DSG Crypto Regulatory Roundup:  November 2023

International Bodies

UK to Hit Crypto Users with Penalties for Unpaid Taxes:  The Treasury encouraged users to voluntarily disclose unpaid income or capital gains tax from crypto, NFTs, and utility token holdings.  More here.

FCA Releases Guidance for Compliance:  Rules for crypto asset promotion that came into force in the United Kingdom on October 8 have led to some confusion, judging from the low level of compliance.  The Financial Conduct Authority (FCA) responded with additional guidance for crypto firms to help them fall into line.  More here.

UK Stablecoin Regulation Begins to Take Shape in Multiple FCA, BOE Documents:  It is not expected to come into force until 2025, but new publications from the FCA and BOE shed light on regulators’ thinking.  More here.

EU Banking Watchdog Proposes Liquidity Rules for Stablecoin Issuers:  The proposed guidelines are currently in the public consultation phase for the next three months and, if approved, will come into effect starting in June 2024.  More here.

United States

New York Financial Regulator Tightens Crypto Listing Guidance:  Crypto firms’ policies on coin listing and delisting must align with a list of standards set by the NYDFS.  More here.

U.S.  CFPB Proposes Supervising Digital App Providers, Including Crypto Wallets:  The proposal would affect retail transactions carried out from crypto wallets, but not crypto trading.  More here.

‘Premier’ Crypto Cop CFTC Reveals Record-Setting Digital Asset Enforcement in 2023:  The statement released by the CFTC shows that about fifty percent of the cases brought to its attention in 2023 involved crypto.  More here.

CFTC Plans Crypto Futures Protections:  In the wake of the collapse of cryptoexchange FTX, the Commodity Futures Trading Commission is developing a plan to mandate crypto derivatives exchanges to segregate client funds from corporate finances.  The proposal is aimed at enhancing protections for crypto futures traders and reflects a broader effort to prevent misuse of customer assets and strengthen market integrity.  More here.

Binance Is Starting Over with U.S.  Oversight:  The largest global crypto exchange agreed to have a government-approved monitor oversee its activities after the firm and its former CEO pleaded guilty to ignoring anti-money-laundering rules.  Binance’s new CEO believes it is in good shape and is ready to move forward, but the Wall Street Journal reports that people inside Binance and around the crypto world say the firm faces stiff challenges in its new incarnation.  More here.

Binance Settles with U.S.  Government:  U.S.  government agencies spent months, sometimes years, investigating Binance in the lead-up to unsealing an indictment against the exchange.  More here.

U.S.  Treasury Campaigning for Amplified Powers to Chase Crypto Overseas:  The U.S.  Treasury is requesting Congress give it powers to pursue crypto and fintech platforms used by militant organizations, documents seen by Politico show.  The letter is part of a wider effort to subject digital asset firms to the same anti-money laundering rules applied to banks and traditional financial organizations.  More here.

SEC In-House Enforcement Case Heads to Supreme Court:  The U.S.  Supreme Court is set to hear arguments in an appeal from the White House that could make it more difficult for the Securities and Exchange Commission to levy penalties and fines.  At stake is the SEC’s power to enforce securities laws through its long-standing in-house system.  Critics argue the SEC’s in-house system provides an unfair advantage in prosecuting cases before its own judges rather than before a jury in federal court.  More here.

Blackrock Met with SEC Officials to Discuss Spot Bitcoin ETF:  Representatives from the U.S.  Securities and Exchange Commission also met with Grayscale on November 20 in the asset manager’s bid for listing a Bitcoin ETF.  More here.

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