Research Summary
This report provides a comprehensive update on the latest crypto regulations and policy happenings relevant to builders in web3 and crypto. It covers a range of topics including enforcement actions by the SEC and CFTC, legislative developments in Congress, and international regulatory updates from the EU, Singapore, and the UK among others.
Key Takeaways
Regulatory Actions
- SEC and CFTC Enforcement Actions: The SEC charged Stoner Cats 2 LLC with conducting an unregistered offering of crypto asset securities in the form of NFTs. The CFTC settled charges against three DeFi platforms for offering illegal digital asset derivatives trading and failing to register with the CFTC.
- OneCoin Fraud Sentence: A New York federal judge sentenced a co-founder of the multibillion-dollar cryptocurrency fraud scheme “OneCoin” to 20 years in prison.
- Department of Justice Actions: The FBI identified North Korea-affiliated Lazarus Group as responsible for the theft of approximately $41 million in virtual currency from Stake.com.
Legislative Developments
- Congressional Bills: House Majority Whip Tom Emmer reintroduced the CBDC Anti-Surveillance State Act, which would prohibit the Federal Reserve from issuing a central bank digital currency directly to individuals.
- California’s Digital Financial Assets Law: The California State Assembly passed the Digital Financial Assets Law, which would create a regulatory licensing framework for the state’s crypto industry.
- EU Cryptocurrency Tax Reporting Rule: The European Union Parliament voted in support of a cryptocurrency tax reporting rule, called the Directive on Administrative Cooperation (DAC8).
International Regulatory Updates
- Singapore’s Regulatory Actions: The Monetary Authority of Singapore issued nine-year prohibition orders against the founders of Three Arrows Capital.
- Turkish Crypto Exchange Sentence: The founder of the collapsed Turkish crypto exchange Thodex was sentenced to 11,196 years for defrauding investors of millions of dollars.
- UK’s Financial Conduct Authority Announcement: The U.K.’s Financial Conduct Authority announced that it will allow some crypto firms extra time to implement changes to their marketing processes ahead of the U.K.’s new rules on financial promotions.
Actionable Insights
- Understanding Regulatory Landscape: Crypto businesses should stay informed about the evolving regulatory landscape to ensure compliance and mitigate risks.
- Adapting to New Legislation: Companies should prepare for new legislation such as California’s Digital Financial Assets Law and the EU’s DAC8 rule.
- International Market Considerations: Businesses operating internationally should consider regulatory developments in key markets such as Singapore and the UK.
