On Thursday, the UK government released [an Economic crime and Corporate Transparency bill](https://www.gov.uk/government/news/new-crackdown-on-fraud-and-money-laundering-to-protect-uk-economy) to tackle illicit finance funnelled through the crypto ecosystem. The UK crypto bill aims to increase law enforcement's ability to target [cryptocurrencies](/articles/learn-moni/cryptocurrency-trading-strategies) used for unlawful activities to target money laundering and fraud.

As of now, the bill is scheduled to have its second hearing on Oct 13th.

##  UK crypto bill purpose

The [UK crypto](/news/article/crypto-price-uk) bill released in Parliament on Thursday strives to keep "dirty money" out of the nation. The proposed legislation included measures to reduce "red tape around confidentiality liability" and give law enforcement the power "to compel businesses to hand over information related to money laundering or terrorist financing," including crypto.

The bill specifically targets those involved in illegal activities like money laundering, drug trafficking, and cybercrime, in addition to [cryptocurrency](/articles/learn-moni/cryptocurrency-prices), which acts as a critical enabler. This bill will help the relevant authorities in their quest for cryptocurrencies that have been used fraudulently.

The bill mandates the new upcoming companies in the UK to verify their identities. This includes cross-checking data with public and private partners and listing suspicious activity to security and law enforcement agencies.

The bill is meant to build on the previous Economic Crime (Transparency and Enforcement) Act, which helped regulators impose sanctions on Russia and freeze relevant assets in the country. Regulators are concerned that some Russians use cryptocurrency to circumvent sanctions imposed by Ukraine's invasion.

## UK government active with crypto activities

According to [reports](https://www.policeprofessional.com/news/mps-makes-record-breaking-180m-cryptocurrency-seizure/), in July 2021, the Met police reportedly seized 180 million pounds in a money laundering investigation. This incident took place just after a month when Met police seized 114 million pounds in cryptocurrency linked to international money laundering.

Cryptocurrency has been a vital ground for criminals to execute their illicit activities. But, with new reforms and bills, the UK government is preparing to tackle dirty money and target unlawful crypto activities in the nation.



UK released a crypto bill to tackle illegal finance

It might seem we’ve not heard the last from the Do Kwon Terra debacle, as Interpol has issued a red notice for the arrest of the embattled founder of Terraform labs.

The South Korean security authority has been investigating the case; however, the embattled Terra founder has not been cooperating and is believed to be on the run.

With Interpol's red notice, security agencies worldwide are requested to start a search and arrest him.

## Do Kwon's statement on the Terra collapse investigation

Do Kwon, in a series of tweets via his official Twitter handle ([@stablekwon](https://twitter.com/stablekwon/status/1571197156907679745)), has denied not cooperating with the security agencies. He further claimed he’s not on the run as speculated in the media.

[Do Kwon's Terra labs collapsed earlier this year](/news/article/terra-luna-collapse), which led to the loss of investors' money estimated to be around $40 billion.

Many investors have lost their money through investment in LUNA and can’t wait to get clarity on the investigation presently being carried out. This case is one that the whole crypto community is observing with keen interest.

## Legal Issues in the cryptocurrency industry

There seem to be a lot of legal issues in the cryptocurrency industry, and Do Kwon Terra issues is not the only one taking centre stage.

Ripple labs, the parent company of Ripple, is presently embroiled in [legal issues with SEC](/news/article/xrp-court-case-update) in what seems to be the longest court case in the cryptocurrency industry's history.

A [Dogecoin](/coins/doge) investor also [sued Tesla and SpaceX CEO Elon Musk](https://news.sky.com/story/elon-musk-sued-for-258bn-over-claims-he-ran-a-pyramid-scheme-to-promote-dogecoin-12635334) for $258 billion (€245 billion) for allegedly "running a pyramid scheme to support the cryptocurrency".

In an accusation filed in Manhattan federal court, plaintiff Keith Johnson accused Musk, the electric vehicle maker and the space tourism company CEO of racketeering by touting Dogecoin and driving its price up, only to let it tumble.

Key Tech figures like Warren Buffet and Bill gates have earlier questioned the worth of Bitcoin. The major criticism of Bill Gates is the anonymity and irreversibility of transactions, while Buffet doesn’t see it as a means of utility.



Terra debacle: Interpol issues red notice on Do Kwon

Russia's Deputy Finance Minister described the acquisition and use of cryptocurrency in cross-border settlements through a new agreement. 

According to [Kommersant](https://www.kommersant.ru/doc/5572328), a news outlet, Deputy Finance Minister Alexei Moiseev stated on Thursday that the government department has agreed "on the whole" with the central bank on a rule that would allow residents to send cross-border payments using cryptocurrencies.

The report quotes Deputy Finance Minister, Moiseev statement: 

"Now we have a bill in this part already agreed with the Central Bank on the whole ... It generally describes how to acquire cryptocurrency, what can be done with it, and how it can or cannot be settled with for cross-border settlements,"

Russian citizens are intended to benefit from the proposed policy change by having access to digital wallets. The central bank reportedly spoke with government representatives about the issue of cross-border crypto payments, according to news agencies. However, the bank of Russia is allegedly opposed to allowing cryptocurrency exchanges to function legally and not accepting cryptocurrencies as legal tender.

## Russia's volatile relationship with crypto

It's interesting how Russia has viewed cryptocurrencies. Cryptocurrency payments were prohibited in the country in 2020. 

Vladimir Putin, the president of Russia, drafted a new law on July 16 that effectively banned using digital assets to pay for goods and services there. According to the law, cryptocurrencies and NFTs were no longer recognised as legitimate payment methods. These digital assets, though, could still be bought, sold, exchanged, and pledged.

[Russia crypto](/news/article/crypto-russia) has always had a contentious relationship. In May 2022, Denis Manturov, the trade minister, said that the country would "sooner or later" legalise crypto payments, and its position on using them for cross-border settlements shifted.

It's critical to note that 72% of Russian investors have never purchased cryptocurrency like Bitcoin, according to a July 2022 survey by the Swiss cryptocurrency wallet provider Tangem. Therefore, BTC adoption in the nation is likely to be influenced by the proposed policy change driven by the Russian bank and the Ministry of Finance.



Russia approves cross-border crypto payments

Ripple native token XRP has consistently stayed in the top charts as one of the most valuable coins on [Coinmarketcap](https://coinmarketcap.com/currencies/xrp/?period=7d) for the past two years, with a market cap of over $ 18 billion and occupying the 6th position on Coinmarketcap.

The initial growth and buzz around XRP has slowed down in the past due to legal issues with the SEC (Security Exchange Commission).

Ripple has been embroiled in a row with the watchdog of the SEC since 2020, and it seems like the case isn't ending anytime soon.

## The genesis of the SEC court case with Ripple

The SEC court case with Ripple is based on the belief that the $1.3 million raised by Ripple is illegal because it classified XRP, the native token of Ripple, as a security and not a digital asset, which has placed XRP under stringent security laws.

## SEC's position on the court case

SEC's stance on the court case is that the way in which Ripple raised their ICO with XRP is illegal, as contained in the documents released to the public on December 20, 2020, which include a [detailed report](https://www.sec.gov/news/press-release/2020-338) on the charge against Ripple.
 
However, Ripple, in response, claimed; 

As stated in their [whitepaper](https://whitepaper.io/coin/ripple), XRP, the native token of Ripple, is used for cross-border payment and is available on exchanges worldwide.

## Latest court update

In the latest XRP court case update, SEC seems to have suffered a setback, one of the series it has suffered since the start of the court case with Ripple. In their latest animosity, Judge Netburn approved Ripple's motion to authenticate SEC officials' public remarks. 

Netburn also ruled that expert's identity should not be sealed.

According to James K.Filan, a defence lawyer who has been sharing critical updates about the Ripple vs SEC lawsuit on his Twitter account.

"A letter from the SEC asks the parties to seal portions of their oppositions to Exclusion Motions that contain information identifying SEC experts and some financial information about one of the SEC Experts."

One of Ripple's defence attorneys is Mary Jo White, the former chairman of the SEC. Having someone who has occupied an important position in the SEC as a defence attorney proves that Ripple is not treating the XRP court case unseriously.

## Implications of the XRP court case on the cryptocurrency industry

The cryptocurrency community is looking at how the Ripple and the SEC case will end with keen interest, as it will have a ripple effect on the [legal status of cryptocurrency](/news/article/xrp-case-price-uk) in general.

Regardless of the case's outcome, the status of some cryptocurrencies will surely change to being [classified as a security or commodity](/news/article/sec-crypto), leading to a significant disruption in the cryptocurrency industry.




Ripple vs SEC: XRP latest court case update

The Securities and Exchange Commission (SEC) has filed charges against [Zipmex](https://zipmex.com/th/en/) Thailand. The police complaint reports that the exchange is violating the regulatory framework of the SEC. The charges involve the business and its Chief Executive Officer and co-founder, Akalarp Yimwilai.
 
Zipmex Thailand is a crypto exchange that suffered from an industry-wide downturn caused by high debts and leverages. It loaned money to the faltered crypto companies: Celsius and Babel Finance. 

It lent a total of over $50 million to these firms. However, both have failed to pay back the exchange, and Celsius has even filed for [bankruptcy](/news/article/celsius-bankruptcy-protection). This led Zipmex to [freeze withdrawals](/news/article/zipmex-creditor-protection). 

## Thai SEC allegations on Zipmex

The SEC has released an [official statement](https://www.sec.or.th/TH/Pages/News_Detail.aspx?SECID=9597&NewsNo=147&NewsYear=2565&Lang=TH) about the charges against the cryptocurrency firm. According to the report, the regulatory body claimed to order the concerned firm to declare transactional details about digital assets. It gave the firm’s officials an apt timeframe for providing the information. 

However, the firm did not follow the order and provided incomplete transactional information after the deadline. The firm also failed to give any reasonable excuse for it. This led the regulators to take action and file charges against it. 

The regulators also said that these actions are deemed as non-compliance. Moreover, they mentioned that it could be penalised under Section 75 of the Digital Assets Act.

## Zipmex Thailand’s stance

On the other hand, the company also responded to these charges via a [press release.](https://zipmex.com/th/en/announcements/pr-holding-statement-th-060922/) According to it, the company received a letter from the SEC for the declaration of transactional details of digital assets on 2 September 2022. 

It clarified that the company is currently compiling the pertinent documents for this matter. They said that Zipmex Thailand is further reviewing the records of Zipmex Pte. Ltd., which does not fall under the Thai regulator’s jurisdiction. 

Moreover, the statement emphasised that information disclosure must be handled with diligence for the company’s data privacy. It also assured the customers that the company was taking the matter by prioritising their interests.




SEC charges Zipmex Thailand for regulatory breaches

In the latest [Australia crypto news](/news/article/australia-crypto-regulation-plan), law enforcement is working to increase cryptocurrency expertise and [trace crypto transactions by forming a dedicated police group](https://cointelegraph.com/news/australian-state-police-sets-up-crypto-division-to-trace-transactions).

According to the Australian Financial Review, the Australian Federal Police (AFP) has established a new cryptocurrency unit to monitor crypto-related transactions.

The unit was formed after the force's criminal asset confiscation command exceeded its 2024 target of seizing $600 million in criminal proceeds within two years. 

## Australia Crypto news: AFP's officer statement

According to Stefan Jerga, national manager of the AFP's criminal asset confiscation command, the use of cryptocurrency in illegal activity has increased significantly since the AFP's first crypto seizure in early 2018. In response, the law enforcement organisation established a dedicated crypto team in August.

The increased emphasis on illegal crypto transactions comes as the AFP seizes far more criminal assets than expected. The AFP announced Monday that it had met its goal of capturing $600 million in financial crimes two years ahead of schedule. The AFP-led Criminal Assets Confiscation Taskforce initially set the target, which was expected to be met by 2024.

The organisation has seized $380 million in residential and commercial property, $200 million in cash and bank accounts, and $35 million in automobiles, boats, aircraft, artwork, luxury items, and cryptocurrencies since February 2020. 

While the amount of cryptocurrency seized was small compared to cash and property, AFP Commissioner Reece Kershaw stated that a focus on cryptocurrency provided benefits through great intelligence insights into the business models of organised crime.

 According to the AFP manager, the environment prompted forming a separate team, as opposed to many officers "picking up some of this skill set as part of their overall role." He said that the ability to trace crypto transactions across blockchains is "really, really important," alongside national security, child protection, and other considerations.

Earlier this year, an official at the Australian Transaction Reports and Analysis Centre (AUSTRAC) raised scepticism about cryptocurrency transparency. According to AUSTRAC deputy chief executive John Moss, cryptocurrencies are "attractive for criminals," including neo-Nazi groups, because they can be used anonymously, quickly, and across international borders.

The original white paper published in 2008, introducing blockchain technology, Bitcoin transactions, has been marketed as entirely anonymous and private. Although researchers have recently demonstrated traceability through unintentional patterns in Bitcoin transactional data – the larger a data set, the more patterns appear. Patterns can also be identified and tracked. Governments are strengthening their infrastructure to track cryptocurrency transactions.



Australia Crypto news: AFP forms a crypto unit

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 Federation's 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 decided yet on whether they will transfer the assets to Ukrainian jurisdiction.

The SSU gathered 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 through payments in ccryptocurrencies. 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. 




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