The global cryptocurrency regulatory landscape continues to evolve at a rapid pace, reflecting a dynamic balance between innovation and risk management. According to an analysis by Mankun Law Firm, 31 significant regulatory actions or policy developments were reported worldwide between July 8 and July 14, 2024 (UTC+8). These developments highlight the divergent approaches across regions—from strict enforcement to proactive support—underscoring a shared goal: fostering financial innovation while safeguarding market integrity.
Key trends include increased scrutiny of decentralized technologies, growing clarity on asset classification, and expanding use cases for blockchain in public infrastructure. Notably, the United States and Europe led in regulatory activity, while emerging markets like Argentina and Nigeria are reshaping their frameworks in response to economic pressures and technological adoption.
China: Regulatory Approvals and Anti-Money Laundering Enforcement
China maintains a strict stance on cryptocurrency, yet recent developments in Hong Kong signal a nuanced shift toward regulated digital asset services.
- Anti-Money Laundering Crackdown in Changzhi: Authorities in Changzhi, Shanxi Province, dismantled a crypto-based money laundering ring involving 11 suspects and over ¥2 million in illicit funds. The group used virtual currency transactions to obscure the origin of illegal proceeds before cashing out through banks in major cities.
- Futu Securities Gains Hong Kong License: Futu Securities received approval from the Securities and Futures Commission (SFC) to upgrade its Type 1 regulated activity license, enabling it to offer virtual asset trading services to both retail and professional investors in Hong Kong.
- Panda Financial Services Expands Virtual Asset Offerings: Panda Financial has also secured SFC approval to enhance its Type 1 and Type 4 licenses, allowing it to distribute and advise on virtual asset funds where investments exceed 10% of total holdings.
- Taiwan Advances CBDC Research: The Central Bank of Taiwan has developed a prototype for its central bank digital currency (CBDC) and plans multiple public hearings next year. The initiative aims to establish a secure, unified framework to prevent money laundering and terrorist financing.
👉 Discover how global regulatory shifts are shaping the future of digital finance.
United States: Legal Clarity, Enforcement, and Institutional Interest
The U.S. remains at the forefront of crypto regulation, with multiple agencies coordinating enforcement while pushing for legislative clarity.
- CFTC Chair Affirms Crypto as Mostly Non-Security: In a landmark statement, CFTC Chair Rostin Behnam confirmed that 70%–80% of the crypto market consists of non-security digital commodities, reinforcing BTC and ETH’s classification as commodities under the Commodity Exchange Act—confirmed by an Illinois court ruling.
- SEC Clears BUSD as Non-Security: The SEC concluded its investigation into Paxos, the issuer of Binance USD (BUSD), determining that the stablecoin does not qualify as a security. This decision brings much-needed clarity to stablecoin regulation.
- Tornado Cash Developer Faces Legal Challenge: The DOJ is examining whether Tornado Cash developer Roman Storm controlled the privacy protocol, raising critical questions about developer liability in decentralized systems. The case could set a precedent for open-source software governance.
- Federal Agencies Unite Against Crypto Fraud: The CFTC and DOJ launched the first Fraud Disruption meeting with FBI, SEC, Treasury, DEA, and others to combat scams like "pig butchering" schemes. This interagency collaboration signals intensified enforcement.
- SAB 121 Controversy Continues: Despite congressional efforts, President Biden’s veto of the resolution to overturn SAB 121 stands. However, the SEC has granted limited exemptions to firms that can prove customer assets can be recovered in bankruptcy—potentially easing compliance burdens.
- BitMEX Pleads Guilty to AML Violations: BitMEX admitted guilt in U.S. federal court for failing to implement adequate anti-money laundering controls between 2015 and 2020, facing potential fines and penalties.
- Senate Pushes Defense Blockchain Testing: As part of the 2025 National Defense Authorization Act, the Senate urged the Department of Defense to explore blockchain for supply chain transparency and national security applications, with a report due by April 2025.
- Republican Platform Supports Crypto Innovation: The GOP’s latest policy platform endorses cryptocurrency innovation and opposes central bank digital currencies (CBDCs), though crypto was not among its top 20 policy priorities.
Europe: Balancing Innovation and Compliance
European regulators are navigating complex legal terrain, from privacy coins to DAO governance.
- German Government Sells All BTC Holdings: A wallet historically linked to German authorities transferred all its Bitcoin—over 50,000 BTC—to exchanges like Kraken, Coinbase, and Bitstamp. By July 13, the balance hit zero, sparking speculation about market impact and state asset management strategies.
- UK Sells Confiscated Monero (XMR): In a first, UK authorities liquidated £15,000 worth of Monero seized from a drug trafficker via the Food Standards Agency, marking a milestone in handling privacy-focused cryptocurrencies.
- No New DAO-Specific Laws in UK: The Law Commission for England and Wales found existing laws sufficient to regulate decentralized autonomous organizations (DAOs), though they may fall under financial services or tax obligations depending on structure.
- Fake Lawyer Bitcoin Scams on the Rise: The Solicitors Regulation Authority (SRA) warned of phishing emails impersonating lawyers demanding Bitcoin payments under threats of data exposure—a growing social engineering tactic.
- Payeer Fined €9.3M in Lithuania: Payeer was penalized for violating sanctions against Russian clients and AML rules. Lithuania is also tightening licensing to reduce the number of crypto firms operating in the country.
- Italy Prepares MiCA Implementation Guidelines: Central Bank Governor Fabio Panetta announced upcoming guidance to enforce the EU’s Markets in Crypto-Assets (MiCA) regulation, emphasizing that only electronic money tokens (EMTs) fully serve as payment instruments.
- Tulip Siddiq Appointed UK City Minister: Newly appointed Financial Services Minister Tulip Siddiq will oversee crypto regulation in London. She advocates strong oversight to curb fraud and criminal misuse.
- French Political Uncertainty May Delay Crypto Legislation: After inconclusive elections led to a hung parliament, legislative progress—including on crypto—faces delays due to coalition-building challenges.
Southeast Asia & Other Regions: Emerging Trends
Regulatory innovation is also emerging in Asia and Latin America.
- Singapore Holds Off on Spot Bitcoin ETFs: SGX CEO Loh Boon Chye stated the ecosystem isn’t ready for spot Bitcoin ETFs but remains open to future possibilities as markets mature.
- Thailand Launches Digital Wallet Registration: The government began registering citizens for its digital wallet stimulus program, aimed at boosting economic activity in underdeveloped regions.
👉 Stay ahead of regulatory changes shaping the next era of digital assets.
Global Highlights: Argentina, Nigeria, and Beyond
- Argentina Tops Western Hemisphere in Crypto Adoption: With inflation soaring at 276%, Argentinians are increasingly using stablecoins like USDT to preserve wealth—a trend highlighting crypto’s role as a hedge against currency collapse.
- Nigeria Pushes for Clear Crypto Classification: Nigerian regulators are considering classifying Bitcoin and Ethereum as commodities to provide regulatory clarity and encourage innovation.
- Paraguay Cracks Down on Power Theft for Mining: New legislation imposes up to 10 years in prison for using stolen electricity for crypto mining—double the penalty for non-mining-related theft.
- Russia Proposes Restricted Crypto Access: The Russian Treasury suggested allowing foreign economic actors to use digital assets for settlement but limiting domestic trading to approved platforms and select investors.
- Cyprus Strengthens Anti-Terror Financing Rules: The Institute of Certified Public Accountants of Cyprus (ICPAC) issued alerts urging professionals to monitor crypto transactions for potential terror financing risks.
👉 Explore how evolving regulations are redefining global crypto opportunities.
Frequently Asked Questions
Q: Why did the German government sell all its Bitcoin?
A: While official reasons haven't been disclosed, large-scale BTC sales by state entities often aim to stabilize budgets, manage asset portfolios, or respond to market conditions. The full liquidation may also reflect strategic financial planning.
Q: Is Tornado Cash illegal in the U.S.?
A: The U.S. government sanctioned Tornado Cash for facilitating illicit transactions, but the legal status of its developers is still under judicial review. Using the tool isn’t automatically illegal, but interacting with sanctioned addresses carries compliance risks.
Q: What does SAB 121 mean for crypto firms?
A: SAB 121 requires custodians to record client-held crypto as liabilities on their balance sheets. This increases capital requirements and operational costs, potentially discouraging traditional financial institutions from offering custody services.
Q: Can DAOs be taxed in the UK?
A: Yes. While no specific DAO law exists, UK authorities may treat DAOs as taxable entities based on their activities—potentially subjecting them to corporation tax or other obligations under existing financial regulations.
Q: Why are stablecoins like USDT popular in Argentina?
A: Amid hyperinflation and currency devaluation, Argentinians use USD-pegged stablecoins to preserve purchasing power and access dollar-denominated value without relying on traditional banking systems.
Q: How might U.S. crypto legislation evolve post-SAB 121?
A: With bipartisan concern over regulatory overreach, Congress may pursue clearer distinctions between securities and commodities, potentially granting CFTC broader authority over digital commodities while refining SEC oversight.
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