According to Manquan Law Firm’s incomplete statistics, from July 1, 2024 to July 7, 2024 (UTC+8), a total of 21 key encryption policies and related actions have been disclosed globally. Among them, multiple countries/regions have facilitated the Web3 industry through policy actions.
In China, there were a total of 4 pieces of information related to encryption policies. Among them, the first Web3.0 industry report released in Shanghai has had a significant impact on the industry. Multiple experts have called on government agencies to study “Token Economics” to optimize regulation.
In the United States, there were a total of 4 policies and actions related to the encryption industry. Of note is that cryptocurrency companies operating in Hawaii in the future will not require a currency transmission license issued by Hawaii.
Japan and South Korea, with South Korea as a representative, were involved in 3 policies, such as delaying taxation on cryptocurrencies and Jeju Province hoping to digitize the tourism industry through encryption technology, showing South Korea’s friendliness towards the encryption industry.
In Southeast Asia, there were 3 noteworthy policy information. For example, the Philippines supports users to pay social security system fees through USDT on the TON blockchain via the Uquid card.
The above is the policy summary from July 1 to July 7 compiled by Manquan Blockchain Law Firm.
China
The Hong Kong Securities and Futures Commission warns the public to stay away from seven entities suspected of virtual asset fraud. These entities operate under the guise of virtual asset trading services and often attract investors through social media or instant messaging apps. The entities involved include XTCQT, CEG, BTEPRO, Bitones.org, Yomaex Crypto Market Limited, Bstor, and Taurusemex.
Chongqing company accused of selling virtual currency for fraud, the procuratorate initiates claims registration. Chongqing Juxingyao Technology Co., Ltd. has been accused of raising funds for fraud after selling EPF virtual currency. The company had promised high returns to investors who bought EPF virtual currency, attracting a large number of investors before “exploding”. The procuratorate has started claims registration work to protect the interests of investors. Investors must bring relevant materials for registration from July 1, 2024 to July 5, 2024. Failure to declare within the specified time will require subsequent claims to be resolved through civil litigation.
Hong Kong Cyberport launches Green FinTech Grant Program. Hong Kong Cyberport announced the launch of the “Green and Sustainable FinTech Concept Verification Testing Grant Program”, commissioned by the Hong Kong Financial Services and Treasury Bureau, to encourage innovative green FinTech research and commercial applications, covering green and digital finance and investment, ESG compliance, carbon trading, ESG data analysis, and risk assessment. The grant amount can reach up to HK$150,000 to support the early development of relevant projects, accelerating Hong Kong’s transformation into an international green technology and financial center.
Shanghai releases the first WEB3.0 industry report, experts suggest studying “Token Economics”. Under the guidance of the Shanghai Municipal Science and Technology Commission, Jiefang Daily and Fudan University School of Economics jointly released the “2024 Shanghai WEB3.0 Innovation Ecosystem Construction Research Report”. This report focuses on the challenges and opportunities of WEB3.0, putting forward multiple targeted suggestions. The report also suggests studying “Token Economics” to strengthen industry standard setting and regulatory system innovation, protect investor interests, and promote industry healthy development.
United States
A U.S. judge ruled to continue hearing the DraftKings NFT securities lawsuit. A judge in Massachusetts recently rejected DraftKings’ motion to dismiss a class action lawsuit. The case involves sports-themed non-fungible tokens (NFTs) issued by DraftKings, which are alleged to constitute securities. This move paves the way for future legal debates on whether NFTs are considered securities.
The U.S. Securities and Exchange Commission (SEC) sues Silvergate Bank for securities fraud. The SEC has filed a securities fraud lawsuit against Silvergate Capital Corp, focusing on the company’s banking secrecy and anti-money laundering compliance procedures following the collapse of the FTX cryptocurrency exchange in November 2022. Silvergate Bank has agreed to pay $63 million to settle with the SEC and other regulatory agencies.
The U.S. Department of Justice tenders for cryptocurrency management services, with Coinbase winning the bid. The U.S. Department of Justice’s U.S. Marshals Service (USMS) has issued a tender for the first category of cryptocurrency management services, including storage, management, and clearing of cryptocurrencies, to ensure legality, professionalism, and compliance with government policies. Currently, the USMS has announced that Coinbase won the bid for $32.5 million.
Hawaii ends regulatory sandbox: Cryptocurrency companies can operate without state licenses. The regulatory sandbox project in Hawaii has ended, allowing cryptocurrency companies to operate in the state without the need for a Hawaii-issued money transmission license. This change allows participating cryptocurrency issuers to operate without a state-level money transmission license, but they must comply with federal regulations, including those from FinCEN, SEC, and FINRA.
Japan and South Korea
South Korea delays implementation of cryptocurrency taxation until 2025. The South Korean government has announced a postponement of the implementation of new virtual asset taxation regulations until January 2025. The delay primarily affects personal income tax for residents and withholding tax for non-residents and foreign companies. This extension provides time for the government and the cryptocurrency industry to fine-tune regulations to ensure a smooth transition to the new tax regime in 2025.
South Korea introduces a real-time monitoring system to combat cryptocurrency fraud. The Financial Supervisory Service of South Korea announced that it has collaborated with local exchanges to develop a 24-hour monitoring system to screen any suspicious activities in the cryptocurrency market. The system is set to launch on July 19, the day the first cryptocurrency investor protection regulatory framework in Korea comes into effect.
Jeju Province in South Korea emphasizes that the time is right to introduce virtual currencies. Governor of Jeju Special Self-Governing Province, Oh Young-hoon, stated that it is now necessary to introduce virtual currencies into the tourism industry in Jeju. The province is making “digital transformation” a core issue, planning to open up new markets by introducing NFTs and virtual currencies, and incorporating digital economy and technology into the tourism industry.
Europe
The EU will implement the “EU Travel Rule” for cryptocurrency exchanges to strengthen anti-money laundering measures. The European Banking Authority (EBA) has released new guidelines on the “EU Travel Rule,” which specifies the information that should accompany the transfer of funds and specific encrypted assets. It lists the steps that payment service providers (PSPs), intermediary PSPs (IPSPs), cryptocurrency asset service providers (CASPs), and intermediary CASPs (ICASPs) should take when detecting missing or incomplete information, as well as the measures to be taken when there is a lack of the necessary information for the transfer of funds or encrypted assets.
The Basel Committee approves a banking disclosure framework for encrypted assets and revises capital standards. The Basel Banking Supervision Committee has approved a disclosure framework for banking encrypted asset risks, set to be implemented on January 1, 2026. Additionally, the committee has approved targeted revisions to encrypted asset prudential standards, particularly the “1b group” regulatory treatment standards for stablecoins, which will also come into effect on January 1, 2026.
The Danish Financial Supervisory Authority dispels rumors of banning self-custody wallets. Recently, there have been rumors on social media about Denmark banning Bitcoin wallets, but Tobias Thygesen, head of the DFSA, confirmed in an interview with Cointelegraph that the DFSA has not proposed banning hardware wallets or other non-custodial wallets. He emphasized that the only activities related to the MiCA (Market in Crypto-assets) regulation are those that provide custody and management services for clients’ encrypted assets, while self-custody wallets, due to their fully decentralized nature, naturally do not fall under this regulation.
Southeast Asia
Cross-border fraud gang “Lock Star” arrested in Thailand, assets worth approximately 30 million baht seized. Colonel Atip Pongsivapai, commander of the Technology Crime Suppression Division in Thailand, announced on Friday that six members of a mixed scam gang called “Lock Star” had been successfully captured, including two Chinese citizens and four Thais. This gang carried out digital currency investment scams through a fake application called Tidex, enticing victims to install the application and transfer investments.
Paxos approved to issue stablecoins in Singapore, DBS provides custody services. Digital asset company Paxos has received comprehensive approval from the Monetary Authority of Singapore to provide digital payment token services, enabling it to issue stablecoins in Singapore. DBS, Singapore’s largest bank, will be its main banking partner for cash management and stablecoin reserves.
The Philippines supports payment of social security system fees with USDT. According to an official announcement from Tether, users in the Philippines can now use USDT (Tether) to pay fees related to the Social Security System through the Uquid card platform on the TON blockchain. This brings convenience and innovation in digital currencies to the payment system in the Philippines.
Other Countries and Regions
Nigeria plans to establish a national AI and blockchain research center. The National Information Technology Development Agency (NITDA) in Nigeria plans to establish research centers focused on emerging technologies such as artificial intelligence (AI), the Internet of Things (IoT), and blockchain in six geopolitical zones across the country. In addition to funding research, NITDA also plans to support Nigerian startups in developing products using emerging technologies and create innovation sandboxes to help startups develop use cases, establish businesses, and bring products to market.
The Central Bank of Nigeria accuses Binance of providing banking services without authorization. The Central Bank of Nigeria (CBN) has accused the cryptocurrency exchange Binance of providing banking services without proper authorization. Olubukola Akinwunmi, the head of payment policy and regulation at CBN, confirmed in front of the Abuja Federal High Court that deposits and withdrawals from Binance should be the exclusive domain of banks and authorized financial institutions.
The Securities and Exchange Commission of Nigeria requires cryptocurrency companies to establish local offices. The Securities and Exchange Commission of Nigeria (SEC) has introduced new regulations requiring Virtual Asset Service Providers (VASPs) to establish offices in Nigeria as part of its Accelerated Regulatory Incubation Program (ARIP). The program aims to promote the registration and operation of VASPs in Nigeria. In addition, the Chief Executive Officer or General Manager of the company must reside in Nigeria.
Paraguay raises electricity costs by 14%, Bitcoin mining companies may consider halting operations. The National Electricity Administration (ANDE) of Paraguay has suddenly announced a 14% increase in electricity costs for cryptocurrency mining operators, leading to a company planning to invest over $400 million in the country to withdraw. This measure may threaten the continued operation of Bitcoin mining companies in Paraguay.
