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The US Justice Department has initiated legal actions against developers and operators of self-custody cryptocurrency wallets, including Samourai Wallet and Tornado Cash. Samourai Wallet founders Keonne Rodriguez and William Lonergan were arrested, accused of conducting over $2 billion in illegal transactions without a money transfer license. Similarly, Roman Storm, developer of Tornado Cash, faces charges of money laundering and violating sanctions. Senator Cynthia Lummis criticized the Justice Department's aggressive approach, arguing that considering non-custodial software as a money transfer service is incompatible with current Treasury guidelines and threatens fundamental property rights. Lummis stressed the need for policymakers to create a robust regulatory framework to prevent the exploitation of cryptocurrencies by malicious actors while supporting innovation in the sector. The Justice Department's actions raise concerns about the implications for privacy-focused...

Hong Kong's ZA Bank, a subsidiary of China's ZhongAn Online P&C Insurance, is considering entering the virtual asset market following the implementation of new regulations for digital assets in the region. These regulations, established last year, require all crypto exchanges to apply for licenses by February 2024, with 24 companies currently vying for these licenses. Approval from the Securities and Futures Commission (SFC) is highly coveted, positioning Hong Kong as a prestigious regulatory hub. Ronald Iu Man-chung, CEO of ZA Bank, revealed plans to offer virtual asset trading services for retail investors pending final preparations. However, specific details regarding the services will be announced once these preparations are complete. ZA Bank's interest in virtual asset services comes amidst a stricter regulatory landscape in Hong Kong, with the SFC urging investors to use only licensed platforms and unlicensed exchanges facing closure by May 31. Currently, only OSL Digital...

Two U.S. lawmakers, Representatives Drew Ferguson and Wiley Nickel, have proposed the Providing Tax Clarity for Digital Assets Act to address taxation issues concerning block rewards earned by crypto miners. The bill seeks to clarify the tax treatment of staking rewards, suggesting that they should only be taxed at the time of their sale, aiming to prevent double taxation and provide clarity for investors and businesses in the digital asset industry. Representative Ferguson underscored the complexity of the current tax treatment of digital asset rewards, emphasizing the confusion it creates among investors and the potential for American businesses to relocate overseas due to regulatory uncertainty. The proposed legislation aims to establish clear tax guidelines for block rewards from proof-of-work and proof-of-stake networks, aligning taxation with the sale or spending of these rewards rather than their acquisition. The move responds to recent IRS rulings and the evolving landscape...

The United States Securities and Exchange Commission (SEC) has filed a lawsuit against Geosyn Mining and its co-founders, Caleb Joseph Ward and Jeremy George McNutt, accusing them of fraudulent activities. The lawsuit, filed on April 24 in a federal court in Fort Worth, Texas, alleges that Geosyn defrauded approximately 64 investors by selling service agreements disguised as securities. The SEC's allegations revolve around Geosyn's purported misrepresentation of its operational capacities and financial dealings, including false assertions about its contracts with electricity providers. Investigations revealed inflated energy costs compared to disclosed figures, raising concerns about misappropriation of investor funds. The SEC further alleges that around $5.6 million of investor funds were diverted for personal use, including expenses like trips to Disney World and legal fees related to separate drunk driving incidents involving Ward and McNutt. Geosyn's financial reserves dwindled...

The Kenyan government has formed a multi-agency technical working group tasked with developing a regulatory framework for the cryptocurrency industry. This group, which includes regulators such as the Central Bank of Kenya (CBK), aims to draft rules for controlling and monitoring Virtual Asset Service Providers (VASPs). Concerns about potential grey listing by the Financial Action Taskforce (FATF) due to Kenya's lack of crypto regulation prompted authorities to create the working group. The absence of regulations has led to the proliferation of online marketing of virtual assets and fraudulent investment schemes, prompting warnings from financial regulators. Treasury Cabinet Secretary Njuguna Ndung’u emphasized the need for a regulatory framework to address the emergence of virtual asset trading and online fraud. While some unlicensed VASPs, like Worldcoin, have operated in Kenya, authorities have cracked down on such entities to protect investors and prevent irregular injections of...

The European Parliament has approved new regulations aimed at combating money laundering and illicit activities in the cryptocurrency industry. These regulations, part of the Markets in Crypto-Assets (MiCA) framework introduced by the EU in 2023, particularly impact Crypto-Asset Service Providers (CASPs), including centralized exchanges. Key highlights of the regulations include the establishment of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) to oversee enforcement, and the imposition of strict Know Your Customer (KYC) procedures on CASPs to prevent money laundering. Despite concerns, Patrick Hansen, Director of EU Strategy & Policy at Circle, clarified that the Anti-Money Laundering Regulations (AMLR) are not solely focused on cryptocurrencies. However, obligated entities, including financial institutions and CASPs, must adhere to the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework. The regulations also...

Armenian law enforcement agencies recently underwent training on crypto-asset investigations, facilitated by the Office of the Co-ordinator of OSCE Economic and Environmental Activities (OCEEA) in collaboration with the United Nations Office on Drugs and Crime (UNODC). The three-day training, held in Yerevan, involved 27 representatives from various agencies, focusing on fundamental techniques and practical tools for effective investigations into crypto-related crimes. Participants learned methods for tracing criminal transactions across diverse blockchain networks, exchanged good practices, and gained insights into specialized analytics software and open-source tools relevant to the field. This initiative aims to strengthen Armenia's domestic law enforcement capabilities, particularly in investigating and tracing virtual assets. Funded by several countries, including Germany, Italy, and the United States, the training is part of an OSCE-led project to assist participating states in...

Tether has announced its decision to freeze all wallet addresses associated with the Venezuelan government's oil sales that bypass US sanctions. The move comes after reports surfaced of Venezuela using USDT stablecoin for oil transactions, circumventing US government sanctions. Tether's spokesperson emphasized the company's commitment to complying with the Office of Foreign Assets Control (OFAC) sanctions list, stating that sanction-related addresses would be promptly frozen. The Venezuelan government's state-run oil company, PDVSA, allegedly utilized stablecoins for fuel and crude oil deals for almost six months before US government approval in 2023. Reports also link a corruption scandal within PDVSA to cryptocurrencies, with allegations of funds disappearance amounting to $20 billion in crude oil shipments. While some express concern over Tether's actions, suggesting bias, others speculate that Venezuela may turn to decentralized stablecoins like DAI for its oil transactions to...

The Federal Trade Commission (FTC), USA has announced a final regulation banning noncompete agreements on a national level, aiming to defend employees' fundamental right to job mobility, foster creativity, and encourage entrepreneurship by outlawing such agreements in the workplace. Noncompete agreements are formal contract provisions that restrict employees from competing with their employers after the termination of their employment. FTC Chair Lina M. Khan emphasized that these clauses hinder wage growth, stifle innovation, and impede the dynamism of the American economy. The FTC's proposal, initially introduced in January 2023, has garnered support from employees. It is estimated that the ban could raise worker wages by up to $488 billion over the next decade, with average earnings potentially increasing by $524 annually. The regulation could affect approximately 30 million Americans across various job levels, from minimum wage workers to executives. Despite the anticipated...

The Blockchain Association (BA) and the Crypto Freedom Alliance of Texas (CFAT) have filed a lawsuit against the United States Securities and Exchange Commission (SEC) in the Northern District of Texas. The lawsuit aims to challenge the SEC's recent expansion of the "Dealer Rule," which the industry groups argue stifles innovation in the U.S. digital asset market. In February, the SEC adopted new rules redefining "dealer" and "government securities dealer," requiring more crypto market participants to register, join a self-regulatory organization, and comply with federal securities laws. The BA and CFAT claim that this expansion creates a vague and burdensome regulatory environment for businesses involved in digital asset trading. The lawsuit alleges that the SEC failed to adequately address public concerns raised during a limited comment period and neglected to assess the potential negative impacts of the rule. Kristin Smith, CEO of the Blockchain Association, criticized the SEC's...

Ripple, the cross-border payment protocol, has contested the United States Securities and Exchange Commission's (SEC) request to impose a $2 billion fine against the blockchain company. In a recent filing, Ripple urged the court to deny the SEC's requests for an injunction, disgorgement, and pre-judgment interest, arguing that the penalty should not exceed $10 million. The filing emphasized that Ripple intends to adhere to regulatory guidance in the future and opposes the SEC's "Draconian" remedial requests, which it considers unreasonable and ungrounded in law or principle. Ripple revealed that the SEC requested $876 million in disgorgement, $198 million in pre-judgment interest, and another $876 million in civil penalties, totaling nearly $2 billion. Ripple described the requested fine as disproportionate and argued that $10 million is a more reasonable amount based on a portion of their actual revenues. The company highlighted that comparable digital-asset cases warranted similar...

The tax evasion trial involving Binance and two of its executives has been adjourned to May 17, 2024 in a Nigerian court due to a delay in formally serving the charges to Binance. The Federal Inland Revenue Service (FIRS) has not yet served Binance with tax evasion charges, leading to the delay in proceedings. Binance and its executives, including Tigran Gambaryan and Nadeem Anjarwalla, were arrested on Feb. 28 and charged with tax evasion during a visit to Nigeria. The charges stem from Binance's failure to register with Nigeria's FIRS for tax remittance. Anjarwalla was not present in court as he had left the country in March 2024. In addition to the tax evasion trial, Binance and its executives face charges of laundering over $35 million by Nigeria's anti-graft agency. The trial is set to resume on May 2. Binance, which was not represented in court, stated at a crypto conference in Dubai that it is cooperating with Nigerian authorities following Gambaryan's detention. Meanwhile,...