Regulators around the world have confirmed more control over crypto: the law has been decoded

Last week, several major financial regulators, both national and international, simultaneously issued new guidelines regarding decentralized assets. The European Banking Authority and the European Securities and Markets Authority have proposed guidelines to assess the suitability of management members in crypto companies, providing standardized criteria to ensure their knowledge, expertise, integrity and sufficient time to fulfill their responsibilities.

The Basel Committee has proposed to the Bank of International Settlements (BIS) to compel banks to provide quantitative and qualitative information on their exposure to crypto assets and related capital and liquidity requirements. According to BIS, the use of a uniform disclosure format promotes the application of market discipline and reduces information asymmetry between banks and market participants.

The US Treasury Department's Financial Crimes Enforcement Network has proposed designating cryptocurrency mixing as a “major money laundering” area following Hamas attacks on Israel. It suggests that local financial institutions and agencies may want to “implement certain registration and reporting requirements” for crypto mixer transactions.

The Hong Kong Securities and Futures Commission (SFC) makes certain digital currency products available only to professional investors. The revised requirements consider digital assets as “complex products” under the SFC and the same guidelines as similar financial products. The commission refers to crypto exchanges and products issued outside Hong Kong as complex products.

FTX court updates

Can Sun, FTX's former general counsel, was unaware of the money exchange with Alameda Research, he told jurors during his testimony at Sam Bankman-Fried's criminal trial. Sun said he learned from other employees about Alameda's exemption from the liquidation engine system in August 2022. Normally, the system avoids loss-making trades, but Alameda is said to have bypassed the system in a special case.

Maths professor Peter Easton has put together the alleged funds between FTX and Alameda Research from 2021. According to Easton Analytics, Alameda has invested in part in Jens Capital, K5 Global Holdings, Anthropopic PBC, Dev Inc., Modulo Capital and other ventures. Funds from FTX customers. As of June 2022, Alameda and FTX had a negative balance of $11.3 billion, while the liquid assets of the companies reached $2.3 billion, which means there is a difference of $9 billion between the sister firms. Another important point from the analysis: Alameda has 57 accounts with FTX, which can have a negative balance, but no other client can do so. The analysis tests Bankman-Fried's defense argument that Alameda had the same rights over FTX as other market makers.

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Pennsylvania waives two-year mining severance payment.

A Pennsylvania House representative has cut a two-year ban on crypto mining to regulate the sector's energy consumption, with trade unions pushing for the change. Democratic Representative Greg Vitali, chairman of the committee and sponsor of the bill, said that Democratic Party leaders had pressured him not to introduce the bill, including the bill. Vitali said building trade unions had “rooted opposition” to environmental policy and that the unions had his Democratic colleagues in their pockets. According to the politician, a vote against the unions would jeopardize his Democratic majority in the Pennsylvania House, and he would prefer the bill to pass unchallenged.

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Gemini, Genesis, DCG accused of $1 billion fraud

New York's attorney general has filed charges against cryptocurrency companies Gemini, Genesis and Digital Currency Group (DCG) for defrauding investors in the Gemini Earnings investment program. An official statement from Attorney General Leticia James' office outlines the allegations, alleging the companies defrauded more than $1 billion from more than 23,000 investors, including 29,000 New Yorkers. An investigation by James' office alleges that Gemini lied to investors about the Gemini Income Investment Program, which it partnered with Genesen. While Gemini assured investors that this program was a low-risk investment, investigations revealed that Genesis Finance was a “disaster.”

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