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South Korean regulators convened with officials from the Association of Southeast Asian Nations (ASEAN) and the Organisation for Economic Co-operation and Development (OECD) in Seoul on March 18 to discuss crypto policy. Hosted by the Financial Services Commission (FSC), South Korea's top financial regulator, the event aimed to share progress on digital finance policies within ASEAN countries and address risks associated with cryptocurrencies and other related matters. Participants included financial regulatory authorities, central bank officials, and major financial institution officials from Asia and OECD member countries. The discussions, part of the "South Korea-OECD Roundtable: On Digital Finance in ASEAN," covered topics such as central bank digital currencies (CBDCs) and cryptoassets. Kim So-young, Vice Chairman of the FSC, emphasized the positive effects of financial innovation through digital technology and highlighted the need for an appropriate regulatory framework to...

Nigeria's Securities and Exchange Commission (SEC) has recently proposed a series of substantial fee increases for cryptocurrency firms operating within the country. These proposed amendments, if implemented, would represent a significant uptick in registration fees for digital asset exchanges, offering platforms, and custodians. The SEC asserts that these adjustments aim to provide greater clarity and regulatory oversight in the burgeoning cryptocurrency sector, reflecting input from industry stakeholders and recent engagements with the Central Bank of Nigeria (CBN). However, the proposed fee hikes have sparked concerns among some stakeholders, particularly regarding the potential adverse effects on local entities. Critics argue that the proposed 400% increase in registration fees, coupled with the introduction of a high paid-up capital requirement of 500 million Naira ($310,343), may disproportionately favor larger foreign firms while placing undue financial burdens on domestic...

In a blow to Worldcoin's ambitions, the Spanish Audiencia Nacional has upheld the suspension of the project's activities in Spain, as ordered by the country's data protection authority, the AEPD. The decision highlights the primacy of safeguarding citizens' personal data over the economic interests of the company, particularly in the contentious realm of biometric data processing. The tribunal's ruling underscores the growing scrutiny faced by tech companies like Worldcoin, as they navigate complex regulatory landscapes and grapple with concerns surrounding data privacy and consent. While Worldcoin may continue to contest the decision, the outcome sets a precedent for the broader debate on the balance between innovation and data protection in the digital age. As Worldcoin's legal battles unfold on multiple fronts, the case serves as a cautionary tale for companies operating in the increasingly scrutinized realm of biometric identification technology. The resolution of this dispute...

The Russian government, led by Minister of Internal Affairs Vladimir Kolokoltsev, is embarking on a bold initiative to create a platform that will enable law enforcement agencies to seize and store crypto confiscated from criminals. This move comes amidst growing concerns about the use of cryptocurrencies in illegal activities within the country. According to reports from Izvestia, a newspaper in Russia, the Ministry of Finance has been tasked with exploring the feasibility of this platform, with a deadline set for October 1, 2024. The platform would potentially provide courts, prosecutors, and bailiffs with the capability to seize tokens as part of criminal proceedings. While the details of the platform remain unclear, the initiative underscores the Russian government's efforts to strengthen its ability to combat cybercrime and enforce regulations in the crypto space. However, it also raises questions about the balance between law enforcement objectives and individual privacy...

The Securities and Exchange Commission (SEC) of Nigeria has put forward a proposal to amend the rules governing platforms offering crypto services, suggesting a substantial increase in registration fees for crypto exchanges. The proposed amendment includes raising the registration fee from 30 million naira to 150 million naira, among other adjustments. These proposed changes, aimed at providing clarity and incorporating feedback from industry stakeholders and engagements with the Central Bank of Nigeria, reflect a significant shift in the regulatory landscape for crypto businesses in the country. The amendments also include renaming the rules to encompass a broader scope of digital asset activities. While the SEC attributes the adjustments to stakeholder input, concerns have been raised regarding the steep capital requirement, which could potentially favor foreign entities over local firms. This move comes amidst Nigeria's growing prominence in the global crypto economy and its...

A New York jury has delivered guilty verdicts against David Brend and Gustavo Rodriguez, former promoters of the alleged crypto mining and trading company IcomTech, for their involvement in a wire fraud conspiracy. The conviction carries a maximum sentence of 20 years for each defendant, marking the culmination of a two-week trial in a New York District Court. The U.S. Attorney's Office for the Southern District of New York revealed that IcomTech, purportedly a crypto mining and trading firm, was actually a Ponzi scheme orchestrated by its founder, David Carmona. Rodriguez, hired by Carmona in mid-2018, played a pivotal role in creating a website and maintaining a portal that falsely displayed guaranteed daily returns from crypto trading and mining. Brend and other promoters of the scheme allegedly diverted substantial sums of investor funds for personal use, including purchasing real estate, extravagant travel, and hosting lavish events to entice further investments. As complaints...

The Securities and Futures Commission (SFC) of Hong Kong has issued a public warning regarding Bybit, a global cryptocurrency exchange, labeling it as an "unlicensed virtual asset trading platform (VATP)." The SFC expressed concerns about various products offered by Bybit, including futures contracts, options, leveraged tokens, and wealth management services. Notably, the SFC highlighted that no entity within the Bybit group is licensed or registered to conduct regulated activities in Hong Kong, emphasizing that dealing in crypto-related products without proper authorization constitutes a criminal offense. Bybit has been added to the SFC's list of Suspicious Virtual Asset Trading Platforms and Suspicious Investment Products. Despite Bybit's application for a VATP license in Hong Kong, concerns persist regarding its compliance with regulatory standards. The warning issued by the SFC against Bybit serves as a stark reminder of the regulatory scrutiny surrounding crypto exchanges and...

The Dubai International Financial Centre (DIFC) has taken a significant step forward in recognizing and regulating digital assets with the enactment of what it calls the "world's first" digital assets law. This landmark legislation, which amends various existing laws within the DIFC framework, acknowledges the existence of digital assets and provides a comprehensive legal framework for their treatment. The Digital Assets Law revises laws related to contracts, insolvency, damages, obligations, securities, and personal property to accommodate the unique characteristics of digital assets. It introduces new definitions and classifications for these assets and outlines protocols for their control, transfer, and management by relevant parties. Jacques Visser, Chief Legal Officer at DIFC Authority, emphasized the pioneering nature of this law, highlighting its role in establishing legal clarity and certainty around digital assets. He noted that the legislation represents a significant...

The United States Securities and Exchange Commission (SEC) has brought charges against 17 individuals involved in an alleged cryptocurrency Ponzi scheme operated under the guise of CryptoFX LLC. The scheme targeted predominantly Latino investors in the U.S., promising substantial returns through crypto and foreign exchange trading. According to the SEC, CryptoFX posed as a trading platform for crypto assets and foreign exchange markets, with the charged individuals acting as leaders of the network. They solicited investments from over 40,000 investors, luring them with promises of guaranteed returns ranging from 15% to 100%. However, instead of engaging in legitimate trading activities, the perpetrators allegedly used the funds raised to sustain their own lifestyles and pay returns to earlier investors, characteristic of a Ponzi scheme. The SEC's Director of Enforcement, Gurbir S. Grewal, described CryptoFX as a "$300 million Ponzi scheme" that preyed on investors' aspirations for...

US Senators Jack Reed and Laphonza Butler have called on Securities and Exchange Commission (SEC) Chairman Gary Gensler to halt the approval of further crypto exchange-traded products (ETPs) beyond Bitcoin. Their letter to Gensler emphasizes concerns over investor protections in the volatile crypto market, citing misleading communications from brokers and potential confusion over naming conventions. The senators' letter reflects apprehensions about the accessibility of volatile cryptocurrency investments to the general public through brokerage and retirement accounts. They highlight a review by the Financial Industry Regulatory Authority (FINRA), revealing that 70% of broker communications with retail investors regarding cryptocurrency breached fair disclosure rules, raising concerns about investor knowledge and protection. The letter particularly addresses the labeling of Bitcoin ETPs as "exchange-traded funds" (ETFs), expressing worries that investors may be misled into believing...

Hong Kong is advancing its e-HKD Pilot Programme to explore the potential of a digital version of the Hong Kong dollar (e-HKD). Phase 2 of the program, following the completion of Phase 1 in October 2023, aims to delve deeper into specific areas where an e-HKD could offer unique advantages, including programmability, tokenization, and atomic settlement. The Hong Kong Monetary Authority (HKMA) will leverage an enhanced sandbox environment to facilitate innovation and development, allowing participants to accelerate the prototyping, development, and testing of e-HKD use cases. The expansion of the e-HKD Pilot Programme reflects Hong Kong's commitment to exploring the potential applications of central bank digital currencies (CBDCs) within its financial system. By focusing on programmability, tokenization, and atomic settlement, Phase 2 aims to unlock new possibilities for the e-HKD and streamline processes within the financial ecosystem. The HKMA's efforts, combined with its broader...

Banco Do Brasil, in partnership with Giesecke+Devrient, is exploring the integration of offline payment functionality into Drex, Brazil's upcoming central bank digital currency (CBDC). The initiative aims to extend financial services to individuals in remote areas with limited or no internet access. By introducing offline capabilities, Drex seeks to serve as a viable payment option in regions where internet connectivity is deficient, complementing cash transactions, which are prevalent in Brazil. The collaboration will involve testing the feasibility and technical compatibility of the offline solution within Drex's pilot program. Notably, this feature also aims to address crisis situations such as power or internet outages, providing a resilient payment alternative. Both partners emphasize the importance of ensuring accessibility and inclusivity for all users, reinforcing the need for a CBDC that operates seamlessly under various conditions. Drex is slated for launch by the end of...