The first case of Coinbase insider trading has resulted in charges. US prosecutors in Manhattan have charged a former product manager with wire fraud, according to the New York Times.

Product manager Ishan Wahi and his brother, Nikhil Wahi, were taken into custody in Seattle on Thursday. Another defendant, Sameer Ramani, remains at large, and the Securities and Exchange Commission (SEC) has filed civil accusations against him as well.

## Coinbase insider trading is the subject of an investigation by the SEC

Lawyers representing Ishan Wahi, 32, released a statement saying that he is "innocent of all crime and intends to defend himself forcefully."

Requests for feedback from Nikhil Wahi's lawyer were not immediately returned. A lawyer for Ramani was not immediately available to Reuters.

Prosecutors allege that[ Ishan Wahi divulged sensitive information](https://www.foxbusiness.com/markets/ex-coinbase-manager-charged-crypto-insider-trading-case) on upcoming Coinbase announcements about additional cryptocurrency assets that users would soon be able to trade on the exchange. He booked a flight to India after being summoned to Coinbase's Seattle headquarters by the company's security director, according to the report.

For the first time in insider trading of digital assets, an ex-NFT marketplace employee has been charged. Law enforcement prevented him from boarding that flight on May 16. The bond for Ishan Wahi was set at $1 million and his passports had to be surrendered.

Despite his alleged attempt to run, prosecutors did not urge that he be arrested. On August 2, he will appear in federal court in Manhattan.

A total of 25 crypto assets were allegedly bought and sold for a profit by Nikhil Wahi (26) and Ramani (33), it states in the related civil accusations, nine of which the SEC said it had classified as securities.

## Cryptoqueen added to FBI's list of top 10 most wanted

The SEC's investigation into Coinbase's listing of the coins deemed securities in the complaint is ongoing, according to an SEC official.
At least 14 times before Coinbase's statements in June 2021 and April 2022, Ethereum blockchain wallets were used to acquire the assets, according to prosecutors.

At least $1.5 million in ill-gotten gains were generated as a result of these transactions.

An internal investigation into the trading was shared with authorities, according to Coinbase's chief security officer Philip Martin. 

For breaking crypto news on Coinbase and more, go to [Latest Moni](/news).


Insider Trading Charges Filed Against Ex-Coinbase Manager

Binance is one of the world's major cryptocurrency exchanges. However, the firm has received criticism from authorities due to lack of necessary permissions.

The latest Binance news covers the exchange platform being [fined 3.3 million euros (£2.8million) by the Dutch Central Bank (DNB)](https://watcher.guru/news/heres-why-the-dutch-central-bank-fined-binance-for-3-3-million) in April 2022. The penalty was levied because the exchange provided services to Dutch nationals without being properly registered. The DNB's General Fine Setting Policy was used to calculate the amount to be paid as fine.

In a statement issued on Monday, the regulator stated that violations committed by Binance are punished by third-category penalties, with a base amount of €2 million (£1.7 million).

This basic amount was increased for Binance, with DNB outlining many reasons for doing so.

According to DNB, one of the reasons is that digital asset brokerage behemoth is not only the largest supplier of crypto services globally but also has a high number of consumers in the nation.

Since May 21, 2020, the Dutch Central Bank has mandated virtual asset service providers (VASPs) to be registered under the Anti-Money Laundering and Anti-Terrorist Financing Act.

According to the authority, Binance violated the registration regulations from May 21, 2020, until last December 1, 2021, when DNB finished its inquiry.

According to DNB, this is the major reason for the higher penalties because these offences are considered extremely serious.

DNB warned Binance in August 2021 that operating in the Netherlands without the appropriate legal registration "may increase the risk of customers becoming involved in money laundering or terrorist financing."

However, the DNB stated that it has reduced the punishment by 5%, partly because Binance has already submitted a registration application, which is presently being reviewed, and because the exchange has been "relatively transparent about its operations throughout the process."

The crypto exchange has been steadily expanding across Europe. Binance revealed last week that its Spanish subsidiary, Moon Tech Spain, has been registered as a VASP with the Bank of Spain.

Both France and Italy certified the crypto exchange as an official digital asset supplier in May of this year.

Read [Latest Moni](/news) for more crypto news. 



Binance news: DNB fined Binance 3.3 million euros

It seems the crypto brokerage Genesis filed the claim against the bankrupt crypto hedge fund Three Arrows Capital (3AC) which allegedly owes it $1.2 billion. 

Genesis is not the only creditor who filed the claim. According to the sources familiar with the situation, co-founder of 3AC Zhu Su submitted $5 million claim, while Chen Kaili Kelly, the wife of another 3AC co-founder, Kyle Davies, filed a $66 million worth lawsuit.

Also, faltered crypto companies [Celsius Network](/news/article/celsius-bankruptcy-protection) and Voyager Digital are among others who lent money to Three Arrows. A crypto derivatives exchange Deribit also filed an $80 million claim.

Genesis Asia-Pacific earlier has confirmed its exposition to Three Arrows. On July 9 filing in Singapore, high court revealed there was a $2.36 billion loan to the fund. Genesis CEO, Michael Moro recently [tweeted](https://twitter.com/michaelmoro/status/1544733041045786626) about the whole situation admitting the loans to Three Arrows “had a weighted average margin requirement of over 80%." According to Moro, "once they were unable to meet the margin call requirements, we immediately sold collateral and hedged our downside”.

## Genesis reveals crypto Ponzi scheme

The company confirmed that since then, it has been collaborating with Digital Currency Group to find the optimal strategy for isolating the risk further. 

“DCG has assumed certain liabilities of Genesis related to this counterparty to ensure we have the capital to operate and scale our business for the long-term,” Moro said.

He added that both the DCG and Genesis balance sheets remain stable and that there is no remaining exposure to Three Arrows Capital.

There is still a legal question here of how a co-founder could at the same time be a creditor to his own company. It all adds up to the Ponzi scheme where old investors are funded with money from the newcomers.

When looking at the filings, it was reiterated that “3AC is insolvent and should be wound up” in different words. 

In an affidavit filed June 26, Charles McGarraugh, Blockchain.com’s Chief Strategy Officer, claimed that Kyle Davies wanted to borrow another 5,000 Bitcoin from Genesis, valued at approximately $125 million at the time. He said the reason for credit was “to pay a margin call to another lender.” 

Genesis crypto brokerage files $1.2B claim vs 3AC

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. 


Singapore Regulator’s Clampdown on Crypto

Commenting on crypto tax, UK Conservative MP Matt Hancock said that the country needs to be more liberal in its approach to regulation. He argued it should introduce an “attractive” regime so it can maintain its position as the cryptocurrency hub of Europe. 
“The tax and regulatory regime needed to be dealt with quickly”, Hancock stated.

His words were heard by the ex-Chancellor Philip Hammond who said England is slowly trotting after its competitors regarding the regulation of digital assets since some countries, such as Korea, already decided on a [crypto tax](/news/article/south-korea-crypto) that would be optimal for consumers.
He stated the UK must activate itself quickly since, for now, it doesn’t look like it will maintain its position as a global cryptocurrency center.
 “It isn't too late for us to catch up and recover, but we are getting very close to the point where it will be too late,” he said and added development around legislation of the whole digital asset industry moves pretty slowly. 

Hammond stated that the FCA should have been faster in employing the industry experts. “We need the industry, to provide us with the talent to work up the regimes we need to introduce,” he said.


## Crypto tax, UK free zone

Still, there are more possibilities and reasons why we think the UK could become the real global hub when it comes to cryptocurrencies. Let's look at the advantages of being headquartered in the UK Channel Islands. The [Isle of Man](https://www.digitalisleofman.com/sectors/blockchain/) gives investors a pretty good opportunity for their crypto-based, with 0% standard rate of corporate tax, no capital gains tax and personal tax rates that are among the lowest in Europe.

The self-governing British Crown dependency has been a famous IT and financial hub for years and with it being more welcoming towards the cryptocurrency industry – UK Channel Islands seem like an attractive home to the crypto participants.

Also, according to a new PwC Channel Islands report, one in five British citizens already own cryptocurrency. With that in mind and Tether recently [launching a stablecoin pegged to the British pound](/news/article/best-crypto-exchange-uk)  - these are supportive signs that the UK that bodes well for the future prospects of the UK being a crypto hub.



UK tax environment supportive for crypto hub 

Elon Musk, the CEO of Tesla and SpaceX, was sued for $258 billion by a [Dogecoin](/coins/doge) investor on Thursday, alleging him of operating a pyramid scheme to support the cryptocurrency.
 
Plaintiff Keith Johnson filed a case in federal court in Manhattan accusing Musk, electric vehicle firm Tesla Inc, and space tourism company SpaceX of racketeering for promoting Dogecoin and pushing up its price, only to see it plummet.
 
## Plaintiff Keith Johnson's Statement

"Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading," 

"Musk used his pedestal as World's Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement."
 
According to the complaint, Warren Buffett, Bill Gates, and others have [questioned the worth of Bitcoin](https://news.sky.com/story/elon-musk-sued-for-258bn-over-claims-he-ran-a-pyramid-scheme-to-promote-dogecoin-12635334). Tesla, SpaceX, and Musk's lawyer did not immediately respond to the request for comment.

Johnson's lawyer did not reply to requests for comment on what proof his client has or expects to have that indicates the dog focused meme coins worthless, and the defendants conducted a pyramid scheme.

Johnson is claiming $86 billion in damages, which he claims represents the fall in Dogecoin's market value since May 2021 and wants it tripled. He also demanded Elon Musk and his firms be barred from marketing Dogecoin, and a judge to decide that trading Dogecoin is illegal under federal and New York law.

According to the lawsuit, the selloff of Dogecoin began around the time Musk presented the NBC show ‘Saturday Night Live’ and, playing a fictitious financial expert on a ‘Weekend Update’ segment, called cryptocurrency "a hustle." Tesla said in February 2021 that it had purchased $1.5 billion in bitcoin and had temporarily accepted it as payment for vehicles.

Dogecoin was trading at around 5.8 cents on Thursday, down from its top of almost 74 cents in May 2021.




Elon Musk Dogecoin debacle: The ‘Dogefather’ sued for $258bn 

As the global cryptocurrency landscape evolves, so do crypto regulations governing it. Keeping up to date with the rules and regulations in different countries is not always easy, but it is essential for anyone looking to trade or invest in cryptocurrencies.

Here are some key regulatory developments in the space over the past year and what we can expect in the year ahead.

## United States

The Securities and Exchange Commission (SEC) in the United States has been ramping up its scrutiny of the cryptocurrency space.
In 2020, the SEC brought many enforcement actions against companies and individuals involved in illegal activity, including fraud and money laundering. The SEC also issued several investor warnings about the risks of investing in cryptocurrencies.

In 2022, the SEC is expected to continue its crackdown on illegal activity in the cryptocurrency space. The agency is also likely to release more guidance on what types of digital assets will be considered securities. This could significantly impact how cryptocurrencies are traded and sold in the United States.

The Internal Revenue Service (IRS) considers cryptocurrencies a digital representation of value that serves as a store of value, unit of account, and a medium of exchange. Still, it does not consider them to be legal currency. As a result of this guidance, the IRS has issued cryptocurrency-specific tax rules.

## Europe

As the European Union looks to 2022 and beyond, cryptocurrencies will continue to play a significant role in the digital economy. In light of this, the EU is taking steps to ensure that crypto assets are regulated to promote innovation and protect consumers.

The Fifth Anti-Money Laundering Directive (5AMLD), brought into force in January 2020, is a vital part of the EU's efforts to regulate cryptocurrencies. 5AMLD brought cryptocurrency-fiat currency exchanges under EU anti-money laundering legislation to prevent the use of crypto assets for illicit purposes.

The European Commission is considering proposals to extend 5AMLD to cover custodial wallet providers and peer-to-peer (P2P) exchanges. The Commission is also considering introducing a pan-EU licensing regime for cryptocurrency service providers.

The European Union is also working on developing its digital currency, known as the Digital Euro. The Digital Euro would be a new form of central bank money, available to all citizens and businesses in the EU. The European Commission is currently exploring the feasibility of launching a Digital Euro and is expected to present its findings before the launch.

## China

In Asia, China has been one of the most active countries when it comes to regulating cryptocurrencies. In 2017, China banned initial coin offerings (ICOs) and shut down cryptocurrency exchanges. Since that time, the Chinese government has taken a more cautious approach to space.

In 2020, China launched its digital currency, known as the "digital yuan." The digital yuan is not entirely decentralised like other cryptocurrencies. However, it is still seen as a significant step forward for the adoption of digital currencies.

The Chinese government is also working on a blockchain-based system to track and trace digital assets.
This year, we can expect more regulatory clarity from the Chinese government. The digital yuan is expected to launch in a pilot program sometime this year. And the [blockchain-based tracking system](https://finance.yahoo.com/news/cbdc-launch-first-2022-093011347.html) could be up and running very soon. And it will be legalised as payment for tolls, transport fares, bills, and goods.

## South Korea

As the global cryptocurrency market matures, governments and financial institutions pay increasing attention to digital assets. Cryptocurrencies are not treated as legal money in South Korea. While exchanges are legal, they operate in a carefully regulated environment.

Cryptocurrency transactions are currently tax-free in the country because they are considered neither currency nor a financial asset. However, the Ministry of Strategy and Finance has stated that it will consider imposing a tax on cryptocurrency earnings to provide clarity for investors.

The South Korean government announced a new bill in March 2021 that requires cryptocurrency investors to use the same name on their digital wallet accounts as they do on their bank accounts. That requires cryptocurrency exchanges to provide information to banks to confirm customer identities.

The Tax on Cryptocurrency in South Korea was supposed to go into effect in January 2022, but it has been delayed until January 2023. South Korea has also committed to maintaining the tax framework to foster international financial transparency. In addition, the country has stated that it will continue working toward aligning the industry with FATF's anti-money laundering standards.

## Final Thoughts

The United States, Europe, China, and South Korea are all taking different approaches to regulating cryptocurrencies. Here's a breakdown of what each country is doing and how it will impact the future of crypto.

•	The United States has been relatively hands-off when it comes to cryptocurrency regulation. However, the SEC recently clarified that they consider some digital tokens to be securities. Companies issuing or selling these tokens must comply with federal securities laws. 
•	Europe is taking a more rigorous approach to crypto regulation than the US. The EU has classified Bitcoin as a currency and virtual asset, which subjects it to certain regulations like anti-money laundering and terrorist financing laws. Additionally, new rules proposed by the European Commission would require exchanges to verify customer identities and report suspicious activity. 
•	China has taken a hard line on cryptocurrency regulation, banning ICOs and exchanges. However, the Chinese government is still researching blockchain technology and its potential applications. 
•	South Korea is another country that has taken a tough stance on crypto regulation. The government has banned anonymous trading, required exchanges to verify customer identities, and limits how much money Koreans can invest in cryptocurrency.

These different approaches to regulating cryptocurrencies will have a big impact on the industry's future. In the US, crypto companies will need to comply with securities laws if they want to sell digital tokens. In Europe, crypto exchanges will need to verify customer identities and report suspicious activity. And in China and South Korea, crypto trading is more difficult due to the restrictions placed on exchanges.

As the world grapples with crypto regulations, it will be interesting to see how these different approaches play out.


Crypto Regulations 2022 and Beyond

The Black Swan events of December may have knocked Bitcoin, the world’s most popular crypto-currency, down 30% in value this month. But, judging from the resilience of the mining activity around the world, which has experienced a full recovery since the Chinese “_ban_”, the cryptocurrency investment community has further evidence to suggest that digital currencies will continue to rebound from whatever may get thrown at them.

## The 'Mecca' of Crypto-Mining

Once upon a time, China was _the_ mecca of cryptocurrency mining with reliable estimates putting the country’s slice of the global crypto-mining pie at the 65% to 75% mark.  Then, September 2021 happened.  The communist nation with a population of 1.4 billion [essentially banned all cryptocurrency transactions](https://www.reuters.com/world/china/china-central-bank-vows-crackdown-cryptocurrency-trading-2021-09-24/), including any mining activity that was happening in the country.  The Chinese ban was thought to be the sound of the death knell for digital currencies, but, again, the cryptocurrency market has shown remarkable “comeback” potential.

The recent rebound in global cryptocurrency mining was declared by measuring what’s referred to as the [_hashrate_](https://www.yahoo.com/now/hash-rate-cryptocurrency-calculated-172307967.html#:~:text=The%20hash%20rate%20is%20the,part%20of%20the%20mining%20operation.), a term that’s used to describe the computational power of all the mining activity taking place on the bitcoin network.  Specifically, it refers to the amount of computing power per second that the cryptocurrency mining process requires.

Getting back to China, once the ban was announced last summer the cryptocurrency market may have plummeted, but the miners simply folded up their tents, packed their gear, and took their operations to countries that demonstrated a more amiable attitude towards digital currencies.  For example, the United States has been a big beneficiary of the Chinese ban – The US is a provider of plentiful, inexpensive electricity and even Kazakstan, where electricity is _even less_ expensive saw a huge migration in cryptocurrency miners.

Cryptocurrency mining has certainly received its fair share of press, especially now that the effects of the Chinese ban have been eclipsed by the market’s recent global mining activity, so it’s worth taking a moment to understand what cryptocurrency mining really is.

## What is cryptocurrency mining?

Most of society believes the cryptocurrency mining process is just a way of creating new coins.  That’s true, but there’s more involved.  Crypto mining is deemed successful once miners have validated cryptocurrency transactions on a blockchain network and then successfully add them to a distributed ledger.  Most importantly, the mining process prevents the “[double-spending](https://www.gemini.com/cryptopedia/double-spending-problem-crypto)” of digital currency.  In the most basic sense, cryptocurrency mining is the process of solving very complicated mathematical puzzles.  If you can solve them fast enough, you’re rewarded with a coin.  However, cryptocurrency miners that solve these puzzles slower than their competition _don’t_.  It’s a process called “[proof of work](https://www.investopedia.com/terms/p/proof-work.asp#:~:text=Proof%20of%20work%20(PoW)%20is,transactions%20and%20mining%20new%20tokens.).”

The most remarkable thing about this story is that a global superpower instituted a countrywide ban of cryptocurrency transactions, and less than six months later the cryptocurrency market is making a “chest thumping” statement with a full recovery.


China Crypto Ban Brushed Off as Mining Recovers

The cryptocurrency _brain trust_ got a chance to speak in front of congress at a House Financial Services Committee hearing this week.  A collection of six of the most influential CEOs in crypto passionately lobbied lawmakers to adopt a “_mostly_ hands off” approach in terms of new regulatory measures being considered as Washington tries to determine how best to regulate a $3 trillion digital assets market – an environment that the Securities and Exchange Commission (SEC) has compared to the “Wild West.”

Since the inception of the cryptocurrency market a decade ago, it’s safe to say that a majority of the adults living in the U.S. now have a basic understanding of what cryptocurrencies like Bitcoin and Ethereum are, and [16% of them have actually invested](https://www.pewresearch.org/fact-tank/2021/11/11/16-of-americans-say-they-have-ever-invested-in-traded-or-used-cryptocurrency/) in the digital assets – this is especially true for men in the 18 – 29 age bracket. 

## A Global Force for Good

The overall tone of the hearing was undoubtedly “pro-crypto” as there wasn’t a single detractor among the witnesses that did speak.  Essentially, the crypto CEOs promoted the digital asset market as a global force for good and urged congress to lead the world in embracing it.

The talking points were many, but one of the most profound messages was that the technology _powering_ the cryptocurrency market can not only expedite and cut the costs of financial transactions, but lawmakers were urged to look at blockchain technology as a “revolutionary innovation” that the U.S. could step in and lead _globally_…if it so chooses and with the right leadership in place.

During the hearing republicans and democrats both showed clear signs of skepticism toward the financial risks associated with the cryptocurrency market, _but it was the Republicans_ who sided with the CEOs in their viewing the approach that the SEC has taken toward the industry as being “distasteful,” at best.  The recent clashes between the SEC and major crypto firms are well documented as agency chair, Gary Gensler, has long tried to paint digital assets as a security or a type of investment contract that merits SEC regulatory oversight.

## Cryptocurrency Leaders Disagree

A future in which the SEC would actually be considered for regulatory oversight means a clear misinterpretation of the market by lawmakers.  Their argument against SEC regulation rests on the fact that blockchain tokens _are not_ securities but rather digital property or a way to record ownership.  Clearly, we are still very early in the regulatory process if the two sides still haven’t been able come up with a list of agreed-upon definitions for key terms like “what _is_ a digital asset?”

All of the rifts discussed at the hearing could be a signal that it may still take years to put together a solid and permanent regulatory framework for cryptocurrencies, but there were very specific comments that would give cryptocurrency investors hope.

For example, Rep. Patrick McHenry (R-N.C.), poised to chair the committee if the GOP wins back the House, said it is a priority to ensure that the "cryptocurrency revolution" happens in the U.S. rather than overseas.

Hopefully, lawmakers will take McHenry’s advice.


Top Crypto CEOs Engage Lawmakers at Hearing

The crypto bull market seems to have stumbled this week? Why?

Earlier this week, the CEO of AMC Theatres, the largest movie theatre chain on the planet, said his company would begin accepting shiba inu coins as payment through Bitpay wallets. This could happen in 60 days.

While a positive news story, it did nothing to prevent the crypto bull market from cratering out over the past 24 hours after a seemingly parabolic rise.

Two of the market’s titans, [Bitcoin](/coins/btc) and[ Ethereum](/coins/eth), led the decline, exhibiting sharp drop-offs in value after setting new all-time highs last week.

## Bitcoin Value Falls

Bitcoin’s value fell below $58,000 on Thursday - a sharp contrast to the digital asset’s achievement the week prior when the price shot up to over $68,000 for the first time.

Some are quick to associate the recent decline in cryptocurrencies with President Biden’s signature on a new $1.2 trillion infrastructure bill, which includes specific language on the tax reporting requirements for cryptocurrency exchanges.

The news that some of the proposed legislation may treat _stablecoin issuers_ like banks didn’t sit well with investors. Still, there are investors that have developed a bit of an appreciation for these ‘corrections’ considering how it aligns with their investment strategy of ‘buying the dip’.

But not all of us are willing to adopt this strategy, and a harsh dip can chase off new investors. Sometimes, permanently.

## Is the Crypto Market Immature?

Consider for a moment that market volatility like we’ve seen in the last day or two can be directly linked to the crypto market’s immaturity. Cryptocurrencies, by and large, have yet to achieve a state of ‘mainstream adoption’, meaning many, _many_ traditional investors are still watching from the sidelines.

Volatility, from a crypto bull market to a bear market, has come to be expected. When a celebrity tweet can send a particular coin upwards of 10% or more, it’s a sign of a market still evolving.

Another bit of news that may have triggered the _flight_ mechanism among some investors had to do with Chinese regulators intensifying their efforts to ferret out those in the country still involved in Bitcoin mining activities, something the Chinese government outlawed earlier this year.

America’s infrastructure bill and China’s clamp down on mining activities both had an obvious impact on Bitcoin. As the key digital asset used in assessing the health of the entire cryptocurrency sector, both announcements had a negative impact that rippled across the entire market.

## Mainstream Adoption of Crypto

Still, there were signs this week that cryptocurrencies will continue making their push towards mainstream adoption.

The Los Angeles sports arena, home of the NBA’s Lakers and Clippers, will be renamed from the “Staples Center,” the formal name of the 20,000- seat arena since 1999, and become the “Crypto.com Arena” in a $700 million deal for the naming rights.

As a result, Crypto.com’s digital coin, CRO, was buoyed to an all-time high of $0.593 on Thursday after the company won the naming rights.

Lastly, the crypto ‘brain trust’ anticipates that more digital coins will become an accepted form of payment for many more vendors in 2022. AMC has jumped on the bandwagon, McDonald’s and Burger King are in the conversation, even charities are embracing cryptocurrencies as more and more investors take their positions in the market.

As this trend evolves, the value of cryptos will likely increase and the market will continue to evolve, not retract.

Infrastructure Bill ~ Crypto Bull Market Stumbles

Let’s talk Ripple and XRP.

Earlier this week, the overall market cap of cryptocurrencies hit $3.3 trillion. It’s an amount that merits attention and has further prompted regulators and financial authorities to accelerate the tempo in writing a regulatory rulebook for the market.

However, first they’ll need to cut through their own confusion on how these financial instruments work.

Can _all_ digital assets be categorised as a form of currency or are some them _securities_ masquerading as currencies? It’s one question among many that regulators are asking.

## Ripple Labs

One blockchain company that knows this all too well is San Francisco’s Ripple. A fintech company that popped up a decade ago, Ripple Labs originally promoted a strategy that would offer financial institutions a new low-cost method of performing expedient trans-border money transfers.

To achieve as much, Ripple Labs built the technical infrastructure on which transactions sped across the globe in the form of a cryptocurrency identified as XRP. Ripple created 100 billion units of XRP in 2012 and allotments were sold off while Ripple remained a majority holder.

This is where Ripple found itself in trouble with the Securities and Exchange Commission (SEC). Because of the way in which XRP was distributed, it appeared, to some, that XRP functioned _more like a stock or security_ rather than a currency. By December 2020, SEC chairman, Gary Gensler, had seen enough and initiated a lawsuit against Ripple Labs for how the company distributed XRP, claiming the company was selling an unregistered security, _not_ a currency.

## Lawsuit Causes Anxiety Among XRP Supporters

The pending case initiated a sequence of negative events that cratered the price of XRP and got the asset delisted from many popular crypto exchanges, the most crippling being Coinbase. The lawsuit has continued to drag on causing anxiety among XRP supporters and investor, and many legal experts have said that the lawsuit is unlikely to have an ending this year.

However, Ripple has demonstrated some legal prowess since the lawsuit was filed, accruing small victories in the proceedings while simultaneously attracting troves of new investors who have faith in a favourable outcome. Frankly, at the current rate of mainstream adoption, a settlement deal could be reached at any time and November 2021 is expected to be particularly revealing in terms of what’s next for the lawsuit.

Today will be a crucial as it marks the deadline for the exchange of _Expert Rebuttal Reports,_ an expert analysis of each opposing party’s claims. Once those reports are submitted, the second half of November should be rife with opinions on where the lawsuit is headed and when it might finally get resolved.

Getting down to brass tacks, it seems that Ripple has the momentum and SEC Chair Gary Gensler can’t be pleased with how things have unfolded with his lawsuit. The inability to close a ‘slam dunk’ case against a gritty crypto start-up hardly has any place on a resume for someone who’s vying to be the next Secretary of the Treasury. Will Gensler broker a settlement deal with Ripple? It’s possible.

If so, not only would it be a move that would put XRP right back on the exchanges that delisted it, including Coinbase, it would be a ‘drinks for everyone’ kind of announcement that would send the whole market upward.

More [Coin news](/news/category/crypto-coin-news).

Ripple, XRP Latest News- The SEC Lawsuit

US lawmakers have urged Facebook boss Mark Zuckerberg to ditch his company’s cryptocurrency plans.

It was announced recently that Novi, a digital wallet, will enter a trial period in Guatemala, allowing cryptocurrency payments. Facebook is also reported to have revived plans to launch a cryptocurrency called Diem.

A letter signed by five Democratic Senators was sent to Zuckerberg outlining concerns about Facebook’s involvement in crypto, and demanding digital currency projects are discontinued.

The letter concludes: ‘Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient.

## 'Immediately Discontinue Nivot Pilot'

‘We urge you to immediately discontinue your Novi pilot and to commit that you will not bring Diem to market.’

The letter from Brian Schatz (D-Hawai‘i), Senate Banking, Housing, and Urban Affairs Committee Chairman Sherrod Brown (D-Ohio), Richard Blumenthal (D-Conn.), Elizabeth Warren (D-Mass.), and Tina Smith (D-Minn.) reads: ‘We write to voice our strongest opposition to Facebook’s revived effort to launch a cryptocurrency and digital wallet, now branded “Diem” and “Novi,” respectively. In October 2019, Senators Schatz and Brown wrote to members of the Diem Association’s predecessor, the Libra Association, and expressed deep concerns about the risks the project posed to consumers and the financial system. Facebook subsequently shelved Libra amid regulatory scrutiny, but you did not address our concerns before resuming this endeavour.

‘On multiple occasions, Facebook has committed not to launch a digital currency absent federal financial regulators’ approval. In prepared remarks before the House Financial Services Committee in October 2019, you said that Facebook would “not be a part of launching the Libra payments system anywhere in the world unless all US regulators approve it.” More recently, David Marcus, the executive overseeing Facebook’s digital currency efforts, said, “\[w\]e are definitely not going to launch without the proper regulatory framework.”

‘Despite these assurances, Facebook is once again pursuing digital currency plans on an aggressive timeline and has already launched a pilot for a payments infrastructure network, even though these plans are incompatible with the actual financial regulatory landscape - not only for Diem specifically, but also for stablecoins in general. The agencies that oversee the US financial system are studying the risks that stablecoins pose to financial stability. Accordingly, they are considering how to address these inherent risks and clarify regulation and supervision of these products.’

## 'Facebook Cannot be Trusted'

It continues: ‘You have not offered a satisfactory explanation for how Diem will prevent illicit financial flows and other criminal activity. The intergovernmental Financial Action Task Force warned in a report to the G-20 finance ministers that stablecoins’ “propensity for mass-adoption makes them more vulnerable to be used by criminals and terrorists to launder their proceeds of crime and finance their terrorist activities.” The President’s Working Group on Financial Markets said in December 2020 that stablecoins “are likely to attract illicit actors and, without appropriate mitigation measures, allow evasion of key public policy objectives.”

‘Facebook cannot be trusted to manage a payment system or digital currency when its existing ability to manage risks and keep consumers safe has proven wholly insufficient. We urge you to immediately discontinue your Novi pilot and to commit that you will not bring Diem to market.’

[CNBC](https://www.cnbc.com/world/?region=world) carried responses issued on behalf of Facebook and Diem.

The broadcaster said Facebook claims to have already addressed many of the concerns raised by the senators. The social media giant had said that Novi and Facebook accounts are kept separately to ensure privacy and protection and added that the wallet was built to be completely secure.

## Privacy Top of Mind for Customers

The statement is reported to say: ‘We know privacy is top of mind for Novi customers, so it will always be top of mind for us. We prioritise the security and privacy of people’s information by encrypting sensitive financial information'. If we determine a transaction is unauthorised, we provide a full refund back to a person’s Novi balance. People’s Novi accounts and Facebook accounts are separate.’

CNBC added that Diem had highlighted it is not part of Facebook, which is just one of two dozen members of the Diem Association. The association is a network of ‘merchants, payment service providers, social impact partners, and other entities’ that are ‘dedicated to building a blockchain-based payment system that supports financial innovation, inclusion, and integrity’.

A statement carried by CNBC adds: ‘Diem welcomes the opportunity to engage with members of Congress on the robust controls we have spent two years building into our payment system.

‘Unfortunately, today's letter from lawmakers to Facebook misunderstands the relationship between Diem and Facebook. Diem is not Facebook. We are an independent organisation, and Facebook's Novi is just one of more than two dozen members of the Diem Association. Novi's pilot with Paxos is unrelated to Diem.’



Facebook Should 'Discontinue' Crypto Projects

Uzbekistan has identified a number of crypto exchanges that have been operating without a license, according to an official at the country's central bank.

The crackdown will see exchanges being blocked by internet service providers, said Vassily Sinaisky, who heads up the regulator's policy and strategies department. He added: "We found out that some exchanges were operating without a licence. We sent them written warnings that they need to stop their activities."

## Anonymous Trading to be Blocked

The central bank's move comes after earlier reports suggested Uzbekistan was looking to become the next country in the region to block anonymous trading on crypto exchanges.

The crackdown will see cryptocurrency traders required to provide identification documents when signing up for an exchange, Sinaisky added.

More [Business news](/news/category/crypto-business-news).

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