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South Korea’s Gyeonggi Province Implements Innovative System to Combat Crypto Tax Evasion

Gyeonggi province in South Korea has unveiled a novel system named the 'Arbitrator Virtual Asset Tracking Electronic Management System' to tackle crypto tax evasion effectively. This innovative approach yielded a substantial 6.2 billion won ($4.7 million) in arrears in the previous year alone. The system integrates advanced technology to trace personal information like phone numbers for known tax delinquents and cross-reference them on crypto trading platforms, significantly streamlining the tracking and collection process. By leveraging residents' registration numbers to trace mobile phone numbers, the system has improved the success rate of detecting membership in virtual currency exchanges, identifying 5,910 tax delinquents with virtual asset accounts and recovering arrears from 2,390 individuals over the past year. Gyeonggi province's innovative system is a significant step forward in combating crypto tax evasion and ensuring fair taxation practices in South Korea. By leveraging...

Digital Currency Group Opposes Settlement Between NYAG and Genesis Global

Digital Currency Group (DCG) has voiced its opposition to the settlement arrangement between the New York Attorney General (NYAG) and Genesis Global, a cryptocurrency lender that recently filed for bankruptcy. DCG, the parent company of Genesis, criticized the settlement for allegedly bypassing proper legal processes and diverting value to preferred creditors, contrary to established bankruptcy procedures. The filing with the U.S. Bankruptcy Court Southern District of New York raised concerns about the fairness and legality of the settlement, highlighting broader legal challenges faced by Genesis and DCG in the cryptocurrency sector. The dispute between Genesis and the NYAG reflects the regulatory scrutiny and enforcement actions facing cryptocurrency firms, particularly in New York. The opposition from DCG signals a potential legal battle over creditor treatment and bankruptcy protocols, highlighting the need for clearer regulatory frameworks in the crypto space. As cryptocurrency...

Apple Launches PQ3 Encryption Protocol against Quantum Computing in iMessage

Apple has unveiled PQ3, a groundbreaking encryption protocol integrated into iMessage as part of the iOS 17.4 update released on February 21. PQ3 represents a significant advancement in messaging app security, as it incorporates post-quantum cryptography to safeguard user communications. This move places Apple alongside Signal as one of the few companies to implement encryption resistant to potential quantum computing threats. Apple claims that its PQ3 protocol achieves a level of encryption unmatched in the messaging app world, surpassing traditional encryption methods and preparing for the future era of quantum computing. Apple's introduction of PQ3 encryption protocol marks a proactive approach to address evolving threats in the digital landscape. By incorporating post-quantum cryptography into iMessage, Apple not only strengthens the security of its messaging platform but also demonstrates its commitment to staying ahead of technological advancements. The integration of PQ3...

Texas Crypto Company Lejilex and CFAT Sue SEC Over Regulatory Overreach

A Texas-based crypto company, Lejilex, in partnership with the Crypto Freedom Alliance of Texas (CFAT), has filed a lawsuit against the US Securities and Exchange Commission (SEC), alleging regulatory overreach and seeking clarity on the classification of digital assets. The lawsuit, filed in a federal court in Fort Worth, challenges the SEC's jurisdiction over the cryptocurrency industry, citing concerns about excessive regulation hindering innovation. Lejilex and CFAT argue that the SEC's broad assertion of jurisdiction lacks a clear statutory mandate, leading to uncertainty for crypto startups like Lejilex in listing digital assets. They seek legal clarification to ensure compliance with securities laws while advocating for a more conducive regulatory environment. The lawsuit aims to contest the SEC's characterization of digital assets as investment contracts and advocates for the application of the "major questions doctrine" to nullify agency actions with significant economic and...

White & Case LLP Bolsters White Collar Practice with Ladan Stewart’s Addition

Global law firm White & Case LLP has expanded its White Collar Practice with the appointment of Ladan Stewart, a seasoned US Securities and Exchange Commission enforcement attorney and civil litigator, as its New York Partner. Stewart's experience, including her role as head of the SEC's lawsuit against Coinbase and Ripple, positions her as a valuable asset to the firm. With over 20 years of experience, Stewart brings a wealth of knowledge to White & Case, particularly in securities enforcement and civil litigation. Her leadership role in the SEC's specialized crypto and cyber litigation unit underscores her expertise in navigating legal challenges in the rapidly evolving crypto industry. Stewart's addition aligns with White & Case's strategic focus on expanding its White Collar Practice and strengthening its position in the U.S. legal market. Joel M. Cohen, Global Head of White & Case's Global White Collar Practice, emphasizes Stewart's role in addressing heightened regulatory...

Greg Solano Becomes CEO of Yuga Labs, Replacing Daniel Alegre

Greg Solano, one of the creators of the Bored Ape Yacht Club (BAYC) nonfungible token (NFT) collection, has been appointed as the new CEO of Yuga Labs, replacing Daniel Alegre, who assumed the role last April. Solano confirmed his return to the CEO position in a Feb. 21 post, expressing his excitement for leading the company into its next chapter. He emphasized Yuga Labs' renewed focus on building partnerships and enhancing BAYC's utility, highlighting the importance of community involvement and past successes such as ApeFest and Made by Apes events. Solano's return as CEO is a strategic shift for Yuga Labs, with a renewed emphasis on creativity, community engagement, and partnership building. His previous involvement in creating the BAYC NFT collection positions him well to lead the company's efforts in furthering the utility and brand recognition of BAYC. Solano outlined plans to establish "BAYC LLC" as a Yuga Labs subsidiary dedicated to all things BAYC-related, indicating a...

Virginia Senate Committee Proposes Funds for Crypto and AI Commissions

A Virginia senate committee has put forth a proposal allocating an annual combined fund of £39,240 for two newly established commissions focusing on artificial intelligence (AI) and cryptocurrency. The Subcommittee on General Government of the Senate Finance and Appropriations Committee proposed allocating more than £23.6 million for various legislative departments, with the Blockchain and Cryptocurrency Commission slated to receive £17,192 and the Artificial Intelligence Commission £22,048 for the years 2025 and 2026, respectively. The Blockchain and Cryptocurrency Commission, formed in January 2024, aims to research and provide recommendations on blockchain technology and cryptocurrencies while fostering growth within the state. Comprising 15 members, including legislative and non-legislative appointees, the commission is tasked with initiating its operations within 45 days of the effective date of the act. Similarly, the Artificial Intelligence Commission, formerly known as the...

Japan’s FSA Clarifies Stance on P2P Crypto Transactions

Japan's Financial Services Agency (FSA), the country's primary financial regulator, has provided clarification on peer-to-peer (P2P) crypto transactions following recent recommendations to local banks. In a letter dated Feb. 14, the FSA urged banks to enhance user protection by halting transfers to crypto-asset exchange service providers if the sender's name differs from the account name. This guidance has raised concerns as it could potentially impact P2P transfers, which often involve different users on the sender and receiver ends. The FSA clarified that its recommendation does not target transactions between individuals. Instead, it aims to combat unlawful money transfers, particularly instances where an individual deposits cash from their bank account into an account belonging to a crypto asset exchange service provider. The agency aims to prevent fraudulent activities where a fraudster persuades a victim to change their name to execute a suspicious transaction. By blocking...

U.S. Authorities Urge Federal Judge to Accept Plea Deal with Binance

U.S. prosecutors have urged a federal judge to approve a plea deal with cryptocurrency exchange Binance Holdings, asserting that the proposed penalties align with the severity of Binance's deliberate violations of U.S. laws. The charges against Binance primarily revolve around its alleged failure to register as a money services business and implement adequate anti-money laundering measures, leaving users and the U.S. financial system susceptible to exploitation. Binance has agreed to pay $4.3 billion in penalties as part of the settlement deal, with CEO Changpeng Zhao (CZ) agreeing to step down from his position. Prosecutors argue that the proposed penalties are appropriate given the intentional nature of Binance's misconduct, led by senior executives and resulting in significant collateral consequences. Prosecutors emphasized that Binance's violations were intentional and orchestrated by senior executives, underscoring the seriousness of the charges. The plea deal seeks to address...

Turkey Completes Phase 1 of Digital Turkish Lira

The Central Bank of the Republic of Türkiye (CBRT) has successfully completed phase 1 of its digital Turkish lira (CBDC) and is now gearing up for more widespread pilot tests in advanced phases. Phase 1 involved preliminary tests of strategic technologies and pilot studies at specific locations to measure user experience and system performance, according to a recent evaluation report. The evaluation report compiled findings and assessments from phase 1, focusing on digital currency transactions, wallet application, and digital identification. The CBRT emphasized the importance of preparing a system that fully meets the requirements and principles of digital currency rather than solely focusing on the technology itself. The report highlighted CBRT's efforts in exploring the feasibility and implementation of a CBDC since 2021. The successful execution of the first payment transaction on the digital Turkish lira network in December 2022 marked a significant milestone in the central...

Forbes Ventures into The Sandbox Metaverse

Forbes recently announced its entry into The Sandbox metaverse, marking a significant move for the media giant into Web3 and digital real estate. By acquiring virtual land in The Sandbox, Forbes aims to establish a permanent presence within this expansive online world, reflecting a growing trend among companies exploring the metaverse's potential for community engagement and innovation. The Sandbox, renowned for its interactive and user-generated content, provides a platform where Forbes plans to create a community hub. This space will facilitate interaction, engagement, and collaboration among participants, extending beyond traditional media engagement methods. Forbes envisions its virtual estate in The Sandbox to include various features such as a luxurious pool, an elegant bar, and a gallery showcasing the 2024 Under 30 recipients. These elements underscore the company's effort to create an engaging and visually appealing user environment within the metaverse. Forbes' Chief Growth...

UK Pushes for Crypto Staking and Stablecoin Regulations

Recent reports indicate that UK lawmakers are accelerating efforts to introduce new regulations for crypto staking services and stablecoins ahead of the next general elections. Economic Secretary to the Treasury Bim Afolami emphasized the government’s commitment to advancing legislation during an industry event hosted by Coinbase in London. The proposed regulations aim to provide clarity and oversight in areas such as crypto staking and fiat-backed stablecoins, aligning with the government's goal to position the UK as a global crypto hub. The UK government aims to introduce new regulations for crypto staking services and stablecoins within the next six months. This initiative follows the Treasury's pledge to offer clearer guidelines on specific crypto areas by 2024, responding to the growing importance of digital assets in the financial landscape. The proposed regulations are expected to bring fiat-backed stablecoins and their issuers under existing payment laws, granting financial...