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On 9 September 2024, the Singapore Parliament addressed concerns regarding the operations of Worldcoin in the country, particularly in relation to the potential risks of account sales and data privacy. Worldcoin, a global cryptocurrency project, which has drawn global regulatory attention for its  approach of using biometric data (specifically iris scans) to authenticate users and issue tokens. Worldcoin was launched with the aim of creating a decentralized and universally accessible financial system but the platform has faced scrutiny from regulatory authorities worldwide, including in Singapore. The concerns center on potential risks such as money laundering, fraudulent transactions, data privacy violations, and illegal activities related to the buying and selling of Worldcoin accounts. The questions raised by Miss Rachel Ong, MP for West Coast GRC, and Mr Derrick Goh, MP for Nee Soon GRC, focused on the regulatory framework surrounding Worldcoin and the risks associated with its...

On 10 September 2024, UK Financial Conduct Authority (UK FCA) charged Mr. Olumide Osunkoya, a 45-year-old resident of London, for operating multiple unregistered crypto ATMs. Between 29 December 2021 and 8 September 2023, these machines allegedly processed approximately £2.6 million in transactions without the necessary registration from the UK FCA, marking the first criminal prosecution of its kind under the UK’s Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). Under UK law, any firm or individual involved in providing cryptoasset services must be registered with the UK FCA and ensure compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) standards. Cryptoasset services includes operators of crypto ATMs, which allow users to buy or exchange money for cryptoassets. Despite the legal requirement, Mr. Osunkoya allegedly operated his machines unlawfully, violating Regulations 86 and Regulation 92...

On 10 September 2024, while considering the second affidavit filed by Nischal Shetty, authorised representative for Zettai Pte. Ltd, the Singapore High Court made certain amendments to its earlier correspondence regarding the ongoing moratorium application by Zettai Pte. Ltd. The affidavit provided additional information and clarifications concerning Zettai’s restructuring efforts following a cyberattack in July 2024. The second affidavit filed by Nischal Shetty on 10 September 2024 clarified key aspects of Zettai Pte. Ltd.'s restructuring process and ongoing communication with creditors, with 431 creditors supporting the moratorium. It also corrected errors from the initial filing regarding user claims, clarified Zettai’s control of cryptocurrency tokens after the July cyberattack, and outlined ongoing discussions with potential investors for restructuring. The affidavit confirmed Zettai's compliance with court-mandated procedural requirements, ensuring transparency throughout the...

On September 9, 2024, the United States’ Public Company Accounting Oversight Board (PCAOB), with the approval of the United States Securities and Exchange Commission (US SEC), published the QC 1000 guidelines, to enhance quality control standards for public accounting firms. These guidelines aim to strengthen audit practices by implementing a risk-based, integrated framework that governs key operational areas such as governance, ethics, engagement performance, and monitoring. The QC 1000 guidelines are set to be implemented starting January 1, 2025, allowing firms time to align their systems with the new standards. The guidelines is expected to enhance the quality, reliability, and transparency of audit reports, thereby reinforcing investor confidence and ensuring the integrity of financial reporting across the market. The QC 1000 standard introduces an integrated framework that consists of six key components which firms must adhere to in their quality control systems. These...

On 5 September, 2024, the United States District Court for the Northern District of Illinois issued a Consent Order for Permanent Injunction and Other Equitable Relief in the case Commodity Futures Trading Commission v. Yakov Cohen, Yukom Communications Ltd., and others (Case No. 1:19-cv-05416). The court issued a permanent injunction against Yakov Cohen for his involvement in a fraudulent binary options trading scheme operated through Yukom Communications and its affiliated entities. The order bars Cohen from participating in commodity trading and related activities and mandates the disgorgement of US$7 million in profits unlawfully obtained through the scheme. This case is part of the United States’ Commodity Futures Trading Commission (US CFTC) broader enforcement efforts, which allege that Cohen and his co-defendants defrauded investors of more than US$165 million by manipulating binary options trades on platforms such as BinaryBook, BigOption, and BinaryOnline. The Yukom...

On 5 September 2024, U.S. District Judge Katherine Polk Failla issued a ruling in the ongoing legal case between the U.S. Securities and Exchange Commission (US SEC) and cryptocurrency exchange Coinbase. The court granted in part and denied in part Coinbase’s motion to compel the production of documents by the US SEC. This ruling comes as part of the wider lawsuit, where the US SEC has alleged that Coinbase has been operating as an unregistered securities exchange, broker, and clearing agency, violating federal securities laws. Judge Failla's decision allows Coinbase access to some of the requested documents, particularly those relating to the classification of certain digital assets as securities, which is central to the US SEC's complaint. However, the court denied Coinbase's broader request to subpoena internal communications, including those of US SEC Chair Gary Gensler and other key personnel. The court also ruled in favor of the US SEC’s motion to permanently seal specific...

On 6 September 2024, Sarah Pritchard, the Executive Director of Markets and International at the UK’s Financial Conduct Authority (UK FCA), addressed the Capital Markets Industry Taskforce, presenting the UK FCA’s reform agenda aimed at strengthening the UK's position in global wholesale markets. Pritchard discussed the recent overhaul of the UK’s listing rules, which arguably is one of major changes in over 30 years. These Listing rules reforms are intended to streamline the listing process, reduce regulatory burdens, and attract more companies to the UK’s capital markets. The new rules, which came into effect on 29 July 2024, simplify the regulatory framework while maintaining high standards of corporate governance and disclosure. Pritchard emphasized that the goal is to empower investors with the right information to make informed decisions rather than enforcing a one-size-fits-all regulatory regime. In addition to the listing rule reforms, Pritchard elaborated on the UK FCA’s...

On 4 September 2024, the Board of Governors of the Federal Reserve System announced enforcement action against the United Texas Bank. The Federal Reserve and the Texas Department of Banking issued a Cease and Desist Order against United Texas Bank, headquartered in Dallas, Texas on 29 August 2024 in relation to foreign correspondent banking and virtual currency customers. The order followed an extensive examination of the bank, which revealed non compliance in the institution's corporate governance, risk management, and compliance with federal anti-money laundering (AML) laws, as well as the Bank Secrecy Act (BSA). These deficiencies, identified in a review conducted by the Federal Reserve Bank of Dallas and the Texas Department of Banking, required immediate regulatory action to safeguard the financial system. United Texas Bank is a Texas state-chartered bank and a member of the Federal Reserve System. On 22 May 2023, an examination was conducted by the Federal Reserve Bank of...

On 3 September 2024, a case conference was convened in the General Division of the Singapore High Court concerning Zettai Pte. Ltd., the parent entity of WazirX, in relation to its application for a six-month moratorium. The application, prompted by the company’s financial difficulties arising from a USD 234 million cyberattack on WazirX, seeks to stay all legal proceedings and enforcement actions against the company while it undergoes restructuring. At the conference, the Court scheduled the matter for hearing on 25 September 2024, at which Zettai will present arguments in support of the moratorium, aimed at allowing the company time to reorganize its affairs and engage in negotiations with its creditors. The moratorium, if granted, would provide Zettai with the breathing space needed to reorganize its operations without facing immediate legal challenges from creditors or other parties. The court has set deadlines for submissions in preparation for the hearing. Zettai was instructed...

On September 4, 2024, the Commodity Futures Trading Commission (CFTC) issued an Order Instituting Proceedings and imposed remedial sanctions against Universal Navigation Inc., operating as Uniswap Labs. The action was taken due to Uniswap Labs’ violation of the Commodity Exchange Act (CEA) for offering and facilitating off-exchange leveraged token transactions to retail customers who were not Eligible Contract Participants (ECPs). During the period from March 2021 to September 2023, Uniswap Labs allowed users to trade digital assets, including leveraged tokens, through its decentralized protocol on the Ethereum blockchain. These transactions were conducted without the necessary regulatory compliance, leading the CFTC to impose penalties and enforce corrective measures. Uniswap Labs settled the case without admitting or denying the allegations, agreeing to pay a $175,000 civil penalty and to cease further violations of the CEA. The case between Universal Navigation Inc., operating as...

On 3 September 2024, the U.S. Securities and Exchange Commission (US SEC) charged six nationally recognized statistical rating organizations for failing to maintain and preserve electronic communications as required under federal securities laws. The firms, including Moody’s, S&P Global Ratings, and Fitch Ratings, admitted to the violations and agreed to pay a total of over $49 million in penalties. These charges stem from recordkeeping failures that hindered the US SEC’s ability to ensure compliance with regulatory obligations, prompting the firms to implement compliance reforms. The SEC has imposed a $1 million fine on A.M. Best Rating Services, Inc. for failing to retain key business communications related to credit rating activities, in violation of federal securities laws. The company allowed employees, including senior staff, to use personal devices for business communication, bypassing recordkeeping rules since 2020. A.M. Best agreed to the cease-and-desist order, admitted...

On 3 September 2024, the Monetary Authority of Singapore (MAS) issued a five-year prohibition order (PO) against Mr. Chong Yew Mun Alan, a former representative of RHB Securities (Singapore) Pte. Ltd. The order was made following Mr. Chong’s conviction for market misconduct offences under the Securities and Futures Act (SFA), relating to false trading in the shares of Catalist-listed Koyo International Limited. Between December 2015 and January 2016, Mr. Chong had participated in a scheme devised by Mr. Lin Eng Jue to create a misleading impression regarding the price of Koyo shares. Acting on Mr. Lin’s instructions, Mr. Chong traded Koyo shares in 15 different trading accounts using login credentials that were not his own. The brokerage firms involved were not aware of or had not consented to Mr. Chong’s trades being placed on behalf of the account holders, which contributed to the false appearance of rising share prices for Koyo. The market-rigging activities culminated in Mr....