US SEC chairman [outlines what to expect](https://beat.10ztalk.com/2022/07/18/sec-chairman-gary-gensler-outlines-details-of-crypto-regulation/) from the authority regarding crypto regulation. SEC’s duties being the primary watchdog for securities, finance, and investments will expand. 

## Global cryptocurrency regulations

The need for crypto laws arose after a down market and the [collapse of Terra UST](/news/article/terra-luna-collapse), which caused investors to lose a massive amount of their investments. As a result, China openly prohibited the use of cryptocurrencies, while Russia prohibited its use as a payment alternative.

The US remained hesitant to finalise the proposed crypto regulations until Biden requested the crypto regulation draft from the US SEC authority. The regulation draft is submitted for review and is anticipated to be deployed shortly.

As the deadline for implementing crypto laws approaches, the SEC has geared itself for the duties that will fall on its shoulders soon. US SEC chairman spoke to Yahoo Finance about the details of their forthcoming duties once the laws are implemented.

## US SEC and cryptocurrency regulation

Gensler stated that the new cryptocurrency regulation would assist investors and customers by protecting them from any difficulties caused by service providers. Their primary focus areas, according to Gensler, will be exchanges, brokerage, and loans. He stated that they are contacting stakeholders to notify them of their needs.

While stating that they are open to conversations and discussions, he also invited exchangers, lenders, and other dealers to come and speak with them. 

He noted that Congress had given the SEC authority to change some laws to better safeguard investors, stating:

“We do have robust authorities from Congress also to use our exemptive authorities that we can tailor investor protection.”

They even have the authority, he claims, to request tokens for disclosures. He stated that the public has the right to comprehensive and honest disclosures, which would serve as their primary safeguard.

Because the SEC is obliged to cover tokens, stablecoins, and volatile coins, they will also have the power to consult with banking authorities and the CFTC. He has emphasised that Bitcoin is not a security coin and that the CFTC would decide the remainder of the coins and tokens status. He has also cautioned that many crypto coins will fail, so investors should exercise caution.







US SEC Chairman outlines crypto regulation

Paraguay crypto bill that regulates cryptocurrency mining and trading within the country, has finally been approved by the country’s Senate.

The deputy chamber [approved the bill](http://www.diputados.gov.py/index.php/noticias/aprueban-con-modificaciones-proyecto-que-regula-la-industria-y-comercializacion-de-criptoactivos) but added some changes regarding electricity consumption in Paraguay. President Mario Abdo Benítez is now obliged to decide whether he will support, sanction or apply a veto to the bill.

Counting 7 million electricity users, Paraguay mostly depends on hydroelectric generation as the country also serves as a significant energy exporter. 

However, the electricity expenditure rose by over 100% in the last 12 years, while its generation is falling. The state power operator, Administración Nacional de Electricidad (ANDE), wants to urge a new consumption plan within the next few years. 

On the other hand, Paraguay’s central bank worries that the fact that cryptos are still not regulated as payment in the country could lead to halts in electricity consumption associated with crypto mining.

According to the bill, Paraguay’s Ministry of Industry and Commerce will be the governmental body that will regulate cryptocurrency-related services.

## Paraguay crypto bill tax excludes paying VAT

The bill, therefore, urges [crypto mining companies](/news/article/mining-company) to come up with a power consumption plan and present it to the national power body, which will be authorized to cut the electricity if the companies do not act according to these plans. Also, the bill defines that the payment for the power services is made in advance.

Furthermore, crypto miners won’t have to pay their VAT but are obliged to pay income taxes.
However, some lawmakers have shown their disapproval about the law's approval in its current form, with some calling for a presidential veto.

However, the bill was not approved easily. Senator Esperanza Martínez mentioned that the Guasu Front Bank did not comply with the project, adding that cryptocurrency is not an industry per se as it doesn’t process either raw material adding value, or employing people.

"Both versions are detrimental to the country," she said. 

Senator Enrique Bacchetta commented that he had voted for rejection at the time because this initiative did not produce jobs.




Senate approves Paraguay crypto mining bill

The South African crypto market is about to welcome a new regulatory framework. The South African Reserve Bank (SARB) has introduced amendments to its financial laws. According to the new regulations, [Bitcoin](/coins/btc) and other altcoins will now be identified as financial assets. 

The country has long discussed whether cryptocurrencies should be categorised as financial assets or only digital currencies. Now the SARB has finalised the regulations for cryptocurrencies and introduced a ruling for them to be considered assets. 

Previously, the South African crypto market was thriving on its own. This newly introduced framework by SARB will help in regularising the market. The Deputy Governor of SARB, Kuben Naidoo, believes that there is a need for a framework to regulate the market and promote the adoption of cryptocurrencies. 

In a webinar, he further acknowledged that SA Reserve Bank has changed its stance on [digital coins](/coins) and, tokens and is now working on its regularisation of disclosures. Moreover, he provided a timeframe of 12 to 18 months for the complete implementation of the framework. But, he assured us that KYC rules and authorisation of crypto exchanges were possible earlier. 

## Key points from South Africa’s crypto regularisation 

Here are some key points from recent crypto regularisation in South Africa:
1.	All cryptocurrencies are declared as financial assets.
2.	The services related to cryptocurrencies will fall under financial services.
3.	All crypto exchanges will be provided with a licence. 
4.	The Financial Intelligence Centre Act (FICA) will monitor the country's crypto market.
5.	FICA will also oversee tax evasion and money laundering issues related to cryptocurrencies.  

## The future of cryptocurrencies in South Africa

South Africa is one of the leading countries for adopting cryptocurrency. According to the research [report by Luno Global Exchange](https://discover.luno.com/research-the-state-of-crypto-in-africa/), around 13% of the country's population owns various cryptocurrencies. However, there was no monitoring policy for the industry before the recent announcement by the Reserve Bank. 

The rules SARB has now introduced can help in the growth of digital currencies across the country. It is expected that regularisation will lead to the mass adoption of crypto in South Africa. Moreover, it will provide a robust infrastructure for investment. Besides, it will mitigate the risks and bring financial stability to the country.




South Africa crypto embraces new regulatory changes

Even though we recently wrote about [Celsius’ possibility of getting back on track](/news/article/celsius-news-new-lawyers), the company has decided to file for bankruptcy protection.

According to the [official announcement](https://www.businesswire.com/news/home/20220713005911/en/Celsius-Network-Initiates-Financial-Restructuring-to-Stabilize-Business-and-Maximize-Value-for-All-Stakeholders), the faltered company filed voluntary petitions for Chapter 11 protection and announced the initiation of a financial restructuring.

Previously Celsius asserted it would focus on stabilisation of its business by restructuring in a way “that maximizes value for all stakeholders.” It then confirmed having $167 million in cash in order to support operations until everything is finished

The firm stated that the filing follows “the difficult but necessary decision by Celsius last month to pause withdrawals, swaps, and transfers on its platform to stabilise its business and protect its customers”. 

“Without a pause, the acceleration of withdrawals would have allowed certain customers—those who were first to act—to be paid in full while leaving others behind to wait for Celsius to harvest value from illiquid or longer-term asset deployment activities before they receive a recovery”.

Celsius hiring new directors

Celsius CEO Alex Mashinsky added that he believes this was the right decision for the clients and the company itself. 

“We have a strong and experienced team in place to lead Celsius through this process. I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company,” he concluded.

Last week, the firm replaced its legal advisers Strauss Hauer & Feld LLP with newly appointed Kirkland & Ellis LLP. The company still hasn’t filed for bankruptcy and hopes that pairing up with Kirkland & Ellis LLP could represent a shift in the overall strategy.

Analysts mostly agree the move was expected. The firm also hired new directors: David Barse, the Chief Executive Officer of XOUT Capital, and Alan Carr, founder and managing member of Drivetrain, LLC, a professional fiduciary services firm.

With more than 100,000 creditors and the largest unsecured claim of $81 million from Caymans Island-based Pharos Fund, the filing also mentions FTX CEO Sam Bankman-Fried’s trading firm, Alameda Research, as a creditor with a $12 million unsecured loan.



Celsius filing for bankruptcy is imminent

The latest Celsius news is that just 28 days [after it halted withdrawals for its users](/news/article/celsius-crypto-freezes-withdrawals), the troubled crypto lender decided to hire a new law force to help its restructuring process.

According to [sources](https://www.wsj.com/articles/troubled-crypto-lender-celsius-hires-new-restructuring-lawyers-11657473712), the company replaced its lawyer advisers Strauss Hauer & Feld LLP with newly appointed Kirkland & Ellis LLP. The company still hasn’t filed for bankruptcy and hopes that pairing up with Kirkland & Ellis LLP could represent a shift in the overall strategy.

Celsius, which was managing almost $11.8 billion in assets for its 1.7 million users as of May, decided to pause all withdrawals last month, explaining that "extreme market conditions" led to this decision.

As sort of a buffer, Celsius proposed high-yield loans of up to 18% on deposits and reiterated its users "will continue to accrue rewards" during Celsius’s “half-time”.

"We are taking this necessary action for the benefit of our entire community in order to stabilise liquidity and operations while we take steps to preserve and protect as diligently in order to face all challenges," the company said.

Be it as it may, Celsius isn't the only crypto firm collaborating with Kirkland & Ellis. Voyager Digital, which recently filed for chapter 11 bankruptcy, also went with the company to try to solve the issues of its clients' wanting to withdraw funds from the company.

Celsius, however, hasn't been in an enviable situation. An ex-crypto money manager has sued the company on charges that Celsius used client funds to cover its deficits in the lending business. According to Arkham Intelligence, that manager is said to have cost Celsius $61.2 million in liquidations.

The company has allegedly also approached Alvarez & Marsal for restructuring options and, in late June, it fired John Stephen Dubel, founder of restructuring services provider Dubel & Associates, after only eight days of service.

In last week's Celsius news it was confirmed that the company had managed to repay its debt to Maker, giving back 41.2 million in DAI that unlocked 21,962 in wrapped Bitcoin (WBTC), worth around $440 million.

Blockchain intelligence firm Nansen revealed that Celsius now has a total of $213 million in outstanding debt; 63% of this falls to Aave and 35% to Compound.


Celsius News: Troubled Firm Hires New Lawyers

The Singapore crypto scene is one of the main attractions in the unregulated digital currency landscape due to the country’s friendliness towards the new financial revolution. 

Unfortunately, the country’s regulator’s tightening on digital finance in[ June](https://cointelegraph.com/news/brutal-and-unrelentingly-hard-singapore-regulator-s-clampdown-on-crypto) contradicts Tharman Shanmugaratnam, a senior minister in the Cabinet who saw a lot of positives in digital assets in the sovereign island country and this has sent shockwaves across the markets. 
On Thursday, June 23, the central bank and financial regulator of one of Asia’s booming economies pledged to be unrelentingly hard and brutal on any transgression from major stakeholders in the digital currency industry. 

These comments were made by Sopnendu Mohanty, the Chief Fintech Officer of the Monetary Authority of Singapore (MAS) who explained in an interview with the Financial Times (FT) which was highly monitored by [MoniTalks. ](/news)

The Fintech Officer also criticized market participants who believe the country is losing its status as a friendly state for alternative finance. 
He responded that his country should not be friendly with decentralized finance because it can only deal with actors in a real economy and not some “unreal economy”.

To many firms in the space, this is a complete turnaround from what cabinet minister Shanmugaratnam said in October 2021. 
At the peak of the markets during the first month of the last quarter of 2021, he pointed out that digital tokens may have a role in future finance that goes beyond illicit finance and pure speculation. 

He added that the country was laying the foundation for becoming a crypto-technology hub which will make it easy for tokenization, trading, and custody services to be provided by companies. 

With that said, Chief Fintech Officer, Sopnendu Mohanty believes the current financial crisis can be attributed to the world being lost in private currency. 

As a result, the Asian state has enacted a painfully slow due diligence process that grants licenses to businesses associated with the digital currency market. 

Singapore crypto became a mainstay in the space because firms enjoyed low taxes. 

Unfortunately, the view in which the minister sees a place for crypto in the Asia hub has been replaced by regulations that aim to pave the way for the introduction of central bank digital currency (CBDC) which could be launched in the next three years. 


Latest Moni

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US SEC Chairman outlines crypto regulation

Senate approves Paraguay crypto mining bill

South Africa crypto embraces new regulatory changes

Celsius filing for bankruptcy is imminent

Celsius News: Troubled Firm Hires New Lawyers

Singapore Regulator’s Clampdown on Crypto

Zipmex Gets 3-Month Creditor Protection

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