Crypto regulation – The Shib Daily

SHIB ETF Path Clears Now; VP Warns on Market Risks

Gushiken Yona — Mon, 29 Sep 2025 08:20:09 +0000

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The U.S. Securities and Exchange Commission’s approval of new generic listing standards has defined a direct path for a potential spot Shiba Inu ETF. The asset meets the key requirement as its futures contract has been trading on the CFTC-regulated Coinbase Derivatives exchange for over a year. As the path clears for a wave of new crypto ETFs, including one for SHIB, 3iQ’s Executive Vice President of Product, Greg Benhaim, warns of the significant market challenges that lie ahead.

Key Points

Expert Warns of ETF Glut: Greg Benhaim of 3iQ cautions that the imminent launch of numerous crypto ETFs will create a hyper-competitive environment for capital and could confuse retail investors.
SHIB Now ETF-Eligible: Shiba Inu meets the SEC’s key requirement for an ETF because its futures have been trading on the CFTC-regulated Coinbase Derivatives exchange since July 15, 2024.
Challenge Shifts to Market Competition: With the regulatory path clear, the success of a potential SHIB ETF now hinges on its ability to compete for investor attention and capital in a crowded field.

Expert Cautions on Imminent ETF Wave

In response to new SEC guidelines for ETFs, Greg Benhaim, Executive Vice President of Product at 3iQ, offered a counter-narrative focused on practical market challenges. Drawing from his firm’s experience as an ETF issuer in Canada, he highlighted the potential downsides of this sudden market expansion in a note shared with The Shib Daily.

“At first glance, this seems bullish for the industry,” Benhaim shared. “However… it may be challenging for issuers to fight for raising capital when new products are being listed every single day.”

He also underscored the risk for retail participants who will soon face a barrage of new products. “To the average investor, they may have a tough time distinguishing between which coins to purchase,” Benhaim explained. “For example an AVAX ETF and an ADA ETF are very different but the investor may not appreciate this fully.”

How New SEC Rules Make a SHIB ETF Possible

Benhaim’s warning coincides with the removal of regulatory hurdles for a spot SHIB ETF. The SEC’s new generic listing standards allow exchanges to list crypto ETPs without a lengthy approval process, provided the asset has a futures contract that has traded for at least six months on a CFTC-regulated market.

Shiba Inu meets this critical requirement. According to a market notice from Coinbase Derivatives, futures for “1k Shib (SHB)” began trading on its platform on July 15, 2024.

Having traded for over 14 months, the SHIB futures contract exceeds the SEC’s six-month mandate, placing it in the same eligibility pool as assets like Solana and Polkadot. The new SEC rule makes a spot SHIB ETF a regulatory possibility.

From The Shib: How Shiba Inu Can Unlock Its SHIB ETF Future

Focus Shifts to Market Viability and Competition

The SEC’s decision alters the process for listing crypto investment products in the U.S. The primary challenge for issuers now involves proving an asset’s viability in a competitive market.

For the Shiba Inu community, which has long advocated for an ETF, the new rules signal the beginning of a more competitive phase. As Benhaim noted, the market itself will now act as the ultimate filter.

The proliferation of funds “will pave the way for the industry to identify which assets have significant retail appeal in ETF format and which don’t.”

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Japan FSA Report Proposes Stricter Crypto Rules: How Does It Impact SHIB?

Michaela — Fri, 05 Sep 2025 07:26:39 +0000

Japan’s Financial Services Agency (FSA) has proposed shifting cryptocurrency regulation from the Payment Services Act to the more stringent Financial Instruments and Exchange Act (FIEA), signaling a major tightening of oversight in the sector.

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Key points:

Japan’s FSA proposes moving crypto regulation under the stricter Financial Instruments and Exchange Act to strengthen oversight.
The FSA report highlights challenges in crypto investing, including unclear disclosures, unregistered operations, and exchange security risks.
Stricter rules would introduce stronger protections, clearer disclosure requirements, and enforcement against unfair trading.

A recent FSA report recommends bringing cryptocurrencies under the scope of the FIEA, citing that many challenges in the crypto sector mirror issues already addressed by the FIEA, making its mechanisms and enforcement more suitable for regulation.

The report pointed several key challenges in crypto investing, including vague white papers, misleading disclosures, unregistered operations, investment scams, low investor risk awareness, and security vulnerabilities at exchanges.

The FSA report also emphasizes that cryptocurrencies are becoming a significant part of Japan’s economy, with more than 12 million accounts opened at domestic exchanges and total user deposits surpassing 5 trillion yen (around $33.7 billion).

Additionally, the report notes that while crypto adoption is growing in Japan, most activity remains small-scale, with over 80% of individual accounts holding less than $675.

Full application of the FIEA would introduce stricter disclosure requirements for crypto issuers, govern intermediaries and brokerages, and enforce measures against unfair trading, including emergency injunctions against unregistered operators.

FSA Report Shows Potential Benefits for SHIB Holders

Japan’s effort to strengthen crypto rules reflects regulators’ heightened attention to the country’s evolving digital asset market, where participation continues to grow despite most individual accounts holding modest balances.

For SHIB holders, this regulatory shift could bring significant benefits. Clearer rules and stronger protections may reduce risks associated with trading and holding tokens, while enhanced transparency in how digital assets are bought, sold, and managed could make it easier for everyday users to navigate the market with confidence.

As Japan moves toward stricter oversight, SHIB investors could see a more secure environment that supports both casual holders and active traders, fostering trust and stability in the ecosystem.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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Lian Warns Against Hasty Bitcoin Adoption, Urges Foundational Policymaking

Gushiken Yona — Mon, 01 Sep 2025 15:46:04 +0000

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A leading intergovernmental advisor is issuing a stark warning to nations racing to adopt Bitcoin: building massive reserves without a solid policy foundation is like building on sand. Speaking at Bitcoin Conference Asia 2025, author and blockchain advisor Anndy Lian urges governments to prioritize international cooperation and deliberate groundwork over the headline-grabbing rush to accumulate. He argues that without shared standards and a deep understanding of decentralized finance, the global crypto ecosystem risks derailing its own journey.

Key Points

Foundations Before Reserves: Lian argues that foundational policies on regulation, education, and infrastructure must precede the accumulation of national Bitcoin reserves, calling the rapid U.S. approach an exception, not a global template.
A Call for Global Coordination: Criticizing the current “siloed” approach by governments, he calls for a new international body for digital assets, similar to the BIS for banking, to establish baseline regulatory standards for all nations.
Understanding Decentralization is Critical: Lian warns that policymakers’ widespread ignorance of DeFi and decentralized networks is dangerous, stressing that these systems must be recognized as legitimate and central to the future of finance.

“You Can’t Build a Bitcoin Economy on Sand”

During the panel “Global Game Theory: The Response to America’s Changing Bitcoin Policy” at Bitcoin Conference Asia, Lian delivered a measured yet powerful perspective on the global landscape. While many focus on national reserves and rapid adoption, he emphasized the need for strategic patience and foundational policy work, warning that ambitious Bitcoin initiatives risk collapse without it.

Lian acknowledged the momentum generated by the United States’ pro-Bitcoin shift. “I love what America is doing right now,” he said. “The Genius Act, the strategic reserve, the market structure legislation—it’s all moving at godlike speed.”

But he quickly added a caution. “That speed is not replicable everywhere. If you zoom out and look at Asia, most countries are still in catch-up mode.” He noted that while some nations are exploring reserves, the majority are focused on more basic steps like asset tokenization and stablecoin regulation.

For Lian, this slower pace is a necessity. “You can’t build a Bitcoin economy on sand,” he stressed. “Every country needs to build the foundation first—regulation, education, institutional frameworks—before jumping into strategic reserves.”

A Call for Substance Over “PR”

Lian also criticized superficial policy engagement, which he sees as a significant roadblock.

“Right now, you see people flying in, shaking hands, taking photos. CZ comes to Singapore, everyone celebrates. But that’s not policy making. That’s pure PR.” He called for deeper, sustained dialogue between governments and industry experts who can navigate the complexities of custody, compliance, and decentralized networks.

From the Magazine: Under the Skin: How Sweden Is Now Rewriting Identity on the Blockchain

One of his most urgent messages was the need for global coordination to end the confusion caused by nations acting in isolation. “Governments are working in silos,” he said. “What we need is a body, like IATA for aviation or the BIS for banking, that leads a basic regulatory framework for digital assets.” He envisioned a world where every country contributes to shared minimum standards for exchanges, stablecoins, and custody.

Lian also urged policymakers to take decentralized finance seriously. “Most governments have no clue what DeFi is. They think it’s where criminals hide. That ignorance is dangerous.”

Lian issued a final warning and a call to action.

“Stablecoin is not just about Tether or Circle. It’s a new monetary layer. And decentralized networks are not fringe—they are the future. If we don’t build the right policies now, we won’t just miss the train—we’ll derail the entire journey.”

For Lian, the Bitcoin revolution is not won by who accumulates the fastest, but by who understands the deepest and builds the smartest.

The full panel discussion can be viewed on YouTube.

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Shiba Inu Breaks Into Mainstream Finance with New European ETP

Gushiken Yona — Fri, 29 Aug 2025 12:45:27 +0000

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Shiba Inu (SHIB) is taking a major step toward mainstream financial adoption as asset manager Valour lists a new Exchange-Traded Product (ETP) on Sweden’s Spotlight Stock Market. This regulated offering allows traditional investors to gain exposure to SHIB directly through their banks and brokers, bridging a key gap between digital assets and conventional investment platforms.

Key Points

European Access: Valour’s SHIB ETP allows investors to buy Shiba Inu using Swedish krona through regular banks and brokerage accounts.
Mainstream Adoption: The listing provides legitimacy and visibility for SHIB, enabling investors to access it without relying on crypto exchanges or wallets.
U.S. Spot ETF Challenges: Approval of a U.S. spot ETF for SHIB faces higher regulatory hurdles, particularly the absence of a CME-regulated futures market.

A Bridge Between Crypto and Traditional Finance

The Valour Shiba Inu ETP, priced in SEK, is part of a broader expansion of eight crypto ETPs in Europe. It provides regulated exposure for investors who may be unfamiliar with or hesitant to use digital wallets and exchanges. The product comes with a 1.9% management fee.

“Nordic investors continue to seek simple and transparent access to a wider range of digital assets,” said Johanna T. Belitz, Head of Nordics at Valour. She added that the new products are “directly aligned with the market’s demand for diversified exposure.”

From The Shib Magazine: One Shib, Many Chains: The Official Blueprint for Interoperability

We’re proud to expand our Nordic product suite with the launch of eight new SEK-denominated ETPs on @__Spotlight___ Stock Market – Valour now provides 85+ ETPs across Europe, reinforcing our leadership in regulated digital-asset investment solutions.

“Nordic investors… pic.twitter.com/icfJ8FenmV
— Valour (@ValourFunds) August 27, 2025

By including SHIB alongside blockchain projects like VeChain and Celestia, Valour positions it as a viable option for diversified investment strategies. This helps move Shiba Inu beyond its “meme coin” origins toward recognition as a durable digital asset with a large, active community.

The U.S. Regulatory Landscape and SHIB ETF Prospects

While the European ETP is a milestone, a potential U.S. spot ETF for Shiba Inu remains a complex challenge. Following spot Bitcoin and Ethereum ETF approvals, a more crypto-receptive administration has sparked optimism, and the SEC is reviewing over 75 crypto-related ETF filings.

From The Shib Magazine: One Shib, Many Chains: The Official Blueprint for Interoperability

Market analysts predict favorable odds for spot ETFs tracking major altcoins like Solana and XRP, with key deadlines approaching in October 2025. Approval of these assets would set a precedent for Shiba Inu.

However, a key hurdle remains: the SEC historically requires a regulated futures market, such as one on the Chicago Mercantile Exchange (CME), for spot crypto ETFs. Currently, Shiba Inu does not have a CME-listed futures product.

Valour’s European listing gives investors immediate, regulated access to Shiba Inu, demonstrating growing demand for mainstream crypto products. While a U.S. spot ETF remains a longer-term goal, this launch highlights SHIB’s evolution from community-driven meme token to a recognized digital asset in regulated financial markets.

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CFTC Opens Door to Offshore Exchanges — What It Means for SHIB

Michaela — Fri, 29 Aug 2025 06:28:37 +0000

Summary: How could the CFTC new guidance affect U.S. crypto trading?

The CFTC new guidance allows offshore exchanges to legally serve U.S. traders, increasing access to digital assets. More registered platforms could boost liquidity and trading volume. Overall, it provides traders with more options and greater confidence in participating in regulated markets.

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The Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight has released guidance on the Foreign Board of Trade (FBOT) registration process, clarifying how non-U.S. entities can legally offer U.S. residents direct access to their trading platforms.

The CFTC stated in an official release that its FBOT registration framework covers all types of markets, including both traditional financial assets and digital assets, ensuring a uniform approach across asset classes.

“By reaffirming the CFTC’s longstanding approach to provide U.S. traders with choice and access to the deepest and most liquid global markets, with a wide range of products and asset classes, American companies that were forced to set up shop in foreign jurisdictions to facilitate crypto asset trading now have a path back to U.S. markets,” Acting Chairman Caroline Pham stated.

The CFTC’s latest guidance reflects a continuation of a long-standing practice. Since the 1990s, U.S. investors have been able to trade on foreign exchanges registered with the CFTC under the FBOT framework. With this update, Americans seeking secure and compliant access to overseas markets are now explicitly welcomed, while U.S. markets are made more accessible to global participants.

The CFTC noted that the move aligns with its ongoing efforts to support the Trump administration’s agenda for strengthening American leadership in digital assets, as part of the Commission’s broader “crypto sprint” initiative.

CFTC Move Could Expand SHIB Access

Allowing offshore exchanges to legally register and serve U.S. traders could have a notable impact on the Shiba Inu (SHIB) ecosystem. With more venues listing SHIB under full regulatory compliance, U.S. holders may gain easier access to trading, while liquidity could see a meaningful boost.

Increased market participation and trading volume may strengthen activity within the SHIB ecosystem, benefiting both retail and institutional participants. The broader objective of this initiative is to bring more crypto activity under U.S. oversight, improve market liquidity, and dismantle the “walled garden” effect that has limited American traders to a smaller set of platforms.

Ultimately, this could foster a more dynamic and robust market for SHIB, giving holders more options and greater confidence in participating within regulated U.S. channels.

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115 Crypto Firms Push Senate to Shield Devs – Impact on Shib

Michaela — Thu, 28 Aug 2025 08:41:39 +0000

Summary: Why are crypto firms urging the Senate to protect developers in new legislation?

They argue that developers and non-custodial service providers should not be regulated like traditional financial intermediaries. Without clear protections, innovation could move overseas, weakening U.S. leadership in digital finance. Safeguards would ensure open-source builders can keep advancing blockchain technology without restrictive barriers.

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A coalition of 115 crypto firms, including exchanges like Coinbase, Kraken, and Uniswap Labs, along with investors and advocacy groups, has called on the U.S. Senate to ensure protections for software developers and non-custodial service providers are included in upcoming market structure legislation.

In a letter to Congress, the coalition urged lawmakers to establish strong, nationwide safeguards for software developers and non-custodial service providers within market structure legislation, warning that the bill cannot gain their support without these protections.

“As much-needed digital asset law develops in the United States, it is critical that legislation recognizes and preserves the historical protections afforded to open-source software development, and ensures that software developers and non-custodial service providers who create, support, and enable access to decentralized networks are not forced into unworkable regulatory categories designed for the traditional, intermediated financial world,” the letter wrote.

The coalition emphasized that the United States has long fostered a supportive environment for software development, enabling the country to remain at the forefront of technological innovation over the past fifty years, from early internet advancements to the rise of artificial intelligence.

Furthermore, the firms contend that to maintain U.S. leadership in the digital financial era, and to realize the Trump Administration’s goal of positioning the country as the “crypto capital of the world”, market structure legislation must recognize blockchain as neutral infrastructure and provide clear protections for both the developers building it and the non-custodial service providers facilitating user access.

The crypto firms warn that in the absence of clear legislation, the United States risks falling further behind in software development as regulatory uncertainty drives innovation elsewhere.

Crypto Firms Caution on Intermediary Rules and Innovation

The debate over whether software developers and non-custodial services should be treated as financial intermediaries carries direct implications for ecosystems such as Shiba Inu.

Without explicit protections, developers working on Shibarium could be subjected to heightened compliance obligations, creating delays for upgrades like cross-chain bridges, liquidity integrations, and other infrastructure improvements.

For SHIB holders, the outcome of this policy battle may shape how quickly the ecosystem advances and whether its decentralized finance services remain open, permissionless, and accessible to a global user base.

Industry advocates argue that imposing intermediary-style regulations on builders who never take custody of user funds risks stifling the pace of innovation in projects like Shibarium, where agility and decentralized participation are core to growth.

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Japan’s Finance Minister Backs Crypto — What It Could Mean for SHIB

Michaela — Tue, 26 Aug 2025 10:28:04 +0000

Summary: What did Japan’s Finance Minister say about cryptocurrencies and investment?

Japanese Finance Minister Katsunobu Kato highlighted that cryptocurrencies, despite their high volatility, can be part of diversified investment portfolios if a proper investment environment is created. He emphasized that the government is working to balance regulation with innovation. These efforts aim to build a safer and more structured market for crypto investors.

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Japanese Finance Minister Katsunobu Kato has acknowledged that cryptocurrencies can play a role in diversified investment portfolios, remarks he made during his keynote at the Web3 Conference WebX 2025.

According to Bloomberg Japan, Finance Minister Kato noted that “cryptoassets have the risk of high volatility, but by creating an appropriate investment environment, they can become a target for diversified investments.” He further stressed that the government is working to establish a balanced regulatory framework that supports innovation while avoiding excessive restrictions.

The report also noted that the Liberal Democratic Party’s 2025 House of Councillors election platform includes initiatives aimed at building a nation focused on asset management, such as implementing insider trading regulations and establishing separate taxation to ensure transaction integrity.

The announcement comes after reports that Japan’s Financial Services Agency (FSA) plans to approve the nation’s first yen-backed stablecoin, paving the way for fiat-backed digital tokens as early as this fall.

Tokyo-based fintech firm JPYC is set to register as a licensed money transfer business this month and spearhead Japan’s first yen-backed stablecoin launch. The stablecoins will maintain a 1:1 peg with the Japanese yen, supported by highly liquid assets including bank deposits and government bonds. Upon purchase, the tokens will be transferred to users’ digital wallets via bank transfers.

Finance Minister Signals Regulatory Support That Could Benefit SHIB Investors

These developments highlight that the Finance Minister’s focus isn’t on hacks, specific infrastructure, or ETFs at this stage — it’s on legitimizing cryptocurrencies as part of investment portfolios and fostering a healthier trading environment.

This regulatory emphasis could have direct implications for SHIB in Japan. By positioning crypto as a recognized asset class, Japan may create a more favorable environment for SHIB holders, with potential benefits including clearer tax treatment, fairer rates, and enhanced trading infrastructure. A regulated framework could also support smoother SHIB liquidity on Japanese exchanges, improving accessibility and encouraging wider adoption.

In addition, as Japan continues to refine its crypto regulations, SHIB investors could see increased confidence in the market, encouraging both long-term holding and active trading. Over time, these regulatory measures could position Japan as a key hub for SHIB trading, giving holders greater assurance and access to a more robust and secure ecosystem.

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PA Lawmaker Proposes HB1812 to Ban Officials from Trading Crypto — SHIB Alert

Michaela — Fri, 22 Aug 2025 10:12:24 +0000

Summary: What is HB1812 and what does it do?

HB1812 is a bill introduced by Pennsylvania State Representative Ben Waxman to prevent elected officials and their families from profiting from cryptocurrency while in office. It bars transactions over $1,000 and requires divestment of existing crypto within 90 days. The legislation reflects broader efforts to increase transparency and oversight in the crypto market.

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Pennsylvania State Representative Ben Waxman has introduced legislation seeking to prohibit elected officials and their families from earning profits through cryptocurrency holdings while serving in public office.

On August 20, Waxman introduced HB1812, backed by eight Democratic co-sponsors. The proposal, he said, was prompted by what he described as corruption at the federal level under former President Donald Trump. Waxman alleged that President Trump profited from cryptocurrency ventures, including his meme coin, while advancing policies aimed at easing federal oversight of digital asset markets, effectively shielding such projects from scrutiny.

Waxman explained that the bill seeks to bar elected officials from profiting from cryptocurrency while in office, explicitly covering activities such as launching, promoting, or trading tokens in which they hold a personal stake.

Waxman has accused President Trump of leveraging his time in the White House to enrich himself through crypto ventures. Critics point to Trump’s ties to projects like World Liberty Financial and multiple token launches as examples of using political influence to attract investors.

HB1812 proposes sweeping restrictions on crypto dealings for Pennsylvania officials, barring them and their immediate families from transactions over $1,000 while in office and for a year after leaving. The bill also sets a strict timeline, requiring divestment of any existing digital assets within 90 days of becoming law.

HB1812 Signals Growing Crypto Oversight

The bill also fits into a wider movement across the U.S. to tighten oversight of digital assets and limit conflicts of interest among elected officials. While Pennsylvania’s proposal is state-specific, it reflects mounting pressure on policymakers to bring more transparency to a sector often criticized for its lack of accountability.

For SHIB investors, the legislation doesn’t pose a direct impact, but it signals a shift in how regulators are approaching crypto as a whole. Measures like HB1812 can shape broader sentiment, potentially affecting investor confidence and the pace of adoption.

In practical terms, it serves as a reminder that regulatory developments, even those made at the state level, can ripple outward, influencing how the market perceives digital assets and how communities prepare for future rules.

With lawmakers sharpening their focus on crypto, staying informed and adaptable remains key for investors who want to thrive in an environment where policy and innovation increasingly intersect.

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Bitcoin Mining Costs Surge as US Tariffs Hammer Imported Rigs

Michaela — Thu, 21 Aug 2025 11:16:29 +0000

Summary: Why are Bitcoin mining costs rising for U.S. miners?

U.S. Bitcoin miners are facing higher costs due to tariffs on imported mining equipment from China and other Asian countries. These tariffs, combined with supply chain disruptions, are making specialized hardware more expensive and harder to access. As a result, mining operations must navigate both financial and logistical challenges to maintain production.

U.S. Bitcoin miners have been confronting rising expenses and increased regulatory scrutiny as ongoing trade tensions create uncertainty, with potential Customs and Border Protection (CBP) disputes threatening significant financial liabilities for domestic firms.

The Miner Mag’s latest Bitcoin mining update noted that public miners continued to strengthen their position, with MARA, IREN, CleanSpark, and Cango accounting for nearly 20% of July’s block rewards. Among them, IREN reported the highest utilization rates.

Ongoing U.S.-China trade tensions have created a complex tariff landscape for Bitcoin mining equipment. The White House recently adjusted duties on several Asian countries, setting the effective tariff at 57.6% for machines from China and 21.6% for equipment originating in Indonesia, Malaysia, and Thailand.

Two U.S.-listed Bitcoin mining firms, IREN and CleanSpark, have reportedly been issued invoices by Customs and Border Protection over claims that portions of their equipment were sourced from China.

Additionally, the report noted that, aside from tariff concerns, mining revenues remain constrained, with the network’s hashprice holding under $60 per petahash per second and transaction fees contributing less than 1% of block rewards.

As Bitcoin mining faces mounting challenges, the sector’s supply chain is shifting. Leading Chinese manufacturers Bitmain, Canaan, and MicroBT are reportedly establishing pro d uction facilities in the United States.

Together, the three firms account for more than 90 percent of the global market for mining rigs. They are best known for producing Application-Specific Integrated Circuit (ASIC) machines, the specialized equipment that underpins the Bitcoin network’s computing power.

Supply chain disruptions in mining equipment could inject added volatility into the market, with potential effects on both the cost and accessibility of the technology essential to crypto mining and transactions.

As the global Bitcoin mining landscape continues to shift, the long-term stability of the network will depend not only on hardware innovation but also on how resilient the industry proves in the face of disruption.

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Federal Reserve Official Says Staff Should Own Crypto: What This Means for SHIB

Michaela — Wed, 20 Aug 2025 12:33:16 +0000

Summary: How could Federal Reserve staff owning crypto impact the broader market?

Allowing Fed employees to hold small amounts of crypto could help them gain practical experience with digital assets. This hands-on knowledge may lead to smarter, more informed regulatory decisions. As a result, the market could benefit from clearer rules, improved liquidity, and greater confidence among investors.

Federal Reserve Vice Chair for Supervision Michelle Bowman has suggested that the US central bank reconsider its restrictions preventing employees from purchasing cryptocurrencies, arguing that easing the ban could allow staff to gain a deeper understanding of the technology.

Speaking at the Wyoming Blockchain Symposium, Bowman said the central bank should consider permitting staff to hold “minimal amounts of crypto” or other digital assets to gain practical insight into how they function. Bowman noted that the Federal Reserve is developing a supervisory framework for digital asset issuers, emphasizing that direct experience with ownership and transfers is vital to fully grasping how these systems operate.

Currently, Federal Reserve employees and their spouses are prohibited from holding cryptocurrencies or related investment products, including exchange-traded funds (ETFs) and shares in crypto-focused firms. The central bank imposed stricter investment rules in early 2022 following revelations that three senior officials engaged in questionable trading activity during 2020.

Furthermore, Bowman suggested that the current restrictions may hinder the Fed’s ability to attract and retain examiners with specialized knowledge. She argued that practical experience with digital assets provides a stronger foundation for trust and understanding than relying solely on theoretical knowledge gained from reading.

Bowman criticized what she described as an “overly cautious mindset” among bank regulators, urging them to take a more open approach to financial innovation. She emphasized that new technologies should be viewed as tools to strengthen, rather than threaten, the existing financial system.

Federal Reserve Crypto Insight Could Benefit SHIB

Expanding on Bowman’s perspective, a deeper regulatory understanding of digital assets could carry meaningful implications for retail investors and communities surrounding tokens like Shiba Inu (SHIB). By allowing Federal Reserve staff to gain hands-on experience with cryptocurrencies, regulators could develop rules that are more informed, practical, and reflective of real-world usage.

For SHIB holders, this approach could translate into a regulatory environment that avoids overly restrictive measures, which might otherwise limit trading or liquidity. Clearer, experience-driven regulations would support broader adoption and market participation, giving investors confidence in the token’s usability and long-term prospects.

Moreover, informed oversight could encourage innovation within the U.S. crypto market, making it easier for platforms, exchanges, and developers to introduce new products and services that include tokens like SHIB. Overall, such regulatory insight has the potential to strengthen both market stability and the growth of community-driven digital assets.

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SEC Signals Most Tokens Aren’t Securities: What It Means for SHIB Holders

Michaela — Wed, 20 Aug 2025 07:10:37 +0000

Summary: How could the SEC’s stance on securities affect crypto markets?

SEC Chair Paul Atkins indicated that most crypto tokens are not securities, reducing the risk of trading restrictions or liquidity issues. This approach creates a clearer and more predictable regulatory environment for digital assets. It could also encourage broader adoption and greater institutional participation in the crypto market.

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U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins has indicated that only a limited number of crypto tokens should be classified as securities, signaling a shift in the agency’s approach to digital assets. He also addressed the Commission’s interactions with the Trump administration and outlined plans for regulating the growing cryptocurrency market.

At the Wyoming Blockchain Symposium on Tuesday, Atkins emphasized the SEC’s Project Crypto initiative, which aims to set clear rules for digital assets. He suggested that the agency intends to pursue its own regulatory approach even as Congress considers legislation to define the broader market structure.

Atkins noted that the SEC can not view tokens as inherently being securities. He stated that the Commission will move forward with the perspective that a token alone is generally not considered a security. “There are very few, in my mind, tokens that are securities, but it depends on what’s the package around it and how that’s being sold,” Atkins stated.

While as SEC Chair, Atkins has the authority to interpret rules for digital assets, Congress is also moving to establish a formal crypto market structure.

The House passed the Digital Asset Market Clarity (CLARITY) Act in July, and Senate Banking leaders plan to build on that framework. Speaking at the Wyoming Blockchain Symposium, Senate Banking Chair Tim Scott noted that a number of Democrats could join Republicans in backing the legislation when the Senate returns from recess on September 2.

In a recent interview with Fox News, Atkins stated that the SEC is actively working to position the U.S. as a global leader in digital assets, reflecting President Trump’s agenda for the sector.

Atkins noted that the Commission has begun mobilizing its divisions and offices to coordinate efforts and advance the implementation of its digital asset strategy.

Softer SEC Approach to Securities Could Boost SHIB Adoption and Stability

A softer regulatory stance from the SEC could be good news for the Shiba Inu community. If fewer tokens are classified as securities, it lowers the risk of trading restrictions or liquidity constraints that could hinder market activity. For SHIB holders, this approach signals a more predictable regulatory environment, paving the way for broader adoption and greater long-term stability in the U.S. market.

Such a stance could also encourage more institutional interest in crypto projects like Shiba Inu, as companies and investors gain confidence that regulatory hurdles may be more manageable. Additionally, a clearer framework from the SEC could help crypto platforms and exchanges expand their services without the fear of sudden enforcement actions, benefiting the entire SHIB ecosystem.

While challenges remain, including ongoing debates in Congress over digital asset legislation, the shift in tone from the SEC represents a potential turning point for U.S.-based crypto adoption and the future growth of community-driven tokens.

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Tether Hires Ex-White House Crypto Director Bo Hines for US Push

Michaela — Wed, 20 Aug 2025 07:10:34 +0000

Summary: Who is Bo Hines and what role will he play at Tether?

Bo Hines is the former executive director of the White House Crypto Council under President Trump. He has been appointed as Tether’s Strategic Advisor for Digital Assets and U.S. Strategy. In this role, he will help guide Tether’s U.S. expansion, work with regulators, and support the company’s efforts to strengthen its presence in the American market.

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Tether Limited, the issuer of the USDT stablecoin, has named Bo Hines, former executive director of the White House Crypto Council under President Donald Trump, as its new Strategic Advisor for Digital Assets and U.S. Strategy. Hines will begin his role immediately, supporting the company’s regulatory and expansion efforts in the United States.

In an official statement, Tether stated that Hines will work closely with the company’s leadership to drive its U.S. strategy and oversee expansion initiatives as a key member of the team. “Hines brings a unique blend of policy expertise, legal training, and private sector insights.” Tether wrote.

“While at the White House, he was instrumental in advancing initiatives to foster innovation in digital assets, develop clear guardrails for stablecoin issuers, and build collaborative relationships between government and the blockchain industry,” the company added.

Tether said Hines’ appointment spotlights the company’s dedication to strengthening its U.S. presence, starting with digital assets and extending to broader opportunities, including potential investments in domestic infrastructure. “His deep understanding of the legislative process, combined with his passion for practical blockchain adoption, makes him an invaluable asset as Tether enters the biggest market in the world,” Paolo Ardoino, CEO of Tether, stated.

In his new role, Hines will work alongside Tether’s leadership to develop and implement the company’s U.S. strategy, fostering engagement with regulators and key industry partners.

Before his appointment at Tether as Strategic Advisor for Digital Assets and U.S. Strategy, Hines held the position of executive director of the White House Crypto Council for a tenure of less than one year.

During his tenure, Hines contributed to President Trump’s Working Group on Digital Assets. He helped develop a regulatory report with recommendations on market structure, oversight, banking access, and cryptocurrency tax policies.

Additionally, before stepping down as executive director, Hines confirmed that plans for a U.S. strategic Bitcoin reserve remain underway, despite the latest White House crypto report not explicitly mentioning the initiative.

“During my time in public service, I witnessed firsthand the transformative potential of stablecoins to modernize payments and increase financial inclusion,” Hines stated in the official statement. “I’m thrilled to join Tether at such a pivotal moment, helping to deliver an ecosystem of products that will set the standard for stability, compliance, and innovation in the U.S. market – one that will empower American consumers and help revolutionize our nation’s financial system.”

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Coinbase and Indian Minister Explore Blockchain Push — What It Means for SHIB

Michaela — Thu, 07 Aug 2025 10:47:20 +0000

Summary: Why is Coinbase’s meeting with Karnataka’s IT Minister significant?

The meeting spotlights increasing government interest in using blockchain technology for digital governance and public services. It shows a move from viewing blockchain as just an investment to seeing it as important infrastructure. This signals growing adoption of blockchain in real-world applications and potential collaboration opportunities.

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Coinbase’s Chief Legal Officer, Paul Grewal, has recently met with Karnataka IT Minister Priyank Kharge to discuss potential collaboration on blockchain technology, developer tools, and cybersecurity. The meeting signals a shift toward greater engagement with India’s evolving crypto landscape.

“Met with the team from [Coinbase] to discuss their developer platform which is helping simplify blockchain development and enabling developers to build [on-chain] applications with ease,” Kharge wrote in a post on X. Kharge also noted that the discussions included exploring collaborative opportunities in cybersecurity, leveraging their combined global expertise to advance Karnataka’s initiatives in the field.

Met with the team from @coinbase to discuss their developer platform which is helping simplify blockchain development and enabling developers to build onchain applications with ease. We also discussed potential areas of collaboration on cybersecurity and how their global… pic.twitter.com/aAAEPLZZ7U
— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) August 6, 2025

In addition, Grewal and Kharge explored opportunities for talent development through skilling and capacity-building initiatives, as well as potential collaboration on incubation programs and joint hackathons in the future.

Kharge shared that the Karnataka government is actively exploring the use of blockchain technology in governance and digital public infrastructure, recognizing its growing relevance on the global stage.

In response to Kharge’s post on X, Grewal expressed enthusiasm about the potential for Coinbase to contribute to Karnataka’s continued leadership in the technology sector. “The future is [on-chain]—and it’s being built here,” Grewal wrote.

Thank you Minister @PriyankKharge and team + I am excited to explore how @Coinbase can further support Karnataka’s tech leadership through developer tools, cybersecurity collaboration, and capacity-building. The future is onchain—and it’s being built here. https://t.co/Y9tQNiA3mW
— paulgrewal.eth (@iampaulgrewal) August 6, 2025

The meeting follows Coinbase’s recent regulatory approval from India’s Financial Intelligence Unit (FIU), a key step toward reestablishing its presence in the country nearly three years after suspending local operations.

What Coinbase India Talks Mean for SHIB Holders

This is more than a regional business trip. Coinbase’s meeting with Karnataka’s IT Minister highlights a growing shift in how public institutions view blockchain: not just as an asset class, but as infrastructure. As governments like Karnataka begin integrating blockchain into digital governance and public services, it signals a broader move toward real-world adoption.

For SHIB holders, that matters. It reflects a changing climate, one where crypto is stepping into civic and institutional conversations. As more regions explore blockchain for transparency, cybersecurity, and digital infrastructure, SHIB’s visibility as a community-driven token could benefit from being part of the broader conversation about decentralized innovation.

The post Coinbase and Indian Minister Explore Blockchain Push — What It Means for SHIB first appeared on The Shib Daily.

South Korea Fast-Tracks Tokenized Securities and Stablecoin Laws

Michaela — Tue, 05 Aug 2025 12:43:42 +0000

Summary: What is South Korea doing to prepare for the future of digital finance?

South Korea is introducing new laws to support tokenized securities and regulate stablecoins. These measures include recognizing blockchain for record-keeping and allowing financial institutions to issue digital assets. Banks are also forming dedicated teams and infrastructure to support this shift.

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South Korea has advanced a landmark tokenized securities law while competing legislative efforts to regulate stablecoins are gaining momentum, signaling a significant shift in the nation’s approach to digital finance.

The Token Securities Act, backed by bipartisan support in South Korea, is set to introduce sweeping updates to the Electronic Securities Act and the Capital Market Act. The legislation will formally recognize blockchain as a valid method for record-keeping and provide the legal foundation for financial institutions to issue and manage tokenized assets, including stocks, bonds, and private equity.

LATEST: South Korea passes major tokenized securities law – banks can now tokenize bonds, stocks & private equity on blockchain.

Asia dominating RWA pic.twitter.com/YV4p3phPJQ
— Real World Asset Watchlist (@RWAwatchlist_) August 4, 2025

South Korea’s efforts to accelerate crypto-friendly legislation have gained new momentum following the passage of the GENIUS Act in the United States. The GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins Act, establishes a clear regulatory framework for payment stablecoins by assigning oversight responsibilities to key federal agencies such as the OCC, Federal Reserve, and FDIC.

Furthermore, as legislative discussions around stablecoin regulation gain momentum, South Korea’s financial sector is moving swiftly to prepare for the anticipated changes. Local reports indicate that major banks are proactively laying the groundwork by creating specialized internal teams and forming strategic consortia aimed at supporting the future issuance and management of stablecoins.

Woori Bank, one of South Korea’s leading commercial banks, reportedly launched a dedicated Digital Asset Team to oversee its expanding portfolio of digital finance initiatives. The specialized unit is tasked with developing and managing a range of services, including stablecoins and electronic wallets, as part of the bank’s broader strategy to position itself at the forefront of the evolving digital asset landscape.

In addition to major commercial banks, South Korea’s internet-only and regional banks are also taking steps to prepare for upcoming stablecoin regulations. K Bank has reportedly formed a dedicated digital asset task force to explore opportunities in the sector, while Busan Bank continues to expand its blockchain capabilities through a specialized team within its platform business division. This unit oversees the Citizen Platform, the bank’s local currency initiative, and serves as the core organization managing its blockchain-related operations.

As South Korea accelerates its digital finance overhaul, the convergence of regulatory clarity and institutional readiness suggests a rapidly approaching shift in how financial assets are issued, managed, and exchanged. With momentum building across both the public and private sectors, the country appears poised to emerge as a key player in the global race toward blockchain-powered finance.

The post South Korea Fast-Tracks Tokenized Securities and Stablecoin Laws first appeared on The Shib Daily.

CFTC Eyes Spot Crypto Trading — Could SHIB Be Next in Line?

Michaela — Tue, 05 Aug 2025 11:55:35 +0000

Summary: What is the CFTC doing about spot crypto trading?

The CFTC is launching an initiative to regulate spot crypto trading on federally registered exchanges. It aims to apply existing laws to ensure that retail trading involving leverage or margin happens on approved platforms. The agency is also seeking public feedback to help clarify and refine the regulatory framework.

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Commodity Futures Trading Commission (CFTC) Acting Chairman Caroline Pham has unveiled a new initiative aimed at overseeing spot crypto trading of digital asset contracts listed on CFTC-registered futures exchanges, also known as designated contract markets (DCMs).

In an official statement, the CFTC confirmed the initiative marks the agency’s first major step in its so-called “crypto sprint”, a push to begin implementing policy recommendations laid out in the Trump administration’s Working Group on Digital Asset Markets report.

“Under President Trump’s strong leadership and vision, the CFTC is full speed ahead on enabling immediate trading of digital assets at the Federal level in coordination with the SEC’s Project Crypto,” Acting Chairman Pham stated.

Acting Chairman Pham emphasized that the agency already has a straightforward path forward under existing law. She noted that the Commodity Exchange Act mandates that all retail commodity trading involving leverage, margin, or financing must take place on a DCM.

Furthermore, the CFTC has called on all stakeholders to collaborate with the Commission in clarifying regulatory guidelines for listing spot crypto asset contracts on DCMs under its current authority. “Together, we will make America the crypto capital of the world,” Acting Chairman Pham stated, echoing the sentiments of President Trump.

Feedback is requested on relevant legal provisions, including specific sections of the Commodity Exchange Act and CFTC regulations, as well as potential overlaps with securities laws overseen by the SEC. This collaboration aims to ensure clear and consistent regulatory frameworks for spot crypto trading.

Stakeholders are encouraged to submit their written feedback to the Commission via the CFTC’s official website by August 18. All submitted comments will be made publicly available on the site.

Spot Crypto Trading May Boost SHIB Access

The CFTC’s initiative to permit spot crypto trading on federally registered exchanges represents a significant development for tokens like SHIB. Should SHIB be included among the assets approved for trading on these regulated platforms, it could unlock new, compliant venues for U.S. investors to buy and sell the token.

This enhanced accessibility may lower barriers currently faced by retail traders, fostering greater participation and liquidity in SHIB markets.

Moreover, the regulatory emphasis on leverage and financing requirements could shape how SHIB is handled within derivative and margin trading contexts. Clearer rules could provide added protections for traders while potentially attracting institutional interest, as compliance reduces uncertainty around trading practices.

For the Shiba Inu community, these changes may translate into increased market confidence and broader adoption, reinforcing SHIB’s position in the evolving digital asset landscape.

The post CFTC Eyes Spot Crypto Trading — Could SHIB Be Next in Line? first appeared on The Shib Daily.

CFTC and SEC Launch Crypto Sprint — New Rules Could Shake Up DeFi

Michaela — Mon, 04 Aug 2025 11:31:19 +0000

Summary: What is the goal of the CFTC and SEC’s new crypto sprint?

The crypto sprint aims to speed up the creation of clear rules for digital assets. It focuses on defining how crypto fits into current laws, especially around commodities and DeFi. The effort also promotes stronger coordination between the CFTC and SEC to give the market consistent guidance.

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Commodity Futures Trading Commission (CFTC) Acting Chair Caroline Pham has announced the launch of a “crypto sprint” aimed at accelerating the agency’s adoption of key regulatory recommendations, aligning with former President Donald Trump’s call to establish America as the “crypto capital of the world.”

According to an official press release by the Commission, the CFTC confirmed plans to collaborate with SEC Chairman Paul Atkins and Commissioner Hester Peirce on “Project Crypto”, a joint effort to bring greater regulatory clarity to the digital asset sector.

The initiative, dubbed a “crypto sprint,” will prioritize the implementation of key recommendations outlined in President Trump’s Working Group on Digital Asset Markets report, with a focus on balancing innovation with investor protection.

“Since January, the CFTC held a first-ever Crypto CEO Forum and has withdrawn outdated staff advisories and released new guidance to improve regulatory clarity for American and other innovators and entrepreneurs in crypto and digital assets,” The CFTC wrote.

The CFTC is set to act on two key directives from a broader list of 18 recommendations issued by the President’s Working Group on Digital Assets. Among them is a call to clarify how cryptocurrencies should be treated as commodities under existing law, provide registration guidance for decentralized finance (DeFi) protocols, and issue clear rules for how CFTC-regulated entities can engage with digital assets.

Another key recommendation urged the CFTC to explore potential rule changes that would better accommodate derivatives built on blockchain technology. Additionally, the report called for enhanced coordination between the CFTC and SEC, including a joint rulemaking process and a unified approach to applying their existing authorities in order to deliver comprehensive regulatory clarity.

Crypto Sprint May Shake Up Shiba Inu DeFi

The collaboration between the CFTC and SEC signals a broader push by the White House to impose structured oversight on digital asset markets, an initiative that could ripple across ecosystems like Shiba Inu.

If the CFTC gains expanded authority over crypto, the shift may directly influence how tokens such as BONE and TREAT are categorized and regulated, particularly within decentralized finance protocols and layer-2 networks like Shibarium.

For SHIB holders, this could mark a turning point. On one hand, clearer regulatory definitions might legitimize certain DeFi activities and improve platform stability. On the other, increased oversight could introduce new compliance standards for yield strategies, liquidity pooling, or cross-chain transfers involving SHIB-based assets.

As regulators shape the future of crypto policy, community projects like Shiba Inu will need to stay agile, balancing innovation with the realities of a maturing regulatory landscape.

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Game Changer? Japan Moves to Classify Crypto as a Financial Product

Gushiken Yona — Mon, 31 Mar 2025 10:37:30 +0000

Japan is poised to shake up the crypto landscape. Regulators are evaluating a fundamental reclassification that could bring digital assets under the same legal umbrella as traditional financial instruments—tightening oversight, cracking down on insider trading, and potentially slashing crypto taxes.

Japan FSA Explores Amending Financial Instruments Act

Japan’s financial regulator is considering revising national law to treat cryptocurrencies as financial products, a move that would involve new rules targeting insider trading, Nikkei reported Sunday. The reported plan involves Japan’s Financial Services Agency (FSA) seeking amendments to the Financial Instruments and Exchange Act (FIEA), the country’s primary law governing securities.

According to the report, the agency is holding consultations with industry experts and aims to present a legislative proposal to the national parliament, the Diet, potentially by 2026. This would change the current classification.

Presently, cryptocurrencies like Bitcoin fall under the Payment Services Act, which largely defines them as means of settlement. The proposed revision, as reported, would place digital assets under the FIEA but establish them in a category distinct from traditional securities such as stocks and bonds.

Insider Trading Restrictions Modeled on Existing Rules

A specific goal cited in the report is the introduction of restrictions on insider trading within crypto markets. The report stated that these new rules would likely be designed to resemble the regulations already in place for conventional financial products.

The specifics of how these restrictions would apply to crypto are reportedly still under consideration by the FSA.

Japan Crypto Growth Prompts Review of Financial Regulations

This governmental review coincides with significant growth in cryptocurrency adoption and use within Japan over recent years. As digital assets are increasingly utilized for investment purposes, moving beyond their initial role as simple payment tools, regulators are evaluating how existing financial laws should apply to this evolving landscape.

The central piece of legislation under review is the Financial Instruments and Exchange Act (FIEA), which currently outlines different requirements for various types of securities and offering methods. A key challenge, as noted in reports, is determining precisely how cryptocurrencies would fit within this established framework, a detail yet to be fully clarified.

According to the report, one potential outcome of classifying crypto under the FIEA could be stricter registration requirements. These might extend to entities promoting crypto investments, potentially beyond just exchanges, partly due to rising investor complaints about misleading information. However, questions remain about how such rules could be applied to international firms.

It’s important to note this potential FIEA amendment is distinct from other recent regulatory actions. In March 2025, for instance, Japan’s Cabinet approved changes to the Payment Services Act specifically aimed at easing rules for stablecoin issuers and crypto brokerages. The reported FSA plan to revise the FIEA appears to be a separate, potentially more fundamental step focused on regulating crypto based on its investment characteristics.

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CFTC Announces Crypto Roundtables to Address Market Rules and Safeguards

Michaela — Tue, 28 Jan 2025 16:50:27 +0000

Caroline Pham, the acting chair of the U.S. Commodity Futures Trading Commission (CFTC), has revealed that the agency will host public roundtable discussions to tackle market concerns, with a focus on digital assets.

On January 27, the CFTC announced plans to host roundtable events in the coming months, tackling topics such as conflicts of interest, prediction markets, and digital assets. Pham stated that these discussions would build on prior engagements with industry leaders and market stakeholders.

“As I have long said, the CFTC must take a forward-looking approach to shifts in market structure to ensure our markets remain vibrant and resilient while protecting all participants,” Pham stated in the filing.

In line with President Donald Trump’s forward-thinking stance on crypto, both the U.S. Securities and Exchange Commission (SEC) and CFTC are exploring the possibility of implementing regulations that favor the growth of the digital asset sector. If these regulators move forward with crypto-friendly policies, the U.S. could position itself as a leading force in the global cryptocurrency market.

“A holistic approach to evolving market trends will help to establish clear rules of the road and safeguards that will promote US economic growth and American competitiveness,” Pham said.

The CFTC’s announcement came just days after commissioners appointed Pham as the acting chair, following President Trump’s inauguration. As of now, it remains uncertain who President Trump will nominate to officially fill the role of chair.

Pham assumed the role of acting CFTC Chair following Rostin Behnam’s resignation, which occurred on the same day SEC Chair Gary Gensler also stepped down. In his last remarks, Behnam called on policymakers to tackle regulatory gaps in the cryptocurrency space.

Behnam called for clearer regulations that would establish a definitive distinction between what is deemed “permissible” and “impermissible” within the industry. Behnam’s emphasis on regulatory clarity reflects the ongoing need for more comprehensive frameworks to guide the rapidly evolving digital asset sector.

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The Shib News Recap: Friday

Malaya Ruiz — Fri, 27 Dec 2024 20:15:35 +0000

Today’s top headlines are focused on discussions about the convergence of geopolitical factors and cryptocurrency in Russia, the potential delisting of a major industry player, and recent regulatory changes in the crypto scene in Turkey.

Is Russia Using Bitcoin as a Trade Weapon?

Russian companies are increasingly using cryptocurrency for international trade, as confirmed by Finance Minister Anton Siluanov. This shift comes in response to Western sanctions that have hurt Russia’s economy and made banks wary of processing transactions related to Russia. Siluanov predicts that Bitcoin usage in international trade will grow over the next year. Additionally, a new legal framework allows approved miners to utilize crypto for trade, benefiting both miners and energy companies.

Is Tether’s Potential Ban a Necessary Evil for Investor Safeguards?

Tether (USDT) is at risk of being banned in Europe under new MiCA regulations. The European Union introduced these rules to safeguard investors, but Tether has not complied with critical deadlines. Jacob Kinge, a financial analyst, warned that Tether hasn’t minted new coins in over two weeks. As a result, Tether will be banned for non-compliance, while CEO Paolo Ardoino insists they are working on practical applications for their tokens.

Will Turkey’s New Crypto Rules Elevate Its Role in Global Financial Markets?

Turkey has announced the implementation of new cryptocurrency regulations to improve anti-money laundering efforts. These rules, effective by February 2025, align with global standards, particularly the EU’s MiCA framework. Cryptocurrency service providers must collect user identification for transactions over $425. The regulations also include licensing requirements, measures against market manipulation, and formal agreements with customers.

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The Shib News Recap: Monday

Malaya Ruiz — Mon, 16 Dec 2024 23:00:00 +0000

Today’s crypto news cycle is filled with critical regulatory updates, the implications of such for the crypto ecosystem, and Michael Saylor’s reaction to an anti-crypto rhetoric.

Crypto Regulation News

The Financial Accounting Standards Board (FASB) has launched new Fair Value accounting rules for Bitcoin and similar cryptocurrencies. Companies will now need to report their crypto assets at fair value in their financial statements. This adjustment aims to provide a clearer view of profits and losses due to the volatility of cryptocurrency prices. However, the rules exclude certain digital assets like NFTs and wrapped tokens.

In other regulatory news, the Australian Federal Court has fined Bit Trade, a subsidiary of Kraken, $5.1 million AUD for offering an unapproved margin lending product. Bit Trade Pty Ltd introduced a “margin extension” product in October 2021 but failed to obtain the necessary target market determination. More than 1,100 customers incurred over $7 million USD in fees, with total trading losses of more than $5 million USD. This is the first penalty against a cryptocurrency exchange for lacking a TMD.

Vanguard’s Dismissal vs MicroStrategy’s Defense

Vanguard, a major investment firm, remains opposed to Bitcoin and cryptocurrencies, viewing them as speculative and lacking real value. They stated that Bitcoin has no place in long-term investment portfolios due to its speculative risks. Duncan Burns, Vanguard Asia-Pacific’s CIO, described the digital asset sector as weak, noting that while some speculators profit, many others incur losses. Michael Saylor, co-founder of MicroStrategy, criticized Vanguard’s stance, arguing against their dismissal of cryptocurrencies in investment strategies.

World Liberty Financial $250K ONDO Purchase

World Liberty Financial has purchased $250,000 worth of ONDO tokens. They acquired 134,216 Ondo Finance tokens at an average price of $1.83 through Cow Protocol. The project has also invested in $30 million in Ether and $10 million in Coinbase Wrapped BTC. Following this acquisition, the ONDO token increased by over 14% in 24 hours and surged by 28.5% in the past week.

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SEC Shake-Up: Trump Nominates Pro-Crypto Atkins, Gensler Leaves Enforcement Bombshell

Gushiken Yona — Thu, 05 Dec 2024 11:31:32 +0000

The U.S. Securities and Exchange Commission (SEC) faces a critical juncture as President-elect Donald Trump nominates former SEC Commissioner Paul Atkins, known for his pro-cryptocurrency stance, to replace Chair Gary Gensler. Gensler, in a strategic move before his departure, has bolstered the SEC’s crypto enforcement division, setting the stage for a potential shift – or clash – in how digital assets are regulated in the United States.

Trump Nominates Crypto Advocate Atkins

President-elect Trump nominated Paul Atkins, a former SEC Commissioner (2002-2008) and recognized expert in financial regulation, to head the agency. Atkins, then CEO of Patomak Global Partners and co-chair of the Chamber of Digital Commerce’s Token Alliance, had publicly advocated for transparent, growth-oriented policies for digital assets.

Trump emphasized Atkins’ commitment to “common-sense regulations” and his recognition that “digital assets and other innovations were crucial to making America greater.”

Breaking: President-elect Trump nominates Paul Atkins as the next SEC Chair, signaling a potential shift toward deregulation in financial oversight. #SEC #BreakingNews #TheShibDaily #CryptoNews pic.twitter.com/vgqnbmSDzv
— Yona Gushiken (@yonashib) December 4, 2024

Atkins’ background as a former regulator and his role in the digital commerce space positioned him as a credible authority. This expertise lent weight to expectations that his leadership could foster a more collaborative relationship between the SEC and the cryptocurrency industry.

Intergovernmental blockchain expert Anndy Lian noted the nomination’s significance, stating that Atkins’ “well-documented deregulatory stance and market-friendly approach” from his prior SEC tenure “could signal a shift in the SEC’s regulatory priorities, particularly in areas like cryptocurrency and fintech, where the current administration has taken a more aggressive enforcement posture,” Lian said.

Gensler Bolsters Crypto Enforcement Before Exit

Despite the anticipated change, outgoing SEC Chair Gary Gensler moved to ensure the agency’s aggressive enforcement posture continued. John Reed Stark, a former Chief of the SEC’s Office of Internet Enforcement, revealed on social media platform X that Gensler had quietly promoted three senior crypto-enforcement lawyers to key executive positions.

Stark described these promotions as “unprecedented and signaled that the SEC’s crypto enforcement efforts would continue unabated, even with impending leadership changes.”

Gensler’s tenure was characterized by aggressive actions against major cryptocurrency exchanges and token issuers, alleging unregistered securities offerings and other violations. The SEC’s moves suggested an intent to maintain this approach.

Regulatory Clash Looms: Atkins’ Deregulatory View vs. Strengthened Enforcement

The contrasting approaches of Atkins and Gensler set the stage for a potential clash within the SEC. Atkins’ deregulatory stance appeared at odds with the reinforced enforcement division left by Gensler, creating uncertainty for the future of U.S. crypto regulation.

“The dynamic between Atkins and the newly promoted crypto-enforcement leaders will be critical to watch,” Lian observed. “Will there be a clash of priorities, or will Atkins find a way to balance his deregulatory philosophy with the enforcement momentum already in place? Either way, the crypto industry should brace itself for a continued battle.”

The transition from Gensler to a potentially Atkins-led SEC marked a pivotal moment for the cryptocurrency industry. The outcome would significantly impact the future of digital assets in the U.S. and could have global ramifications for the broader crypto market.

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Crypto and Wall Street’s Costliest Year? SEC Announces Record $8.2 Billion in Fines and Penalties

Gushiken Yona — Mon, 25 Nov 2024 09:41:07 +0000

The U.S. Securities and Exchange Commission (SEC) announced a record $8.2 billion in fines and penalties for fiscal year 2024, its highest ever, just as Chairman Gary Gensler prepares to depart the agency in January 2025.

This record sum revealed in the SEC’s Nov. 22 annual report, highlighted an aggressive enforcement strategy under Gensler’s leadership. Over half stems from a single $4.47 billion settlement with Terraform Labs and its former CEO Do Kwon, following fraud charges related to the 2022 collapse of their blockchain ecosystem.

Significantly, without this landmark settlement, the SEC’s 2024 collections would have been their lowest since 2013, totaling just $3.72 billion. The $8.2 billion includes $2.1 billion in penalties and a record $6.1 billion in disgorgement—returning ill-gotten gains to investors.

Gensler, who said he would step down on Jan. 20, 2025, said, “The Division of Enforcement is a steadfast cop on the beat…holding wrongdoers accountable.” His tenure saw a crackdown on cryptocurrency companies, with enforcement actions peaking at 46 cases in 2023. While crypto-related cases decreased to 11 in 2024, associated penalties increased by over 3,000% due to the Terraform settlement.

However, Acting Enforcement Director Sanjay Wadhwa argued that the total fines collected don’t fully represent the commission’s impact. “Beyond the $8.2 billion,” Wadhwa explained, “our proactive investigations…are driving a significant shift toward compliance.”

He highlighted the ripple effect of SEC investigations, noting that even cases not resulting in formal charges often prompt companies to improve their compliance efforts. This proactive approach, Wadhwa argues, is crucial for investor protection and maintaining market integrity, ultimately building trust in capital markets.

The incoming Trump administration, with its indicated move towards easing enforcement in the digital asset space, has fueled anticipation of a regulatory shift. Teresa Goody Guillen, a rumored candidate for SEC Chair, echoed this sentiment, calling for less aggressive regulation and greater engagement with the crypto industry. She advocated for clearer rules and an end to “regulation by enforcement,” arguing that it stifles innovation.

Beyond financial penalties, the SEC barred 124 individuals from serving as officers and directors of public companies – the second-highest number in a decade – and returned $345 million directly to harmed investors as part of the over $2.7 billion returned since 2021. A record 45,130 tips, complaints, and referrals (including 24,000 from whistleblowers) led to $255 million in whistleblower awards, signaling increased public scrutiny of financial misconduct and bolstering the SEC’s enforcement capabilities.

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The Shib Crypto Recap: Thursday

Malaya Ruiz — Fri, 22 Nov 2024 05:17:20 +0000

Today’s crypto news highlights essential themes related to crypto’s far-reaching implications for governance and trust in financial systems, outcomes for key figures involved in crypto fraud, and the convergence of crypto and politics.

Looking at the bright side, Shiba Inu (SHIB) is positioned for a substantial price leap as highlighted by an analyst’s forecast, and Shib Games has introduced the play-to-win mechanics of Shiba Inu Web3 games.

Ex-CSRC Official in Hot Water Over Cryptocurrency Bribery Case

Yao Qian, the former director of the science and technology supervision unit of the China Securities Regulatory Commission (CSRC), is embroiled in a cryptocurrency bribery scandal. He is accused of taking bribes via cryptocurrencies. The Central Commission for Discipline Inspection (CCDI) revealed that Yao ignored political ethics and posed as a financial tech expert, which made him a target for exploitation. During his time at the CSRC, he reportedly misused his position to help tech companies grow, cover personal expenses, and accept large bribes. The CCDI said he abused his authority to favor specific technology providers, facilitating business expansions and illegal transactions. Yao also directed personal expenses to organizations he oversaw, borrowed large sums of money unlawfully, and accepted exceptionally large bribes. His case prompts concerns about future cryptocurrency regulations in China.

Gary Wang Avoids Jail Time Through Cooperation with Prosecutors

Gary Wang, once FTX’s chief technology officer, dodged jail time after his role in the fraud orchestrated by Sam Bankman-Fried. Judge Lewis Kaplan sentenced him to three years of supervised release and required him to forfeit funds from his involvement. Wang testified in Bankman-Fried’s 2023 trial, which led to the latter’s fraud conviction. Prosecutors lauded Wang for his cooperation, stressing his proactive role in the investigation. They also acknowledged his significant contributions to developing fraud detection tools. This cooperation led to a recommendation for a more lenient sentencing outcome.

Trump’s Team Eyes First-Ever White House Position for Digital Assets

President-elect Donald Trump’s team is considering creating a White House role dedicated to digital assets. They are consulting with industry leaders to determine the necessity of this role. The position would oversee a small team that facilitates communication between the White House, Congress, and regulatory bodies like the SEC and CFTC. On November 19, 2024, Trump met with Coinbase CEO Brian Armstrong and former executive Brian Brooks to discuss industry issues. If created, this would be the first dedicated role in a U.S. administration focused on digital assets.

SHIB Poised for 55% Price Surge, Shib Games Unveils Play-to-Win Feature

SHIB is on the brink of a significant 55% price breakout. A rise to $0.000037 could happen if it breaks through the $0.000025 resistance level. Analyst Ali Martinez predicts this outcome, citing a “bull flag” formation. This formation shows a sudden price increase followed by a consolidation period within a downward channel. The chart Martinez shared highlights this flag, which indicates that the bullish trend may still have room to grow.

Another development in the Shiba Inu ecosystem comes from Shib Games. The team has introduced play-to-win mechanics incorporated across Shiba Inu’s entire game roster, including Shiba Eternity and Agent Shiboshi. Participants can enter tournaments and earn rewards, with entry fees differing for each event. Players can accumulate points just by participating, redeemable for an upcoming token airdrop. Each tournament will also have a real-time leaderboard to display player standings. Check out this video or read the details here to learn more.

For real-time updates, tune in to The Shib and Tell podcast. Subscribe to our YouTube channel and engage with us on social media for up-to-date coverage and expert insights.

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Robinhood CEO Slams UK’s ‘Backward’ Crypto Approach, Calls for Better Regulation

Michaela — Mon, 18 Nov 2024 13:04:00 +0000

Robinhood CEO Vlad Tenev has criticized the UK government’s cryptocurrency policies, comparing them unfavorably to the country’s regulations on gambling.

In an interview with The Times, Tenev argued that people should have the freedom to make their own trading decisions despite concerns over crypto addiction. He also questioned why crypto trading faces stricter scrutiny while gambling remains less regulated.

“I think people should be allowed to do what they want,” Tenev said. “But on a policy level, it’s just strange to me that, like: ‘the gambling will continue, but suddenly, with crypto and margin trading, we would have a problem with that.’ That just seems backwards to me.”

Tenev’s comments were in response to remarks by NHS chief Amanda Pritchard, who highlighted the rising number of young men seeking treatment for Bitcoin trading addiction. Pritchard called for stricter regulations on crypto platforms to mitigate potential harm.

Robinhood Seeks UK Expansion

In the same interview, Tenev expressed his ambition to expand Robinhood’s services in the UK, viewing it as a key market. The company launched its stock trading platform in the UK last year and, more recently, introduced margin trading. This feature allows users to borrow funds from Robinhood to amplify their investment potential.

When asked if concerns over UK crypto regulations might impact Robinhood’s growth, Tenev stated he was not concerned. He emphasized that the UK’s approach to crypto seemed “backward.”

The British government is reportedly taking steps to address the growing influence of the crypto industry, which has aligned itself with some of the policies from Donald Trump’s US administration. New regulatory measures are expected to be unveiled this month, focusing on areas such as stablecoins and crypto staking, with the aim of tightening oversight in the sector.

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South Korea Tightens Grip on Crypto: Exchanges Gain Freeze Power, City Seizes Assets for Taxes

Gushiken Yona — Mon, 18 Nov 2024 11:02:29 +0000

South Korea is cracking down on crypto, giving exchanges the power to freeze transactions and seizing digital assets for unpaid taxes.

South Korea Empowers Crypto Exchanges

A new clause added to South Korea’s Virtual Asset User Protection Act has granted cryptocurrency exchanges unprecedented power to immediately block deposits and withdrawals. This change, driven by concerns over hacking, money laundering, and fraud, allows exchanges to act swiftly in urgent situations, freezing funds without prior notice to users.

According to SBS Biz, the Financial Supervisory Service (FSS) approved this industry request, acknowledging the need for rapid intervention in certain circumstances. However, the FSS also emphasized that providing advance notice should remain the standard practice, urging exchanges to carefully consider the specific nature and urgency of each situation before implementing a freeze without prior notification.

This new authority extends beyond simply monitoring activity; exchanges can now actively intervene, freezing funds and preventing transfers if they suspect illegal activity or violations of terms of service.

Crypto Seizure for Unpaid Taxes

Simultaneously, the city of Paju has taken aggressive action to collect unpaid taxes, seizing cryptocurrency assets from delinquent taxpayers. This move underscores South Korea’s commitment to integrating the cryptocurrency market into the existing tax system.

City officials stated, “We have sent virtual asset transfer and sale notices to 17 people who have so far notified them of their unpaid local taxes, totaling 124 million won… If they do not pay their unpaid taxes by the end of this month, we plan to transfer the virtual assets they own, totaling 50 million won, to the city’s account and sell them.”

This action sets a precedent that other jurisdictions within South Korea. It demonstrates that cryptocurrencies, despite their decentralized nature and perceived anonymity, are not exempt from government oversight and taxation.

South Korea has long been a hub for cryptocurrency activity, both in terms of adoption and regulation. These latest developments reflect the country’s ongoing efforts to strike a balance between fostering innovation and mitigating the risks associated with digital assets.

The interplay between these two imperatives will continue to shape the future of the crypto market in South Korea and potentially influence regulatory approaches globally. The long-term consequences of these new measures, both positive and negative, remain to be seen.

However, one thing is clear: South Korea is determined to assert its authority over the cryptocurrency market within its borders. The effectiveness and fairness of these new regulations will be closely scrutinized by investors, industry participants, and regulators worldwide.

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Upbit Faces Major KYC Scrutiny in South Korea, Potentially Jeopardizing License Renewal

Gushiken Yona — Fri, 15 Nov 2024 11:54:06 +0000

South Korea’s largest cryptocurrency exchange, Upbit, is facing a major regulatory hurdle that could significantly impact its operations. The Financial Intelligence Unit (FIU) has reportedly uncovered suspected large-scale Know Your Customer (KYC) violations, potentially leading to hefty fines and even the loss of Upbit’s business license.

The FIU, during its review process for Upbit’s business license renewal, reportedly identified an estimated 500,000 to 600,000 cases where customer verification procedures appear to have been inadequately implemented, according to Maeil Business, a news outlet in South Korea. The investigation, which began in late August, focused on Upbit’s compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. KYC procedures, which require users to open real-name accounts and undergo identity verification, are crucial for exchanges to comply with these regulations.

The FIU’s investigation reportedly uncovered instances where Upbit failed to properly authenticate user identities, including cases where accounts were opened despite blurred or illegible names and registration numbers on submitted IDs. The FIU is meticulously reviewing each of the suspected cases to determine the extent of the violations.

The potential consequences for Upbit are significant. Under the Special Financial Transaction Information Act, virtual asset operators must renew their licenses every three years.

The FIU’s findings could lead to substantial fines, with penalties of up to 100 million won per case for violations of customer verification obligations. Furthermore, the investigation could jeopardize Upbit’s ability to renew its business license, potentially impacting its operations in South Korea.

An Upbit official declined to comment on the specifics of the investigation, citing the confidentiality requirements of the Specific Financial Transaction Information Act, according to Maeil Business. The official emphasized that the exchange is prohibited from sharing information about the investigation, even internally.

The financial sector is closely watching the situation, with particular interest in the FIU’s final determination regarding the number of actual violations. The outcome of this investigation could have a significant impact on the cryptocurrency industry in South Korea, potentially setting a precedent for future regulatory scrutiny of exchanges and their compliance with KYC and AML regulations.

The news of the investigation has sent shockwaves through the South Korean crypto community. Upbit, with its dominant market share, is a major player in the country’s cryptocurrency ecosystem. The potential loss of Upbit’s license would be a significant blow to the industry, potentially leading to a decrease in investor confidence and a slowdown in the growth of the market.

Industry experts are divided on the potential impact of the investigation. Some believe that the FIU’s actions could lead to a more stringent regulatory environment for cryptocurrency exchanges in South Korea, potentially hindering innovation and growth. Others argue that the investigation is a necessary step to ensure the integrity and security of the crypto market and that it could ultimately lead to greater investor confidence and a more mature regulatory framework.

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Second Trump Term May Yield ‘Friendlier’ SEC, Says Global Law Firm

Malaya Ruiz — Thu, 07 Nov 2024 20:32:29 +0000

Global law firm Ropes & Gray has released a forecast suggesting that a second term for Donald Trump could lead to a more agreeable and supportive Securities and Exchange Commission (SEC). The firm posits that such a shift may foster a regulatory climate that encourages growth in financial markets and innovation, particularly in the cryptocurrency space and among tech startups.

“It seems likely that issuers of digital assets—and asset managers interested in investing in digital assets on behalf of their clients—will face a friendlier SEC than under Chair Gensler,” the forecast read.

Trump has addressed multiple cryptocurrency audiences, asserting his commitment to making the U.S. the “world capital of crypto.” Moreover, current Republican Commissioners Hester Peirce and Mark Uyeda have challenged the SEC’s regulatory tactics concerning digital assets. The SEC may even consider developing a new regulatory framework for digital assets, possibly in conjunction with the Commodity Futures Trading Commission. This initiative is part of the Financial Innovation and Technology for the 21st Century Act, known also as FIT21, a comprehensive 200-page bill that received bipartisan support and passed through the House in May 2024.

FIT21 was designed to establish the regulatory clarity and robust consumer safeguards crucial for the digital asset ecosystem to prosper in the United States. One of its main objectives is to position the U.S. at the forefront of the future financial system and as a center for technological innovation.

Asset Management Firm CEO Predicts SEC Shift Post-Gensler Departure

Meanwhile, Alexander Blume, CEO of Two Prime, an SEC-regulated investment advisor firm specializing in digital asset derivatives, told Alexa Blockchain that he anticipates many SEC lawsuits will be dismissed early in Trump’s term following Gary Gensler’s departure. Peirce, known for her vocal support of the industry and criticism of current SEC crypto regulations and therefore dubbed “Crypto Mom,” is rumored to be a potential replacement.

Blume pointed out that Gensler’s unfair focus on the crypto sector has greatly suppressed financial innovation, which has negatively impacted well-meaning businesses and investors alike. He stated that Gensler’s removal from the SEC signifies the close of a tough chapter for U.S. citizens in crypto. “America has a history of financial innovation leadership that has been choked out by the SEC. That time has come to an end,” he said.

This corresponds with Ropes & Gray’s analysis regarding expectations for asset managers under new SEC leadership. After the confirmation of a new Chair and Division Director, asset managers can anticipate a more lenient approach regarding penalties and the application of innovative legal theories by the Division of Enforcement. Additionally, these new leaders may introduce procedural changes that could have a significant long-term effect.

However, the firm acknowledged that there are several cases in the SEC’s enforcement pipeline that are expected to remain largely unaffected by Trump’s return to office. These may pertain to insider trading, financial fraud, offering fraud, and other clear violations of SEC guidelines.

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SEC’s $400M Crypto Enforcement Push Sparks Demand for Clear Guidelines

Malaya Ruiz — Fri, 01 Nov 2024 18:41:57 +0000

The U.S. Securities and Exchange Commission (SEC) has spent over $400 million in litigation costs as part of its ongoing crypto crackdown, according to a recent report by the Blockchain Association.

Under the leadership of Chair Gary Gensler, known for his aggressive stance on cryptocurrency regulation, the SEC has intensified its efforts to impose stricter oversight on the digital asset market. Gensler’s commitment to safeguarding investors and establishing a regulatory framework for cryptocurrencies has sparked significant debate. It has consistently raised questions about the effectiveness and financial implications of such a costly endeavor in the crypto sector.

The report sourced data from intelligence platform Har risX, which surveyed U.S. voters, business decision-makers, and cryptocurrency voters. It aimed to understand their views on the digital asset landscape and the SEC’s regulatory actions.

The report revealed that the SEC, under Gensler, has taken action against a record 104 entities in the digital asset sector. Voter preference shows a clear desire for defined rules over enforcement, with a two-to-one ratio. Consequently, this highlights the crypto community’s demand for clear SEC guidelines instead of vague enforcement practices.

The survey showed that no political party “owns” the crypto issue. However, voters are more inclined to back candidates that promote innovation in digital assets. Notably, crypto voters constitute 18% of the electorate and are more open to supporting candidates who oppose the undefined actions of the SEC.

Gensler’s Controversial Reign Faces Potential Legal Reckoning

Crypto analyst MartyParty holds the view that Gensler will face substantial legal challenges from the industry. He believes that numerous class action civil suits will likely follow his departure from office. He also argues that Gensler cannot evade the consequences of his “misuse of power.”

The Blockchain Association says the @SECGov has cost the crypto industry $400 million since Gary Gensler became chair.

IMO: He will be sued heavily by industry and class action civil suits post office.

You don’t get away with this type of misuse of power.

Not a single…
— MartyParty (@martypartymusic) October 31, 2024

Kristin Smith, CEO of Blockchain Association, offered her insights on the matter in a statement on X. “The SEC’s regulation-by-enforcement approach is harming the United States’ global tech leadership—and failing the American investor the SEC is mandated to protect,” she said. She emphasized that the organization remains committed to its mission. It will advocate for its members through legal means and public discussions, aiming to maximize the potential of crypto and blockchain in the U.S. “That begins with a change of leadership,” Smith added.

Paul Grewal, chief legal officer of Coinbase, chimed in to remind the crypto community that the SEC effectively sourced its more than $400 million funding for its anti-crypto crusade from them. He urged individuals to keep this in mind when they log their work hours, file their taxes, and, crucially, when they head to the polls.

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Market Makers in Crypto: Heroes or Villains?

user — Mon, 28 Oct 2024 21:23:44 +0000

Cryptocurrency has taken the financial world by storm, offering new opportunities and challenges. Among the many facets of this digital revolution is market making, a practice that ensures cryptocurrencies remain liquid and tradable. However, recent legal actions by the Securities and Exchange Commission (SEC) have brought to light the ethical and regulatory dilemmas that accompany this essential function.

What Exactly Is Market Making?

Imagine trying to buy or sell a cryptocurrency, only to find that there are no buyers or sellers. This is where market makers come in. They act as intermediaries, always ready to buy or sell, which keeps the market moving smoothly. Quoting both buy and sell prices helps reduce the gap between what buyers are willing to pay and what sellers want to receive, known as the bid-ask spread. This is crucial in the world of cryptocurrencies, where prices can swing wildly in a matter of minutes.

In traditional finance, market making is a well-established practice, governed by clear rules and regulations. It helps maintain market stability and efficiency, which benefits everyone, from small investors to large institutions. But the world of cryptocurrency is different—less regulated, more volatile, and often shrouded in mystery. This environment can sometimes blur the lines between legitimate market making and unethical manipulation.

The SEC’s Crackdown: A Wake-Up Call

Recently, the SEC charged several companies and individuals, including ZM Quant, Gotbit, and CLS Global, with market manipulation. The allegations are serious. These entities are accused of creating a false sense of activity in the market, misleading investors about the true demand for certain crypto assets. Practices like wash trading—where the same asset is bought and sold repeatedly to inflate trading volumes—are at the heart of these charges. Such tactics are illegal in traditional markets and undermine trust in the financial system.

Wash trading gives the illusion of liquidity and demand, enticing unsuspecting investors to jump in. Another tactic, known as spoofing, involves placing large orders with no intention of executing them, misleading traders about market conditions and unfairly influencing prices. These manipulative strategies have long been outlawed in traditional markets, but the relative novelty and complexity of cryptocurrencies have made them easier to exploit.

The ethical landscape of cryptocurrency market making is complex. Transparency and honesty are crucial for maintaining trust and fairness. Market makers should clearly disclose their trading activities, strategies, and any potential conflicts of interest. This transparency allows other market participants to make informed decisions and helps regulators keep an eye out for manipulative practices.

Conflicts of interest are another significant concern. Market makers might have stakes in specific projects or hold large positions in the assets they trade. These conflicts can skew their trading decisions, potentially harming clients and the broader market. To mitigate these risks, market makers should implement strict policies to separate their market-making activities from other trading operations and disclose any potential conflicts to clients and regulators.

The Regulatory Landscape: A Work in Progress

Regulating cryptocurrency market making is a challenge, with different countries taking varied approaches. In the United States, the SEC and the Commodity Futures Trading Commission (CFTC) have started to regulate cryptocurrency markets, especially when digital assets are classified as securities or derivatives. These agencies have issued guidelines and taken enforcement actions to curb manipulative practices and protect investors.

Elsewhere, countries like Japan and South Korea have introduced specific licensing requirements for cryptocurrency exchanges and market makers. These regulations aim to enhance transparency, protect investors, and promote market integrity. However, the global and decentralized nature of cryptocurrencies presents significant challenges for regulators. The lack of a central authority and the pseudonymous nature of transactions make it difficult to monitor and enforce compliance effectively.

Additionally, the cross-border nature of cryptocurrency trading means that market makers may be subject to different regulations in different jurisdictions, leading to potential regulatory arbitrage.

To address these challenges, regulators and market participants must collaborate to develop a more unified and coordinated approach to cryptocurrency market regulation. This could involve creating international standards and best practices, as well as leveraging advanced technologies like blockchain analytics tools to monitor and enforce compliance.

Looking Ahead: The Future of Market Making

As the cryptocurrency industry continues to grow and mature, the role of market makers will remain crucial in ensuring liquidity and stability. However, the industry must address the ethical and regulatory challenges that have emerged. Market makers must adhere to high ethical standards, promoting transparency and fairness in their operations. Regulators, on the other hand, need to develop comprehensive frameworks that protect investors while fostering innovation.

The convergence of regulatory standards with those of traditional financial markets is likely to happen as the cryptocurrency industry matures. This will require market makers to adapt to evolving regulations and ensure that their practices align with principles of fairness, transparency, and investor protection.

In conclusion, while market making is a legitimate and necessary practice in cryptocurrency trading, it is essential to distinguish between ethical market making and manipulative practices. The recent SEC charges serve as a reminder of the potential for abuse in this space and underscore the need for robust regulatory frameworks and ethical standards. By addressing these challenges, the cryptocurrency industry can continue to thrive, offering new opportunities for investors and market participants alike.

About the Author

Anndy Lian is an accomplished business strategist from Asia, recognized for his extensive advisory work with a diverse range of local and international companies, public institutions, and government agencies. A pioneer in blockchain adoption and an experienced entrepreneur, he currently holds the position of Chief Digital Advisor at the Mongolia Productivity Organization, focusing on promoting digitalization. Lian has previously served as Chairman of BigONE Exchange and as an advisory board member for the blockchain arm of Hyundai Motor Group. He has also played vital roles with the Asian Productivity Organisation and Gyeongsangbuk-do Blockchain Special Committee in South Korea.

As an author, he wrote Blockchain Revolution 2030 and NFT: From Zero to Hero. He continues to support start-up incubation and believes in blockchain’s potential to reshape traditional industries.

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The Shib Crypto Recap: Wednesday

Malaya Ruiz — Wed, 23 Oct 2024 21:00:00 +0000

As Wednesday unfolds, the top news headlines are dominated by the latest developments in global cryptocurrency trends, alongside legal and financial consequences stemming from incidents of fraud and corruption in the industry. With mounting pressure on lawmakers and regulators, the discourse surrounding crypto regulations is heating up, which reflects broader concerns about accountability and transparency in the digital asset space.

Banning Private Cryptos? India Explores Safer Alternatives with CBDCs

The Indian government is considering banning private cryptocurrencies, including Bitcoin and Ether. Key experts argue that the risks of these assets far exceed their benefits. They argue that Central Bank Digital Currencies (CBDCs) can provide similar functionalities with reduced risks. Officials are also optimistic about using blockchain technology for positive social applications like tokenizing government securities. They see great potential for CBDCs in both domestic and international transactions.

The government plans to expand CBDC use after studying data from pilot projects. The final stance on private cryptocurrencies will be decided after extensive discussions with stakeholders.

France’s Red Card Scandal Exposes €28 Million Crypto and Diamond Fraud

A French conference center will host a trial with over 20 defendants accused of defrauding 1,300 victims of €28 million (about $30.52 million). Dubbed the Red Card Scandal, the fraud involved fake cryptocurrency investments and diamond savings schemes. The defendants have reportedly scammed people for more than two decades, including football clubs. Many investors suffered major losses, with some even taking out loans to invest based on false promises of high returns. Twelve accused face charges of “criminal conspiracy,” while others are charged with gang fraud, which includes creating fake websites and selling counterfeit diamonds.

A Chainalysis report highlights that France is a leader in the growth of decentralized finance (DeFi) transaction volumes, especially during volatile market conditions.

Russia’s Rosfinmonitoring Launches Stricter Crypto Regulations

In Russia, Rosfinmonitoring has launched an initiative to improve financial intelligence. All trading platforms must register, obtain licenses, and collect client data, retaining transaction records for five years. They need to share this information with the government as well.

Lawyers are analyzing the probable effects of these regulations on the market. Dmitry Kirillov points out that this is consistent with a global trend to tighten control over cryptocurrencies, in line with FATF guidelines. Yuri Brisov warns that excessive regulation could split the market into legal and illegal parts. Kristina Mkrtchyan stresses the importance of balancing security with user data privacy.

Tether’s CEO Sounds Alarm: US Falling Behind in Crypto Regulation

At the DC Fintech Week conference, Tether CEO Paul Ardoino criticized the U.S. for its slow progress in cryptocurrency regulations. He expressed worry about the current regulatory framework, saying that the U.S. has always been a technology leader. However, he feels the country is “dropping the ball” on crypto policies for the first time ever. Some industry experts argue that unclear rules are pushing crypto firms out of the U.S. Ardoino also emphasized Tether’s dedication to transparency, stating the company will intensify its efforts because of past regulatory challenges.

Shibarium’s Resurgence: From Low Activity to 1.7 Million Transactions in Days

Meanwhile, in Shib news and updates, Shibarium has seen a significant increase in transactions, nearly hitting two million. On Tuesday, a sharp increase was noted following a period of low activity. Data from Shibariumscan showed that after negligible transactions from late September to mid-October, numbers jumped abruptly on Monday to about 400,000. This climbing trend continued, reaching a peak of 1.766 million transactions on Tuesday.

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Crypto.com Launches Legal Challenge to SEC’s Crypto Crackdown

Gushiken Yona — Wed, 09 Oct 2024 06:14:53 +0000

Crypto.com throws down the gauntlet, launching a legal salvo against the U.S. Securities and Exchange Commission. The cryptocurrency exchange seeks to halt what it calls an “unjust” regulatory crusade, escalating a battle that is reshaping the future of digital assets in America.

The Singapore-based company filed suit against the SEC just days after receiving a Wells notice, a harbinger of potential enforcement action. Crypto.com’s aggressive move, announced in a blog post on Tuesday, marked a dramatic escalation in the ongoing tension between the cryptocurrency industry and regulators.

The firm argued the SEC had overstepped its bounds, unilaterally expanding its jurisdiction over digital assets and crafting rules without proper public input. Crypto.com pointedly challenged the SEC’s seemingly arbitrary distinction between Bitcoin and Ether, which the agency has generally refrained from classifying as securities, and other cryptocurrencies, which the SEC frequently targets.

The exchange argued that many digital assets share similar characteristics with Bitcoin and Ether and are sold in the same manner, yet face different regulatory scrutiny. Echoing a growing chorus of industry discontent, Crypto.com accused the SEC of “regulation by enforcement,” a tactic it claimed stymied innovation and threatened the future of the crypto industry in the United States.

The company’s CEO, Kris Marszalek, amplified this message on X (formerly Twitter), criticizing the SEC’s “unauthorized overreach” and declaring the company “very bullish” on the American crypto market despite the regulatory headwinds. This legal broadside was not fired in isolation.

Crypto.com joined a growing rank of crypto firms, including Coinbase and Consensys, that have taken the SEC to court. These companies contended that the SEC’s approach lacked clarity and consistency, creating a chilling effect on the nascent industry.

Consensys, for example, filed suit in April, challenging, among other things, the SEC’s stance on Ether. Coinbase has launched multiple legal actions against the SEC, accusing the agency of refusing to establish clear rules for digital assets.

In a parallel maneuver, Crypto.com’s derivatives arm, Crypto.com | Derivatives North America (CDNA), petitioned the SEC and the Commodity Futures Trading Commission (CFTC) for a joint interpretation of the regulatory status of certain cryptocurrency derivatives. This petition invoked the Dodd-Frank Act, seeking to clarify whether these products fell under the jurisdiction of the CFTC, the SEC, or both.

Crypto.com emphasized its commitment to compliance, highlighting its registration with FinCEN as a money services business, its numerous state money transmitter licenses, and CDNA’s registration with the CFTC. The company portrayed its lawsuit not as an act of defiance but as a necessary defense against what it considered regulatory overreach. It expressed confidence that its strong compliance record and recent court rulings against the SEC would bolster its case.

Despite the legal battle, Crypto.com insisted it was “business as usual,” continuing its mission to “put crypto in every wallet.” The company’s lawsuit, however, signaled anything but business as usual in the broader crypto landscape. The clash between the industry and the SEC was intensifying, with potentially far-reaching consequences for the future of digital assets in the United States.

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Japan FSA Reviews Crypto Regulations and Tax Cuts

Lawrence Damilola — Tue, 01 Oct 2024 14:51:32 +0000

The Financial Services Agency (FSA) of Japan is set to reassess its cryptocurrency regulations, potentially reducing taxes on crypto gains and reclassifying digital assets.

Bloomberg News reported that the agency’s review will continue through winter. It will examine whether the Payments Act framework remains suitable given cryptocurrencies’ evolving role.

According to the report, the FSA is considering shifting digital assets under the Financial Instruments and Exchange Act, which could result in stricter investment rules. The move may also reduce the current tax rate on crypto gains, which can reach as high as 55%. If the assets are reclassified, they could be taxed at approximately 20%, similar to stocks and other financial instruments.

Local industry representatives have long claimed that high taxes on crypto gains hinder growth. They argue that lowering the tax burden would encourage further investment in the sector. According to the same Bloomberg report, alongside tax reforms, the FSA’s review may also approve exchange-traded funds (ETFs) that include digital tokens.

The FSA has sought to balance innovation in the cryptocurrency space with investor protection. In 2022, the agency required crypto exchanges to obtain licenses, leading to interest from major firms like Bitget and Bybit. The ongoing regulatory review reflects Japan’s efforts to support the growth of its digital asset sector.

This review is said to be taking place amidst potential political changes, with Liberal Democratic Party president Shigeru Ishiba replacing Prime Minister Fumio Kishida. Kishida has supported Web3 and blockchain technologies, and his departure could influence future regulatory developments.

Trading volumes in Japan’s cryptocurrency market have risen, with data from CCData showing that volumes reached nearly $10 billion monthly in 2024, up from $6.2 billion in 2023. A surge in Bitcoin and other cryptocurrencies has largely driven the increase.

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The Shib Crypto Recap: Friday

Malaya Ruiz — Fri, 27 Sep 2024 21:51:13 +0000

Today’s conversations in crypto news are largely characterized by key issues such as rising global cybersecurity challenges, a remarkable decline in cryptocurrency market losses, and the increasing acceptance of the crypto sector by conventional financial institutions. Furthermore, progress in regulations governing crypto derivatives trades is making headlines, indicating a shift within the industry.

‘Operation Endgame’ Targets Russian Cybercrime Syndicate Amid Declining Crypto Loss Rates

The U.S. has launched “Operation Endgame” to target a major Russian cybercrime syndicate involved in laundering billions through illegal activities like ransomware and credit card fraud. Key figures include Sergey Sergeevich Ivanov, who runs PM2BTC, a cryptocurrency exchange designated as a major money laundering threat. The Department of Justice has charged Ivanov and Timur Shakhmametov with conspiracy to commit bank fraud and money laundering. Ivanov processed payments for the illegal carding site Rescator and funneled money from the marketplace Joker’s Stash. TRM Labs estimates Ivanov’s network facilitated over $1.15 billion in suspicious cryptocurrency exchanges. This operation marks a significant effort against Russian cybercrime funding.

Speaking of global efforts for investor protection, in Q3 2024, crypto losses due to hacks and fraud fell by 40% compared to the same period last year despite total thefts reaching a significant $1.33 billion for the year. This quarter saw only 3.9% in losses compared to the previous quarter, attributed to improved security protocols and increased user vigilance. A dramatic 54% drop in successful attacks, from 75 in Q3 2023 to 34 in Q3 2024, indicates that these measures are effectively protecting assets. However, experts warn that the market still grapples with evolving threats, especially in the decentralized finance space.

BNY Mellon’s SAB 121 Exemption: Expanding Crypto Custody Services for Institutions

The Bank of New York Mellon (BNY Mellon) has received an exemption from the SEC’s Staff Accounting Bulletin (SAB) 121. This allows the major U.S. custodian bank to offer crypto custody services for institutional clients. Chris Land, general counsel for U.S. Senator Cynthia Lummis, highlighted this during a public hearing in Wyoming. The move shows BNY Mellon’s aim to increase its footprint in the growing crypto custody market while staying under Federal Reserve and New York’s Department of Financial Services oversight. This exemption is significant for the crypto industry, as it may drive more institutional participation and suggests a shift in the regulatory environment.

Aligning Hong Kong’s OTC Derivatives Reporting with Global Standards

Hong Kong’s financial regulators, the Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC), plan to align their OTC derivatives reporting framework, including crypto derivatives, with global standards. The SFC has sought industry feedback on a proposed licensing regime for cryptocurrency OTC services. These changes aim to synchronize Hong Kong’s reporting requirements with those of the European Securities and Markets Authority (ESMA). The HKMA and SFC will implement key international reporting standards like Unique Transaction Identifiers (UTI), Unique Product Identifiers (UPI), and Critical Data Elements (CDE). They will also accommodate the Digital Token Identifier (DTI) in their reporting. The regulators stressed the importance of aligning with global mandates to keep Hong Kong in sync with major jurisdictions.

Strengthening Crypto Ad Policies in Dubai: Emphasizing Risk Awareness and Fair Practices

Dubai has tightened its regulations for cryptocurrency marketing. The Virtual Asset Regulatory Authority (VARA) has set new guidelines requiring all digital asset advertisements to include a clear disclaimer about financial risks. Marketers must follow legal requirements and secure necessary permits. VARA also emphasizes that marketing must be fair and identifiable, prohibiting misleading claims and “fear of missing out” (FOMO) tactics. Promotions should target suitable audiences, and companies are required to maintain records for eight years. Third-party marketers must adhere to these regulations as well.

Shiba Inu’s End-of-September Momentum: Bullish Patterns and Community Confidence

At the close of September, Shiba Inu has gained 37.5% in the past month. Analyst Javon Marks predicted the altcoin may rise further, potentially by 360%. He analyzed a falling wedge pattern that indicates a bullish reversal. This pattern shows that selling pressure is easing as prices consolidate. The recent breakout signals a potential upward trend. Based on this analysis, Marks targets a price of $0.000081, which would mean a major increase from its current value.

As for observations over the week, latest CoinMarketCap data revealed Shiba Inu’s resilience. It showed a 31.40% increase despite a downturn in the broader cryptocurrency market. It now boasts a market cap of over $10 billion, ranking among the top 15 cryptocurrencies. A positive community sentiment shines through, with 87% of 10,897 voters being optimistic about its future.

Since September 16, Shiba Inu’s price has climbed steadily, experiencing small dips that buyers quickly absorb. Trading volume has surged, indicating active participation and validating the rally with genuine interest. So far, these last few days of the month has seen Shiba Inu’s price skyrocket, breaking previous records and leading to increased investor confidence.

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Ireland Partners with EU on Crypto Regulations Under MiCA

Lawrence Damilola — Tue, 24 Sep 2024 13:17:36 +0000

Ireland is working closely with its European Union partners to align with the Markets in Crypto-Assets Regulation (MiCA), according to Derville Rowland, deputy governor of the Central Bank of Ireland.

“For the first time, MiCA will introduce a harmonized regulatory framework for the sector that introduces prudential and conduct obligations for issuers of e-money tokens, asset-referenced tokens, and for crypto-asset service providers,” Rowland stated on Monday. She added that the regulation also imposes obligations for public offers of crypto-assets that are not classified as asset-referenced or e-money tokens.

Deputy Governor Rowland delivered a keynote address, this afternoon, at @AFME_EU 8th Annual European Compliance and Legal Conference, entitled "Change and challenges – responding to uncertainty, transforming for the future and driving innovation". Read on: https://t.co/mjCtYVszUJ pic.twitter.com/pK13A6Mgnj
— Central Bank of Ireland (@centralbank_ie) September 23, 2024

The EU-developed MiCA seeks to unify regulations related to crypto-assets across its member states. Before MiCA, varying rules across countries resulted in market fragmentation. The framework now aims to standardize these regulations to promote consistency and minimize discrepancies.

Rowland emphasized the significance of adopting a cohesive strategy for the execution of MiCA. She noted that the European Supervisory Authorities (ESAs) advocate for a consistent method of applying MiCA throughout national agencies, considering it crucial

She added that MiCA, as a first attempt at regulating the crypto sector, presents an important opportunity to prevent divergent approaches in different jurisdictions.

In Ireland, cryptocurrency adoption continues to grow, with many businesses integrating digital payment options into their day-to-day transactions. The country hosts a range of companies, including crypto exchanges and blockchain startups. Interest in digital currencies is particularly prevalent among young, tech-savvy individuals and finance professionals exploring new investment opportunities.

As the global trend toward digital payments accelerates, more businesses in Ireland are accepting cryptocurrency due to the potential for reduced transaction costs.

At the beginning of this year, Steven Eisenhauer, who serves as the chief risk and compliance officer at Ramp, shared his insights on why Ireland is attractive to cryptocurrency companies. He pointed out that Ireland is regarded as a prime location for businesses aiming for MiCA compliance. The country ranks high alongside nations such as France, Germany, and Belgium.

Despite its modest size, Eisenhauer highlighted that Ireland is home to approximately 12 virtual asset service providers. Furthermore, he suggested that about half of the cryptocurrency companies gearing up for MiCA are looking at Ireland as a potential headquarters.

The post Ireland Partners with EU on Crypto Regulations Under MiCA first appeared on The Shib Daily.

‘Digital Asset Security’: Was the Term Made Up by the SEC?

Malaya Ruiz — Mon, 23 Sep 2024 19:22:48 +0000

The term “digital asset security” has recently come under scrutiny, with critics questioning its origins and legitimacy. They argue that this term, seemingly conjured by the Gary Gensler-led Securities and Exchange Commission (SEC), may have emerged more from a desire to regulate than from any well-defined legal basis.

This raises a critical question: did the SEC fabricate a term to tighten its grip on digital assets or is there a substantive legal framework that supports this classification? As regulators seek to impose structure on a sector that requires more regulation, the implications of such terminology could have far-reaching consequences for the future of digital assets.

Rep. Ritchie Torres: “The SEC invented the term out of thin air.”

An unvarnished comment by Rep. Ritchie Torres (D-N.Y.) during a recent congressional hearing, aptly titled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets,” marked a crucial milepost in this scrutiny. He said the term digital asset security does not appear anywhere, challenging the SEC to explain where it came from. He categorically asked, “If it appears nowhere, neither in rule nor statute, did the SEC invent the term out of thin air?”

In a post on X, the Democratic Congressman went all out and doubled down on the issue at hand.

The term ‘digital asset security’ does not appear anywhere in any law enacted by Congress or in any rule promulgated by the SEC or in any decision rendered by the Supreme Court. It appears nowhere in the 2 million pages of the Federal Register. If it comes from neither statute… pic.twitter.com/ucSaCzEvOU
— Rep. Ritchie Torres (@RepRitchie) September 19, 2024

Cato Institute’s Jennifer Schulp: Inefficient “enforce first, make rules never” Strategy

Jennifer Schulp, Director of Financial Regulation Studies at the Cato Institute’s Center for Monetary and Financial Alternatives, did not mince words either during her testimony regarding the SEC’s misguided strategy for regulating cryptocurrency. She discussed how the SEC’s registration requirements do not align well with digital assets. She said the same applies to the regulations being enforced on exchanges. Furthermore, she strongly asserted that enforcing existing rules can be effective when they provide clear guidance. Yet the SEC’s current strategy leaves much uncertainty around digital assets. This lack of clarity essentially results in a ban on crypto activity in the United States.

“This strategy simultaneously exceeds the agency’s authority and abdicates the agency’s role in overseeing the securities markets,” Schulp added.

Yesterday, I testified about the SEC's flawed approach to crypto regulation in front of the @FinancialCmte.

Catch up on my testimony here: https://t.co/NbIIgtqIcp https://t.co/jKfRd4LMh4
— Jennifer J. Schulp (@jenniferjschulp) September 19, 2024

Robinhood’s Daniel Gallagher: Contending with “innovation-killing federal regulatory uncertainty”

Daniel M. Gallagher, former SEC commissioner and incumbent chief legal officer at Robinhood, pointed out the ongoing federal regulatory uncertainty in U.S. digital asset markets. This has hindered innovation and affected millions of Americans wanting to engage. He testified that the SEC’s stance on which digital assets qualify as investment contracts remains unclear. In contrast, instead of clear rules, the SEC continues to impose regulations through enforcement.

“… millions of Americans who wish to participate in them have had to contend with innovation-killing federal regulatory uncertainty,” Gallagher said. He characterized the agency’s strategy as a “scorched earth” approach. He said this is detrimental to innovation in the blockchain and digital asset industries.

Michael Liftik: “No other statutory authority besides assets transacted in investment contracts”

According to Michael Liftik of Quinn Emanuel Urquhart & Sullivan LLP, the SEC’s authority over digital assets is limited to transactions involving “investment contracts.” The agency lacks other legal grounds for control over such assets. The Howey test, a key precedent, is an old approach that focuses on varied circumstances.

“The only reason the SEC arguably has authority over digital assets is when they are transacted in ‘investment contracts.’ There is no other statutory authority the SEC can point to over digital assets,” he testified.

Bitwise’s Teddy Fusaro: “Americans deserve the freedom to make investment decisions for themselves”

In his testimony, Teddy Fusaro, president of Bitwise Asset Management, Inc., explained that many investors who have registered on cryptocurrency exchanges lack the consumer protections provided by federal securities laws. He emphasized the need for sensible regulations and guidance for these platforms. He said clear oversight and approvals should fit within existing regulatory frameworks, highlighting that this will help guide investors who are seeking to engage with these markets, such as through ETFs.

“Americans deserve the freedom to make investment decisions for themselves, and should have the right to choose which services they use to buy all different types of products and services,” Fusaro stated.

Excited to see progress on this – options on bitcoin ETFs r something that the market wants, needs, and should have.

However, there are more steps that need to take place before they can begin trading, including green light from both the OCC and CFTC which may take some time. https://t.co/UIG6Jedfj2
— Teddy Fusaro (@teddyfuse) September 20, 2024

Duke University’s Lee Reiners: “There remains a gap in crypto spot market regulation”

In a slightly more favorable tone, Lee Reiner, a professor at Duke University, recognized the SEC’s efforts in applying the Howey test to safeguard crypto investors. However, he also asserted that there is still a gap that only Congress can close for the protection of investors. While he supports Gensler’s view that most cryptocurrencies are securities, he believes some are commodities. The Commodity Futures Trading Commission (CFTC) regulates commodity derivatives but not spot markets, leading to unregulated U.S. crypto exchanges. Reiner believes that this issue requires immediate attention from Congress.

“In my written testimony before this Subcommittee last March, I noted that the best way to close the gap in cryptocurrency spot market regulation is to have Congress carve out cryptocurrency from the definition of a commodity in the Commodity Exchange Act and recognize cryptocurrencies as securities under a special definition to the securities laws,” he explained.

Source: U.S. House Committee on Financial Services, YouTube

In light of these testimonies, the SEC faces a critical inquiry into the legal validity of the term “digital asset security.” At the same time, it raises important considerations regarding how platforms can enhance investor experiences in the cryptocurrency market without impeding innovation.

The post ‘Digital Asset Security’: Was the Term Made Up by the SEC? first appeared on The Shib Daily.

Tennessee Rep. John Rose Proposes New Bill for Joint Crypto Advisory Committee

Lawrence Damilola — Fri, 13 Sep 2024 14:02:57 +0000

Tennessee Congressman John Rose has introduced the “BRIDGE Digital Assets Act,” proposing the creation of a joint digital asset advisory committee between the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).

The bill aims to harmonize regulations for digital assets, which have faced varying interpretations by the two regulatory bodies. Also, the proposed committee would consist of 20 private sector members, including digital asset issuers, academic researchers, and users. The purpose of this committee, according to Rose, would be to provide both agencies with guidance on their respective rules, regulations, and policies related to digital assets. “The United States must allow digital assets to thrive because the heavy-handed, regulation-by-enforcement approach isn’t working,” Rose stated on X, referring to the current regulatory landscape.

Rose’s bill addresses the ongoing regulatory conflict between the SEC and the CFTC, where the SEC has viewed certain digital assets as securities, while the CFTC treats them as commodities. This divergence has created an uncertain regulatory environment for digital assets. The congressman believes that establishing a joint advisory committee will help align the views of both agencies on digital asset oversight.

“The Joint Advisory Committee on Digital Assets will provide a framework for the government and private sector partners to cooperate on a path toward success for the regulatory landscape of digital assets and private sector participants,” Rose added.

He further commented that the current approach of regulating through enforcement is not fostering growth and is instead encouraging investment to move overseas.

NEW: I've introduced the BRIDGE Digital Assets Act to establish a Joint Advisory Committee on digital assets between the @SECgov and @CFTC.

The United States must allow digital assets to thrive because the heavy-handed, regulation-by-enforcement approach isn't working. https://t.co/Ty0VpvPgoj
— Congressman John Rose (@RepJohnRose) September 12, 2024

The bill outlines that the joint committee will focus on examining the potential of digital assets to improve the efficiency of financial market infrastructures. Areas of review will include customer protections, increased transparency regarding customer funds, reduced transaction costs, and better access to financial market services. The committee would be required to meet at least twice a year to deliver its findings and recommendations to both the SEC and CFTC.

“The purpose of the committee, I’m told, would be for the industry to provide both agencies with advice on their respective rules, regulations, and policies relating to digital assets,” noted Eleanor Terrett, a Fox Business reporter who first flagged the details of the bill on X.

SCOOP: Republican Tennessee Congressman @RepJohnRose, who sits on the @FinancialCmte, is introducing a new bill called the “BRIDGE Digital Assets Act” that would establish a Joint Advisory Committee on digital assets between the @SECGov and the @CFTC.

The purpose of the…
— Eleanor Terrett (@EleanorTerrett) September 12, 2024

Rose emphasized that the collaboration would provide “a framework for the government and private sector partners” to work together on digital asset regulation.

In May, a bipartisan bill known as FIT21 was approved by the U.S. House of Representatives, dividing regulatory authority between the SEC and CFTC. Yet, SEC chairman Gary Gensler criticized the legislation, labeling it as posing an “immeasurable risk” to investors.

The Bridge Digital Assets Act is seen as a response to ongoing debates over how digital assets should be regulated in the U.S. and whether the SEC and CFTC can effectively work together under a unified framework.

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Former Mt. Gox CEO to Launch New Crypto Exchange EllipX in Europe

Lawrence Damilola — Wed, 04 Sep 2024 19:31:34 +0000

Mark Karpeles, former CEO of the defunct Mt. Gox cryptocurrency exchange, has announced plans to launch a new crypto trading platform called EllipX later this month. Based in Poland, the exchange will initially focus on serving European users, with a potential for global expansion.

Karpeles, who will oversee the technical aspects of the platform as Chief Technology Officer, explained on Wednesday during the Korea Blockchain Week event in Seoul, South Korea, “Mt. Gox was based in Poland, so I do know it [well] as a country.”

EllipX aims to comply with the European Union’s Markets in Crypto-Assets (MiCA) regulations. Karpeles has stressed the importance of transparency, stating, “To the rightfully skeptical crypto investors, the exchange intends to share technical data with customers to show full transparency, on top of audits on each separate entity by third parties.”

I'm thrilled to announce.. @EllipXCrypto
With the goal of making crypto more accessible and safer, the first step comes with the EllipX Wallet, a MPC wallet that splits private keys in 3 parts between yourself, your device and EllipX.
— Mark Karpelès (@MagicalTux) August 23, 2024

Karpeles also discussed how EllipX will adopt a unique structure to ensure transparency. He noted that most exchanges today combine brokerage, trading, and storage functions under one entity, which can obscure operations. “Typically, an exchange today is doing both the broker side dealing with customers and the matching side and the storage side, storing crypto and fiat,” he said.

EllipX will instead compartmentalize these functions, similar to the structure of the New York Stock Exchange but adapted for cryptocurrencies. “What I see for the future is to have one entity that deals with the trading on the market, and brokers located in different countries providing localized service, while the trading entity will only deal with trading,” Karpeles stated during an interview with The Block.

Despite the notorious collapse of Mt. Gox, Karpeles has managed to maintain a presence in the crypto world. In a recent post on X (formerly Twitter), he announced an initiative to reconnect with former Mt. Gox users by offering them a discount of at least 50% on trading fees at EllipX.

This discount is linked to non-fungible tokens (NFTs) released for Mt. Gox users a few years ago. However, Karpeles mentioned that only a small portion of the million affected users have claimed these NFTs. He expressed a desire to engage with those who lost assets in the Mt. Gox collapse, stating that this gesture could help in reestablishing trust. Karpeles also reflected on the aftermath of the Mt. Gox collapse, mentioning he received death threats but noted, “the attitude toward him within the crypto community has softened in recent years.”

Karpeles believes the industry needs more transparency and is setting up EllipX as an example. He said, “If you look at the top 100 exchanges, the first few ones would be very large ones like Binance, Coinbase … But as you go down the list after five, six names, you won’t even know which companies are running the exchanges.” He hopes that other platforms will follow suit in prioritizing transparency. He added, “By creating this kind of transparency and this kind of environment, other exchanges are hopefully likely to follow. Then transparency will become standard across the industry.”

EllipX will rely on third-party companies like BitGo to clear operations and separate them from brokers. Karpeles explained, “The actual movement of hands-on crypto will happen through clearing houses, basically companies like BitGo, that would still be separated from brokers.”

Mt. Gox was once the world’s largest crypto trading platform. However, it filed for bankruptcy late in February 2014 after a series of heists that saw up to 950,000 bitcoins — worth upward of $58 billion at today’s prices — vanished.

Mt. Gox attributed the loss of bitcoins to a flaw within the cryptocurrency’s system. According to Mt. Gox, while users encountered partial transaction alerts upon logging into the exchange, it’s possible that hackers were secretly transferring funds from their accounts due to this vulnerability.

Since its collapse, the exchange has recovered approximately 141,686 BTC from bankruptcy proceedings, with around 59,000 BTC already distributed to creditors through designated exchanges. The repayments are made in Bitcoin and Bitcoin Cash.

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Malaysian Police Dismantles Cryptocurrency Fraud Call Center Targeting Japanese Citizens

Gairika Mitra — Wed, 28 Aug 2024 16:36:02 +0000

In a groundbreaking development in Malaysia, the Royal Malaysian Police (PDRM) recently dismantled a cryptocurrency investment fraud call center reportedly targeting Japanese citizens.

The PDRM carried out two separate raids on two luxurious residential properties. It arrested 21 individuals, belonging to the age group 22-37. Sixteen Chinese men, a Chinese woman, a Laotian woman, two others from Hong Kong and Myanmar, and a local Malaysian man were apprehended.

The director of the Bukit Aman Commercial Crime Investigation Department (CCID), Datuk Seri Ramli Mohamed Yoosuf, mentioned the likelihood of foreign suspects working as customer service representatives at the call center. He added that the local suspect was the caretaker of the call center.

“According to our investigation, the call centre had been operating for only a month. The syndicate used luxury bungalows, surrounded by two layers of high fences and situated far from the main road, to conceal their activities from authorities,” he explained at a press conference at Menara KPJ on Wednesday.

He added that the arrested individuals were involved in seeking victims through social media platforms, like Tinder and Monsters. They were then lured into making investments via Bitbank and CoinCheck.

Ramli said the members of the syndicate entered Malaysia on social visit passes and received commissions as salaries. The police also seized 17 computer sets, 55 mobiles, a router, a set of keys, and two alarm units.

“The detained local man was released on police bail on Aug 25, after his remand period ended. Meanwhile, the other 20 individuals are in remand detention, under the Immigration Act 1959/63,” he added.

Ramli noted that any kind of investment opportunities happening through social media is mostly fraudulent. He concluded by saying that those who are looking to invest should only explore investments recognized by official investment bodies, such as the Securities Commission Malaysia and Bank Negara Malaysia.

As a nation, Malaysia is progressively refining its stance on cryptocurrencies. Bank Negara has already been regulating digital assets, with a focus on anti-money laundering. Currently, most cryptocurrency exchanges in the country are required to register with the Securities Commission Malaysia.

However, even though Malaysia is seeing a growing interest in cryptocurrencies from investors, it has also been attracting several fraudulent activities.

The nation is, however, exploring and implementing virtual asset regulatory policies through statutory bodies such as the Securities Commission Malaysia, which is the primary authority overseeing digital asset service providers in Malaysia.

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Federal Court Rules in Favor of Kraken: Tokens on Platform Not Securities

Gairika Mitra — Mon, 26 Aug 2024 17:16:18 +0000

The Federal Court for the Northern District of California passed a ruling on Saturday that no tokens trading on cryptocurrency platform Kraken will be considered securities.

Announced on X by Marco Santori, Chief Legal Officer for Kraken, this ruling indicates positive news for Kraken and the entire cryptocurrency space in general, reiterating Kraken’s stance that it doesn’t list securities on its platform.

“Today, the Federal Court for the Northern District of California ruled, as a matter of law, that none of the tokens trading on Kraken are securities. This is a significant win for Kraken, for the principle of clarity and for crypto users everywhere. It also confirms Kraken’s long-standing position that it does not list securities,” Santori said.

He added that the court found the SEC’s invention of the “crypto asset security” concept to be “unclear at best and confusing at worst.”

Delving into more details, he shared that the court said a token isn’t a security, but agreements around a token could be considered as such. He questioned the qualifications of the SEC, stating it lost in their “tokens are securities” theory and therefore can’t be relied on in the future.

“Instead, it will need to prove, for every alleged transaction on Kraken, that the Howey Test factors are satisfied. They aren’t, and we look forward to proving this in discovery. Kraken will fight and Kraken will win,” he explained.

Santori expressed his displeasure with the fact the existing standard under SEC’s regulation is extensive, expensive, and time-consuming. He added that it’s a “litigation without end.”

“Today’s ruling confirms what we’ve been saying all along: the SEC cannot credibly regulate crypto by enforcement. To deliver clarity to the industry, to protect consumers and foster the growth of blockchain technology, Congress must pass a comprehensive market structure framework. We applaud all of those in our government working tirelessly to make this a reality and we thank the Court for its consideration of this case,” he concluded.

Recently, Australia’s Federal Court ruled against Bit Trade Pty Ltd, the local operator of the Kraken cryptocurrency exchange for breaching regulations related to its margin trading product.

This isn’t the first time that the SEC has been called into question over its views and assertions about cryptocurrency, suggesting a need for an improved regulatory approach to the crypto market.

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Binance to Hire 1,000 New Employees Focused on Compliance

Lawrence Damilola — Thu, 22 Aug 2024 12:01:21 +0000

Binance plans to add 1,000 employees in 2024, prioritizing compliance roles as the company faces increasing regulatory challenges. Richard Teng, Binance’s CEO, announced this during a visit to the U.S. on Wednesday, where he engaged with regulatory monitors and officials. Teng, who has a background in financial regulation, emphasized the need to strengthen compliance.

“We’re very early in the journey,” Teng said, revealing that compliance expenditures have exceeded $200 million this year and continue to rise. According to Teng, Binance’s compliance team is expected to grow to 700 employees by the end of 2024, up from the current 500.

Richard Teng’s extensive experience in regulation has been crucial in his rise within Binance. Before joining the company, Teng held key positions at the Monetary Authority of Singapore and the Abu Dhabi Global Market. He joined Binance in 2021 as head of operations in Singapore, later taking on responsibilities across the Middle East, North Africa, and Europe. His regulatory expertise is critical in Binance’s navigation of its legal obligations and regulatory scrutiny.

“I’ve been a regulator all my life. Government agencies are important,” Teng remarked when discussing his approach to leading the company. He did not confirm whether meetings with the U.S. Securities and Exchange Commission (SEC) occurred during his visit. The SEC has ongoing legal action against Binance, separate from the exchange’s plea deal with the U.S. Department of Justice (DOJ).

Binance’s decision to expand its compliance workforce follows the plea deal reached in November 2023, in which the company and its former CEO, Changpeng Zhao, admitted to multiple charges. The deal resulted in fines exceeding $4.3 billion linked to violations of the Bank Secrecy Act and other regulations. The exchange is now under ongoing monitoring by U.S. authorities, with compliance overseen by appointed monitors from the Forensic Risk Alliance and Sullivan & Cromwell.

Teng also noted that Binance has seen a near 10% increase in law enforcement requests, rising from 58,000 in 2023 to 63,000 this year. “They’re going to do an assessment,” Teng said, referring to the work of the appointed monitors, who oversee the company’s financial practices and transaction monitoring.

Binance faces regulatory challenges in Canada, the United States, and Japan, including a ban by the Financial Intelligence Unit (FIU) for non-compliance with local laws in India. After fines and tax disputes, Binance registered with the FIU in August 2024, aiming to rebuild trust and comply with regulations.

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India Not Considering Legislation to Regulate Cryptocurrencies, Says Government

Gairika Mitra — Thu, 08 Aug 2024 13:01:39 +0000

The Indian government has made it clear in a recent reply to the Parliament that it is not considering any legislation to regulate cryptocurrency transactions. This move comes despite India’s strict laws on digital assets, showcasing the government’s preference for oversight through existing measures rather than introducing new regulations for Virtual Digital Assets (VDAs).

This stance reflects a cautious approach, focusing on strict tax laws and anti-money laundering measures rather than direct regulation of Virtual Digital Assets (VDAs).

Responding to a Parliament enquiry, the Finance Ministry of India revealed that currently there isn’t any proposal to bring legislation for regulating the sales and purchase of virtual digital assets in the country.

The enquiry was raised by a member of Parliament seeking details about the status of VDAs, the number of corporations and platforms engaging with VDAs in the last five years, and what plans the government is making for regulatory oversight.

Pankaj Chaudhary, Minister of State in the Ministry of Finance in India, revealed that VDAs are unregulated in India and the government does not collect data concerning these assets.

“However, for specific oversight purposes such as Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT), the Financial Intelligence Unit India (FIU-IND) has been authorized to designate Virtual Digital Asset Service Providers (VDSAPs) as Reporting Entities (RE) under the Prevention of Money Laundering Act, 2002 (PMLA). Additionally, Law Enforcement Agencies (LEAs) have the mandate to address illicit activities under existing legal provisions,” he said.

Reactions From the Community

The Indian Web3 community has responded positively to this development. Bharat Web3 Association welcomed the recent comments by the Finance Ministry on the upcoming discussion paper on VDA policy.

Dilip Chenoy, Chairman of Bharat Web3 Association, exclusively told The Shib Daily that the association looks forward to studying the paper in detail when released for public consultation and offering its policy inputs.

“We urge the government and regulators to take the lead in formulating a comprehensive regulatory regime for Web3/VDAs in India. BWA continues to work with FIU-IND on strengthening the AML/CFT framework for VDA Service Providers introduced last year and with the Ministry of Finance on rationalising the tax regime for VDAs introduced in 2022,” Chenoy said.

India’s position has also been influenced by its role in the G20. The Group of Twenty (G20) is an international forum consisting of 19 countries and the European Union, which plays a prominent role in addressing international financial issues and providing global economic cooperation.

Last year, India played a key role in adopting the International Monetary Fund (IMF) and Financial Stability Board (FSB) Synthesis Paper. The paper highlights a coordinated global policy and regulatory framework for crypto assets.

The Bharat Web3 Association has also been enthusiastic regarding India’s leadership in building consensus on crypto assets during the G20 presidency.

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Russia Takes Major Steps in Crypto Regulation Amid Evolving Stance

Gairika Mitra — Wed, 31 Jul 2024 18:27:54 +0000

In a massive shift in policy, the Russian government has passed two key bills with regard to cryptocurrency. The first bill, which was already approved by the Lower House, will allow the use of cryptocurrency as a method of payment for international trade.

The second bill aims to legalize cryptocurrency mining within Russia. The Lower House has sent the bill to the Upper House and President. If this is enacted, then this legislation will be marked as a significant policy shift in Russia’s stance with regard to digital assets.

Historical Context of Russia’s Crypto Policy

Russia has always maintained a stringent position regarding cryptocurrencies, viewing them as a potential threat. However, in 2017, a shift started when the government recognized blockchain technology, albeit with restrictions.

Then, in 2020, Russia officially recognized cryptocurrencies by signing the Digital Financial Assets (DFA) law. This law allows buying and selling crypto but prevents people from using it as a means of payment for goods and services.

Russia is currently planning to introduce the digital ruble by July 2025, according to Russian Central Bank Governor Elvira Nabiullina in a report by Russian news agency TASS. While addressing the Federation Council (Upper House), she revealed that if everything went according to plan and pilots were implemented successfully, users can expect to move from trial runs to the broad rollout of the digital ruble.

“We will be able to shift from tests to massively introducing the digital ruble from July 2025. We target those dates, though it will be a gradual process, a gradual process of using digital rubles,” she said.

Implications and Social Media Reactions

The recent legislative developments in Russia have mostly fetched positive reactions on social media. Crypto analysts like Michaël van de Poppe called it “big news.”

Big news from Russia!

They passed a bill accepting #Bitcoin and crypto for foreign payments & #Bitcoin mining.

Bitcoin has become a geopolitical subject and adoption is coming faster than we might think.
— Michaël van de Poppe (@CryptoMichNL) July 30, 2024

Bitcoin Archive (@BTC_Archive) called this move huge.

BREAKING: Russia to legalise #Bitcoin and crypto as a foreign currency for international payments – Bloomberg

HUGE! pic.twitter.com/HzZGeZCqOO
— Bitcoin Archive (@BitcoinArchive) July 30, 2024

Crypto influencer Budhil Vyas (@BudhilVyas) praised the Russian government’s decision to embrace crypto, suggesting that adoption is set to accelerate, while clarifying to commenters on his post that this move is good news.

BREAKING : Russia embraces #crypto

Russian parliament passes major bill

cross-border crypto payments now legal

adoption about to explode pic.twitter.com/Yx8PNGjuIg
— Budhil Vyas (@BudhilVyas) July 30, 2024

In a nutshell, Russia’s evolving stance on cryptocurrency from skepticism to potential bans and then to having a regulated approach indicates a transformative scenario for the global crypto market. It is likely that this development could have a huge impact on the industry, resulting in mass adoption of digital assets.

The post Russia Takes Major Steps in Crypto Regulation Amid Evolving Stance first appeared on The Shib Daily.

DOJ Announces BitMEX’s Guilty Plea to Bank Secrecy Act Violation, Exchange Calls Charge ‘Old News’

Malaya Ruiz — Thu, 11 Jul 2024 20:31:41 +0000

The U.S. Department of Justice (DOJ) said BitMEX, a cryptocurrency derivatives exchange, pleaded guilty to violating the Bank Secrecy Act (BSA) between 2015 and 2020. The Seychelles-headquartered exchange responded by claiming there is no new information in this case.

In a press release, Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, acting assistant director for the FBI’s New York Field Office, disclosed that HDR Global Trading Limited, the parent company of BitMEX, was accused of deliberately neglecting to establish and maintain an effective Anti-Money Laundering (AML) program while conducting business in the United States, as mandated by federal law.

“As a result, BitMEX opened itself up as a vehicle for large-scale money laundering and sanctions evasion schemes, posing a serious threat to the integrity of the financial system. Today’s guilty plea indicates again the need for cryptocurrency companies to comply with U.S. law if they take advantage of the U.S. market,” Williams said.

Source: U.S. Department of Justice

In response, BitMEX issued a statement dismissing the issue as dated and clarified that it is the same charge that was leveled against its founders in 2020. The founders reportedly acknowledged the violations and were sentenced in 2022. BitMEX said it has already taken corrective measures and asserted that the BSA charge was “old news.”

“We have accepted the BSA charge, will seek an expedited sentencing hearing, and argue that no further fine should be imposed, given the substantial amounts already paid by our founders under the BSA charges brought against them, and under our no admission/no denial settlements with the CFTC and FinCEN in 2021,” the statement read.

In response to the U.S. Department of Justice’s decision to file a charge of Bank Secrecy Act (BSA) violation against HDR Global Trading Limited (HDR), the entity owning and operating BitMEX, we would like to share the following statement.

The BSA charge is old news – this is… pic.twitter.com/xvnGvfPvOA
— BitMEX (@BitMEX) July 10, 2024

The exchange added that it has rolled out a robust compliance framework in 2020 to comply with Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regulations across all locations of operation. As part of this update, BitMEX has introduced a comprehensive Know Your Customer (KYC) program which outlines the standards applied to all retail and corporate customers through specific policies and procedures.

BitMEX emphasized that the recent news from the DOJ has no bearing on its business operations, which will continue as per usual.

BitMEX founders Arthur Hayes, Benjamin Delo, and Samuel Reed pleaded guilty to the AML negligence case in 2022, after which each of them received a $10 million civil penalty. In February of the same year, Hayes and Delo agreed to pay their penalties, while Reed agreed to pay his after pleading guilty in March. U.S. regulators reached a $100 million settlement with the crypto trading platform in August that year.

Established in 2014 and registered in the Seychelles, BitMEX is a prominent platform for cryptocurrency derivatives trading, allowing users to purchase futures and perpetual swap contracts for various digital assets.

The post DOJ Announces BitMEX’s Guilty Plea to Bank Secrecy Act Violation, Exchange Calls Charge ‘Old News’ first appeared on The Shib Daily.

South Korean Crypto Alliance DAXA Reveals Token Review Guidelines Under New Investor Protection Law

Malaya Ruiz — Thu, 04 Jul 2024 17:34:06 +0000

The Digital Asset Exchange Association (DAXA), an industry body comprising five major South Korean exchanges, has revealed the details of its proposed assessment of 1,333 digital assets spanning six months in compliance with South Korea’s new investor protection laws, which will be enforced starting on July 19. This review, which has been in the pipeline for months, aims to mitigate potential mass delistings under the new regulations.

Twenty South Korean crypto exchanges, including leading platforms Bithumb and Upbit, are mandated to evaluate the cryptocurrencies listed on their platforms to follow the guidelines set forth by the Protection of Virtual Asset Users Act. Any new token listings must meet the requirements outlined in the new rules.

The review requirements are divided into four categories, namely, the reliability of the issuing entity, user protection devices, security standards, and compliance with laws and regulations.

Excerpt from translated press release. Source: DAXA

Token issuers must disclose crucial information that may affect users’ investment decisions or the value of the digital asset, such as the total volume, distribution plan, and business plan. Additionally, they are not allowed to make changes without valid reasons.

The screening process should also focus on confirming the accuracy of materials, such as white papers, that address significant issues related to digital assets, and the ability to oversee transactions on the distributed ledger.

If there is a security breach, such as hacking, where the cause is unknown or unresolved, further evaluation is necessary. This could pertain to digital assets, crypto wallets managed by an entity, or a distributed ledger used for issuing, transmitting, or storing digital assets.

This stipulation in the initiative could prevent the occurrence of hacking incidents such as those that happened at the end of last year, which involved Galaxia (GXA), Orbit Chain (ORC), Somesing (SSX), and PlayDapp (PLA).

Stringent screening, such as requiring proper and sufficient documentation, will also be enacted on eligible overseas digital asset markets. Only markets located in countries that constitute the Board of Directors of the International Organization of Securities Commissions (IOSCO) are considered eligible. To ensure best practices are assumed in such cases, a list of eligible overseas markets will be identified through further research and discussions among exchanges and will be maintained with regular updates from DAXA.

This signals an important move toward protecting the overseas crypto holdings of the country’s citizens. As of September 2023, South Korean investors and businesses had accumulated more than 131 trillion won (around $97.9 billion) worth of cryptocurrencies in offshore accounts.

Crypto analyst Stefan Luebeck has optimistic views about this development, referencing Upbit’s significant trading volume in the first quarter of 2024 in a post on X. “This really is a strong headwind for the #cryptomarket, as @upbitglobal traders produced a lot of #tradingvolume in the first quarter of 24 in times being bigger than the whole trading volume on their local stock exchange,” he tweeted.

With South Korea’s crypto market adopting new regulations, investors must keep themselves abreast of possible shifts in token availability and market dynamics. The upcoming months will be critical in determining the direction of crypto trading in the region.

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Uncle Sam’s Crypto Shuffle: Coinbase is Illegal… But Hold My Bitcoin

Gushiken Yona — Sat, 29 Jun 2024 14:15:38 +0000

Buckle up, crypto fam! Last June, the U.S. government pulled off a regulatory hat trick that would make a magician blush. First, the SEC slapped Coinbase with charges for operating as an unregistered securities exchange, broker, and clearing agency. Then, they doubled down on the accusation, highlighting Coinbase’s crypto staking service as equally illicit. But wait, there’s a twist!

Uncle Sam, in all his wisdom, then turned around and made Coinbase his Bitcoin banker! Yes, you read that right. The same company accused of raking in billions through “unlawful” activities is now trusted with safeguarding the government’s own crypto trove.

This is like your parents grounding you for sneaking out, then asking you to babysit your younger siblings. Makes total sense, right?

So, what’s the deal? Is this the government’s way of saying, “We hate the game, not the player?” Or is it a strategic power play, using Coinbase’s expertise while maintaining a tough regulatory stance?

Questions to ponder, dear crypto enthusiasts:

Does the government’s use of Coinbase inadvertently legitimize their operations?
Could this be a Machiavellian tactic to control the crypto narrative while staying ahead of the curve?

One thing’s for sure: the hypocrisy is thicker than a Bitcoin whale’s wallet. This saga raises more red flags than a communist convention.

What’s the endgame, Uncle Sam? Are you playing 4D chess while the rest of us are still trying to figure out tic-tac-toe?

Sound off in the comments, crypto community! Let’s untangle this web of contradictions and see where this crazy train is headed.

Ready for the next act? Let’s keep riding this rollercoaster to the moon and back!

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SEC’s Gensler Accuses Crypto of Being ‘Highly Centralized’ with Platforms ‘Centralizing and Commingling’

Gushiken Yona — Fri, 28 Jun 2024 09:23:58 +0000

U.S. Securities and Exchange Commission Chairman Gary Gensler remains undeterred amidst a barrage of criticism, firmly advocating for consumer protection. In a recent interview, Gensler, a controversial figure in the financial sector, reiterated his concerns about the crypto industry, claiming it is “highly centralized” with “a few platforms” also “centralizing and commingling things.”

Gensler has become a divisive figure in the crypto world, earning widespread disdain for the SEC’s rigorous enforcement actions under his leadership. He is often portrayed as the antagonist stifling the industry’s progress in the U.S. Despite this, Gensler has not wavered from his position, emphasizing the need for stringent oversight.

“So much of this field is highly centralized. It’s not decentralized. That’s not what’s happening here. It’s highly centralized around a few platforms that are also centralizing and commingling things that we would never allow anywhere else,” Gensler said in an interview with Bloomberg.

“The law doesn’t allow you to be trading against your customers and operating a so-called exchange, trading in front, and possibly also taking investments in an investment contract or security and then listing and getting the listing pop. These are all happening potentially at these [platforms], and we see some of the leading [ones who] two years ago would have filled a room much bigger than this if they were sitting on this stage are now sitting in jail or awaiting jail,” the SEC chair said.

Gensler’s comments came amid criticism from high-profile figures like Mark Cuban, owner of the Dallas Mavericks. Cuban, a prominent crypto advocate, blamed Gensler and the SEC’s stringent approach for potentially hindering President Joe Biden’s re-election bid.

“Gensler’s suing everybody. The problem isn’t all the entrepreneurs trying to run their businesses because they’ve tried, including me. The problem is the registration process. They don’t have this problem in Singapore, they don’t have this problem in Japan, they don’t have this problem in other places. This is uniquely an American Gary Gensler problem,” Cuban remarked in an interview with Coinbase’s Chief Legal Officer Paul Grewal.

“If he has a political career in mind, he’s done and he literally could cost President Joe Biden the election because there are a whole lot of Gen Z, Gen X, millennials that own a whole lot of crypto and by not making it easy to register, it makes it easier for all the scam coins to exist,” Cuban further said.

Gensler’s stance also drew criticism from Ripple Labs CEO Brad Garlinghouse. Garlinghouse, facing SEC allegations of raising over $1.3 billion through an unregistered securities offering by selling XRP, echoed Cuban’s sentiments. “And this slander about ‘all crypto execs going to jail’ from the man who completely missed FTX (and actually cozied up to SBF), and wasn’t even invited to the DOJ announcement about Binance,” Garlinghouse fired back, before saying, “Gensler will cause Biden to lose the election.”

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Italy Cracks Down on Crypto Wild West to Mitigate Money Laundering Risks

Violet Vallaya — Fri, 21 Jun 2024 12:56:59 +0000

Italy is poised to become the latest European nation to tighten its grip on the cryptocurrency market, according to a draft decree reviewed by Reuters. The move signals a growing global trend towards regulating the once-unfettered digital asset landscape, focusing on mitigating risks and protecting consumers.

While the exact details are still under cabinet review, the draft outlines a two-pronged approach: enhanced surveillance and stricter penalties for market manipulation. Italy’s central bank and financial watchdog, Consob, will be tasked with overseeing cryptocurrency activities, aiming to safeguard financial stability and ensure the “orderly functioning of markets.” This could involve stricter reporting requirements for crypto exchanges operating within the country, allowing authorities to monitor trading activity and identify potential irregularities.

The focus on market manipulation reflects a growing concern among regulators worldwide. Cryptocurrencies, with their inherent volatility and susceptibility to hype, are seen as vulnerable to pump-and-dump schemes and insider trading. The hefty fines outlined in the draft – ranging from €5,000 to a staggering €5 million – serve as a strong deterrent for those seeking to exploit the market.

This regulatory push by Italy comes amid a broader European effort to harmonize cryptocurrency regulations. The European Union’s Markets in Crypto Assets (MiCA) framework, adopted in 2023, aims to establish a unified approach to overseeing digital assets across the bloc. Italy’s draft decree appears to be aligning itself with this framework, suggesting a collaborative effort within the EU to create a more stable and secure crypto environment.

However, the increased oversight also raises concerns about stifling innovation. The cryptocurrency market thrives on its decentralized nature and rapid evolution. Overly stringent regulations could potentially impede the development of new technologies and discourage legitimate businesses from entering the space.

Italian regulators seem to be aware of this potential pitfall. The draft reportedly avoids imposing blanket bans or restrictions on cryptocurrency trading itself. Instead, it focuses on creating a more transparent and accountable market, potentially allowing responsible innovation to flourish within a controlled framework.

The Italian approach could serve as a model for other countries grappling with how to regulate the cryptocurrency market. Striking a balance between protecting consumers and fostering innovation is key.

Beyond Italy, other major economies like the United States are also actively considering stricter crypto regulations. The recent collapse of several high-profile crypto exchanges and the ongoing investigation into alleged Tether manipulation have further fueled calls for regulatory action. However, unlike Italy, the U.S. regulatory landscape remains fragmented, with different agencies vying for oversight.

The international community is also playing a role. The Financial Stability Board (FSB), a global body coordinating financial regulation, has issued guidelines for effective crypto oversight. These guidelines emphasize the need for a risk-based approach, focusing on the risks associated with different crypto assets and activities.

The success of this approach will likely be closely watched by other nations grappling with navigating the ever-evolving world of digital assets.

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Consensys Continues Legal Battle Despite SEC Dropping Ethereum Investigation

Gushiken Yona — Wed, 19 Jun 2024 06:25:57 +0000

Consensys, a leading blockchain software technology company, celebrated a significant victory as the U.S. Securities and Exchange Commission (SEC) dropped its investigation into Ethereum 2.0, confirming no enforcement action against the company. However, the legal battle continues as Consensys pursues a lawsuit against the SEC seeking regulatory clarity for its MetaMask Swaps and Staking products, highlighting the ongoing struggle for clear regulatory frameworks within the rapidly evolving blockchain industry.

However, the legal battle is far from over. Consensys, headed by Ethereum co-founder Joe Lubin, remains committed to pursuing its lawsuit against the SEC, seeking regulatory clarity for its MetaMask Swaps and Staking products. “Our fight continues. In our lawsuit, we also seek a declaration that offering the user interface software MetaMask Swaps and Staking does not violate the securities laws. It should not take a lawsuit to provide the much-needed regulatory clarity to allow an industry that serves as the backbone to countless new technologies and innovations to thrive – but here we are,” Consensys said in an official statement.

Consensys had initially sued the SEC in April to defend the Ethereum ecosystem and challenge the agency’s authority over ETH, arguing that it is a commodity and therefore outside the SEC’s jurisdiction. At the time, Lubin emphasized the importance of this action to protect not only Ethereum but the entire decentralized protocol ecosystem.

“We don’t take this step lightly, but we feel compelled to act. Our action today is intended to protect the Ethereum ecosystem as well as the entirety of the extended decentralized protocol ecosystem. Because Ethereum isn’t just about information being permissionless. It’s about human ingenuity being permissionless,” the Ethereum co-founder and Consensys CEO said in April.

The SEC’s decision to drop the investigation came after Consensys sent a letter on June 7, 2024, highlighting the recent approval of ETH ETFs based on ether’s classification as a commodity. This prompted the agency to reconsider its position and ultimately conclude the investigation without any charges against Consensys.

In response to this decision, Consensys expressed gratitude while also emphasizing the need for further progress in the realm of crypto regulation. The company stressed the importance of the SEC abandoning its “regulation-by-enforcement” approach in favor of providing much-needed clarity for the industry.

“While we are gratified by the SEC’s decision to stand down on Ethereum, there is more work to be done to protect crypto in the United States. It is imperative that the SEC abandon its unprincipled and opaque regulation-by-enforcement campaign in favor of much-needed regulatory clarity for an industry that serves as the backbone to countless new technologies and innovations, Consensys said.

It added, “The closing of the Ethereum investigation is momentous, but it’s not a cure-all for the many blockchain developers, technology providers, and industry participants who have suffered under SEC’s unlawful and aggressive crypto enforcement regime.”

While the closure of the Ethereum investigation is undoubtedly a momentous occasion, Consensys acknowledges that it is not a panacea for the challenges faced by blockchain developers and industry participants under the SEC’s enforcement regime.

The post Consensys Continues Legal Battle Despite SEC Dropping Ethereum Investigation first appeared on The Shib Daily.

The Crypto-Crime Connection: Unraveling the Complex Web of Illicit Activity in the Crypto World

Violet Vallaya — Tue, 14 May 2024 15:37:48 +0000

The intersection of cryptocurrencies and criminal activity has long been a topic of debate and concern. As the crypto market continues to grow, so does the prevalence of illicit behavior within it. But just how big is the crypto-crime connection? Let’s delve into the facts and figures.

Estimates of the scale of online crime linked to cryptocurrencies vary significantly. Some sources suggest that less than 1% of crypto activity is associated with illicit behavior, while others claim that up to 46% of transaction volumes are tainted. The truth likely lies somewhere in between.

Factors Contributing to Uncertainty

Anonymity: Cryptocurrencies thrive on anonymity. Cybercriminals exploit this feature by using decentralized platforms and tools like The Onion Router (Tor) to conceal their activities. Identifying illicit actors remains challenging due to their ability to hide in the shadows.

“Anonymity is both a strength and a vulnerability of cryptocurrencies,” a representative from PeckShield, a blockchain security company told The Shib Daily. “While it protects users’ privacy, it also provides a cloak for malicious actors to operate.”

Comparing to Real-World Crime: While crypto crime may seem significant, it pales in comparison to real-world money laundering. The United Nations Office on Drugs and Crime estimates that conventional finance sees as much as $2 trillion laundered annually, equivalent to the entire crypto market’s value.

“Although crypto crime captures headlines, it’s essential to keep it in perspective,” remarks the PeckShield representative. “Traditional financial systems still bear the brunt of illicit activities.”

How Do Criminals Obtain Cryptocurrency?

Direct Theft: Criminals steal cryptocurrency directly from exchanges, wallets, or individuals. Hacks, phishing attacks, and malware play a role here.

“Phishing attacks remain a significant concern,” notes the PeckShield representative. “We have observed a series of sophisticated phishing attacks over the past three years, resulting in the loss of millions of dollars.”

Deceptive Schemes: Scammers trick people into voluntarily transferring their crypto. These schemes exploit human psychology, promising quick gains or posing as legitimate services.

“Crypto investment scams continue to evolve,” advises the PeckShield representative. “It’s crucial for individuals to remain vigilant and follow best security practices.”

Challenges Law Enforcement Faces in Tackling Crypto-Related Crime

Pseudonymity: Cryptocurrencies offer a degree of anonymity or pseudonymity, making it difficult to trace transactions and identify the parties involved.

“Tracking crypto transactions across borders poses a significant challenge for law enforcement,” explains the PeckShield representative. “International coordination is essential to combat cross-border crypto crimes effectively.”

Decentralization vs. Regulation: Cryptocurrencies operate on decentralized networks, making it difficult to pinpoint responsibility and hold individuals or entities accountable for illegal activities.

Regulating Cryptocurrencies to Combat Illegal Activities

Cryptocurrencies thrive on decentralized networks, but this lack of central authority makes it challenging to trace illegal activity. To address this, regulators are working on bringing cryptocurrencies in line with traditional financial systems. This involves implementing anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, along with setting rules for stablecoins.

“Balancing innovation with regulation is a delicate task,” says the PeckShield representative. “Regulators must strike a balance that fosters innovation while safeguarding against illicit activities.”

“Regulation has the potential to reduce certain types of crypto crimes,” states the representative. “However, criminals are adaptive and may seek out new ways to exploit loopholes or evade detection.”

While regulation can mitigate certain types of crypto-related crime, a multi-faceted approach is necessary to effectively combat illicit activities in the crypto world.

The post The Crypto-Crime Connection: Unraveling the Complex Web of Illicit Activity in the Crypto World first appeared on The Shib Daily.

The Future of Crypto Regulation: Striking a Balance Between Innovation and Security

Violet Vallaya — Mon, 13 May 2024 19:31:23 +0000

Cryptocurrency regulation is at a critical juncture, with governments worldwide grappling to find the right balance between fostering innovation and ensuring consumer protection. As digital currencies gain prominence, regulatory frameworks are evolving rapidly.

Here’s a comprehensive overview of recent developments.

International Efforts and Challenges

Despite the absence of coordinated global regulation, international bodies like the Financial Stability Board (FSB) have been assessing risks and policy responses to the rise of cryptocurrencies. The lack of uniformity poses challenges, but it also allows for diverse approaches tailored to each country’s context.

US Legislative Landscape

In 2023, the U.S. made significant strides toward a regulatory framework for cryptocurrencies. Bills like the Financial Innovation and Technology (FIT) for the 21st Century Act aimed to define cryptocurrencies as securities or commodities, enhance oversight, and clarify regulatory roles. However, progress has stalled since then.

EU’s Groundbreaking MiCA Regulation

The European Union took a pioneering step by introducing the Markets in Crypto-Assets Regulation (MiCA) in May 2023. MiCA provides comprehensive guidelines for crypto assets, covering issuance, trading, and custody. The European Securities and Markets Authority (ESMA) is currently consulting the public on additional measures.

Striking the Right Balance

The future hinges on achieving an equilibrium between innovation and security. Stricter regulations may stifle innovation, while lax ones risk consumer harm. Finding the right balance will be crucial for the long-term success of cryptocurrencies.

Industry Perspectives

Vikram Subburaj, CEO of Giottus, one of India’s leading crypto exchanges, emphasized the benefits of crypto compliance and predicts continued growth for companies that navigate evolving regulations effectively in an exclusive interview with The Shib Daily.

1. The Indian government has taken a cautious approach to crypto regulation so far. What are your thoughts on the current stance, and how do you see it evolving in the coming years?

“The Government of India had initially adopted a wait-and-watch approach to crypto. However, now the government is proactively taking steps to embrace geography-agnostic regulations for the sector… At Giottus, we think, the regulatory landscape will evolve decisively and will bring service providers and users under its ambit.”

2. Major economies like the U.S. and China are taking different approaches to crypto. How will these differing approaches impact the global crypto market?

“The approaches to crypto by sovereign states like the US and China differ vastly. In the United States, there is a more structured yet open approach… Contrastingly, China’s stringent stance… restricts innovation and may shift market activities to more crypto-friendly regions… These differing approaches are part of the decentralized nature of global crypto markets… Ultimately, the global impact hinges on finding a balance between regulation and innovation.”

3. There are concerns about crypto being used for money laundering and other illegal activities. How can regulations be designed to address these concerns without stifling innovation?

“The key issue flagged by regulators regarding crypto is anonymous capital transfers. At the international level, the organization called the Financial Action Task Force (FATF)… works closely with governments to put in place standardized ‘travel rules,’ anti-money laundering protocols… As the regulations evolve, there will be more clarity on various aspects…This will usher in more transparency where service providers will be forced to innovate and compete in the open market.”

4. In your opinion, what would a well-balanced regulatory framework for cryptocurrencies look like?

“A well-balanced regulatory framework should clearly delineate crypto as a distinct asset class… It would lay out transparent regulations governing the transactional mechanisms… Such a framework must prioritize investors… It should also establish clear liabilities in cases of theft or loss. Additionally, the regulatory environment should streamline processes for service providers… There should also be favorable or on-par taxation for individuals and businesses.”

The future of crypto regulation lies in thoughtful policymaking that fosters innovation while safeguarding investors and consumers. Governments must collaborate, learn from each other’s approaches, and adapt swiftly to this transformative industry.

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Chinese Authorities Crack Down on $300 Million Crypto Fraud Ring

Saha Swatilakha — Mon, 13 May 2024 16:13:17 +0000

Chinese authorities have apprehended six suspects involved in a sophisticated cryptocurrency fraud operation amounting to 2.94 billion yuan, equivalent to approximately $300 million. The suspects were arrested by The Public Security Bureau of Panshi in Jilin province, Northeast China, following an intensive investigation into their illicit activities.

The suspects allegedly operated an underground bank that exploited the anonymity and decentralized nature of cryptocurrencies to conduct illegal foreign exchange operations between the Chinese yuan and the South Korean won. This illicit scheme targeted unsuspecting investors, deceiving them during the exchange process and subsequently absconding with their funds.

Law enforcement became aware of the suspicious transaction patterns linked to the suspects’ accounts, triggering a thorough investigation that led to the apprehension of the individuals. During the operation, authorities seized a significant amount of bank cards and related equipment crucial to the fraudulent activities.

The use of cryptocurrencies in illegal financial activities has been a growing concern globally, with similar cases reported in South Korea and other countries. In March, fraudsters in South Korea swindled $4.1 million from a citizen through a crypto investment scheme, highlighting the urgent need for increased vigilance and regulation within the digital asset industry.

The suspects leveraged domestic accounts to receive and transfer funds, exploiting the features of cryptocurrencies to conduct over-the-counter transactions for currency exchange purposes. Their clientele reportedly included South Korean purchasing agents, cross-border e-commerce platforms, and import-export trade firms seeking to circumvent capital controls.

China’s robust efforts to crack down on illegal cryptocurrency activities underscore the government’s commitment to maintaining financial stability and regulatory integrity. Despite the decentralized nature of cryptocurrencies, authorities are employing innovative strategies to identify and dismantle illicit operations that undermine investor confidence and pose systemic risks.

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Kraken Challenges SEC Claims, Warns of Potential Upheaval in US Financial Regulation

Gushiken Yona — Mon, 13 May 2024 14:45:22 +0000

Cryptocurrency exchange Kraken, in a bold legal maneuver, has formally contested the Securities and Exchange Commission’s (SEC) allegations, seeking dismissal to avert what it terms a looming “upheaval” in the framework of U.S. financial regulation. This strategic challenge not only underscores Kraken’s determination to defend its position but also raises significant questions about the future trajectory of cryptocurrency oversight in the United States, signaling a potential watershed moment in the evolving relationship between regulatory authorities and the growing crypto industry.

In the latest legal development on the case filed by the SEC against Kraken, the crypto exchange’s legal team mounted a robust defense against the financial watchdog, contending that its assertions lacked substance. With both parties poised for a crucial hearing scheduled for June, Kraken’s lawyers asserted in a court filing submitted last Thursday that the regulator had failed to provide evidence of any investment contracts traded, brokered, or settled on the exchange.

Moreover, Kraken challenged the SEC’s application of the Howey Test, a cornerstone of securities law established by a 1946 U.S. Supreme Court case, arguing that the agency had not met the criteria to classify assets as investment contracts and, consequently, securities. “The SEC cannot satisfy Howey’s additional requirements that there be investments of money in a common enterprise with a reasonable expectation of profits based on the efforts of others,” the crypto exchange’s lawyers argued.

“This would gut Howey by significantly expanding the SEC’s jurisdiction to a host of investment activities that were never delegated to the agency. Such a significant reordering of the U.S.’s financial regulatory structure should be debated in Congress, not in the courts,” Kraken’s lawyers added.

Kraken’s chief legal officer, Marco Santori, responded to Kraken’s legal action against the SEC, noting that the regulator failed to specify the exact investment contract allegedly traded on Kraken. Instead, it relied on vague notions of “investment-like expectations” and “investment concepts,” asserting they suffice. Furthermore, rather than identifying a common enterprise, as mandated by law, it referenced an “ecosystem” as adequate. Kraken’s legal team criticized this approach as lacking concrete evidence.

“The SEC had its opportunity to tell the Court what, precisely, is the investment contract that supposedly trades on Kraken. But they couldn’t. Instead of identifying a contract, the SEC argued there are investment-like ‘expectations’ and ‘investment concepts’ in the air and those should be good enough. Instead of identifying a common enterprise (required by the law), it said there is an ‘ecosystem’ and that should be good enough,” Santori said.

In response to the SEC’s arguments, the Kraken CLO expressed disappointment with the agency’s use of a straw man fallacy. He emphasized the need for Congress to establish a regulatory framework that doesn’t rely on sophistry reasoning for enforcement. He noted, “Sad to see a federal agency deploy a straw man fallacy so brazenly. All the more reason for Congress to put in place a regulatory framework that doesn’t require sophistry to enforce.”

Last night, @krakenfx fired back at the SEC with its final brief in the motion to dismiss the SEC’s complaint.

The SEC had its opportunity to tell the Court what, precisely, is the investment contract that supposedly trades on Kraken.

But they couldn't. 1/
— Marco Santori (@msantoriESQ) May 10, 2024

The SEC initiated a lawsuit against Kraken in November of last year, alleging failure to register as a broker, clearinghouse, or exchange. This legal action followed a settlement reached several months earlier concerning Kraken’s former staking service. In February 2024, Kraken took steps to dismiss the SEC’s lawsuit. The company contended that the cryptocurrencies cited in the SEC’s complaint, at least, should be classified as commodities rather than securities

In April, the SEC submitted a 39-page opposition to Kraken’s motion to dismiss, asserting that it is simply not the case that this enforcement action exceeds the authority Congress granted the SEC. A hearing to address Kraken’s motion to dismiss the SEC’s lawsuit is scheduled for June 12 at 2 p.m.

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US SEC Crypto Carnival Hits Overdrive!

Gushiken Yona — Sat, 11 May 2024 04:07:03 +0000

Oh, the times are a-changin’ in the wild west of cryptocurrencies, but it seems the sheriffs at the SEC just can’t let Robinhood ride off into the sunset without a little drama.

Yep, folks, gather ’round, because Robinhood has just been handed a shiny new Wells Notice—like a party invitation nobody really wants .

Welcome to the club, Robinhood! You’re now officially on the growing list of the SEC’s crypto soiree alongside stars like Coinbase, Kraken, Uniswap, and MetaMask. Let’s roll out the red carpet, shall we?

Now, with all those Wells Notices flying around like confetti at a New Year’s party, one former SEC chief chimed in, quipping that the “crypto onslaught will continue” as long as the Democrats are steering the regulatory ship. Is he right? Or is he right?

It’s almost as if the SEC is playing a game of Whack-a-Mole with crypto businesses, swinging away with gusto, yet somehow, the big mole at FTX slipped right under their mallet.

Oh, the irony! And speaking of fun at the fair, remember when the SEC declared Ethereum was not a security?

Ah, those were simpler times. Now, whispers in the wind suggest they might be flip-flopping faster than a fish out of water, possibly reclassifying ETH as a security.

Vitalik, buddy, you might want to phone a friend on this one .

Not to be outdone, Rostin Behnam, the chairman of the U.S. Commodity Futures Trading Commission (CFTC), has thrown his hat into the ring with a prediction that’s less fortune cookie and more crystal ball: a “cycle of enforcement actions” is on the horizon, folks, expected to sweep through Crypto Town in the next six to 24 months.

And why, you ask?

Well, according to Behnam, it’s the wild wild west out there—no rules, no sheriff, and a lot of outlaws running amok. More fraud and manipulation cases? Say it ain’t so!

As we tip-toe around the tumbleweeds of regulatory uncertainty, let’s keep our humor about us, dear readers.

After all, in the ever-twisting plot of crypto regulation, today’s meme might just be tomorrow’s headline.

Keeping a sense of humor and a stash of memes ready can make even the most daunting of regulatory visits a bit more bearable. Cheers to navigating the crypto currents with a smile and a wink!

The post US SEC Crypto Carnival Hits Overdrive! first appeared on The Shib Daily.

SEC’s Gensler Highlights Disclosure Failures in Crypto, Ethereum Co-Founder Accuses Regulators of Stifling Innovation

Gushiken Yona — Fri, 10 May 2024 16:46:13 +0000

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler criticized the cryptocurrency industry this Tuesday, claiming a widespread lack of essential disclosures and stating that investors are not receiving the information legally owed to them, sparking concerns amid heightened regulatory scrutiny.

Addressing the industry following a Wells Notice issued to Robinhood’s crypto arm, Gensler emphasized the widespread failure in providing crucial information to investors. He stated, “The field of crypto assets, many of those tokens are securities under the law of the land as interpreted by the U.S. Supreme Court. So we follow that law, and you, the investors, are not getting the required or needed disclosures about those assets.”

While deflecting specific questions about Ethereum’s classification, Gensler focused on broader issues within the crypto sector, underscoring the discrepancies in operational standards when compared to traditional exchanges. “To me, the fundamental question is, ‘How do we ensure the American investor is protected?’ And right now, they’re not getting their required or needed disclosures, and the intermediaries in the center of this rather centralized market generally are conflicted in doing things we would never allow the New York Stock Exchange to do,” Gensler explained.

In stark contrast, Joseph Lubin, Ethereum co-founder and CEO of Consensys, accused the SEC of deliberately hindering technological advancement to safeguard the existing financial system. Speaking at a major industry event, Lubin criticized the SEC’s tactics. “The SEC appears to have reclassified Ether as a security without telling anybody that that’s the case. They are going about a strategic series of enforcement actions rather than open discourse and clear rulemaking,” he stated.

Joseph Lubin, Co-Founder of @ethereum and Founder and CEO of @Consensys is speaking at #FTCrypto now pic.twitter.com/1n27kG6QAk
— Financial Times Live (@ftlive) May 9, 2024

Lubin suggested that the SEC’s aggressive enforcement might be a strategic move to bolster its stance against potential challenges, particularly concerning the approval of Ether spot ETFs. “We believe that there’s a flurry of activity designed to enable them to say that their action wasn’t capricious in the very likely event that they deny the Ether spot ETFs,” he added, noting the significant improvements in the crypto ecosystem’s scalability and usability, which are attracting substantial attention and capital.

He further speculated that the migration of traditional banking customers to innovative, decentralized financial platforms is causing alarm among established financial institutions. “The SEC probably doesn’t want to see a wave of innovation that will really transform the landscape,” Lubin concluded, highlighting the ongoing conflict between new financial technologies and established regulatory frameworks.

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CFTC Chair’s Warning Signals Heightened Crypto Oversight

Gushiken Yona — Wed, 08 May 2024 10:34:34 +0000

Rostin Behnam, chairman of the U.S. Commodity Futures Trading Commission (CFTC), has offered a somber prediction: a forthcoming “cycle of enforcement actions” is poised to sweep through the cryptocurrency domain within the coming six to 24 months.

Speaking at the Milken Institute’s Global Conference on Monday, Behnam emphasized the expanding scale of market activities and capital investments in the sector.

The CFTC chairman highlighted the lack of regulatory framework and transparency within the growing crypto industry, which he believes will inevitably lead to more fraud and manipulation cases.

“We find ourselves with a growing market, growing capital [and] investments, growing market capitalization, and I think a renewed interest by a lot of the entrepreneurs,” the Behnam said at the global conference.

“From my standpoint, as a regulator, we’re going to probably see in the next six to 18 months or six to 24 months another cycle of enforcement actions,” he added.

Behnam shed light on the practical challenges facing the progression of crypto-related bills through Congress before the upcoming election.

He pointed out the limited number of working days available for legislative activities, indicating a tight timeframe for substantial legislative action.

“Getting legislation done these days is difficult,” Behnam remarked, acknowledging the intricate nature of lawmaking in the current political climate.

Despite these challenges, he noted a palpable “momentum” and “desire” among lawmakers to address critical regulatory gaps within the crypto industry, with a particular focus on stablecoin legislation.

Behnam’s comments reflect the nuanced landscape of legislative efforts surrounding cryptocurrencies, highlighting both the obstacles and the growing determination among policymakers to navigate these complexities and enact meaningful regulatory measures.

The CFTC chairman’s statement came on the heels of Robinhood Markets’ announcement that it has received a Wells Notice from the SEC after its staff conducted an investigation against the brokerage firm’s crypto arm.

“After years of good faith attempts to work with the SEC for regulatory clarity including our well-known attempt to ‘come in and register,’ we are disappointed that the agency has decided to issue a Wells Notice related to our US crypto business,” Dan Gallagher, Robinhood’s chief legal and compliance officer, said in a statement.

Last month, Behnam urged Congress to enact laws that provide robust oversight of digital assets, aiming to safeguard American investors and ensure the stability of the financial market.

This push for enhanced regulatory measures by the CFTC is seen as crucial in delineating the roles and responsibilities with the Securities and Exchange Commission, with whom they frequently overlap in crypto oversight.

As the details of the anticipated enforcement actions remain under wraps, industry observers and market participants are preparing for a regulatory landscape that could potentially reshape market dynamics and investor strategies.

The post CFTC Chair’s Warning Signals Heightened Crypto Oversight first appeared on The Shib Daily.

Germany’s Largest Federal Bank to Offer Crypto Custody Services

Saha Swatilakha — Mon, 15 Apr 2024 19:17:24 +0000

Germany’s Landesbank Baden-Württemberg (LBBW), the country’s largest federal bank, is set to offer cryptocurrency custody services to institutional clients in the second half of 2024. This move is a strategic response to the increasing demand for digital asset custody from corporate clients and a reflection of Europe’s growing influence in the global crypto custody race.

In partnership with the Austria-based Bitpanda cryptocurrency exchange, LBBW aims to enhance its digital asset offerings, ensuring high security and innovative solutions for corporate clients. Bitpanda Custody, a crypto custody platform with decentralized finance (DeFi) capabilities, is registered with the United Kingdom’s Financial Conduct Authority (FCA), making it a reliable partner for LBBW’s foray into the crypto world.

Germany’s banks are preparing for the Markets in Crypto-Assets (MiCA) regulation, which will take full effect in December 2024. This comprehensive legal framework for the crypto industry will regulate crypto assets, crypto asset services, and crypto asset service providers. As crypto exchanges become fully regulated entities, the demand for digital asset custody services is expected to grow, positioning German banks to capitalize on this trend.

In addition to LBBW, other German banks are also exploring crypto services. Deutsche Bank has been working on digital asset custody services since September 2023, while DZ Bank, the country’s second-largest bank, announced its plans to launch a crypto trading pilot in 2024. Germany’s DZ Bank also launched a blockchain-based digital asset custody platform in November 2023, further demonstrating the country’s commitment to embracing digital assets.

In conclusion, Germany’s Landesbank Baden-Württemberg joining the ranks of European banks offering crypto custody services is a testament to Europe’s leadership in the global crypto custody race. As the demand for digital asset custody services grows, German banks are positioning themselves to capitalize on this trend, ensuring high security and innovative solutions for corporate clients.

The post Germany’s Largest Federal Bank to Offer Crypto Custody Services first appeared on The Shib Daily.

Global Crypto Regulation Landscape: An Overview

Violet Vallaya — Wed, 10 Apr 2024 19:39:08 +0000

The crypto regulation environment continues to diverge worldwide, reflecting the varied approaches of different governments toward this burgeoning asset class.

As we navigate through 2024, notable developments in major economies shed light on the evolving nature of crypto regulation.

United Kingdom: In the UK, all companies intending to engage in cryptoasset activities are mandated to register with the Financial Conduct Authority (FCA) to secure a portion of the 4A permit. Moreover, under the Economic Crime and Corporate Transparency Act 2023, the UK government has empowered law enforcement with unprecedented authority to freeze and seize crypto assets sans conviction.

El Salvador: Renowned for pioneering the adoption of Bitcoin as legal tender in 2021, El Salvador continues to refine its regulatory framework to accommodate the intricacies of a crypto-integrated financial system. Its distinctive approach sets a precedent for other nations exploring digital currency legislation.

India: India’s cryptocurrency landscape remains characterized by regulatory ambiguity. While crypto isn’t legalized, it also isn’t explicitly banned. The recent imposition of a 30% tax rate on crypto assets and a 1% tax deducted at source (TDS) on transactions by the central government reflects a nuanced stance toward blockchain’s potential.

Nigeria: Nigeria recently updated its guidelines for crypto service providers, aiming to curb criminal activities. The Securities and Exchange Commission (SEC) introduced regulations governing cryptocurrency exchanges, signaling efforts to bring order to the Nigerian crypto market.

Europe: The European Union has taken a landmark step with the passage of the Markets in Crypto-Assets (MiCA) regulation, constituting the world’s first comprehensive set of rules aimed at regulating the cryptocurrency industry. MiCA imposes stringent requirements on crypto platforms, token issuers, and traders, emphasizing transparency and supervision.

China: China maintains its strict ban on cryptocurrency transactions and exchanges, reflecting its cautious approach towards decentralized digital assets. Despite this prohibition, the country remains keen on exploring blockchain technology independently of cryptocurrencies.

South Korea: South Korea, a significant contributor to the global cryptocurrency market, is preparing to roll out new guidelines for token listings on centralized exchanges. These guidelines, driven by the Financial Services Commission (FSC), aim to enforce stricter regulations and bolster investor protection. Key changes include the prohibition of listing cryptocurrencies that have been subject to hacking incidents on local exchanges and the mandate for foreign projects to create market-specific whitepapers.

The year 2024 proves important for crypto regulation globally, as governments grapple with the challenges and opportunities presented by digital currencies.

While some nations like the UK and El Salvador embrace innovative approaches, others like China opt for stringent restrictions. Amid this regulatory mosaic, the evolution of cryptocurrency regulations remains inexorably linked to the maturation of the digital economy.

As stakeholders navigate this evolving landscape, the imperative lies in fostering regulatory frameworks that balance innovation with consumer protection and financial stability.

The post Global Crypto Regulation Landscape: An Overview first appeared on The Shib Daily.

South Korea Strengthens Crypto Regulations with Stricter Token Listing Guidelines

Saha Swatilakha — Fri, 05 Apr 2024 14:18:48 +0000

South Korea, a major player in the global cryptocurrency market, is set to introduce new guidelines for token listings on centralized exchanges, aiming to impose stricter regulations and enhance investor protection. The Financial Services Commission (FSC) in South Korea is driving these changes, which include preventing cryptocurrencies that have experienced hacking incidents from being listed on local exchanges and requiring foreign projects to develop whitepapers tailored for the local market.

The new guidelines, expected to be released later this month, will focus on promoting transparency and investor protection. Tokens from projects that have been victims of hacking incidents and have not yet addressed vulnerabilities may be prevented from listing on local exchanges.

Additionally, the FSC may mandate that foreign token projects create specific whitepapers for the local market to secure their listing on domestic exchanges. However, an exception to the new criteria may apply to tokens that have been listed on licensed exchanges for over two years.

Exchanges will be required to delist cryptocurrencies if issuers fail to disclose necessary information accurately, such as discrepancies between actual circulation figures and declared amounts. This move is part of South Korea’s broader efforts to strengthen its regulatory framework for cryptocurrency exchanges, which already includes rigorous government registration procedures and strict Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) rules.

The new guidelines come as South Korea continues to grapple with the complexities of regulating cryptocurrencies. While exchanges are legal, cryptocurrencies are not considered legal tender in the country. Crypto taxation remains a grey area, with transactions currently tax-free, although the Ministry of Strategy and Finance is considering levying a tax on crypto transaction profits.

The South Korean government has been gradually tightening its grip on the cryptocurrency market. In 2017, the government restricted the use of anonymous accounts in cryptocurrency trading and banned local financial institutions from hosting Bitcoin futures transactions. In 2018, the FSC tightened reporting requirements for banks with crypto exchange accounts.

The new laws, which came into effect in March 2021, restrict cryptocurrency trading to real-name bank accounts, requiring traders to create a real-name account with the same bank as their cryptocurrency dealer for deposit or withdrawal purposes. South Korea reformed its Special Payment Act that same month to prohibit the use of private coins on exchanges.

These stricter regulations are part of South Korea’s ongoing efforts to bring the cryptocurrency business into compliance with the Financial Action Task Force’s (FATF) anti-money laundering regulations. The country is also considering changes to age limitations, access for international or anonymous traders, and cash withdrawals.

With these new guidelines, South Korea continues to solidify its position as a significant player in the global cryptocurrency market, balancing innovation with regulatory oversight to protect investors and maintain financial stability.

The post South Korea Strengthens Crypto Regulations with Stricter Token Listing Guidelines first appeared on The Shib Daily.

Singapore Government Approves GSR Markets for OTC Crypto Trading

Saha Swatilakha — Thu, 04 Apr 2024 13:04:06 +0000

In a significant move towards embracing cryptocurrencies, the Singaporean government has granted GSR Markets, a Hong Kong-based crypto market maker, a license for its Singaporean division to offer over-the counter (OTC) services. GSR Singapore has officially been granted a Major Payment Institution license, as detailed in a report. This allows the crypto market agency to conduct spot OTC and market-making services within Singapore’s regulatory framework.

It had previously secured an in-principle approval from the Monetary Authority of Singapore (MAS) back in September.

This license marks a significant milestone for GSR Markets, as it is one of the first companies of its kind to receive such approval in Singapore. The move underscores the city-state’s ambitions to become a crypto-friendly hub, as it continues to develop fair and orderly markets for digital assets.

“As one of the first firms of our type to be granted this license, we are excited to continue to lead the way in developing fair and orderly markets for digital assets,” said Xin Song, COO of GSR Group and CEO of GSR Singapore.

The regulatory nod comes as Singapore addresses concerns over speculative crypto investments by retail investors, following market turbulence during the 2022-2023 bear market. The country has expanded its crypto regulation to include custody services and all firms facilitating crypto-related fund transfers, regardless of whether they physically hold the assets or not.

MAS cautioned retail investors earlier this January against investing in spot Bitcoin exchange-traded funds (ETFs) despite their approval in the U.S. The financial regulation authority emphasized that such products are not yet recognized as eligible assets for collective investment schemes (CIS) in the region. The regulator advised individuals to exercise caution when participating in the trading of these products in international markets.

As Singapore continues to navigate the complex world of cryptocurrencies, the approval of GSR Markets for OTC services represents a significant step forward in the city-state’s efforts to establish a robust and well-regulated crypto ecosystem.

The post Singapore Government Approves GSR Markets for OTC Crypto Trading first appeared on The Shib Daily.

Singapore Monetary Authority Expands Regulatory Scope for Digital Payment Token Services

Violet Vallaya — Tue, 02 Apr 2024 15:24:35 +0000

The Monetary Authority of Singapore (MAS) has taken significant steps to enhance the regulatory framework for digital payment tokens.

In an announcement Tuesday, MAS revealed amendments to the Payment Services Act and its subsidiary laws, aimed at broadening the range of payment services subject to regulation.

Key Changes

The amendment primarily focuses on imposing user protection and financial stability-related requirements on Digital Payment tokens (DPT) service providers. Here are the key changes:

Expanded Regulatory Scope: The revised rulebook now covers service providers involved in the transfer or exchange of tokens, even if they do not directly handle the associated cash or coins. Additionally, businesses facilitating international transfers fall under the act, regardless of whether the funds are received or accepted within Singapore.
Effective Date: The new regulations will take effect from April 4, 2024. Companies operating within the expanded scope must comply with the requirements outlined by this date.
Transitional Arrangements: To facilitate a smooth transition, MAS will provide “transitional arrangements” for entities affected by the regulatory changes. These arrangements allow businesses to adjust their operations while adhering to the new rules.
License Application: Service providers falling within the expanded scope must notify the regulator within 30 days and submit a license application within six months from April 4. Failure to do so may result in cessation of operations.

Anti-Money Laundering and Counter-Terrorism Financing

MAS emphasizes that the amendments serve a dual purpose: safeguarding users and maintaining financial stability. By extending regulatory oversight to a wider range of payment services, MAS aims to prevent illicit activities such as money laundering and terrorism financing.

Singapore’s crypto landscape has witnessed both growth and challenges. In 2022, the city-state faced turbulence due to unrestricted crypto speculations, particularly on platforms like the defunct FTX Derivatives Exchange. As a response, authorities have proactively introduced measures to regulate custody services and other crypto-related transfers.

The post Singapore Monetary Authority Expands Regulatory Scope for Digital Payment Token Services first appeared on The Shib Daily.

FATF Calls Out Nations Lagging in Crypto Regulation

Violet Vallaya — Fri, 29 Mar 2024 13:15:42 +0000

Paris-based financial watchdog, the Financial Action Task Force (FATF), is sounding the alarm on lax regulations surrounding virtual assets (cryptocurrencies).

A recent report revealed a concerning lack of implementation by many nations regarding FATF’s standards to combat criminal activity in the crypto space.

This isn’t a new concern. In February last year, the FATF outlined a roadmap to strengthen regulations for crypto service providers (VASPs) to prevent money laundering and terrorist financing. However, a year later, their analysis paints a worrying picture.

“Our goal is to establish a level playing field, globally, so that the industry is meeting its regulatory obligations and reducing opportunities for criminals to abuse the sector,” said T Raja Kumar, FATF’s president

The FATF has also mandated that all countries permit only licensed firms to engage in transactions involving crypto assets. Additionally, the FATF has directed nations to gather information on both senders and recipients of crypto assets, particularly regarding transactions deemed suspicious.

The safety of the crypto sector has been marred by high-profile hacks and allegations of terrorist financing, often linked to sanctioned entities like North Korea.

A Legacy of Fraud Fuels Regulatory Push

The urgency behind FATF’s push for stricter crypto regulations is rooted in real-world consequences. The recent high-profile case of Sam Bankman-Fried, sentenced to 25 years for a multi-billion dollar fraud at his exchange FTX, highlights the potential for misuse within the crypto ecosystem.

This concerted effort seeks to curb the nefarious exploitation of digital assets for illicit financial activities.

Kumar underscored the urgency of action, stating, “Virtual assets flow to less regulated jurisdictions,” emphasizing how criminals exploit regulatory gaps.

Who’s Compliant and Who’s Lagging?

A meticulous scrutiny of twelve months’ data has yielded a nuanced understanding of nations’ adherence to crypto-related regulations. While India has set comprehensive rule deployment, others such as Australia, Finland, Greece, Malaysia, and Portugal diligently navigate the path towards full compliance.

The post FATF Calls Out Nations Lagging in Crypto Regulation first appeared on The Shib Daily.

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