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Abu Dhabi Global Market (ADGM) has inked a memorandum of understanding with the Solana Foundation to propel the advancement of distributed ledger technology (DLT). While specific measures were not disclosed, the collaboration aims to explore development opportunities within ADGM's DLT Foundations Regulations. ADGM Registration Authority CEO Hamad Al Mazrouei expressed enthusiasm for the partnership, highlighting the importance of regulation and compliance in fostering robust and sustainable development in the blockchain space. ADGM, known for its innovative regulatory framework, introduced the DLT Foundations Regulations in November, positioning itself as a global leader in blockchain governance. Solana Foundation CEO Lily Liu emphasized the potential of the partnership to attract talent to Abu Dhabi and the broader Middle East region, underscoring Solana's recent surge in popularity and developer activity. Despite recent technical challenges, including an outage in February, Solana...

The European Commission is contemplating criminalizing artificial intelligence (AI)-generated imagery and deepfakes depicting child sexual abuse (CSA) as part of updated laws responding to technological advancements. The proposal aims to introduce new criminal offenses for live-streaming child sexual abuse, possession and exchange of "pedophile manuals," and the use of AI chatbots for child abuse. This initiative seeks to address the surge in online risks for children due to increased online presence and technological developments, emphasizing the need for enhanced awareness and crime prevention measures. While the final form of the proposals will be decided by the European Parliament and the European Council, this move underscores the EU's commitment to combating CSA and leveraging legislative measures to protect children online. (Source: Cointelegraph)

The United States Securities and Exchange Commission (SEC) has stepped up its regulatory efforts targeting the crypto and Decentralized Finance (DeFi) sectors with new rules imposing registration requirements on "dealers" and "government securities dealers." While SEC Chair Gary Gensler defends these measures as crucial for investor protection and market integrity, Commissioner Hester Pierce has voiced strong opposition. The newly adopted rules refine the definition of "dealers" and "government securities dealers," requiring registration with the SEC, SRO membership, and compliance with federal securities laws. However, Commissioner Pierce argues that these rules distort market behavior and quality, diverging from existing statutory frameworks. She criticizes the broad scope of the rules, categorizing market participants solely based on liquidity-providing activities, which she believes penalizes liquidity provision and may reduce market competition. Pierce calls for revised...

South Korea's Financial Intelligence Unit (FIU) is reportedly probing OKX following accusations of operating as an unregistered cryptocurrency exchange. The Digital Asset Exchange Association (DAXA) reportedly alerted the FIU, prompting an investigation into OKX's activities. Allegations suggest OKX promoted its token sales platform to South Korean investors without proper registration, leveraging local influencers for promotion. Failure to register could result in penalties from financial regulators, with recent announcements indicating potential severe penalties for crypto criminals. A flash crash in OKX's token OKB further intensified scrutiny, with its price dropping 48% in minutes before recovering. OKX has yet to respond to requests for comment. (Source: Cointelegraph)

Under proposed regulations, decentralized exchanges (DEXs) with liquidity positions exceeding $50 million would need to register with the SEC. While DEXs have been instrumental in the DeFi revolution, offering peer-to-peer cryptocurrency trading without intermediaries, concerns persist about market integrity and investor protection. The SEC aims to address these concerns by bringing significant DEX operations under its regulatory oversight, potentially requiring adherence to compliance standards such as disclosure requirements and anti-money laundering measures. Critics caution that such regulations could stifle innovation and undermine the decentralized ethos of DeFi, while stakeholders prepare for vigorous debate during the public commentary period. The outcome will shape the future of decentralized exchanges and the broader DeFi ecosystem. (Source: Altcoinbuzz.io)

Four US lawmakers, including Representatives Patrick McHenry and Glenn Thompson, sent a letter to Treasury Secretary Janet Yellen pressing for clarification on crypto regulation gaps. Highlighting concerns over the lack of oversight in digital asset markets, particularly regarding bitcoin and ether, the lawmakers questioned Yellen on the role of the Financial Stability Oversight Council (FSOC) in addressing these gaps. They sought details on the FSOC's coordination with regulatory bodies like the SEC and CFTC, emphasizing the need for comprehensive legislation to ensure customer protection and regulatory clarity in the crypto space. The letter requested a response from Yellen by February 20, seeking insights on the FSOC's stance on securities laws, the regulatory authority of the SEC and CFTC, and the classification of bitcoin and ether as securities. (Source: Bitcoin.com)

Belarus Central Bank is aiming to decentralize cross-border trade with the introduction of its new Central Bank Digital Currency (CBDC), slated for a national rollout in 2026. Deputy Head of Research and Strategic Development at the National Bank of Belarus (NBB), Mikhail Demidenko, highlighted the goal of facilitating cross-border payments by reducing reliance on major currency issuers like the dollar and euro. Belarus' strategic move towards introducing a Central Bank Digital Currency (CBDC) in 2026 reflects its determination to decentralize cross-border trade and mitigate the impact of sanctions. By leveraging blockchain technology and emphasizing decentralization, the digital Belarusian ruble (DBR) aims to streamline cross-border payments, reduce reliance on major currencies, and foster economic resilience. The initiative underscores Belarus' commitment to embracing digital innovation and enhancing financial inclusivity, marking a significant step towards modernizing its...

The CEO of crypto exchange Bitsonic has been sentenced to seven years in prison, with the firm's technology chief receiving a one-year jail term for embezzling 10 billion South Korean won ($7.5 million) worth of customer deposits. Jinwook Shin, arrested in August 2023, faced charges including fraud and obstructing business via computer. Bitsonic's technology VP, identified as Mr. A, was sentenced for similar charges. The sentencing underscores the seriousness with which South Korean authorities address financial crimes in the crypto industry. The court's harsh judgment reflects the significant damage inflicted on trust in crypto exchanges due to Shin and Mr. A's actions. Manipulating transaction volume, creating false deposits, and spreading fake partnership notices, Shin orchestrated a fraudulent scheme that ultimately led to substantial losses for customers. This incident highlights the importance of regulatory oversight and transparency in crypto exchanges to protect investors'...

The Spanish Ministry of Finance is moving to expand its oversight over crypto activities within the nation, empowering the Spanish Tax Agency to seize digital assets to settle tax debts. This initiative, led by María Jesús Montero, involves amending Article 162 of the General Tax Law to enable authorities to locate and confiscate crypto assets held by taxpayers with outstanding bills. This development underscores Spain's proactive approach to combat tax evasion in the digital asset space. By compelling banks and electronic money providers to disclose transaction data and increasing scrutiny on crypto holdings, Spanish authorities aim to ensure compliance with tax regulations. The surge in warnings issued to residents failing to report crypto holdings reflects the government's heightened focus on enforcing tax laws in the crypto ecosystem. However, challenges remain in tracking and seizing self-custodied cryptocurrency assets, presenting potential obstacles to the effective...

The U.S. and U.K. Financial Regulatory Working Group (FRWG) convened in London for its ninth official meeting on January 31, underscoring the importance of robust regulation and oversight of cryptocurrency assets and markets. In a statement issued on February 5, the group highlighted discussions on crypto regulation and central bank digital currencies (CBDCs). The United States Securities and Exchange Commission (SEC) has enacted stringent regulations affecting liquidity providers, extending beyond federal securities laws to impact cryptocurrency and decentralized finance (DeFi). Approved with a 3-2 majority vote during a meeting on Tuesday, the long-awaited 247-page rule imposes obligations on individuals dealing with crypto assets classified as securities or government securities, excluding those with assets under $50 million. Reacting to the SEC's decision, industry voices have raised concerns about the impact of the rules on innovation and the DeFi ecosystem. The DeFi Education...

A federal judge has approved a motion allowing the United States Securities and Exchange Commission (SEC) to request specific financial documents from Ripple. Magistrate Judge Sarah Netburn, in a ruling on February 5, granted the SEC's motion, requiring Ripple to produce financial statements from 2022 to 2023 and contracts governing "institutional sales," a crucial aspect in determining whether XRP qualifies as a security. The post-complaint contracts could provide insights for the SEC to counter Ripple's claims of compliance following the initial filing. Judge Netburn's decision marks a significant development in the ongoing legal battle between Ripple and the SEC. The request for financial documents underscores the SEC's efforts to strengthen its case against Ripple and its executives. Ripple's compliance with the court order will likely influence the outcome of the trial scheduled for April. This ruling emphasizes the importance of transparency in regulatory investigations...

A new service called OnlyFake is reportedly leveraging AI "neural networks" to create fake driver's licenses and passports, successfully passing Know Your Customer (KYC) verifications on multiple crypto exchanges. Priced at $15 each, the service offers realistic IDs from 26 countries and accepts payment in various cryptocurrencies through Coinbase's commercial payments service. Users have claimed to bypass KYC checks on exchanges like OKX, Binance, Kraken, Bybit, Huobi, and financial service providers like PayPal, raising concerns about the potential for crypto scammers and hackers to exploit these fake documents for illicit activities. While OnlyFake's owner claims the IDs can bypass KYC checks at several exchanges, OKX denies any endorsement of fraudulent conduct and is investigating the reports. Despite the site's disclaimer that it doesn't manufacture forged documents, its ease of use and ability to spoof image metadata raise alarms about the potential misuse of AI technology for...