1. The Supreme People’s Court and the Supreme People’s Procuratorate issued the latest judicial interpretation: “Virtual asset” transactions are listed as a method of money laundering.
According to the WeChat official account of the Supreme People's Procuratorate, the Supreme People's Court and the Supreme People's Procuratorate jointly held a press conference and issued the "Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Money Laundering" (hereinafter referred to as the "Interpretation"). The "Interpretation" will come into effect on August 20, 2024.
It is mentioned that the Interpretation lists "virtual asset" transactions as one of the methods of money laundering. It is clear that the transfer and conversion of criminal proceeds and their benefits through "virtual asset" transactions and financial asset exchanges can be identified as "covering up and concealing the source and nature of criminal proceeds and their benefits by other means" as stipulated in Article 191, Paragraph 1, Item 5 of the Criminal Law.
2. Insider: Solana ETF issuer will submit more documents to prove SOL is not a security
According to The Block, citing people familiar with the matter, the U.S. Securities and Exchange Commission (SEC) recently discussed with potential Solana ETF issuers that Solana might be considered a security. Subsequently, the Cboe BZX exchange withdrew the relevant 19b-4 application documents. Currently, these applications are not displayed on the Cboe website or the Federal Register. VanEck's Solana ETF S-1 registration statement can still be viewed in the SEC's EDGAR system.
People familiar with the matter said there may be new applications or revisions in the future to argue that SOL is not a security. Although Bitcoin and Ethereum ETFs have been approved, the market expects the SEC to be more cautious in approving the Solana fund.
3. A former CEO of a bank in Kansas, USA, embezzled $47.1 million and participated in a cryptocurrency scam and was sentenced to 24 years in prison
According to the official website of the U.S. Department of Justice, Shan Hanes, the former CEO of a bank in Kansas, was sentenced to 293 months (about 24 years and 5 months) in prison for embezzling huge amounts of funds to participate in a cryptocurrency scam.
According to court documents, Shan Hanes, 53, pleaded guilty to one count of embezzlement by a bank executive. While serving as CEO of Heartland Tri-State Bank, Shan Hanes made 11 wire transfers totaling $47.1 million between May and July 2023, transferring funds to a cryptocurrency wallet and participating in the so-called "pig killing" scam.
The funds ultimately flowed into multiple cryptocurrency accounts controlled by unidentified third parties. Because the bank is protected by the Federal Deposit Insurance Corporation (FDIC), the FDIC took on $47.1 million in losses.
Shan Hanes’ fraud led to the collapse of Heartland Tri-State Bank and investors lost $9 million. The U.S. Department of Justice said that Shan Hanes’ actions not only betrayed banks and investors, but also jeopardized people’s confidence in financial institutions. The case was jointly investigated by multiple agencies including the Federal Bureau of Investigation (FBI) and the FDIC Office of Inspector General.
4. Binance and the Macau Judiciary Police jointly launched a joint anti-fraud operation
Binance officially announced that it is committed to jointly promoting the security of the cryptocurrency ecosystem and is working closely with law enforcement agencies around the world to combat and prevent financial crimes. As part of these efforts, Binance has partnered with the Macau Judiciary Police to launch a joint anti-fraud campaign aimed at raising users' awareness of online fraud and reducing the risk of users being defrauded by establishing tailored anti-fraud alerts in Binance's system.
5. The Nigerian Securities and Exchange Commission plans to issue the first digital services and tokenized asset licenses this month
Nigeria’s Securities and Exchange Commission plans to issue its first digital services and tokenized asset licenses this month, the regulator’s director general, Emomotimi Agama, has said, according to Bloomberg.
6. State Street Bank selects Taurus for cryptocurrency custody and tokenization
According to CoinDesk, State Street Bank has selected Taurus for cryptocurrency custody and tokenization. State Street Bank is a global custody bank with $44.3 trillion in assets under management. State Street Bank said the bank's initial focus is on launching tokenized versions of traditional assets and will announce its first customer soon.
7. Insider: The U.S. Securities and Exchange Commission rejected Cboe’s 19b-4 application for Solana spot ETF
According to The Block, citing people familiar with the matter, the US SEC rejected two Solana spot ETF 19b-4 applications submitted by Cboe BZX. As a result, these applications have been withdrawn from the Cboe website.
The 19b-4 filing is filed by a trading platform (in this case, Cboe) on behalf of the issuer. If published in the Federal Register, it kicks off the SEC’s approval process. Another important form is the S-1 registration statement, which is filed by the issuer and does not have any deadline. However, because the SEC rejects the 19b-4 forms, these forms are never published in the Federal Register and therefore do not kick off the potential approval or rejection process.
8. The Bank of Ghana has released draft regulations aimed at establishing a framework for the cryptocurrency industry. According to Bitcoin.com, the Bank of Ghana has released draft regulations aimed at establishing a framework for the cryptocurrency industry. The rules are designed to protect consumers, prevent financial crime and encourage financial inclusion. Virtual asset service providers (VASPs) will be required to register and meet strict standards, while commercial banks are prohibited from dealing directly with virtual asset businesses. The public has the opportunity to provide feedback on the proposed regulations before they are finalized. The rules were released on August 16 and are designed to promote financial inclusion while protecting cryptocurrency users. The central bank's decision was made after a comprehensive analysis of digital assets such as Bitcoin (BTC) and USDT stablecoins. The analysis found that with the popularization of the Internet and the rise of virtual asset service providers (VASPs), Ghana's tech-savvy population is increasingly using digital assets. Although the use of cryptocurrencies is still low compared to traditional finance, the Central Bank of Ghana believes that the role of cryptocurrencies in cross-border payments and remittances requires regulation. The regulations are designed to address money laundering, fraud and cybersecurity threats while adhering to international standards. In addition, virtual asset service providers must meet capital requirements and have internal controls and risk management frameworks. The draft clearly stipulates that commercial and registered financial institutions can only provide services to registered virtual asset service providers. No bank or financial institution can directly handle virtual asset-related business. Before finalizing the regulations, the BoG will conduct a sandbox testing process to identify potential problems or improve the rules. 9. Bitcoin miner Greenidge Generation files lawsuit against New York State Environmental Protection Agency for license renewal Bitcoin miner Greenidge Generation has filed a lawsuit against the New York State Environmental Protection Agency (DEC) for dissatisfaction with the rejection of its application for renewal of the fifth category air permit for the Dresden power plant. DEC previously rejected the application in June 2022 for failure to comply with the Climate Leadership and Community Protection Act. Greenidge said that if DEC's decision is not reversed, it will be forced to close and cease operations of the facility by September 9. Greenidge believes that DEC's decision is "arbitrary and capricious" and interferes with the New York State Public Service Commission's jurisdiction over power generation facilities.The company noted that regulators’ closure decision was based on its involvement in cryptocurrency mining, although the facility also provides electricity to the grid. Greenidge also highlighted the facility’s contribution to the state economy, including jobs and tax revenue.
