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On 28 November 2024, the United Kingdom’s Financial Conduct Authority (UK FCA) issued a follow-up consultation paper to refine its approach to enforcement transparency, building on earlier proposals made in February 2024. The updated consultation outlines amendments and changes aimed at enhancing public confidence in regulatory processes while addressing concerns raised by regulated firms and other stakeholders. The UK FCA is the principal financial regulatory body in the United Kingdom, overseeing conduct across a spectrum of financial services including cryptoassets. The proposed changes are aimed at increasing transparency and fairness in enforcement investigations. The updated consultation, a continuation of the proposals first set out in February 2024, integrates feedback received from stakeholders which includes assessing the potential impact on the relevant firm as part of the UK FCA’s public interest test when deciding whether to announce an investigation. The UK FCA has...

On 2 December 2024, the Monetary Authority of Singapore (MAS) imposed a civil penalty of SG$2.4 million on JPMorgan Chase Bank, N.A. for failing to prevent and detect misconduct committed by its relationship managers. The penalty follows an investigation into twenty-four over-the-counter bond transactions in which clients were overcharged due to misrepresentations and incomplete disclosures. The Monetary Authority of Singapore is Singapore’s central bank and primary financial regulatory authority, tasked with maintaining the integrity of Singapore’s financial system. JPMorgan Chase Bank, N.A., a global financial services leader, operates within Singapore’s jurisdiction and is subject to its regulatory frameworks. Between November 2018 and September 2019, JPMorgan Chase relationship managers conducted twenty-four over-the-counter bond transactions in which clients were charged spreads exceeding the bilaterally agreed rates. These spreads were built over interbank prices, which were...

On 3 December 2024, the Monetary Authority of Singapore (MAS) announced collaboration with the Australian Government, through Export Finance Australia, which has approved a US$50 million investment into Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative. This initiative aims to support Southeast Asia’s clean energy transition and sustainable infrastructure development. The Monetary Authority of Singapore serves as Singapore’s central bank and financial regulatory authority and maintains financial stability while advancing innovative and sustainable financial solutions. Export Finance Australia, the Australian Government's export credit agency, and aims to promote Australian business interests abroad and strengthening regional ties through impactful economic investments. This joint effort is part of FAST-P, a blended finance platform launched by MAS at the 28th United Nations Climate Change Conference (COP28) in 2023. FAST-P aims to mobilise international...

On 26 November 2024, the United Kingdom Financial Conduct Authority (UK FCA) published the regulatory roadmap for the regulation of cryptoassets for a secure and innovative digital asset market. UK FCA’s latest consumer research revealed that 12% of UK adults now own cryptoassets, an increase from 10% in previous years. Public awareness has also risen to 93%, reflecting growing familiarity with digital currencies. However, the research also revealed misconceptions, as approximately a third of respondents believed they could raise a complaint with the UK FCA for financial protection if issues arise. The UK FCA emphasised that cryptoassets remain high-risk and largely unregulated, cautioning consumers to prepare for the possibility of losing their entire investment. The UK FCA’s regulatory roadmap sets out a structured and phased approach. The plan builds on earlier achievements, including the introduction of anti-money laundering regulations for crypto-related businesses in early...

On 29 November 2024, the United States Securities and Exchange Commission (SEC) initiated a civil enforcement action against Eng Taing and his company, Touzi Capital, LLC, for allegedly defrauding investors in connection with cryptocurrency mining and distressed debt rehabilitation schemes. The complaint, filed in the United States District Court for the Southern District of California on 20 November 2024, outlines a number of misrepresentation and financial misconduct. The defendants are accused of raising over £115 million from more than 1,573 investors while misappropriating funds and concealing the high risks associated with the investments. The United States Securities and Exchange Commission is seeking various remedies, including permanent injunctions to prevent further misconduct, disgorgement of unlawfully obtained gains, civil penalties, and a lifetime prohibition against Eng Taing serving as a director or officer of public companies. Touzi Capital, LLC, established by Eng...

On 26 November 2024, the United Kingdom’s Financial Conduct Authority (FCA) released its latest findings on UK consumer attitudes and behaviours towards cryptocurrencies. The report revealed that 12% of UK adults now own crypto, up from 10% in previous research. Awareness of cryptoassets also rose from 91% to 93%, showing a growing public interest in digital currencies. Despite this, the UK FCA reiterated its warning that crypto remains high-risk and largely unregulated, advising consumers to prepare for the possibility of losing their entire investment. On 12th August 2024, the UK FCA released its fifth wave of cryptoasset consumer research, presenting an intricate portrayal of the UK's engagement with cryptoassets. Conducted through YouGov's comprehensive online methodology, the study discusses consumer trends, behavioural shifts, and the burgeoning landscape of cryptocurrency ownership. This structured survey gathered data from 3,296 participants, split into representative and...

On 25 November 2024, the United States Securities and Exchange Commission issued a detailed administrative order under the United States Securities Exchange Act of 1934. The order approved the payment of fees and expenses to the fund administrator responsible for managing the Fair Fund related to BitClave PTE Ltd. The Commission also authorised an expedited process for future payments to ensure the efficient distribution of funds to harmed investors. The United States Securities and Exchange Commission had initiated enforcement proceedings against BitClave PTE Ltd. on 28 May 2020. The findings of the Commission revealed that between June 2017 and November 2017, BitClave PTE Ltd. conducted an initial coin offering to raise funds for the development of a blockchain-based search platform designed to deliver targeted consumer advertising. As part of this process, the company issued digital tokens referred to as Consumer Activity Tokens, also known as CAT. BitClave PTE Ltd. raised...

On 26 November 2024, the United States Securities and Exchange Commission passed an order approving plan of distribution concerning Quantstamp, Inc., a blockchain technology company that faced allegations of offering unregistered securities. This resolution follows a series of regulatory actions initiated on 21 July 2023 under the United States Securities Act of 1933, addressing violations related to the company's QSP tokens. In October and November of 2017, Quantstamp, Inc. conducted a fundraising campaign by offering and selling QSP tokens, purportedly to finance the development of an automated protocol for auditing smart contracts. Through this initiative, the company raised approximately US $28.35 million in Etherium and United States dollars from over 5,000 investors globally, including a substantial portion in the United States. The United States Securities and Exchange Commission determined that these QSP tokens constituted securities under United States law. As such, the...

On 25 November 2024, the United States Securities and Exchange Commission announced the extension of the review period for a proposed rule change submitted by the New York Stock Exchange (NYSE). The proposal seeks to amend Section 802.01C of the NYSE Listed Company Manual, which governs price criteria for capital or common stock, to impose new restrictions on reverse stock splits in specific situations. The NYSE's proposed amendment, initially filed on 30 September 2024 under Section 19(b)(1) of the United States Securities Exchange Act of 1934, aims to address two issues. First, companies that fall below the prescribed price criteria and use reverse stock splits to regain compliance would lose eligibility for a compliance period in certain cases. Second, companies would be prohibited from implementing reverse stock splits if doing so would cause them to fall below the continued listing requirements. This proposal was published for public comment in the Federal Register on 17 October...

On 25 November 2024, Christian Bock, Consumer Protection Officer of the German Federal Financial Supervisory Authority (BaFin), issued a strong call to action for customers holding premium savings contracts. Christian Bock explained the urgent need for customers to assert their claims for interest recalculations before the year-end to avoid potential statute-bar limitations, while also shedding light on BaFin’s decision to appeal a ruling by the Frankfurt Administrative Court overturning a general order on interest adjustment clauses. Premium savings contracts, popular around the turn of the millennium, have been at the centre of legal disputes regarding improper interest calculations by banks and savings institutions. Many customers with such contracts may still claim overdue interest payments, but the deadline for such claims in some cases may expire in just a few weeks. Christian Bock urged affected customers to contact their banks or savings institutions immediately to have their...

On 16 October 2024, Germany's Federal Financial Supervisory Authority (BaFin) published a report examining the growing influence of financial influencers—or "finfluencers"—on investment decisions among adults aged 18 to 45. The study sheds light on how younger generations increasingly rely on social media for financial advice, particularly in relation to crypto assets and equities, and explores the associated risks and trends. The study, conducted in May 2024, surveyed 1,000 individuals aged 18–45 who had invested in the past two years. It revealed that social media platforms like YouTube and Instagram are now major sources of financial information, with more than half of respondents viewing them as reliable. Interestingly, 60 per cent considered social media a viable alternative to traditional financial advice. Those who use social media to research investments were found to diversify their portfolios more, with a marked preference for equities and crypto assets, in comparison to...