Overview of the Latest Encryption Regulation and Policy Dynamics

Recently, there have been a series of important developments in the global encryption regulatory field. The U.S. Department of the Treasury and the Internal Revenue Service announced that businesses are not required to report digital asset income like cash income until relevant regulations are issued. The U.S. Securities and Exchange Commission has expanded the definition of "dealer," which may cover certain encryption companies. The U.S. Energy Information Administration has been authorized to conduct a temporary investigation into the electricity usage of specific domestic encryption mining companies.

U.S. Regulatory Dynamics

Commodity Futures Trading Commission ( CFTC )

The CFTC accused a certain digital asset platform of fraudulently misappropriating customer funds using the "pig butchering" scheme. The agency also issued warnings about artificial intelligence scams and social media investment fraud. The CFTC chairman emphasized the necessity for federal legislation on the digital asset spot market.

Congressional Dynamics

Multiple senators and representatives have introduced a series of bills and resolutions related to cryptocurrency, covering aspects such as information sharing, regulatory review, and stablecoin legislation.

Department of Justice

The Ministry of Justice has taken action on multiple cases related to cryptocurrency crimes, including charges against former operators of the BTC-e exchange, SIM card hijacking fraud cases, and the HyperFund Ponzi scheme. At the same time, there have been new developments in some cryptocurrency-related tax fraud and market manipulation cases.

Ministry of Finance

The Ministry of Finance released a new report on money laundering risk assessment, emphasizing the risks related to virtual assets. The department also imposed sanctions on cryptocurrency exchanges associated with Hamas. Senior officials from the Ministry called for higher standards for encryption assets and encouraged Congress to legislate the regulation of the spot market for stablecoins and non-security encryption assets.

Securities and Exchange Commission ( SEC )

The SEC has delayed its decision on Ethereum ETF proposals submitted by multiple institutions. The agency has also reached settlements in several cases involving unregistered encryption lending products. The SEC is requesting the court to dismiss its lawsuit against "DEBT Box" and acknowledges that officials may have made false statements to the court.

International Regulatory Dynamics

EU

The EU has reached a temporary agreement on a new anti-money laundering plan, requiring encryption asset service providers to conduct customer due diligence for transactions over 1000 euros. The European Banking Authority has included encryption asset service providers in its anti-money laundering guidelines.

Other countries

German police seized 50,000 bitcoins, setting a historical record. South Korea arrested executives of Haru Invest, suspected of large-scale encryption theft. The Thai Securities and Exchange Commission ordered Zipmex to suspend services. OKX obtained a VASP license in Dubai. The UK released a consultation document in response to the digital pound.

United Nations

The United Nations released a report discussing the use of encryption in illegal activities in East Asia and Southeast Asia.