TronWeekly

Crypto World News

You are here: Home / Archives for Crypto Regulations

Crypto Regulations

Schumer’s Bold Crypto Bill: Key Changes for 2024

by

Senator Chuck Schumer (D-NY), the Senate Majority Leader, pledged during a digital town hall meeting on Wednesday to push crypto legislation through Congress by the end of the year. Speaking at the Crypto4Harris livestream, Schumer emphasized the importance of regulating digital assets.

“We cannot just look away from crypto or stick our heads in the sand,” Schumer said. “My goal is to get something passed out of the Senate and into law by year’s end. I believe we can make that happen.”

Schumer warned that inaction could drive the digital assets innovation overseas to nations with lax regulations. He stressed the need for balanced legislation that promotes innovation while establishing essential safeguards. Schumer added that a balance for digital asset—promote innovation should be struck while providing common-sense guardrails.

The 90-minute livestream gathered industry leaders, lawmakers, state officials, and political candidates. Some participants offered live remarks, while others provided pre-recorded statements. The event aimed to reset the conversation on digital assets regulation, focusing on a bipartisan approach and avoiding partisan conflict.

Cryptocurrency Gains Political Momentum

Investor Anthony Scaramucci, founder of SkyBridge Capital, echoed this sentiment. Scaramucci said,

“We need to keep this less tribal. A bipartisan commitment to crypto regulation could lead to significant benefits for the industry.”

Rep. Wiley Nickel (D-NC) reinforced this view. He highlighted the importance of bipartisan cooperation to avoid stalling progress. Nickel argued,

“Digital assets aren’t a partisan issue. Making it a political football will set us back decades in Congress.”

The event also saw jabs at former President Donald Trump. Nickel called Trump’s stance on crypto dismissive, saying,

“There’s only one candidate calling crypto a scam, and that’s Donald Trump.”

Billionaire Mark Cuban added,

“Supporting crypto isn’t about benefiting Bitcoin elites; it’s about egalitarianism. Republicans don’t get that.”

Despite the partisan exchanges, there are indications that Vice President Kamala Harris is seeking common ground with the digital asset industry. Schumer’s push aligns with these efforts, signaling that significant legislative action could be on the horizon.

As the year progresses, all eyes will be on whether Schumer’s promise translates into meaningful law, reshaping the regulatory landscape for digital assets in the U.S.

Binance.US Back in Action: Court Overturns Ban

by

Binance.US has scored a vital win following a court ruling that Florida regulators had failed to follow proper procedures for blocking the crypto exchange. Per the 8-page document, the First District Court has quashed an Emergency Suspension Order [ESO] issued by the State of Florida’s Office of Financial Regulation [OFR] against BAM Trading Services, Inc., which operates as Binance.US.

Following federal plea agreements involving Changpeng Zhao, the former CEO of Binance Holdings Limited, OFR, suspended the exchange’s US-affiliated Binance.US license, including ceasing all money transmission activities. While handing out the ban, the regulator cited Zhao’s criminal charges and his role as a “Controlling Shareholder” and indirect owner of Binance.US. It also claimed that Zhao’s actions were an immediate danger to public health, safety, and welfare, justifying the emergency suspension.

Binance
Binance.US Back in Action: Court Overturns Ban 2

However, the court determined that the emergency suspension order was a drastic measure and not adequately justified. According to Section 120.60(6), the authorities were required to provide specific reasons explaining why their actions were fair and necessary. The court also noted that the law provides the choice (discretion) to suspend a license, which is not a requirement. Since the OFR did not offer adequate justification for their decision or consider less drastic alternatives to address the problem, the court determined that the ESO was flawed and required further review.

Binance.US: Procedural Fairness In Regulatory Measures

Furthermore, the court also considered the regulator’s disregard for the potential impact of its decision on the 170,000 Binance.US account holders in Florida. These individuals could face enforced liquidation of their digital assets, leading to significant financial losses caused by market changes and unexpected tax obligations. The new development is crucial for Binance.US as the court’s ruling ensures that the platform can continue its operations while adhering to necessary regulatory compliance.

Furthermore, this ruling highlights the significance of thorough procedural fairness in regulatory measures, particularly in the swiftly changing financial realm of digital assets and cryptocurrencies. It is hoped that this decision could establish a guideline for regulators to refrain from hastily imposing unjustified bans solely due to the involvement of disputing parties in a legal conflict.

Crypto Regulation Lags Behind Due To FCA’s Lack Of Expertise, Says UK Audit Office

by

The UK’s Financial Conduct Authority (FCA) is facing criticism from the National Audit Office (NAO) for its slow and ineffective regulation of the cryptocurrency industry.

The NAO issued a report named “Financial services regulation: adapting to change” on Dece­mber 8, 2023, accusing the FCA of being sluggish and unresponsive to the emerging risks and challenges posed by digital assets.

The report pointed out that the FCA took nearly three years to enforce action against illegal crypto ATM operators, which allow users to buy and sell digital currencies with cash. The FCA shut down 26 crypto ATMs in July 2023 as part of a coordinated investigation with other agencies.

While the FCA has required crypto-asset firms to comply with anti-money laundering regulations since January 2020, and began supervision work including engaging with unregistered firms, it did not begin taking enforcement action against illegal operators of crypto ATMs until February 2023, the NAO stated.

FCA Lacks Crypto Skills And Resources

The report also blamed the FCA’s delay in registering crypto firms under money laundering regulations on the lack of crypto skills and resources within the regulator. The FCA has only approved 41 out of the 300 digital asset firm applications that have applied for regulatory approval since January 2020.

According to the report, a deficiency in expertise related to digital currencies resulted in a delay for the FCA to register firms dealing with these assets under money laundering regulations.

The report acknowledged that the FCA had taken some steps to improve its digital asset regulation, such as releasing a “finalized non-handbook guidance” for digital asset firms to comply with the new crypto promotion rules that came into effect.

The new rules aim to prevent digital asset firms from misleading customers about the benefits and risks of using digital currencies and require them to display clear and prominent risk warnings.

The report concluded that the FCA needs to adapt to the changing digital asset landscape and enhance its capacity and capability to regulate the industry effectively and efficiently.

The report also urged the FCA to be more proactive and agile in responding to the evolving virtual currencies market and technology and to engage with the public and the industry to raise awareness and understanding of digital assets.

Related Reading | Polygon’s Price Surge: Analysts Bullish on MATIC as Key Support Levels Fuel Optimism

Crypto Crackdown: Spain Mandates Asset Disclosure

by

The Spanish Tax Administration has taken a decisive step toward regulating the crypto market by introducing a new tax form mandating Spanish citizens to declare their overseas crypto-assets. This move, effective from December 31, 2023, targets individuals with crypto holdings exceeding $55,000, bringing much-needed transparency to the burgeoning crypto landscape in Spain.

This new regulation aligns with Spain’s broader efforts to combat tax evasion and ensure compliance with financial regulations. By requiring individuals to declare their digital-assets held on overseas platforms, the Spanish Tax Administration aims to prevent the use of digital assets as a means to conceal wealth and avoid paying taxes.

Crypto Threshold Concerns: Excluding Active Traders

The rationale behind this measure is that digital assets, despite their decentralized nature, are not immune to taxation. Just like any other form of investment, gains derived from digital assets transactions are subject to capital gains tax. By bringing virtual asset holdings under the purview of the tax system, Spain is ensuring that individuals are held accountable for their digital asset-related activities.

This move is also likely to have a significant impact on the Spanish crypto market. By increasing the visibility of digital asset holdings, the Spanish Tax Administration is likely to encourage more individuals to declare their digital assets, potentially leading to a boost in tax revenue. Additionally, this increased transparency could foster greater trust in the digital asset market, attracting more institutional investors.

However, some concerns have been raised regarding the implications of this new regulation. Critics argue that the $55,000 threshold may be too high, excluding a significant number of individuals who may still be actively involved in digital asset trading. Additionally, some worry that the requirement to declare overseas digital asset holdings could create privacy concerns, as individuals may be hesitant to share sensitive financial information with the government.

Despite these concerns, the Spanish Tax Administration’s move to regulate digital-assets represents a significant step forward in ensuring accountability and transparency in the crypto market. As the crypto landscape continues to evolve, it is crucial for governments to implement effective regulatory frameworks that protect investors and ensure compliance with tax laws.

Turkey Unveils New Crypto Regulations Amidst Global Scrutiny

by

In response to the rebuke from the Financial Action Task Force [FATF], Turkey has devised new cryptocurrency regulations, placing a strong emphasis on licensing and taxation. The nation has been proactively working to formalize its approach to cryptocurrency assets, a commitment highlighted by Finance Minister Mehmet Şimşek during his address to the nation’s planning and budget commission on October 31st.

Turkey’s urgency in regulating cryptocurrency assets comes in the aftermath of its placement on the FATF grey list in 2021, subjecting the nation to heightened scrutiny. This listing has presented significant challenges, impeding the nation’s ability to attract foreign investments, especially amid existing economic difficulties. The lack of regulatory measures in the country has raised concerns among key players in the crypto industry.

Turkey
Turkey Unveils New Crypto Regulations Amidst Global Scrutiny 4

Binance Turkey’s Chief Executive, Mucahit Donmez, expressed apprehension about the absence of regulations in the nation, particularly in the face of growing interest in cryptocurrencies. Donmez emphasized the need for more regulation in sectors like ensuring the security of users’ assets and establishing specific criteria for minimum capital requirements, listings, custody, and operational licenses for platforms. He believes that such regulations would contribute positively to the crypto sector.

Turkey Ranks 4th In Crypto Adoption Rate

Notably, Turkey has been recognized as one of the countries with the highest crypto adoption rates, ranking fourth in raw crypto transaction volumes, amounting to $170 billion last year. This positions Turkey after the U.S., India, and the U.K., according to a report by Chainalysis. The Global Crypto Adoption Index 2023 by Chainalysis also ranks Turkey as the ninth-largest country in terms of crypto adoption.

Istanbul, acting as a crucial link between Europe and Asia, has been a host to numerous international crypto and blockchain summits. Recently, Binance, a leading crypto exchange, organized its flagship event in the city, featuring various firms and platforms. Notable participants included Tron, Chiliz, Animoca Brands, Zignaly, Alchemy Pay, and Trust Wallet, all showcasing their offerings in the sponsor area. These events highlight the growing importance of Turkey in the global cryptocurrency landscape and the need for regulatory frameworks to support its burgeoning crypto industry.

Spain Fast Tracks MiCA Act For December 2025 Launch

by

In a significant development, Spain is set to implement the first comprehensive European Union crypto framework, the Markets in Crypto-Assets [MiCA] Act, on a national level, starting in December 2025. The announcement was made by the Spanish Ministry of Economy and Digital Transformation, marking a pivotal step towards regulating the burgeoning crypto market within the country.

This move comes after a meeting between Spain’s First Vice President, Nadia Calviño, and the President of the European Securities and Market Authority, Verena Ross. During the meeting, discussions revolved around Spain’s proactive approach to the implementation of MiCA. The nation has expressed its willingness to accelerate the adoption of MiCA, which has a general deadline set for July 2026 across all 27 member states of the European Union.

What sets Spain apart in this initiative is its ambitious plan to reduce the transitional period specified in the MiCA framework. While member states were granted a 36-month transitional period from the date of MiCA’s publication in the Official Journal of the European Union in June 2023, Spain aims to reduce this period to just 18 months. This move underscores its commitment to swiftly adapting to the evolving crypto regulatory landscape, aligning with the broader EU framework.

Simultaneously, the crypto industry in Spain has witnessed significant milestones. Major international crypto exchanges operating in the country have secured local licenses. Notably, Coinbase, one of the world’s leading crypto platforms, obtained an anti-money laundering compliance registration from Spain’s central bank in September. Similarly, Kraken, another prominent crypto exchange, attained a virtual asset service provider registration, further solidifying the local crypto market’s legitimacy.

Spain’s Bet On Digital Euro

Furthermore, Banco de España recently joined several European banking institutions in exploring the potential advantages of the digital euro. In a public statement, the bank emphasized that the conventional physical cash format restricts the exploitation of benefits offered by the growing digitalization of the economy and society. This acknowledgment highlights the nation’s proactive stance in embracing digital financial innovations.

As Spain prepares to usher in the MiCA Act and engages in fruitful collaborations with key regulatory bodies, the country is positioning itself at the forefront of cryptocurrency regulation within the European Union.

Crypto Fraud Skyrockets: 150% Rise in Hacks Prompts CFPB Action

by

In a significant development for the cryptocurrency industry, the Consumer Financial Protection Bureau (CFPB), the top U.S. agency for consumer financial protection, is exploring the application of the Electronic Fund Transfer Act (EFTA) to cryptocurrencies. This move aims to safeguard consumers from the rising tide of fraudulent crypto transfers.

The EFTA, enacted in 1978, was designed to protect consumers during electronic fund transfers, encompassing transactions involving debit cards, ATMs, and bank accounts. Its primary goal is to minimize consumer losses resulting from unauthorized transfers. Financial institutions are mandated to inform consumers of their liability for unauthorized transfers, thus ensuring transparency before the initiation of electronic transfers.

CFPB director Rohit Chopra recently addressed the issue at a payments conference held by the Brookings Institution think tank on October 6th. Chopra stated that his agency is exploring the extension of EFTA regulations to “private digital dollars and other virtual currencies.” The objective is to mitigate the risks associated with errors, hacks, and unauthorized transfers in the crypto space.

Screenshot 66
Rohit Chopra, CFPB Director

The decision comes amidst a startling 150% year-on-year increase in crypto-platform hacks. Furthermore, the high-profile criminal trial of FTX co-founder Sam Bankman-Fried, who faces charges related to fraudulent use of customer funds, has garnered significant attention.

Balancing Act: Innovation vs. Consumer Protection in Crypto

Chopra’s announcement also includes plans to issue orders to “certain large technology firms” to gain insights into their business practices regarding personal data usage and private currency issuance. This initiative underscores the growing concern over the privacy and security implications of digital currencies.

Additionally, the CFPB is set to investigate non-bank entities offering payment platforms. By examining the operations of these platforms, the agency aims to strengthen consumer protection in the evolving financial landscape.

Chopra also recommended that the Treasury’s Financial Stability Oversight Council consider categorizing certain crypto activities as “systemically important payment clearing or settlement activities.” This move could empower other regulatory agencies to ensure the stability of cryptocurrencies, especially stablecoins.

As the CFPB takes steps to extend EFTA regulations to the crypto industry, it demonstrates the increasing scrutiny and regulatory focus on the rapidly growing digital asset ecosystem. This move underscores the need for a balance between innovation and consumer protection in the evolving financial landscape.

Bybit’s Farewell To The UK As FCA Brings New Crypto Regulations

by

Bybit, a prominent player in the world of cryptocurrency exchanges, has made a significant decision following extensive deliberations. In response to forthcoming marketing regulations set to be enforced by the UK Financial Conduct Authority [FCA] on October 8, the exchange has chosen to withdraw from the UK market. This strategic move reflects the evolving landscape of crypto regulation and its impact on market participants.

In a press release, Bybit officially announced that it will cease accepting new account opening applications from both United Kingdom residents and nationals as of October 1, 2023, at 8 a.m. UTC. This decision marks a proactive response to impending regulatory changes and sets the stage for a transition period for existing users.

Bybit
Bybit's Farewell To The UK As FCA Brings New Crypto Regulations 7

For Bybit’s current user base in the UK, a crucial deadline looms on the horizon. By October 8, 2023, at 8 a.m. UTC, existing users must initiate the closure of their accounts and withdraw their funds. Beyond this point, UK customers will find themselves unable to make new deposits, establish fresh contracts, or augment their existing positions across all products and services.

The platform emphasizes the importance of timely action for affected UK customers. Until January 8, 2024, at 8 a.m. UTC, users are strongly encouraged to proactively manage and wind down their positions. After this specified deadline, any remaining open positions will face liquidation, with the resultant funds made available for withdrawal.

Bybit’s withdrawal from the UK market follows the concerns of its co-founder and CEO, Ben Zhou, who foresaw the drastic move in light of these impending regulations. Zhou also highlighted that Bybit also bowed down from the French market due to regulatory pressures. As the top exec mentioned in a previous statement, he recognized the trend of increasing regulatory scrutiny, anticipating the need to retreat from multiple countries.

Bybit’s Exit Signal Shift In UK’s Crypto Regulation

The FCA, in its effort to introduce “tougher new rules,” has outlined a series of changes, including a mandatory 24-hour cooling-off period and the prohibition of incentives like ‘refer a friend’ bonuses. FCA’s announcement explicitly warns against any continued promotion of crypto assets to UK customers beyond the October deadline without compliance with the new regulations, which could potentially result in criminal charges, including the possibility of an unlimited fine and/or imprisonment for up to 2 years.

While the duration of Bybit’s suspension from the UK market remains uncertain, the exchange has indicated that this move allows the company to redirect its efforts and resources toward aligning with the regulatory framework established by UK authorities.

Crypto Regulation Rejection Sparks Australian Concerns

by

The cryptocurrency (Market Regulation) Bill, authored by Senator Andrew Bragg, has become the epicenter of a heated debate in Australian politics. The recent recommendation by the Senate Committee on Economics Legislation to reject the bill has cast a shadow over the future of cryptocurrency regulation in the country.

Senator Bragg has passionately argued that rejecting the bill would leave Australian investors exposed to unregulated markets, potentially driving investment away from the nation. He has emphasized that digital asset regulations serve a dual purpose: safeguarding consumers and stimulating market investment. These regulations were originally introduced to the legislative agenda in October 2021, reflecting their importance in maintaining a stable financial ecosystem.

However, the Senate Committee, led by Labor Party Senator Jess Walsh, offers a contrasting viewpoint. They contend that the bill fails to align with the established regulatory framework, raising concerns about regulatory arbitrage and detrimental outcomes for the crypto industry. This recommendation, though, has led Senator Bragg to accuse the committee of partisanship and assert that their decision has hindered the implementation of digital asset regulations.

While Senator Bragg attributes the rejection to political divisions, Liam Hennessey, a partner at Clyde & Co., suggests that it is more closely linked to a separate regulatory process—specifically, the Treasury’s “token mapping” exercise. This exercise aims to determine how digital assets and related services should be regulated and inform future regulatory decisions. The Senate is currently grappling with a host of legislative matters, and Hennessey believes that the delay in considering Senator Bragg’s bill may not be as significant as it seems.

Despite the ongoing political tussle, it’s worth noting that the fate of crypto regulation in Australia is far from sealed. The bill, introduced in March, is still before the Senate and is expected to be put to a vote in the next sitting session.

Government’s Crypto Mapping Exercise Under Scrutiny

The rejection of the Digital Assets (Market Regulation) Bill has shone a spotlight on the broader issue of cryptocurrency regulation in Australia. The government’s token mapping exercise, initiated last August, promised to provide clarity on the regulatory landscape for digital assets. However, since the release of the consultation paper in February, there has been a noticeable silence from the government regarding its approach to crypto regulation.

As the debate rages on, it remains to be seen whether Australia will seize the opportunity to implement comprehensive and effective crypto regulations that protect consumers and attract investment, or if the nation will continue to navigate the uncertain waters of unregulated crypto markets. The decision on Senator Bragg’s bill will undoubtedly have far-reaching consequences for the Australian crypto industry and its stakeholders, making it a pivotal moment in the country’s journey toward crypto regulation.

G20 Summit Preps For Crypto Regulation Talks Under India’s Presidency

by

In a pivotal development on the international crypto stage, G20 member nations, led by India’s current presidency, have united in their call for global cooperation in regulating crypto assets. The spotlight now shines on the upcoming G20 Summit scheduled for September 9-10, where discussions surrounding crypto regulation are poised to take center stage.

According to a recent report, India’s Finance Minister, Nirmala Sitharaman, officially confirmed the ongoing negotiations for a comprehensive global framework for crypto regulation on September 5. This groundbreaking revelation sets the stage for one of the most crucial topics to dominate the G20 Summit as the world’s economic powerhouses converge to chart a collective course in cryptocurrencies.

Sitharaman stressed the inherent cross-border essence of crypto assets, underscoring the critical demand for a universally adopted regulatory structure. Despite being in the early stages of formulating crypto regulations during India’s G20 presidency, the crypto community eagerly awaits precise guidelines for governing the crypto domain. She remarked,

India’s (G20) presidency has put on the table key issues related to regulating or understanding that there should be a framework for handling issues related to crypto assets.

G20 Nations Diverge On Global Crypto Regulation

The move towards global crypto regulation is poised to address a pressing need felt across the G20 spectrum. Countries like the United States, Australia, and the United Kingdom have witnessed surging demand for cryptocurrencies, creating a growing imperative for consistent and coherent regulation.

However, strict regulations and government apprehension have marked India’s stance on crypto. High taxes and a skeptical outlook have shadowed the industry’s potential within the country. Many have argued that these restrictions have stifled innovation and hindered India’s ability to harness cryptocurrencies for economic development.

Despite this, India has displayed significant interest and activity in Web3 and blockchain technology. As an encouraging sign of forward-thinking in this space, OKX, a prominent crypto exchange, recently announced its plans to enter the Indian market. The company intends to hire local talent and explore the vast potential that India holds in the evolving landscape of Web3.

The collaborative effort among G20 nations to forge a common understanding and approach to crypto regulation signals a turning point in the global crypto narrative. With the G20 Summit just around the corner, the world waits in anticipation for the outcomes that will shape the future of cryptocurrency on a global scale.

Related Reading:| Crypto Regulation: How The 2024 Election Could Shape SEC’s Stance