According to incomplete statistics from Mankiw Law Firm, from July 8, 2024 to July 14 (UTC+8), a total of 31 key encryption policies and related actions of countries and regions around the world were disclosed, showing the diverse and dynamic strategies of major countries and regions from strict to supportive, as well as efforts to find a balance between innovation and financial risks. Among them:
There are 4 pieces of information on China's encryption policies, of which 2 companies have been approved by the Hong Kong Securities and Futures Commission to provide relevant services to Hong Kong virtual currency investors;
There are 11 policies and actions related to the crypto industry in the United States. It is worth noting that the chairman of the US CFTC said that 70%-80% of the cryptocurrency market is non-securities. At the same time, the US SEC determined that BUSD is not a security.
There are 8 policy consultations related to the crypto industry in Europe. The most concerning one is that after multiple transfers to the "German wallet" address, the current BTC balance has been cleared.
For other countries and regions, there are 6 policy information worth paying attention to. Among them, Argentina has become the country with the highest cryptocurrency adoption rate in the Western Hemisphere. Many Argentines have turned to buying and holding stablecoins such as Tether (USDT) to fight inflation in their country.
The following is a summary of policies from July 8 to 14 compiled by Mankiw Law Firm:
China
Changzhi City successfully cracked a money laundering case using virtual currency and arrested 11 people
The Shangdang Branch of the Changzhi Public Security Bureau successfully cracked a criminal gang case that used virtual currency to launder money, arrested 11 suspects, and the amount involved exceeded 2 million yuan. The gang members bought virtual currency at a low price and sold it at a high price to make a profit, and then withdrew the funds from banks in Xi'an, Taiyuan and other places.
Futu Securities is approved to provide virtual asset trading services to Hong Kong investors
According to Oriental Daily, the Hong Kong Securities and Futures Commission recently approved Futu Securities to upgrade its Type 1 regulated activities (securities trading) license, enabling it to provide virtual asset trading services to professional and retail investors in Hong Kong.
Taiwan advances central bank digital currency research and builds a prototype platform
Taiwan’s central bank has established a prototype platform for a central bank digital currency (CBDC) and plans to hold multiple hearings next year to promote research and development of the project. The move aims to establish a unified and effective implementation framework to prevent money laundering and terrorist financing activities.
Pandu Financial's license is approved by the Hong Kong Securities Regulatory Commission to upgrade and expand virtual asset services
Pandu Financial has obtained approval from the Hong Kong Securities and Futures Commission to upgrade its Type 1 and Type 4 licenses, and can now provide distribution and advisory services to virtual asset funds with an investment ratio of more than 10%.
USA
US Department of Justice examines whether Tornado Cash developers are suspected of controlling illegal services
At a hearing in New York, the U.S. Department of Justice explored whether Tornado Cash developer Roman Storm controlled the crypto service he created. Storm faces charges of money laundering and violating international economic emergency powers laws, and the defense argues that Storm only developed privacy software, its operations are decentralized, and should not be held responsible for user behavior. The case raises key legal questions about developer liability and the nature of decentralized technology.
North Carolina Attorney General Warns of Surge in Bitcoin ATM Fraud
North Carolina Attorney General Josh Stein has issued a consumer warning to alert the public to Bitcoin ATM scams, especially after receiving a large number of complaints. The warning provides several tips to avoid such scams, including being wary of unsolicited cryptocurrency payment requests, verifying the authenticity of investment advice, and avoiding get-rich-quick schemes. Victims should report the scams to local law enforcement and consumer protection departments.
U.S. CFTC, Department of Justice and other federal agencies will jointly combat crypto fraud
The U.S. CFTC and the Department of Justice (DOJ) National Cryptocurrency Enforcement Team (NCET) held their first Fraud Disruption conference to address crypto scams such as pig-killing trays. Participating agencies include the Federal Bureau of Investigation (FBI), the Social Security Administration, the U.S. Treasury, the U.S. Drug Enforcement Administration (DEA), the U.S. Postal Inspection Service, the U.S. Secret Service, the U.S. Attorney's Office for the District of Columbia, the U.S. Attorney's Office for Massachusetts, and the U.S. SEC.
U.S. SEC grants some companies exemptions from controversial cryptocurrency accounting guidelines
The U.S. Securities and Exchange Commission (SEC) has granted certain companies an exemption from the controversial cryptocurrency accounting guidance (SAB 121) based on their business practices. These companies demonstrate specific procedures and technologies that enable customers to recover their cryptocurrency assets in bankruptcy situations, thereby eliminating the need to record customers' crypto assets as liabilities of the company under SAB 121.
U.S. House fails to override Biden's veto of SAB 121 resolution
The U.S. House of Representatives voted on Wednesday on whether to override President Joe Biden's veto of SAB 121, but failed to pass, leaving the U.S. Securities and Exchange Commission's cryptocurrency accounting policy unchanged. SAB 121, first issued in 2022, requires cryptocurrency custodians to record customer-held cryptocurrencies as liabilities on their balance sheets. The crypto industry is concerned that the move could prevent banks from safeguarding digital assets.
U.S. CFTC Chairman Urges Congress to Act Quickly on Cryptocurrency Regulation
The U.S. Senate Agriculture Committee is accelerating the process of cryptocurrency regulation legislation following an urgent call from the chairman of the Commodity Futures Trading Commission (CFTC). Although committee chair Debbie Stabenow said that the legislative proposal will be presented to committee members soon, John Boozman, a senior Republican on the committee, revealed that talks with the digital asset industry showed insufficient support for the current proposal.
BitMEX admits to violating bank secrecy laws and pleads guilty
Cryptocurrency trading platform BitMEX has pleaded guilty in federal court for the Southern District of New York to violating the U.S. Bank Secrecy Act for failing to establish and implement adequate anti-money laundering procedures. The charges the company faces relate to its conduct while operating in the United States from 2015 to 2020 and carry a maximum sentence of five years in prison and a fine.
US SEC determines that BUSD is not a security
According to Fortune magazine, the U.S. Securities and Exchange Commission (SEC) decided to end its investigation into New York stablecoin issuer Paxos, determining that the dollar-backed stablecoin BUSD issued in cooperation with Binance is not a security.
Illinois Court Confirms BTC and ETH Are Digital Commodities Under the Commodity Exchange Act
According to Fox Business reporter Eleanor Terrett, Rostin Behnam, chairman of the U.S. Commodity Futures Trading Commission (CFTC), said that an Illinois court has confirmed that BTC and ETH are digital commodities under the Commodity Exchange Act. Behnam also said that 70%-80% of the cryptocurrency market is non-securities.
US Senate recommends Department of Defense test blockchain applications
The U.S. Senate Armed Services Committee directed Defense Secretary Lloyd Austin to explore the potential applications of blockchain technology in supply chain management and national security. This is part of the Fiscal Year 2025 National Defense Authorization Act, which aims to enhance the security and transparency of the defense supply chain. The committee also requested a detailed report on the application of blockchain in the field of national security by April 2025.
Republicans pledge to stop cryptocurrency 'suppression' and oppose central bank digital currencies
In its latest policy platform, former President Trump’s Republican Party pledged to support cryptocurrency innovation and explicitly stated that it would oppose the creation of a central bank digital currency. However, crypto-related projects were not included in the 20 most important policy “commitments” listed in the announcement, and digital assets appeared in the economic section under innovation initiatives.
Europe
The Bitcoin balance of the “German Government” wallet address has reached 0
This week, a wallet marked as "German Government" transferred BTC to multiple CEXs multiple times over multiple days, including Kraken, Coinbase, Bitstamp, Flow, market maker Cumberland DRW, and some unknown addresses. As of July 13, the BTC balance of the wallet address was cleared.
UK disposes of confiscated Monero for the first time
The Cheshire Cyber Crime Unit in the UK has seized £15,000 worth of Monero (XMR) from a convicted drug dealer and sold it for pounds through the UK Food Standards Agency. This is the first time the privacy cryptocurrency has been exchanged for cash in the UK.
The Law Commission of England and Wales believes that there is no need for special regulations for DAOs at present
The Law Commission of England and Wales said that due to the structural diversity of decentralized autonomous organizations (DAOs), it seems that they can be subject to existing laws, so there is no need to formulate specific legislation for DAOs for the time being. The committee believes that DAOs may be included in the scope of the Financial Services and Markets Act 2000 based on their specific activities, and at the same time proposed that DAOs may need to pay tax obligations such as corporate tax in certain circumstances, emphasizing the complexity of the application of laws to this new type of organizational form.
UK Solicitors' Regulator Warns of Bitcoin Scam Emails from Fake Lawyers
The Solicitors Regulation Agency (SRA) in the UK has issued a warning to the public about a new email scam where scammers impersonate lawyers and ask recipients to pay in Bitcoin. These scam emails use fake lawyer names and non-law firm email addresses, claiming to have private data of the recipient and threatening to release damaging videos in order to extort Bitcoin payments.
Lithuania fines cryptocurrency firm Payeer €9.3 million
Lithuania's Financial Crimes Bureau recently imposed a record fine of 9.3 million euros (about 10.1 million U.S. dollars) on cryptocurrency company Payeer. The company was fined for allegedly violating international sanctions and anti-money laundering regulations against Russian customers. In addition, Lithuania is reducing the number of cryptocurrency companies through a new licensing program to prevent digital assets from being used for money laundering or fraud.
Italy’s Central Bank to Release Cryptocurrency Guidelines Soon
Fabio Panetta, the governor of the Italian central bank, announced that Italy will issue a series of guidelines in the coming days aimed at effectively implementing the EU's Crypto-Asset Market Regulation (MiCA) and protecting the interests of certain cryptocurrency holders. Panetta pointed out that according to MiCA regulations, only electronic money tokens (EMTs) pegged to a single official currency can fully perform the function of a means of payment and maintain public trust.
Tulip Siddiq officially appointed as UK City of London Minister responsible for regulating crypto assets
According to Bloomberg, British Prime Minister Keir Starmer appointed Tulip Siddiq as the Minister of the City of London, responsible for overseeing the City of London and the broad financial services industry, including fintech and crypto assets. Tulip Siddiq is cautious about crypto assets. She stressed the need for strong regulation to prevent scams and crimes related to cryptocurrencies.
French election results in hung parliament, parties struggle to form majority
France’s recent election results failed to give any party or coalition an outright majority in the National Assembly, resulting in a hung parliament. This political landscape could lead to more challenges in policymaking, including cryptocurrency regulation.
Southeast Asia
Singapore Exchange CEO Comments on Bitcoin ETF
Loh Boon Chye, CEO of the Singapore Exchange, said that Singapore’s current ecosystem is not yet ready to launch a spot Bitcoin ETF. But he also pointed out that as the market matures and develops, the exchange, as one of the most innovative platforms in the world, will remain open to future possibilities.
Thai government to open digital wallet registration soon
According to Jinshi, the Thai government will launch a digital wallet registration program and simultaneously publish a negative list of digital wallet programs. Earlier, the Thai Prime Minister said that the digital wallet program aims to stimulate economic development in underdeveloped provinces and regions.
Other countries and regions
Nigeria's Securities and Exchange Commission proposes regulating Bitcoin and Ethereum as commodities
Nigerian stakeholders have called on the Securities and Exchange Commission (SEC) to adopt a similar approach in its regulatory framework, suggesting that Bitcoin and Ethereum be treated as commodities to provide the market with the required clarity and stability, thereby encouraging innovation while ensuring regulatory compliance.
Paraguayan Senate passes law with up to 10 years in prison for crypto miners who steal electricity
The Paraguayan Senate has passed a series of reforms that impose stiff penalties on electricity theft in cryptocurrency mining activities. The new law stipulates that individuals and companies that use stolen electricity for cryptocurrency mining will face up to 10 years in prison. In contrast, non-cryptocurrency mining-related electricity theft will face up to 3 years in prison or an undetermined fine.
Russia’s Ministry of Finance proposes opening cryptocurrency trading to certain investors
In its draft response to two proposed laws, the Russian Ministry of Finance proposed allowing all foreign economic activity (FEA) participants to use digital assets for settlements and proposed allowing cryptocurrency trading only on exchanges and platforms on the official registration list. The proposal aims to approve digital currency settlements for FEA participants while limiting cryptocurrency purchases on Russian exchanges to selected investors only.
Cyprus strengthens anti-terrorism regulation of cryptocurrency
The Cyprus Institute of Accountants (ICPAC) has issued an alert against terrorist financing, specifically emphasizing the need to monitor five methods of money transfer, including cryptocurrencies. ICPAC encourages audit and accounting professionals to actively participate in monitoring and reporting suspicious transactions to prevent terrorist financing.
Nigeria’s finance minister urges new SEC board to address complexity of cryptocurrency regulation
Nigerian Finance Minister Wale Etun urged the country’s Securities and Exchange Commission (SEC) to address the complexity of cryptocurrency regulation. He stressed that strict regulatory measures must be implemented to maintain the integrity of the capital market, especially focusing on fast-growing areas such as artificial intelligence and digital currencies.
Inflation in Argentina drives crypto adoption
Forbes reports that Argentina has become the country with the highest cryptocurrency adoption rate in the Western Hemisphere as it faces an inflation rate of 276%. In order to combat the depreciation of their currency, many Argentines have turned to buying and holding stablecoins such as Tether (USDT). While this provides Argentines with a new way to circumvent currency depreciation and obtain US dollars, the unreliability of exchanges and the lack of regulation of the overall crypto market remain significant risks.
