Global Regulation

On 28 October 2024, the Hong Kong Monetary Authority (HKMA) announced a collaboration with Banco Central do Brasil (BCB) to drive cross-border tokenisation innovation, linking Hong Kong’s Project Ensemble Sandbox and Brazil’s Drex CBDC pilot programme. This partnership aims to establish standards in digital finance, targeting areas like trade finance and carbon credit settlement.

On 30 October 2024, the Monetary Authority of Singapore (MAS) introduced updates to Singapore’s Payment Services Act (SG PSA) under its National Anti-Money Laundering strategy, aimed at strengthening regulations for digital payment token (DPT) service providers.

On 22 October 2024, the U.S. Court of Appeals for the Second Circuit issued a Default Notice concerning procedural non-compliance by Ripple Labs’ legal team. Under Local Rule 12.3, Ripple’s counsel was required to file an Acknowledgment and Notice of Appearance by 18 October 2024 for continued involvement in the appellate process. However, as of the notice date, Ripple’s legal team had not submitted this filing, prompting the court to issue the notice and outline potential restrictions if compliance is not met.

On 10 October 2024, Gary Gensler, Chair of the United States Securities and Exchange Commission (US SEC), addressed the growing risks of fraud in relation to artificial intelligence (AI) and its application in finance. In his statement he discussed and emphasised that while AI presents opportunities, it also introduces new challenges for investor protection, with a focus on three categories of harm: programmable, predictable, and unpredictable.

On 4 October 2024, the United States Commodity Futures Trading Commission (US CFTC) issued a supplemental no-action letter to KalshiEX LLC and Kalshi Klear LLC, exempting them from specific regulatory requirements as they transition their clearing operations from LedgerX LLC to Kalshi Klear LLC.

On 6 September 2024, the UAE Cabinet issued Cabinet Decision No. 100 of 2024, amending the UAE’s Federal Decree-Law No. 8 of 2017 on Value Added Tax. These amendments discuss the VAT treatment of virtual assets such as cryptocurrencies and provide clear guidelines for businesses involved in virtual asset transactions. The new regulations will be effective from 15 November 2024 and requires businesses handling virtual assets to ensure compliance with the updated tax laws.

On 25 September 2024, the Singapore High Court, presided over by Judicial Commissioner Kristy Tan, held a moratorium hearing via Zoom regarding Zettai Pte. Ltd.

On 3 September 2024, the U.S. Commodity Futures Trading Commission (US CFTC) filed complaint against four online trading platforms, cryptoiminerstrade.com, FalconForexBot, Expert Stocks Zone, and swiftminingexpert.com, for allegedly operating as unregistered futures commission merchants (FCMs) and misleading the public about their regulatory status. The platforms allegedly falsely claimed to be regulated by the US CFTC, deceiving investors into believing that their funds were protected under U.S. financial laws.

On 12 September 2024, the Commodity Futures Trading Commission (US CFTC) announced amendments to Regulation Part 40, which impact rule submission procedures for designated contract markets (DCMs), swap execution facilities (SEFs), and derivatives clearing organizations (DCOs). These changes aim to improve the certification process, update product certification requirements, and improve transparency for market participants, including those in the digital assets and cryptocurrency sectors.

On 3 September 2024, the Singapore High Court held a case conference concerning Zettai Pte. Ltd., the parent entity of WazirX, which had filed for a six-month moratorium due to financial difficulties following a USD 234 million cyberattack on WazirX.

On 20 August 2024, the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) issued Consultation Paper No. 7, proposing a regulatory framework for the issuance of Fiat-Referenced Tokens (FRTs).

On 15 July 2024, the U.S. Copyright Office released a report titled “Copyright and Artificial Intelligence, Part 1: Digital Replicas.” The report delves into the challenges posed by AI-generated digital replicas, which are highly realistic reproductions of an individual’s voice, appearance, or other personal attributes. These replicas, created using AI technologies, raise legal and ethical concerns, particularly regarding unauthorized use and protection of personal identity.