Liz Truss is set to assume the role of United Kingdom’s Prime Minister as she won the elections for Conservative party leader. Truss secured 57.4% votes for the position. On the other hand, her counterpart, Rishi Sunak, attained 42.6% of the votes. 

Since 2021, she has served as Britain’s Secretary of State for Foreign, Commonwealth and Development Affairs. 

Previously, since 2019, she has been performing the Women and Equalities Minister role. She has also been a member of the previous three premier’s cabinets, including David Cameron, Theresa May, and Boris Johnson. And now, she has become the country’s third female PM. 

![liz truss.png](https://s3.eu-west-2.amazonaws.com/prod-monitalks-media/liz_truss_dcdbeed5e3.png)
 
Source: Twitter 

## Liz Truss, Prime Minister’s previous stance on crypto

The new premier is known to be a supporter of digital assets. In 2018, Liz Truss, Prime Minister, advocated for [welcoming cryptocurrencies](https://twitter.com/trussliz/status/958253646986272769) without limiting their potential. Moreover, she also supported an anti-regulatory approach toward digital assets. 

Besides, as International Trade Secretary, back in 2020, she set up a trading network for digital assets. It aimed to promote fintech business and several other measures for virtual currencies. 

## Liz Truss, Prime Minister policies for crypto

Though the new premier plans for crypto regulations have not been confirmed, investors are hopeful for positive measures. However, in her campaigning, she staunchly advocated for low taxes. Recently, she also vowed ’[a bold plan](https://www.reuters.com/world/uk/britains-truss-expected-be-named-conservative-leader-new-pm-2022-09-05/)’ for cutting taxes. She said, “I will deliver a bold plan to cut taxes and grow our economy.”

As the UK aims to become a [global crypto hub](/news/article/cryptocurrency-investment-uk), a pro-crypto PM’s policies can be helpful. As the next generational transfer of wealth will be digitally focused, it is imperative that the UK has a regulation that does not restrict innovation. 

However, the country is also introducing harsh regulations on digital asset firms, especially those related to stablecoins. It would be interesting to see whether the new government officials will continue with that or if there will be an anti-regulatory approach. 


Pro-crypto Liz Truss becomes UK Prime Minister

An American lawmaker has stated that cryptocurrency has "too much money and power" behind it to be banned. "There's too much money and influence behind it," said Representative Brad Sherman of the United States, explaining why Congress has not banned BTC.

Specifically, he elaborated: "Money for lobbying and campaign contributions works, or else people wouldn't do it, and that is why we haven't prohibited crypto."

## Regulation and the Reasons Why Congress Won't Ban Crypto

In an interview [published on Sunday by the Los Angeles Times](https://news.bitcoin.com/us-lawmaker-says-too-much-money-and-power-behind-crypto-to-ban-it/), Congressman Brad Sherman, a Democrat from California, discussed his thoughts on BTC and its regulation. The member of Congress from California who is in charge of a House subcommittee on investor protection has expressed a desire to criminalize cryptocurrencies like bitcoin and Ethereum. Still, he does not expect Congress will act on his proposal.

He told the news source, "I don't think we're going to ban crypto any time soon," and he was correct. "Money for lobbying and campaign contributions works, or people wouldn't do it," Sherman remarked, expanding on his previous statement as he continued: "and that's why we haven't prohibited crypto." We didn't stop it in the beginning because we didn't understand how significant it would become, and we aren't putting a stop to it now because there's too much money and power invested in it.

The congressman is concerned not just about the possibility of individual investors being cheated but also about the possibility of bitcoin being a risk to the national security of the United States. He believes that BTC poses a systemic risk, provides opportunities for criminals, and undermines the US currency's dominance. The congressman expresses a heightened concern regarding cryptocurrency mixing businesses like Tornado Cash.

The Office of Foreign Asset Control (OFAC) of the United States Treasury Department issued a ban on the Ethereum mixing program in August. The reason for the prohibition was the OFAC's accusation that the application assisted North Korean hackers, such as the hacking syndicate known as the Lazarus Group.

He believes BTC is a fad that people invest in with the expectation of making a profit by trading it for another asset before its value plummets. That's one of the perks of participating in a Ponzi scheme. After that, Sherman continued his discussion on the regulation without a prohibition.

Comparing BTC to a stock or other type of investment, he believes that the Securities and Exchange Commission (SEC) ought to supervise the BTC industry. He bases this opinion on the SEC's size, competence, and aggressive enforcement measures.

However, to make the Commodity Futures Trading Commission (CFTC) the primary regulator of the cryptocurrency business in the United States, [three different measures have been presented in Congress in 2018](/news/article/congress-crypto-protection).
 



US Legislator says why there's no Congress crypto ban

Under new rules enacted in response to concerns that Bitcoin and other crypto assets are used to circumvent sanctions imposed in Russia due to their invasion of Ukraine, [digital assets exchanges must report suspected sanctions violations](https://www.theguardian.com/technology/2022/sep/04/crypto-exchanges-suspected-sanction-breaches-russia) to UK authorities.

On August 30, official guidance by the UK authority for digital assets was updated to explicitly include "crypto assets" as assets that must be frozen if sanctions are imposed on a person or company. Cryptoassets, in addition to digital currencies such as Bitcoin, Ether, and Tether, could include other hypothetically valuable digital assets such as non-fungible tokens (NFTs).

According to the rules established by the Treasury's Office of Financial Sanctions Implementation, [crypto exchanges](/news/article/best-exchanges-for-crypto-uk) will commit a criminal violation if they fail to report clients designated for sanctions. According to the rules, crypto exchanges must act immediately if they suspect that one of their customers is subject to sanctions or if they suspect a breach of sanctions, putting them in the same category as estate agents, accountants, lawyers, and jewellers.

Using cryptocurrencies to avoid sanctions and move money around the world was already prohibited in the United Kingdom under laws that apply to all "economic resources." However, the change highlights authorities' concern about the relatively new assets, which could help evade sanctions because users do not conduct transactions through regulated entities.

## UK's response to Russian digital assets activity 

Financial sanctions against individuals and companies associated with Vladimir Putin's regime have been among the UK's most visible responses to the invasion of Ukraine. Cryptoassets are subject to sanctions regulations, according to a joint statement from UK financial regulators released in March. The EU forbade significant cryptocurrency transactions with Russia in April.

Sanctions have been aimed at oligarchs and family members with direct ties to cryptocurrency. Among them was Vladimir Potanin, the "nickel king" and former second-richest person in Russia, who supported the Swiss blockchain company Atomyze. 

Son of oligarch Mikhail Gutseriev said he held a stake in a cryptocurrency exchange in Belarus until August 2021 before being subjected to sanctions on the same day as Potanin in June. Oleg Deripaska, a billionaire in the metals industry, has previously pleaded with Russia's central bank to permit the use of bitcoin as a payment method. They have not been implicated in using crypto assets to circumvent sanctions.



UK digital assets firms to report sanction breaches

The Islamic Republic of Iran officially accepts crypto as payment for importing goods. The country’s Industry, Mines, and Trade Ministry have approved a legal framework for virtual currencies. Iran is facing international [sanctions](https://www.consilium.europa.eu/en/policies/sanctions/iran/), so it expects to bypass them using crypto. 

Earlier in August, Iran also made its [first import](https://www.reuters.com/business/finance/iran-makes-first-import-order-using-cryptocurrency-tasnim-2022-08-09/) via cryptocurrencies. The order was worth $10 million, which allowed it to avoid global restrictions. 

## Trade Minister on the legislation

A local news agency [reported](https://www.rferl.org/a/iran-cryptocurrency-regulations-skirting-sanctions/32009292.html#0_8_10089_9356_3158_243148716) that Reza Fatemi Amin, the Trade Minister, has approved the legislation to regulate digital currencies. He briefed that this legislation will deal with all the issues like trade, licensing, and mining.

Amin shared his thoughts on the legislation and said it “specifies all issues related to cryptocurrencies, including how to provide fuel and energy for mining them, and how to grant licences.”

## Accepting crypto as a payment method to evade sanctions

Iran is facing financial sanctions globally for enriching Uranium for its nuclear program. The United Nations, as well as the EU, have imposed several restrictions on the country. Moreover, as the government has estranged relations with the United States, it cannot freely participate in the global dollar-dominated market. 

These restrictions have severely affected Iran’s economy over the years. That’s why the Islamic Republic is seeking to circumvent these restrictions through the use of digital assets. It will allow the country to import or export any goods worldwide. With this, it has become one of the largest economies for formally accepting crypto as a payment method. 

However, Iran is not the only one to approve digital assets for evading financial restrictions. Earlier, Russia also started using the same strategy to [bypass sanctions](/news/article/crypto-russia) and avoid international limitations for trading.

Countries bypassing sanctions by accepting crypto as payment may produce new regulations to monitor businesses accepting crypto for exports shortly.

Iran accepting crypto as payment for imports

Ukraine has recently located and taken control of a crypto wallet  allegedly involved in raising Russian funds to support military efforts in the invasion of Ukraine. According to the Security Services of Ukraine (SSU), they have blocked Russian crypto wallet used for sponsoring the war in Ukraine. 

The wallet belongs to a self-proclaimed volunteer for the Russian invasion of the country. SSU has also detained the person and is undergoing further investigations. 

## Russian crypto wallet holding over $19,500 seized

Ukraine’s SSU also shared that the account had cryptocurrencies worth up to $19,500. The intelligence agency is currently tracking the previous transfers. Moreover, they have not made a decision yet on whether they will transfer the assets to Ukrainian jurisdiction or not.

The SSU gathered the intel from several international cryptocurrency firms. And they used a specified ‘mechanism’ to seize the Russian crypto funding. 

## Revelations from the investigation 

The national police and the Prosecutor General carried out the investigation. The investigations revealed that the alleged Russian military volunteer used a significant amount of the funds to buy weaponry. It was to facilitate the separatist militants from Luhansk and Donetsk People’s Republic (L/DNR). 

Moreover, it was revealed that the alleged person was running campaigns on social media to raise funds. Since the start of the Russian invasion, he has constantly been creating digital content and sharing content with others. However, they did not disclose the identity of the person yet.

## Crypto and the Russia-Ukraine conflict

Digital assets have been a part of the Russia and Ukraine war since the beginning. These assets have been used to facilitate both countries’ militaries. Previously, cryptocurrency investors started a campaign named ‘[Aid for Ukraine’](/news/article/ukraine-crypto-aid). This drive collected more than $54 million for the Ukrainian cause. Moreover, the country also imposed a [crypto ban](/news/article/ukraine-cryptocurrency-ban) to stop the flow of money out of the country. 

On the other hand, Russia is also using cryptocurrencies to bypass international sanctions. It recently raised over 2.2 million in [Russian crypto](/news/article/crypto-russia) funds.



Ukraine snags Russia crypto wallet funding invasion

According to Celsius, they have filed a counter-complaint against defendants Jason Stone and his business KeyFi  due to incompetence, deception, and conversion. It seeks to require the defendants to turn over valuable assets stolen from them and pay damages and restitution for the substantial injuries the defendants have caused through their blatant breaches of duty. 

## Defendants are thieves

The lender, Celsius, continued by stating that Stone's majority-owned corporate vehicle could not effectively deploy coins and appeared to have lost thousands of their coins due to terrible mismanagement. Furthermore, the defendants were not just inept but also thieves. 

[Celsius](/news/article/celsius-bankruptcy-protection) said that the defendants stole millions of dollars in cryptocurrencies from their wallets and blockchain addresses by moving them to wallets owned by the defendants, based on information and belief.

The company additionally says that Stone and his company used its coins to purchase hundreds" of non-fungible tokens (NFTs) and then stole the NFTs they obtained with Celsius' coins by transferring them to wallets that they own or control.

## Ponzi scheme

Celsius' lawsuit follows Stone's original critique. Stone referred to the company as a Ponzi scheme in the complaint filed in early July. He stated that the company manipulated the price of its native coin CEL with customer monies. Stone further said that it lost a significant amount of money because it failed to hedge against the risks posed by its activities. 

According to Stone's complaint, the coin price swings have utterly disrupted them and damaged its capacity to pay its depositors. 

The company only accepted deposits in Bitcoin and Ether, the two cryptocurrencies with the largest market capitalisation, implying that when the values of these two coins rose faster than the prices of other tokens, the corporation found itself owing more to its clients.  This occurred because the firm included other currencies in its customer reward mechanism. 

Stone reportedly claimed the crypto lender owed him millions of dollars in compensation.





Celsius accuses KeyFi of stealing crypto

On 22 December 2020, the US Security and Exchange (SEC) [filed a lawsuit against Ripple Lab](/news/article/ripple-xrp-latest-news), the company behind the Ripple Network and XRP tokens, and two of its executives. According to the SEC, Ripple executives held an Initial Public Offering (IPO) of XRP, which was unregistered security.

## The SEC claims to the XRP case

The SEC took Ripple Lab to court because they claimed XRP tokens are securities. The tokens were classified as securities since they were used to fund Ripple’s platform, which facilitates money transfers for retailers. The sale of the tokens also enriched the platform’s management.

The tokens also satisfied the Howey Test, a test that aids in determining whether an asset is a security. As securities, XRP tokens were supposed to have been registered with the SEC and certain financial information publicly disclosed. Ripple Labs failed to adhere to the SEC securities requirements.

## Ripple’s response to the XRP case

Ripple, through its lawyers, claimed that the SEC never warned nor gave fair notice that XRP tokens were securities. The SEC admitted no statement was made that XRP could be classified as securities.

Ripple also claimed the SEC was biased in applying the security concept on [XRP tokens](/news/article/xrp-case-price-uk). The company pointed out some of the links SEC members have had with other crypto platforms, especially Ethereum. 

There is still no proof to Ripple’s claims that the SEC gave Ethereum a pass on securities legislation, saying it operates in a decentralized manner while suing Ripple is suspicious.

## The XRP case so far

Ever since the SEC took Ripple to court, the company, through its lawyers has been trying to get the case dismissed.

On May 4th 2022, Ripple, again, filed a motion to dismiss the SEC’s charges. Reason for the case dismissal was the SEC’s failure to state claim against Ripple.

Attached to Ripple’s dismissal motion was a letter from an unidentified third-party. The letter claimed the SEC’s lawsuit against Ripple could have a negative impact on the US financial system.

According to the letter if the court was to conclude that XRP tokens are securities it could stunt the growth of blockchain technology and cryptocurrencies in the United States.  

A lose for Ripple would result in the secondary market for XRP tokens ceasing to exist and many US investors who hold them would be left with worthless assets.

In a bid to prove XRP tokens are not securities Ripple asked the SEC to release emails related to a 2018 speech by former SEC director William Hinman in which he argued Ethereum was not a security.

A judge ordered the SEC to release drafts of the speech and related emails but the SEC argued the communications were protected by “attorney-client” privilege. On July 12th the SEC’s appeal for protection from disclosure of William Hinman’s speeches was dismissed.

The SEC has also failed to block XRP holders from aiding in the XRP case. The [court dismissed the SEC’s motion](https://forkast.news/headlines/sec-fails-xrp-holders-aiding-ripple-case/) to revoke the “friends of the court” status granted to XRP holders.

So far Ripple Labs seems to have the upper hand in the XRP case. The company through its lawyers has further accused the SEC of using unfair tactics to try and prolong the case.

## Bottom line

The Ripple lawsuit is one of the most followed cases in the crypto space. The decision of the case is vital to the crypto space as it could be a win or lose for the industry. 

So far, Ripple seems to be winning, considering the unfair tactics the SEC is using to prolong the case. The decision of the case might be reached in 2023.


XRP and SEC case: Where are we now

The proposed Australian crypto regulation plan unveils the world's first token mapping of digital assets, ranging from Bitcoin to [Dogecoin](/coins/doge), as an audit procedure to accelerate the regulatory framework for its crypto ecosystem. Token mapping is the process of determining the characteristics of all available digital tokens in the country.

## Australian crypto regulation to implement token mapping

According to Treasurer Jim Chalmers, Australia is seeing increased crypto activities and advertisements. Token mapping will allow the government to identify the characteristics of digital currencies used within the jurisdiction and develop a better regulatory strategy for them.

"As it stands, the crypto sector is largely unregulated- we need to do some work to get the balance right, so we can embrace new and innovative technologies while safeguarding consumers," he stated.

In addition to prioritising token mapping this year, the Australian government plans to review the country's current regulatory and licensing frameworks for service providers. They also intend to review the custody requirements for digital asset custodians to ensure local users' safety.

Jim Chalmers stated: "With the increasingly widespread proliferation of crypto ¬assets- to the extent that crypto advertisements can be seen plastered all over big sporting events- we need to make sure customers engaging with crypto are adequately informed and protected."

## Cryptocurrency adoption in Australia

Australia is one of the crypto-friendly jurisdictions where the adoption and ownership of digital assets has been skyrocketing. Digital currency adoption in the country increased by more than 56% between 2022 and 2021, according to a [Banklesstimes report](https://www.banklesstimes.com/cryptocurrency/cryptocurrency-adoption-statistics-in-australia/). According to a Finder.com report, more than 22% of Australians own digital currency, which is higher than the global average of 15%.

Australia's central bank launched a one-year pilot programme for its digital currency earlier this month to assess the business benefits and potential drawbacks of launching a CBDC.



Australia's crypto regulation plan explained

[Monochrome](https://monochrome.co/), a capital growth fund, has been granted an Australian financial services licence (AFSL). It has become the first crypto firm in the country to secure approval. Now, Monochrome can expand its services by offering [Bitcoin spot Exchange-traded Fund](/news/article/btc-etf-approval) (ETF) in Australia. 

Former Binance Australia CEO Jeff Yew established Monochrome in 2021. Since February, the firm has been working on the crypto Exchange-traded fund. For this, they partnered up with the [Vasco Trustees](https://vascofm.com/), which helped the firm to get the licensing from the country’s authorities. The Australian Securities and Investments Commission (ASIC) granted permission for Monochrome to launch the crypto spot exchange traded fund. 
 
## The first AFSL-approved crypto ETF Australia

Monochrome crypto ETF will be the first AFSL-approved one in the country. Though the Australian ETF market is quite saturated, no asset managers are dealing with cryptocurrencies directly. Most fund managers operate as general financial asset managers and do not offer digital assets directly. Also, these firms are only compliant with the regions financial regulations to offer a crypto based product.

With Monochrome receiving an Australian financial services licence. This will allow it to offer a crypto spot ETF in the publicly traded and regulated Australian financial market, making it the first exchange to achieve it.  

## Jeff Yew on the AFSL approval

While sharing his views on the approval, Monochrome’s CEO said it is a significant move that will introduce direct dealings with the cryptocurrencies in the country. He also mentioned that their fund will be a secure option for the investors as it will work within the ASIC’s regulations. 

Moreover, Jeff Yew disclosed that the investors can not only deal with Bitcoin but can also invest in other cryptocurrencies like Ethereum (ETH), Binance coin (BNB), and others. 

The final date for the Bitcoin spot ETF Australia launch is not yet finalised. However, it is has been said that it is likely to be launched next month. This move will give crypto trading exposure to the Australian market with substantial transparency and security.
 



Monochrome to offer crypto spot ETFs in Australia

The Cyprus Securities and Exchange Commission (CYSEC) has given digital banking firm Revolut permission to offer cryptocurrency services throughout the European Economic Area (EEA).

A fresh report claims that Revolut has been granted cryptocurrency-asset service provider (CASP) status by the island nation's governing body. The company has been on a hiring binge lately, despite the sluggish economy.

## Acceptance of crypto in Cyprus

The new license will allow the business to serve its 17 million European Economic Area customers from its newly established crypto center in Cyprus. After looking into various EU nations, Revolut ultimately decided on Cyprus as its base of operations.

[Famous exchanges including eToro](/news/article/etoro-fees), Crypto.Com, CMC Markets, and Bitpanda all call the country home. The app's representative said that the latest action was due to the sophisticated and tough regulatory regime of the CYSEC agency. He added also that "We heartily accept the European Parliament's clear goal to foster innovation while mandating robust customer protection safeguards to avoid any form of market abuse, and we applaud the new EU-wide law.

Revolut has obtained a license from the Central Bank of Spain and the Monetary Authority of Singapore, in addition to Cyprus (MAS). Over the next six months, the British fintech firm plans to increase the number of employees by 20% across the United Kingdom, the United States, and Europe. In previous Revolute news, the company has hired an additional 43 people so far this year. 

After over two years of debate, the Markets in Crypto Assets (MiCA) framework will be implemented by the end of 2023. It's a key component of the European Union's plan for the future of digital money.

To this end, MiCA seeks to establish a solid legal framework for the digital assets under its purview that have been excluded from the scope of existing financial services legislation in order to guarantee legal certainty.

It will aim to safeguard market players from the dangers connected with digital assets while also encouraging innovation and level playing fields. In addition, it will deal with threats to economic security.


Revolut News: Bank approved to offer crypto in EEA

The Singapore High Court has extended Zipmex's moratorium by three months after the exchange was hamstrung by its exposure to crypto firms Babel Finance and Celsius Network.

Zipmex (ZMT) was the latest victim of a crypto contagion spurred by the collapse of the TerraUSD stablecoin when it revealed in July that it has US$48 million (S$66 million) of exposure to Babel and US$5 million with Celsius.

On July 22, the business applied for a moratorium to prevent creditors from suing Zipmex Asia and other major operating subsidiaries. Zipmex Pte Ltd (the Singapore entity), Zipmex Company Limited (the Thai business), Zipmex Australia, and PT Zipmex Exchange Indonesia are all listed as applicants.

## Committee Given Extra 3 Months

[ZMT had asked for an additional five months](https://www.straitstimes.com/business/banking/singapore-court-grants-crypto-exchange-zipmex-3-month-creditor-protection) to pay off its debts, but on Monday, August 15, Justice Aedit Abdullah voiced worries about the company's lack of communication with its creditors and customers in Thailand. He gave the committee an extra three months, until December 2, to resolve the issues they brought up, with the possibility of further extension.

In the moratorium application hearing on August 1, Justice Abdullah praised Defi Payments for its efforts to involve its creditors.

ZMT has three different investment offers on the table right now. The business has agreed to terms with two investors and received a non-binding letter of offer from a third. Lawyer for ZMT, Jonathan Tang from Morgan Lewis Stamford, claimed that each investor plans to inject capital into the company by purchasing shares in ZMT Asia or by injecting crypto assets into the company in exchange for shares.

The withdrawal process on ZMT was paused in July, although customers have been able to withdraw some Ether and Bitcoin since August 11 and August 16, respectively.

There is a total debt of around $1.1 million represented by the objections. After stating on July 25 that it was collaborating with law enforcement to investigate potential public losses as a result of Zipmex's difficulties, Thailand's Securities and Exchange Commission has been closely monitoring the effects of the company's troubles on Thai consumers.

Several [other cryptocurrency firms have also sought bankruptcy protection](/news/article/crypto-lending-platform-voyager) in recent months. A moratorium has been placed on Defi Payments' application for a Singapore digital payment token license as the company attempts to restructure the US$402 million in debt it owes to around 147,000 creditors worldwide.
 



Zipmex Gets 3-Month Creditor Protection

Ripple entered the crypto space back in 2012 as a promising project. It offered a low-priced, fast, and cross-border money transferring service that gained great popularity. However, in 2020, it faced a severe [lawsuit](/news/article/ripple-xrp-latest-news) from the Securities and Exchange Commission (SEC) in the United States. The case is yet to be concluded, but it has affected the popularity of XRP.

Ripple faced a lawsuit because it deviated from its fundamental goal of providing secure cross-border money transferring service. However, its impact on the token’s price is still unclear. So, if you are wondering about the XRP price in the UK, here are some insights!

## What is the SEC vs Ripple case?

The US’s Securities and Exchange Commission (SEC) filed a case on Ripple Labs in December 2020 for raising funds through XRP. In 2013, the firm allegedly raised more than $1.3 billion through illicit means. The complaint from the SEC involved charges against the current and previous executives for making gains. 

## SEC’s complaint

As per the SEC’s complaint, the company raised capital by holding its native token’s Initial Public Offering (IPO) without registering it as a security. The firm sold XRP as an unregistered security to the investors. Investors bought the tokens considering their shares in a venture, hoping their price would gradually increase.

According to the [SEC press release](https://www.sec.gov/news/press-release/2020-338) ‘Ripple allegedly distributed billions of XRP in exchange for non-cash consideration, such as labor and market-making services. According to the complaint, in addition to structuring and promoting the XRP sales used to finance the company's business, the founders Larsen and Garlinghouse also effected personal unregistered sales of XRP totaling approximately $600 million’. SEC advocates that these tokens should be classified as securities rather than utility tokens.

## Ripple’s Stance

On the other hand, Ripple claims that the SEC did not warn the firm about the issue. According to its lawyers, the SEC did not notify Ripple’s executives about the classification of XRP as a security. The US regulator also confirms this stance. 

Moreover, lawyers also claim that the SEC has been biased towards the firm. They have claimed that various crypto firms like Ethereum have connections with a few SEC members. However, it has not been established in court yet.
 
## What will be the implications on XRP price (UK)?

So far, the US court has not announced a date for giving the verdict, but the case is approaching conclusion. The proceedings of the case might not only affect Ripple Labs but can also negatively impact the crypto market. The reason is that if the court weighs in with SEC’s claim of XRP being declared a security, it would also apply to various other virtual currencies working with the exact mechanism. 

If the court declares the token a security, the XRP price will come crashing down. The XRP price in the UK might not be able to recover. Also, as it can be a legal precedent for all the countries, it will likely affect the entire crypto market. Moreover, Ripple can question Ethereum too, as it can also fall under the definition of security. This might further aggravate the ongoing crypto winter. 

Nonetheless, this would be the case only if the SEC wins the case. Otherwise, if Ripple Labs wins this court battle, we might see the XRP price (UK) getting strengthened. 




SEC vs Ripple case influence on XRP price in UK

Tornado Cash, the Ethereum-based non-custodial open source software project, has been sanctioned by the United States’ Treasury department.

The sanctions announced on Monday stop people in the US, and anyone subject to US jurisdiction, from using the cryptocurrency mixer.

All property, as well as interests in property, of Tornado Cash in the US or held by US persons are blocked and must be reported to the Office of Foreign Assets Control (OFAC).

The crypto tool enables users to mix their coins using its smart contract, obscuring the prior trail of coins exchanged over a transparent ledger. 

[The sanction](https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20220808) relates to the smart contract protocol. These actions have created a bad precedent for open-source software development. 

Following the US Treasury's announcement, it was discovered that Circle, the centralised issuer of stablecoin USDC, has also blocked [every sanctioned address](/news/article/crypto-russia) from using USDC. 

As tracked by internet readers, the number of [black-listed](https://dune.com/phabc/usdc-banned-addresses) USDC addresses now stands at 81.

These activities have prompted many to doubt the security of storing digital assets in a centralised location, even for non-criminals who want to employ privacy-enhancing techniques.

## Tornado Cash Co-creator's Github Account Suspended

Roman Semenov, the co-creator of Tornado Cash, had his GitHub (open source development repository) account disabled. He responded by questioning whether it is now illegal to create open-source code.

Considering the nature of the restrictions imposed this could disturb freedom-loving crypto fanatics. 
These activities also offer various tools in the so-called DeFi space which rely on centralised stablecoins and may have centralised development choke points.

As painful as it may seem, Bitcoin's spontaneous and decentralised nature is a reason why such open-source software exists today.

Open-source software will continue to function as intended, but with increased pressure on software/wallet/protocol developers, only the strongest and most truly decentralised networks will remain.

When considering the long-term case for Bitcoin, one of its most compelling value propositions is that it is an asset with no counterparty risk or dilution (devaluation) risk.
 



Tornado Cash Sanctioned by US Treasury

The [senate bill proposed on Wednesday](https://www.protocol.com/bulletins/senate-bill-cftc-crypto) by Michigan Democrat Sen. Debbie Stabenow and Arkansas Republican Sen. John Boozman is the latest attempt in Washington to establish more defined government laws for digital assets. Under this law, the Commodity Futures Trading Commission would be given power over the markets for Bitcoin and Ether, the two major cryptocurrencies.

The CFTC and the SEC have been wrangling for control of cryptocurrencies. Tensions recently heightened when the SEC classified a list of crypto tokens as securities in an insider trading lawsuit, triggering public criticism from Caroline Pham, a CFTC commissioner.

## Senate bill could give clarification

The senate bill proposed could give some clarification. It would give the CFTC direct authority over tokens classified as "digital commodities." According to the bill summary, this covers bitcoin and ether.

Online exchanges and other businesses that assist in token trading would have to register with the CFTC. The bill would also mandate the CFTC to verify crypto businesses, avoid abusive trading practices, have adequate financial resources and appropriate cybersecurity safeguards.

The bill also acknowledges the role of other financial bodies in regulating digital assets that are not commodities but act more like securities or means of payment.

The emphasis on Ether and Bitcoin as commodities is consistent with the views of SEC Chair Gary Gensler, who has stated that most other tokens are likely to be securities.

However, the bill only briefly mentions the classification and uses the examples of Bitcoin (BTC) and Ether (ETH), which the SEC previously classified as commodities. In addition, the law states that any crypto assets that are not deemed as securities by the SEC may bear the CFTC's commodities stamp.

Rostin Behnman, the head of the CFTC, has been vying for a new authority to oversee digital commodities spot markets, where the assets are traded directly. The new legislation would give that power. The bill states that the CFTC would have "exclusive authority over any account, agreement, contract, or transaction involving a digital commodities trade."

A broader [crypto regulation](/news/article/us-sec-regulation) bill submitted in June by Senators Kirsten Gillibrand and Cynthia Lummis considers the CFTC to play a leading role in crypto regulation. Gillibrand and Lummis recently admitted that the complete legislative package was unlikely to pass this year but that some provisions, such as those defining the function of the CFTC, may go through Senate committees.



Senate bill to strengthen CFTC's crypto authority

Israeli authorities implemented further restrictions on cash payments to combat illegal activity and promote the use of [digital payment methods](/news/article/mastercard-crypto-asia).

Due to the Law for the Reduction in the Use of Cash, which came into effect in January 2019, businesses and consumers in Israel are no longer allowed to make payments in cash.

People and businesses are encouraged to use digital payments, making it easier for the government to track illegal activity, tax evasion, and money laundering in the country's black market and elsewhere.

According to the Israeli Central Bank, 6,000 New Israeli Shekels (NIS) for business transactions and 15,000 New Israeli Shekels (NIS) for personal transactions will be the [new limit for cash payments](https://cointelegraph.com/news/israel-puts-the-brakes-on-cash-to-spur-digital-payments) effective August 1, 2022. Additional restrictions, such as a ban on storing more than NIS 200,000 shekels ($58,660) in cash in private residences, are expected shortly.

According to Tamar Bracha, the Israel Tax Authority's (ITA's) head of law enforcement, limiting the availability of cash will make criminal activity more difficult. As a result, "the goal is to reduce market cash fluidity, particularly because criminal organizations tend to rely on cash."

Some have interpreted it as a positive sign of the country's new limits on hard-cash transactions. According to Lark Davis, a crypto influencer with over a million followers on Twitter, Israel is neither the first nor the last country to impose such restrictions. According to the founder of Lyn Alden Investment Strategy, the trend "will probably continue to other countries in the future."

## Cryptocurrency regulation and CBDCs

Central bank digital currencies (CDBCs) are also being explored in the region, with the country first considering a CBDC at the end of 2017. After conducting a public consultation in May, the Bank of Israel released the results of the responses, which indicated strong support for further research into CBDCs and how they would affect the payments market, financial and monetary stability, and legal and technological issues.

In June, the Bank of Israel revealed that it had conducted its first technological experiment with a CBDC, examining user privacy and the use of smart contracts in payments. In addition, a framework for regulating digital assets is being developed in the country.

According to Oz Finance's Jonathan Shek at this year's Israel Crypto Conference in May, Israel's financial regulators have prepared a comprehensive and holistic regulatory framework for digital assets.

Shek hinted that it would happen soon, but he didn't give a specific date, saying that the Israeli government wanted to encourage the development of the crypto industry in their country if it was done responsibly.


Israel halts cash to encourage digital payments

The Law Commission of England and Wales, an independent body created to review and recommend law reforms if needed, confirmed it wants to broaden property rules to the crypto space, including non-fungible tokens as well.

According to the official consultation paper, the government had been asking for a complete review of  the law regarding cryptocurrencies in order to enable their development.

“The Commission’s proposals aim to deliver wider recognition and legal protections for digital assets, allowing a more diverse range of people, groups and companies to interact online and benefit from them,” the [announcement](https://www.lawcom.gov.uk/law-commission-proposes-reforms-for-digital-assets-including-crypto-tokens-and-nfts/) said.

Beside characterizing cryptocurrencies as personal property, reform would include crypto investors  being protected by law in case of losses in hacks or scams.

## Plenty of NFT investors

Commercial and Common Law Commissioner Sarah Green commented there are plenty of [NFT](/news/category/nft-news) investors nowadays who never ask “what happens when things go wrong?”.
“It's not clear at all what happens if you hack into my wallet and take my bitcoin or if ... this system fails and I can't access my Bitcoin,” Green asserted.

The seemingly crypto-friendly proposal is aimed, in part, at helping the U.K. government’s goal of turning the country into a global crypto hub, the commission said in a statement. The commission's proposals, however, would not apply in Scotland or Northern Ireland, which have their own legal systems.

The paper claims the law must acknowledge all unique features of digital assets, including NFTs, that will create a stable legal basis for the crypto industry and its users. With this transformation, the legal system can help create a legally safe environment for cryptocurrencies and the overall market.

This comes in the light of recent announcements by the UK’s Financial Conduct Authority (FCA) that confirmed it has some severe intentions to strengthen cross-border crypto-asset regulation.

It is expected that the UK will become a crypto hub, meaning being more collaborative and innovative when it comes to the supervision of cryptocurrencies in the future.


UK to assess new law defining crypto as property

Kraken exchange, one of the world's largest cryptocurrency exchanges, is under federal investigation for allegedly breaching United States sanctions by enabling customers in Iran and beyond to purchase and sell digital tokens.

Kraken, an $11 billion private entity that allows customers to purchase, trade, or hold multiple cryptocurrencies, has previously faced [regulatory action](/news/article/us-sec-regulation). The Commodity Futures Trading Commission fined the corporation $1.25 million last year for unlawful trading services. 

The cryptocurrency firm would be the largest US crypto business to face OFAC enforcement action. Sanctions on Iran, enacted by the US in 1979, ban the export of goods or services to people or companies in the country.

As the market for digital currencies has risen, the federal government has progressively clamped down on crypto firms. Tether, a stablecoin corporation, was penalised by the CFTC last year for false representations regarding its reserves. Simultaneously, the Justice Department charged an ex-employee of Coinbase, the largest cryptocurrency exchange in the US, with [insider trading](https://www.bloomberg.com/news/articles/2022-07-21/ex-coinbase-manager-arrested-in-us-crypto-insider-trading-case) earlier this month.

## Lawsuit Accused Business in 2019

The Kraken exchange and the subject of sanctions came up in a November 2019 lawsuit filed by a former finance department employee who accused the business of earning money from accounts in sanctioned nations.

Jesse Powell, Kraken's exchange CEO, allegedly stated that he would contemplate breaching the law in various instances if the benefits to the firm exceeded the possible fines. 

However, it is believed Powell stated that the Kraken exchange regularly checks compliance with sanctions laws and, as a general rule, communicates to regulators even possible problems.  

That same year, OFAC began looking into the Kraken exchange, concentrating on the company's accounts in Iran. Sources alleged Kraken users had also created accounts in Syria and Cuba.

A lawyer from a renowned law firm that handles crypto regulations believes that as crypto moves without a bank or intermediaries, exchanges are liable for certain forms of financial regulatory compliance.




Kraken Exchange Under Investigation

If you ask Nikhil Rathi, the new chief executive, FCA crypto regulation may become a new item on its agenda. According to him, the UK’s Financial Conduct Authority (FCA), has some severe intentions to strengthen cross-border crypto-asset [regulation](/news/article/crypto-regulations). 

David Hamilton of Pinsent Masons commented on [Rathi’s recent speech](https://www.fca.org.uk/news/speeches/how-uk-will-regulate-future) on how the US and the UK had “agreed to deepen ties”, regarding financial development. He also added that both countries were “exchanging views on crypto-asset regulation and market developments”. 

“Intensive dialogue between our nations is essential to ensure we deliver consistent outcomes,” said Rathi. He added that since the UK had left the European Union, it got the rare opportunity to connect its regulation to today’s market challenges.

Rathi also confirmed FCA primarily invested in data and technology, and kept scanning 100,000 websites for fraud on a daily level.

“The US and UK will deepen ties on crypto-asset regulation and market developments – including relation to stablecoins and the exploration of central bank digital currencies,” Rathi concluded.

## FCA crypto regulation to be more innovative 

Recently, the UK, US and Singapore launched the International Organization of Securities Commissions (IOSCO) governance body on DeFi and crypto market integrity risks. 

Hamilton commented that Rathi’s speech was vital, especially if viewed in the context of the G20 Financial Stability Board’s (FSB) [announcement](https://www.fsb.org/2022/07/fsb-statement-on-international-regulation-and-supervision-of-crypto-asset-activities/) earlier this month on establishing a new regulatory framework for crypto supervision.

Hamilton also added that Rathi’s speech showed just how important it is for companies to have adequate policies and procedures to comply with the Money Laundering Regulations.
Rachael Preston of Pinsent Masons asserted the speech shows FCA’s intention to become an essential player of the regulatory game. 

“Expect to see a more collaborative, innovative and adaptive style of supervision in the future, with the FCA continuing to push the boundaries of the role of a financial regulator in modern society,” Preston said.

She also added that technology solutions will play a substantial leading role in the FCA’s transformation plans, and will be a key factor regarding its effectiveness. 
 
“The question is whether such an approach can deliver the right outcomes to what is an ever more complex, nuanced and user experience-led market,” Preston said.



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