Plus allow users to stake up to $300,000 for 45 days and earn $10,500 daily and $15,000 in referral rewards, making it an excellent option for seasoned investors.

6. Security and Regulation

Unlike many staking platforms, STAKING AI is fully regulated, providing a level of trust and security that is critical in today’s volatile cryptocurrency landscape. With STAKING AI, you can stake your assets knowing they are safe. The platform also offers non-custodial delegation services, ensuring you always have full control over your assets.

7. Low Entry Barriers

Getting started with STAKING AI is incredibly simple. Users can register in minutes using their email address, username, and an optional referral code. STAKING AI supports major cryptocurrencies, including BTC, ETH, and USDT, making it accessible for both newcomers and experienced crypto investors alike.

8. Flexible Staking Plans

Unlike many platforms that restrict your options, STAKING AI offers a wide variety of staking plans. Whether you’re looking for short-term or long-term options, there’s a plan that will fit your needs. Plus, you can choose to stake small amounts or larger sums depending on your financial goals.

9. Maximizing Your Earnings with the STAKING AI App

With the STAKING AI app, you can track your earnings, adjust your staking plans, and receive updates on your performance, all from your mobile device. The app’s point-and-click staking interface makes it simple for even the most novice investor to get started.

Conclusion

With a range of flexible staking plans, STAKING AI is the go-to platform for anyone looking to earn passive income through cryptocurrency in 2024. The platform’s combination of high daily rewards, a robust referral program, and a seamless staking experience makes it stand out from the competition. sign up with STAKING AI today and start staking with as little as $100!

Crypto Firms in Taiwan Face Strict AML Regulations, Registration by 2025

by

  • Taiwan mandates crypto firms to register for anti-money laundering compliance by September 2025.
  • Non-compliance could result in severe penalties, including imprisonment.
  • The new rules require crypto service providers to meet strict registration conditions and procedures.

The Financial Supervisory Commission (FSC) in Taiwan has drafted new AML regulations, marking a serious step toward the development of the country’s regulatory framework concerning cryptocurrency.

With amendments in July, these regulations necessitate that all VASPs declare their registration with the FSC before the end of September 2025. Failure to comply may mean the warrants being issued, including prison sentences of up to two years, making Taiwan tough on illegal activities in the crypto world.

A Detailed Registration Framework

The FSC has defined an all-detailed registration system in its “Money Laundering Prevention and Registration Measures for Enterprises or Personnel Providing Virtual Asset Services” draft. VASPs shall apply for registration in a specific business category, namely, virtual asset exchanges, trading platforms, custodians, and transfer service providers.

Key elements composing the draft include negative qualification requirements imposed on individuals operating such businesses. It will also guarantee that responsible persons or beneficiaries comply with standards imposed by law. The registration will also encompass information in the procedures, which are document filing, time of registration, and cases of termination of business.

Besides that, the FSC’s AML framework also demands strict compliance with legal requirements with respect to the segregation of customers’ assets from the company’s assets, security of information, and handling of customer complaints.

Crypto Industry to Align with Revised Anti-Terrorism Measures

Moreover, the FSC has revamped the existing anti-money laundering and combating the financing of terrorism for the same. According to the newly introduced rules, VASPs are to perform risk assessments and report on a yearly basis.

They are also supposed to put in place mechanisms that involve internal control and audit, corresponding to the Money Laundering Prevention Law of Taiwan and relevant regulations set by the Virtual Currency Business Association.

The new measures dispel the compliance statement regime currently applicable and instead provide for all VASPs to register upon the operation of the new registration regulations. For this, the FSC recommends that businesses not send in their documents beforehand to avoid applying under different regimes.

Nevertheless, with these regulations, Taiwan moves closer to a more regulated and transparent crypto environment, bringing its laws into conformity with global standards in combating money laundering and financial crimes within the industry.

Related Reading | Peter Brandt: Bitcoin Needs $71,000 Break for Bullish Shift

Tom Emmer’s Crypto Vision: What Lies Ahead for 2025 U.S. Regulation

by

Tom Emmer, the House Majority Whip (R-MN) and one of Congress’ leading advocates for cryptocurrency, has bold plans for the industry. If Republicans gain control of all federal branches in November, Emmer aims to push legislation that solidifies the future of crypto in America. However, he remains certain that digital assets regulation is coming, regardless of which party holds power.

“It’s not ‘if,’ it’s ‘when,’” Emmer said at the Messar Mainnet conference in New York. His confidence stems from growing bipartisan support. This spring, Senate Majority Leader Chuck Schumer and other Democrats crossed the aisle to vote on key crypto bills, signaling a shift in attitude. Even Rep. Maxine Waters (D-CA), a staunch digital asset skeptic, recently acknowledged that “crypto is inevitable.”

Emmer attributes this shift to electoral realities. Young voters, particularly those between the ages of 18 and 40, view cryptocurrency as a crucial issue. One in five may even cast their vote with digital asset policies in mind.

Crypto’s Future

If Republicans were to achieve a trifecta—control of the House, Senate, and White House—Emmer believes crypto-friendly legislation would move swiftly. His priorities are, passing a market structure framework similar to the FIT21 bill, outlawing a U.S. Central Bank Digital Currency (CBDC), and enabling the creation of stablecoins backed by the U.S. dollar. He views these laws as vital to providing clarity for digital asset firms concerned about regulatory uncertainty.

While optimistic about the future, Emmer is cautious about over-regulation. He warned against creating a new regulatory body solely for digital assets, saying, “Be careful what you wish for. You do not want that.”

The numbers show a shifting landscape. In May, 71 Democrats voted for FIT21, and nearly 20% of Americans aged 18-40 consider digital asset a key voting issue. Emmer’s stance underscores a future where bipartisan support for digital assets might be stronger than ever, with regulatory clarity possibly within reach sooner than expected.

Hong Kong’s Crypto Regulation Gets a Potential Boost with New Licensing Proposals

by

Hong Kong’s SFC is probing the potential of a new licensing framework for cryptocurrency over-the-counter (OTC) services and seeking industry feedback on the proposal. The move is part of a broader attempt to curb the city’s virtual asset sector’s further growth.

In the past, the Customs and Excise Department (C&ED) was in charge of OTC regulations, and it seems that the SFC may be playing a more proactive role with the information that further discussions suggest. This government body aims to bring its regulation efforts to high-profile incidents exposing regulatory drawbacks.

For the regulatory measures they will be putting forth, the SFC’s engagement is expected to bridge quite some of the gaps that have been pointed out in the high-profile cases of this nature in the city such as the case of the so-called JPEX a crypto exchange that was fingered for fraudulent activity which caused the city to lose a considerable amount in financial terms.

The main aim of the whole matter is to tighten control of these physical OTC sites, which criminal actors may exploit to go after naive retail investors. The SFC is debating whether to bring these services under its jurisdiction so that a more coherent legal space is created.

However, the proposal is still at an initial stage, and the input from industry stakeholders will definitely influence the final regulatory structure. Besides OTC, the SFC has also intensively discussed the possibility of licensing requirements for crypto custodian services, which is close to the full regulation of virtual assets.

Balancing Innovation with Crypto Investor Protection

This regulatory evolution reflects Hong Kong’s ongoing efforts to foster innovation and ensure investor protection. The Financial Services and the Treasury Bureau (FSTB), which had previously handled OTC regulation alone, has indicated that public feedback on the proposed framework has been generally supportive. However, no official results from the consultation have been published yet.

Hong Kong’s drive to enhance regulatory clarity follows a series of policy shifts to position the city as a favourable hub for cryptocurrency investment. Introducing a licensing regime for cryptocurrency exchanges in June 2023 and the subsequent launch of exchange-traded funds (ETFs) directly investing in crypto tokens mark significant steps in this direction.

Related Reading | Circle Faces Lawsuit Over $1 Million USDC Lost To Incorrect Wallet Address

OpenSea vs. SEC: The Battle Over NFT Regulation Intensifies

by

In a dramatic ramping up of its regulatory actions, the U.S. Securities and Exchange Commission (SEC) has issued a Wells notice to OpenSea, a warning that the regulator intends to sue the leading NFT marketplace.

According to the SEC’s opinion, the NFTs exchanged on the OpenSea platform might be considered securities, a step that would completely change the digital art landscape. This position has sparked heated debates among the cryptocurrency and digital art communities.

Devin Finzer, co-founder and CEO of OpenSea, voiced his anger and deep surprise over the SEC’s decision, which he termed a violent and never-before-seen attack on digital creators. Finzer disagreed with the notion that digital art is as complex as a collateralized debt obligation which would lead to a lot of problems for many artists and developers.

In response to the regulatory threat, OpenSea pledged $5 million to help NFT creators and developers who might face similar legal challenges. The company’s commitment aims to safeguard the creative freedom of those in the NFT space, ensuring they can continue to innovate without the looming threat of legal repercussions.

Industry Reactions to OpenSea’s Regulatory Challenge

The action of the SEC against OpenSea comes on the heels of a number of regulatory confrontations that have pitted it against some of the other major crypto entities like Coinbase, Uniswap, Kraken, and Robinhood.

Some of the critics believe that the government is taking a confrontational approach to regulation, which will eventually interfere with the development of the cryptocurrency segment and the technologies that come with it. The crypto community has a different view, whereby some people regard the SEC’s tactics as a general strategy that goes beyond the limits and could consequently deter digital art and invention.

Hayden Adams, the founder of the Uniswap protocol, evaluated critically the SEC’s position, which he considers to be an unreasonable act beyond the limits of the law concerning digital arts. Adams pointed out that receiving a Wells notice is a pivotal point in the crypto industry that signifies that the company is making remarkable progress in a difficult environment.

Meanwhile, Ryan Sean Adams, a prominent crypto investor, took to X to vent his frustration whilst deprecating the SEC’s behavior as an aggression against American innovation. Notably, he pointed out that OpenSea is the recent American crypto achievement that has become the target of the SEC, and he blamed the current regime for trying to destroy the industry before the elections.

Related Reading | NFTs in Online Casinos Revolutionizing The Gambling Experience

Hong Kong Lawmaker Pushes for DAO Regulations Amid $6B Legal Battle

by

Hong Kong lawmaker Johnny Ng has called on the city’s government to take a pivotal moment in moving forward with enhancing the Web3 investment landscape by sealing a legal framework for decentralized autonomous organizations (DAOs).

According to the report, Ng’s suggestion comes after the landmark verdict of the High Court of Hong Kong which obliged a HK$6 billion blockchain project to disclose its financial records. This ruling shows the importance of the sector for regulatory clarity.

Ng pointed out that if the government set up explicit laws for the decentralized autonomous organizations (DAOs), it could boost the trust of the investors and entice the global people and money to come to Hong Kong.

A DAO is structured in such a way that every participant is involved in the decision-making process through voting on the blockchain, making its governance very distinctive and sometimes difficult to grasp.

image 40
Lawmaker Johnny Ng and lawyer Monin Ung

Ng stated:

I hope the government can improve the ecology of Web3 and regulate DAOs legally so that more people in the industry will come to Hong Kong to develop their projects and bring in capital and talent. It can be an important part of pursuing economic growth.

DAO Case Reveals Challenges in Crypto Management

The push for more regulation comes after a very public court case about the MANTRA DAO project, which is in a dispute over who owns and manages it. The case, which included the Malaysian company RioDeFi, has exposed the complications and difficulties of operating DAOs without precise legal regulations.

RioDeFi, claiming to be the project’s founder, alleged that its management team made withdrawals from the cryptocurrency account without any explanation and did not report the correct information.

The High Court had previously mandated MANTRA DAO to reveal its financial records, highlighting the existing legal system’s lack of experience with cryptocurrency-related cases. The court’s decision, issued last week, said that although decentralized autonomous organizations (DAOs) are a different type of entity, there is still a requirement for proper financial accounting, just like any other business.

According to Lawyer Monin Ung, after consultation with the applicants, it could be open to abuse in the absence of a regulatory framework. Ung noted that some states in the United States are already applying their regulations to DAOs and calling for financial accounting with annual reporting. She implores Hong Kong to consider financial accountability and protection measures for investors by doing likewise.

In response, this was well acknowledged by the Financial Services and the Treasury Bureau as there is no unanimous consensus over global regulation of decentralized autonomous organizations.

While the bureau declared close monitoring over related international developments, and decentralized autonomous organizations that fall into regulated financial activities would still be required to obtain an appropriate license and undertake requisite regulatory oversight.

Related Reading | KAVA Weekly Technical Analysis: Near ATL, Bullish Rally Or New Lows?