Global Regulation

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. Numerous creditors raised concerns about Zettai’s financial practices, transparency, and fairness in the proposed moratorium, which the company, connected to cryptocurrency platform WazirX, sought to address financial fallout from a significant hack. Creditors voiced opposition to the moratorium and raised allegations of manipulation and mismanagement by both Zettai and WazirX.

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 Stablecoin 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.

On 14 August 2024, the Commodity Futures Trading Commission (CFTC) handed down substantial penalties to Truist Bank, TD Bank, and Cowen for serious lapses in recordkeeping, supervisory practices, and the use of unapproved communication channels, such as personal text messages, violated federal regulations.

On 26 July 2024, the Monetary Authority of Singapore (MAS) issued a new circular (AMLD 08/2024) aimed at enhancing the anti-money laundering (AML) and countering the financing of terrorism (CFT) measures within the wealth management sector. This directive targets financial institutions (FIs) dealing with high-net-worth individuals (HNWIs), and the necessity of thoroughly verifying the sources of their wealth (SOW) before initiating business relationships.

On 26 July 2024, Latvijas Banka published its Financial Stability Report, offering an in-depth analysis of Latvia’s financial system, including the macrofinancial environment, real estate market, and credit institution sector.

On 25 July 2024, the Securities and Futures Commission (SFC) issued a stern warning about CoinUnited.io, an unlicensed virtual asset trading platform.

On 17 July 2024, WazirX experienced a major security breach resulting in the theft of over $230 million from a multisignatory wallet. This breach involved Liminal’s digital asset custody services.