In a statement released on Thursday, New York Attorney General Letitia James accused the operators of the Bitfinex cryptocurrency exchange of using at least $700 million of tether reserves to hide $850 million of losses. The AG’s office announced that it has obtained a court order enjoining the Bitfinex operators from further violations of the law “that may have defrauded New York investors that trade in virtual or ‘crypto’ currency.”
Japanese officials have reportedly prepared a handbook offering guidance on cryptocurrency regulation, and plan to share that advice with central bankers and finance ministers attending the next G20 summit, according to a report from Finance Magnates and local media outlet Sankeibiz. That summit will be held in Osaka, Japan at the end of June.
The Japanese Financial Services Agency (FSA) reportedly raided two of the nation’s cryptocurrency exchanges last week, according to two sources cited in a Reuters report published on Tuesday. The regulatory body apparently executed the surprise inspections to investigate issues related to anti-money laundering and customer safeguards.
Chilean Minister of Finance Felipe Larraín announced this week that the government has sent Chile’s Congress a legislative bill that will provide regulation for fintech and cryptocurrencies. Larraín made the announcement during a visit in the United States, and emphasized the government’s cautious and flexible approach to regulating the space:
The Financial Crimes Enforcement Network (FinCEN) announced this week that it has penalized an individual cryptocurrency trader for alleged violations of the Bank Secrecy Act (BSA). That trader, California resident Eric Powers, reportedly failed to properly register as a money services business, take the necessary steps needed to comply with the Act’s provisions, or properly report suspicious transactions.
France’s Finance Minister, Bruno Le Maire, called blockchain technology a “game changer” at the Paris Blockchain Week conference, Phys.org reported today. During his remarks, Le Maire noted the technology’s benefit as a tool to prevent banking institutions from monopolizing financial transactions:
A bipartisan group of U.S. lawmakers have drafted a letter to IRS Commissioner Charles P. Rettig, urging his agency to issue more detailed tax and reporting guidance for taxpayers who use digital currencies. The letter’s 21 co-signers included the co-chairs of the Congressional Blockchain Caucus.
A new paper from Competitive Enterprise Institute senior fellow John Berlau contends that the Securities and Exchange Commission (SEC) has engaged in regulatory overreach with its approach to cryptocurrency innovation.
Chinese officials have formally proposed sweeping new rules that would end cryptocurrency mining in the country, the South China Morning Post reported on Tuesday. The proposal is part of a series of amendments to the National Development and Reform Commission’s guidance for adjusting the country’s industrial structure.
Despite the South Korean government’s stated commitment to deregulation, a bipartisan group of lawmakers are calling for that deregulatory agenda to be expanded to the cryptocurrency and blockchain space as well, the Korea Herald reported on April 7.
When finance officials and central bank governors from G20 member states meet in Fukuoka, Japan in June, they will reportedly discuss anti-money laundering and counter-terrorism financing regulations, Japanese media reported late this week.
Belgium’s Financial Services and Markets Authority (FSMA) recently added another 7 websites to its list of suspicious cryptocurrency sites. The list now includes a total of 120 websites identified by the FSMA as potential scams designed to defraud investors.
The SEC announced the release of detailed digital asset guidance on Wednesday, including a published framework designed to help token issuers and others determine when crypto tokens qualify as securities. In a statement announcing the news, the new framework was described as an “analytical tool to help market participants assess whether the federal securities laws apply” to any given digital asset.
The Malta Financial Services Authority announced in a statement today that it has approved 14 Virtual Financial Asset (VFA) Agents. The approvals are part of a broader effort by Malta to provide regulation for the crypto asset space. According to the statement from the MFSA:
The government of Pakistan will announce on Monday that it is introducing new cryptocurrency regulations, the Express Tribune reports. The new Electronic Money Institutions regulations are being introduced as part of a broader action plan developed in response to recommendations from the country’s Financial Action Task Force (FATF)
The U.S. Securities and Exchange Commission this week announced a delay in its decision on a proposed rule change that would allow Bitcoin exchange-traded funds to be listed. The decision means that the SEC now has until May 16 to approve or deny the change:
The Hong Kong Securities and Futures Commission (SFC) offered new guidance for security token offerings (STO) in an official statement published on its website March 28. The statement was issued to clarify legal and regulatory requirements and remind investors about risks associated with cryptocurrency and security token offerings.
In a blog post published today, peer-to-peer digital currency trading firm LocalBitcoins announced that it will soon be subject to regulation by Finland’s Financial Supervisory Authority. The company confirmed that it is working to ensure that its services will be in full compliance with Finnish regulations.
Bank for International Settlements general manager Agustin Carstens issued a warning Friday to central banks that might be considering their own digital currencies. While speaking at the Central Bank of Ireland in Dublin on Friday, Carstens warned that central bank-issued digital currencies could potentially undermine financial stability.
A new study from Bitwise claims that as much as 95 percent of all Bitcoin trading volume on unregulated cryptocurrency exchanges is fake, CNBC reports. Researchers concluded that nearly all of the volume reported on 71 of the top 81 crypto exchanges involved wash trading designed to create a false impression of market activity.