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Global Crypto Regulatory Policies (2024.8.26 -9.1) | Mankiw Legal Weekly

Global Crypto Regulatory Policies (2024.8.26 -9.1) | Mankiw Legal Weekly

曼昆律师事务所 2024/09/03 02:49
By:曼昆律师事务所
According to incomplete statistics from Mankiw Law Firm, from August 26, 2024 to September 1 (UTC + 8), a total of 41 important encryption policies and related actions have been disclosed in various countries and regions around the world, mainly law enforcement activities against cryptocurrency, but there are also several key policy information. Among them:
 
There are a total of 13 information about China's encryption policies. It is worth noting that the Hong Kong Monetary Authority has launched the Ensemble project sandbox to promote tokenized applications.
 
2. There are 10 major US policies and actions related to the crypto industry, among which there are reports that the US House of Representatives will hold multiple hearings on cryptocurrency in September.
 
In Europe, there are 6 policy news worth paying attention to, among which Russia is about to start experiments with encrypted payments and exchanges, which has attracted attention and discussion in the Web3 industry.
 
China
 
Hong Kong accepts applications for cryptocurrency licenses beyond the deadline
The Hong Kong Securities and Futures Commission (SFC) has accepted a license application from the Hong Kong Digital Asset Exchange (HKDAEx) after the deadline, which was submitted on August 27th. Hong Kong is strengthening its crackdown on unlicensed virtual asset trading platforms and striving to establish itself as a global cryptocurrency center.
 
Changning court successfully recovered 280,000 yuan loss and promoted reconciliation between the victim and the defendant
In a recent case, Changning People's Court successfully helped the victim recover 280,000 yuan of economic losses through pre-trial mediation. Under the guidance of the judge, the defendant voluntarily pleaded guilty and agreed to compensate, ultimately leading to the victim's forgiveness. This process not only effectively safeguarded the legitimate rights and interests of the defendant, but also demonstrated the court's efforts in maintaining judicial fairness.
 
Jiangxi police successfully destroyed a virtual currency money laundering den, and 8 suspects were arrested
Jiangxi Xingguo police successfully smashed a criminal gang that used virtual currency as a means of money laundering, arresting 8 suspects and seizing 200,000 yuan of funds involved in the case. The suspects laundered money through illegally obtained loan funds and ultimately exchanged the fraudulently obtained cash for virtual currency. This operation shows the public security organs' resolute crackdown on new money laundering methods, and also emphasizes the importance of public participation in preventing telecommunications network fraud.
 
Three suspects were sentenced for implanting "backdoors" in the APP to illegally parse nearly 20,000 digital wallet addresses
On the 29th, the People's Procuratorate of Xuhui District, Shanghai reported the first case of illegally obtaining the private key of a digital wallet in the country. Three suspects, Liu, Zhang, and Dong, illegally obtained the private key and mnemonic words of others' digital wallets by implanting a "backdoor" in a virtual currency storage APP, totaling 27,622 mnemonic words and 10,203 private keys, and successfully resolved 19,487 digital wallet addresses. In April 2024, the three were sentenced to three years in prison and fined 30,000 yuan for illegally obtaining computer information system data.
 
Hong Kong police busted three money laundering syndicates and arrested 27 people within a month
Hong Kong law enforcement busted three money laundering syndicates this month, successfully arresting 27 people involved in laundering criminal profits of more than 300 million yuan. Investigations showed that these gangs used multiple transfer methods to transfer fraudulent funds from Singapore to Hong Kong's puppet accounts and used virtual currency for money laundering. Law enforcement operations revealed that money laundering activities increased significantly in the first half of this year, with arrests up 40% from the same period last year.
 
The Hong Kong Monetary Authority launches the Ensemble project sandbox to promote tokenization applications
HKMA (Hong Kong Monetary Authority) has launched the Ensemble project sandbox. The first phase of the trial will focus on four major themes: Fixed Income, Liquidity Management, Green Finance, and Supply Chain Financing. The connection to the tokenized deposit platform has been completed, preparing for the experiment of cross-bank payment and dual-payment settlement. HKMA stated that it will continue to communicate with the industry to promote innovative development of the tokenized market and enhance Hong Kong's position in asset and wealth management. Subsequently, HKMA announced the four major use case themes of the first phase of the trial. The working group members include Bank of China (Hong Kong) Limited, Hang Seng Bank Limited, HashKey Group, The Hongkong and Shanghai Banking Corporation Limited, Standard Chartered (Hong Kong) Limited, Ant Digital Technology, Microsoft Hong Kong Limited, etc.
 
Hunan Lengshuijiang police cracked a series of virtual currency robbery cases and recovered over one million yuan
The Lengshuijiang police recently successfully cracked a complex case of "true and false victims" and arrested 27 suspects. The case began on July 26th when the police received a report from two men, both claiming to be victims. After investigation, it was found that the woman disguised herself as a victim of telecommunications fraud using false chat records, and actually cooperated with gang members to commit robbery, stealing virtual currency worth about 500,000 yuan from the other party. After technical analysis and psychological attack, the police exposed the true purpose of the gang and successfully recovered more than one million yuan. The case is still under further investigation.
 
Announcement of the Supreme People's Court inviting tenders for major judicial research projects in 2024
The Supreme People's Court has issued a notice inviting tenders to major judicial research projects for 2024, covering various research directions such as special funding, key funding, and youth projects, among which key funding projects involve research on virtual currency disposal issues, judicial issues related to digital economy, and cross-border data flow issues related to Web3.
 
Taiwanese couple charged with laundering more than 1.60 billion New Taiwan dollars
A couple surnamed Li in Taichung, Taiwan, are suspected of laundering money for multiple gaming groups, involving an amount exceeding NT $1.60 billion. In September last year, the police discovered that the couple used virtual currency to transfer illegal profits and recruited members around the age of 20 to launder money after cracking down on a gaming room disguised as an advertising company. The police have transferred them to the procuratorate for charges such as the "Organized Crime Prevention Regulations" and seized more than 73.2 million yuan in illegal gains.
 
The Hubei court ruled that virtual currency investments are invalid, and investors bear their own losses
The People's Court of Wuhan Donghu New Technology Development Zone in Hubei Province has concluded a case of virtual currency investment contract dispute. Due to the freezing of the investment platform, the court rejected the plaintiff Liu's lawsuit request, stating that his investment behavior was an invalid civil legal act and the losses should be borne by himself. Liu transferred a total of more than 1.84 million yuan to Wang and a third-party account to invest in "Tether" while trusting colleagues, but did not sign any agreement. The court found that there was a lack of evidence to support his entrustment relationship, and ultimately decided that Liu should bear all the losses. The judge emphasized that there are legal risks in virtual currency investment, and investors should act with caution.
 
Liyang Procuratorate: Unemployed college student convicted of concealment for selling virtual currency
Due to repaying credit card debts, unemployed college student Xiao Wu collaborated with a "money laundering company" to resell virtual currency. He was eventually sentenced to six months in prison, suspended for one year, and fined 2000 yuan by the People's Court of Liyang City. After contacting a money laundering customer service on "Telegram", Xiao Wu purchased U coins and sold them at a high price through a specific app. Despite warnings from people around him that this was illegal behavior, he still insisted on participating. After investigation by the police, it was found that his bank card flow totaled more than 25,000 yuan, illegally profiting more than 5000 yuan, and he was eventually prosecuted according to law. Xiao Wu repented during the trial and admitted his criminal behavior.
 
Hunan police busted a large-scale telecommunications fraud gang and arrested 62 suspects
Hunan police recently cracked a major telecommunications fraud case, arresting 62 alleged offenders from 18 provinces with a total amount of over 4 million yuan. The gang provided support to overseas fraud gangs by renting out mobile phone numbers and WeChat accounts, and illegally mined Bitcoin using low electricity bills. The police have launched a nationwide crackdown on telecommunications fraud activities.
 
The Hong Kong government promotes high-quality development of the digital economy
The Hong Kong government has established a digital policy office to accelerate the development of the digital economy and innovative technology. By promoting cross-border integration, building a digital ecosystem, and strengthening regulation to combat technology crimes, Hong Kong strives to take a leading position in the global digital economy. At the same time, the government will also focus on public education, enhance digital thinking, and promote the cultivation of innovative and technological talents.
 
The following is a summary of policies compiled by Mankiw Law Firm from August 26th to September 1st.
 
US
 
Washington man faces charges in 64 million cryptocurrency money laundering case
Geoffrey K. Auyeung, a resident of Newcastle, Washington, has been indicted for allegedly participating in a cryptocurrency money laundering scheme worth $64 million. He is accused of impersonating a custodian agent, defrauding investors and transferring funds to his own account, which was then transferred overseas or converted into Bitcoin and Ethereum through multiple cryptocurrency exchanges such as Gemini, Bitstamp, and Coinbase. Investigators have traced 74 bank accounts related to Auyeung and have seized $2.30 million in funds.
 
US House of Representatives plans multiple hearings on cryptocurrency in September
The US House Financial Services Committee will hold a series of hearings on cryptocurrency in September, focusing on issues such as decentralized finance (DeFi), Securities and Exchange Commission (SEC) regulation of digital assets, and the impact of "pork slaughter" scams. The first hearing on DeFi will be held on September 10th, and SEC Chairperson Gary Gensler is expected to testify at the full committee hearing on September 23rd, becoming the focus of attention. This move reflects the continued attention of Congress to the regulation and legislation of the cryptocurrency industry.
 
The judge rejected the Dogecoin market manipulation lawsuit against Elon Musk and Tesla
Manhattan Judge Alvin Hellestein permanently dismissed the lawsuit accusing Elon Musk and his company Tesla of manipulating the price of Dogecoin (DOGE), stating that Musk's statements were "expected" and "exaggerated" rather than factual claims, and therefore no reasonable investor would rely on these statements. The judge ruled that the lawsuit's request was dismissed and marked the end of the case.
 
OpenAI and Anthropic will share their AI models with the US government
OpenAI and Anthropic have agreed to provide the US government with access to their main new AI models for security testing before public release. This measure aims to help the government assess security risks and mitigate potential issues, while collaborating with relevant agencies in the United Kingdom. Currently, the California legislature is considering security measures for AI technology and has pushed for the passage of relevant bills, despite opposition from some AI companies. The US White House is also working to ensure that major companies voluntarily commit to AI security measures.
 
US District Judge Dismisses SEC Securities Charges Against Binance BNB Token Secondary Market Sale
According to Fox Business reporter's disclosure, District Judge Amy Berman Jackson rejected the US Securities and Exchange Commission's (SEC) claim for securities qualification for secondary market sales of Binance BNB tokens, citing the opinion of Ripple judge Analisa Torres, emphasizing the importance of the economic reality of transactions in applying the Howey test. She pointed out that the government's argument is not sufficient to consider secondary sales of BNB as securities for investment contracts, emphasizing that its argument is inconsistent with the government's previous theory.
 
US Securities and Exchange Commission Amends Investment Company Reporting Requirements to Increase Liquidity Risk Management Transparency
The US Securities and Exchange Commission revised the reporting requirements for Form N-PORT and Form N-CEN on August 28, 2024, with the aim of improving regulation and public transparency in the asset management industry. The revision requires investment companies to submit monthly portfolio holding information and increase the frequency of public disclosure to enable investors to make more informed investment decisions. In addition, the revision also requires Open-End Funds to report information on service providers used for Liquidity Risk Management. The new regulations will take effect on November 17, 2025.
 
California passes artificial intelligence company data transparency bill to be signed by governor
The California legislature passed a bill on Tuesday requiring artificial intelligence companies to disclose more transparency about the data used to train models. The bill has now been submitted to Governor Gavin Newsom, who has not yet commented on it. Musk expressed support for the bill and mentioned its potential impact on open source models.
 
SEC sues brothers for alleged $600,000 virtual currency Ponzi scheme
The US Securities and Exchange Commission (SEC) has accused Jonathan Adam and his brother Tanner Adam of operating a virtual currency Ponzi scheme involving $60 million, which claimed to attract more than 80 investors using a non-existent cryptocurrency trading robot. The SEC stated in the complaint that the brothers promised a monthly investment return of 13.5% through their trading robot from January 2023 to June 2024, but actually spent most of the $53.9 million on lavish spending, including buying cars and building $30 million apartments. The SEC has taken emergency asset freeze measures against the brothers and their company, and is seeking permanent injunctions and civil fines.
 
US authorities oppose former FTX executive's motion to withdraw plea deal
The US prosecutor's office recently opposed the request of former FTX digital market co-CEO Ryan Salame to revoke the plea agreement. Salame pleaded guilty to violating campaign financing laws and was sentenced to seven and a half years in prison. He claimed that during the plea negotiations, the prosecutor hinted that they would not continue to investigate his partner Michelle Bond. However, the prosecutor responded that the accusation was "manifestly untrue" and pointed out that Bond had been charged with related crimes. Salame's legal team needs to submit a written rebuttal by September 4th.
 
Abra has reached a settlement with the SEC, accused of selling encrypted asset securities without registration
Abra reached a settlement with the US Securities and Exchange Commission (SEC) in July 2020 for its encrypted loan product Abra Earn, which was accused of selling encrypted asset securities without registration. The SEC stated that Abra used customers' digital assets to generate income and pay interest for itself while providing profits to customers. According to the settlement agreement, Abra agreed to comply with the registration regulations of securities laws and investment company laws, and pay civil fines determined by the court. Although Abra does not admit any wrongdoing, it stated that it will continue to comply with securities laws and confirmed that all US customers' assets have been transferred to Abra Trade accounts in 2023.
 
Europe
 
Medway Trader Becomes First in United Kingdom to Be Charged for Crypto ATM Offences
A Medway trader has been charged with illegally operating a cryptocurrency ATM, becoming the first person in the United Kingdom to be prosecuted for the crime. Habibur Rahman is suspected of operating an ATM without being registered with the Financial Conduct Authority and is accused of money laundering by converting 300,000 pounds of criminal cash into cryptocurrency. He has been released on bail and will appear in Medway Magistrates Court on October 10, 2024. The Financial Conduct Authority warns the public that there are currently no registered cryptocurrency ATMs and using these machines may be risky.
 
New Zealand considers adopting OECD encryption reporting standards
The New Zealand Minister of Finance proposed to implement the OECD framework to automatically exchange financial information on encrypted assets. The relevant revisions are expected to take effect on April 1, 2026, requiring New Zealand's encrypted service providers to collect transaction information. If the information is not provided as required, the service provider will face a fine of $300 per transaction, while users will have to pay a fine of $1,000. This move aims to improve tax transparency and ensure regulation of encrypted asset income.
 
The CEO of Telegram has been arrested by French authorities on suspicion of providing unauthorized "cryptography" services
French authorities issued a statement on August 26 linking the arrest of Pavel Durov, Telegram's chief executive, to a wide-ranging investigation into cybercrime, including allegations of providing "cryptographic" services and tools.
 
The United Kingdom's Financial Conduct Authority (FCA) has not approved any crypto registrations in the past six months
The Financial Conduct Authority (FCA) of the United Kingdom has not approved the registration of any cryptocurrency companies in the past six months. Although former Chancellor of the Exchequer Rishi Sunak promised to make the United Kingdom a "global center for cryptocurrency technology" in 2022, this promise now seems unreachable. The regulatory agency stated that most cryptocurrency companies have failed to meet their Anti Money Laundering standards, which is the main reason for the stagnation of the registration process.
 
Russia is about to start experimenting with crypto payments and exchanges
Russia is about to start trials of cryptocurrency exchanges and use digital tokens in cross-border transactions to help alleviate payment difficulties for Russian companies hit by international sanctions. Two insiders said the trials will begin on September 1st. They stated that Russia will use the national payment card system to exchange between RUB and cryptocurrency during the testing of payment and trading platforms.
 
Statement by France's President Macron on the arrest of Pavel Durov
French President Macron clarified the misinformation about the arrest of Telegram founder Pavel Durov on Twitter. He reiterated that France is always committed to freedom of speech, communication, innovation, and entrepreneurial spirit, and emphasized that this position will not change. Macron pointed out that the legal framework is the basis for protecting citizens and respecting their basic rights. The judiciary is responsible for enforcing the law independently, and Durov's arrest is based on ongoing judicial investigations, not political decisions. Previously, French authorities extended Durov's detention time.
 
Japan and South Korea
 
The Japan Crypto Asset Business Association (JCBA) explores crypto asset tax reform
At the WebX 2024 conference, the Japan Crypto Asset Business Association (JCBA) discussed the country's crypto asset tax reform, with a focus on the possibility of implementing separate tax reporting. Participants unanimously believed that the current tax system has obvious defects and needs structural adjustments to better adapt to the particularity of crypto assets and promote investor enthusiasm. At the same time, the government needs to strengthen dialogue with the industry to ensure that tax reform can promote economic development.
 
The Japanese Minister of Economy, Trade and Industry expects Web3 to bring innovation
At the international Web3 conference "WebX", Japanese Minister of Economy, Trade and Industry Kenji Futo emphasized that Japan is in a historic transformation period and is committed to becoming a "global creative center". He pointed out that Web3 technology is crucial for solving social problems, and stated that he will promote tax and legal reforms to support startups and attract global entrepreneurs and developers. The conference aims to stimulate innovation and promote Japan's Strategy and Development in the field of digital economy.
 
Japanese Prime Minister Fumio Kishida: Looking forward to the innovation of Web3 and blockchain technology in solving various social issues
At the opening ceremony of the Web3 conference "WebX 2024", Japanese Prime Minister Fumio Kishida expressed his expectation for the innovative role of Web3.0 and blockchain technology in solving social problems through a video. He emphasized the government's policy of promoting digital transformation since 2020, aiming to provide open space for technological innovation, and mentioned the implementation of tax and legal reforms to support Web3 startups and revitalize the content industry.
 
South East Asia
 
Singapore is in an advantageous position in global cryptocurrency adoption due to leading regulatory policies
According to the 2024 Cryptocurrency Adoption Index released by Henley & Partners, Singapore has become the global leader in cryptocurrency adoption due to its leading regulatory policies and innovative financial projects. The report points out that Singapore's banking system support, significant investments, and comprehensive regulatory environment are key factors driving its cryptocurrency adoption. Hong Kong and UAE ranked second and third respectively, demonstrating strong growth momentum in the cryptocurrency field in Asia. The US and the United Kingdom ranked in the top five, despite facing complex regulatory environments.
 
An Indian court has ordered the closure of a website that was fraudulently used in the name of Mudrex
The Delhi High Court recently ruled to shut down 38 fraudulent websites impersonating cryptocurrency exchange Mudrex, ordering the Indian Ministry of Communications to execute the order within a week. The CEO of Mudrex stated that the estimated number of retail investors who were deceived may exceed 1,000, with losses exceeding $50,000. Scammers deceived investors by impersonating Mudrex employees and illegally collected funds.
 
Dutch man sentenced to six years in prison in Singapore for "Ponzi scheme"
A 61-year-old Dutch man, Yang Bin, was sentenced to six years in prison for setting up an investment company in Singapore to implement a "Ponzi scheme". He defrauded more than 700 investors from May 2021 to February 2022, with an amount of 6.70 million yuan. He promised to provide an investment plan to cooperate with a Chinese cryptocurrency mining company, but did not actually own any mining machines. The court ruled that Yang Bin faced 19 charges, and ultimately pleaded guilty to eight of them and fined him 16,000 yuan. Another member of the gang, Wang Xinghong, has pleaded guilty and been sentenced to five years in prison, while the cases of the other accomplices are still under trial.
 
The Indian government is investigating Telegram's possible criminal activities
The Indian government is investigating the Telegram app over allegations of improper use in criminal activities such as extortion and gambling. The investigation, conducted jointly by the Ministry of Home Affairs and the Ministry of Electronic Information Technology, may result in the app being banned. This news comes as Telegram founder Pavel Durov was arrested in Paris for failing to effectively manage criminal activities in the app.
 
Other countries and regions
 
More than 110 companies are building Bitcoin-related businesses in Africa
Bitcoin Magazine tweeted that more than 110 companies are currently building Bitcoin-related businesses on the African continent. The map shows that these Bitcoin activities are distributed in multiple countries including Nigeria, South Africa, Kenya, Uganda, etc. These companies and communities cover a wide range of fields, including technology development, mining, education, Financial Services, and media.
 
Nigeria temporarily approves the operation of two cryptocurrency exchanges
According to Jinshi Data, Nigeria has temporarily approved two cryptocurrency exchanges to start operating under the Accelerated Regulatory Incubation Program (ARIP).
 
Bank for International Settlements: Banks using permissionless blockchain for transactions face multiple risks
A report from the Bank for International Settlements (BIS) points out that banks face various risks when conducting transactions on permissionless blockchain, including settlement finality, compliance, operational security, governance, and legal risks. The report emphasizes that due to the reliance of blockchain on unknown third parties, banks face challenges in conducting due diligence, and current risk management strategies have not been stress tested. To address privacy issues, zero-knowledge proofs are considered a potential solution.
 
Nigerian judge to hear Binance money laundering case ahead of schedule
Nigerian judges will hear a money laundering case involving Bianca and two of its executives next week, bringing forward the trial scheduled for October 11 to September 2. Bianca is accused of laundering more than $35 million and is partly responsible for the devaluation of the naira, causing it to stop trading in the naira. Bianca and its executives deny the charges, but one executive has fled Nigeria.
 
Argentina launches Ethereum and blockchain technology courses in high schools
Argentina has made significant progress in blockchain education, surpassing other countries in Latin America. The ETH Kipu Foundation has partnered with the Ministry of Education in Buenos Aires to incorporate Ethereum and blockchain technology into high school curricula, aiming to provide students with new career opportunities needed for future technology-driven economies. In addition, starting from August 27th, students will have the opportunity to participate in blockchain project internships and learn the Solidity programming language to pave the way for their careers.
 
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Bitget2024/12/20 06:26