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Kraken, a cryptocurrency exchange, has obtained a Virtual Asset Service Provider (VASP) registration from the Dutch Central Bank (DCB) in the Netherlands, strengthening its presence in Europe. The move comes amid significant growth in the European crypto market, driven by improving regulatory clarity in the region. Kraken highlights the Netherlands' dynamic startup and technology sector, robust financial services industry, and high fintech adoption rate as key factors driving its expansion strategy in Europe. Kraken's acquisition of a VASP registration in the Netherlands underscores the exchange's commitment to compliance and regulatory transparency, positioning it for continued growth in the European market. The move reflects the growing legitimacy of the cryptocurrency industry as regulators provide clearer guidelines for market participants. By securing regulatory approval, Kraken aims to enhance trust and confidence among users and stakeholders while tapping into the expanding...

South Korean regulators, including the Digital Asset Exchange Association (DAXA) and the Financial Intelligence Unit (FIU), are investigating cryptocurrency exchange OKX for alleged unregistered activity. The exchange is accused of promoting its centralized exchange platform, Jumpstart, to South Korean investors through Telegram influencers, despite not officially offering services in the country and lacking a Korean-language website. DAXA reported OKX to authorities, with FIU evaluating potential breaches of regulatory standards. OKX's regulatory troubles in South Korea highlight the ongoing challenges faced by cryptocurrency exchanges amid evolving regulatory landscapes. The case underscores the importance of compliance with local regulations and the risks associated with operating in jurisdictions where regulatory requirements may not be met. Additionally, the investigation reflects broader regulatory scrutiny in South Korea, with authorities proposing stricter measures for crypto...

The Appeals Court of Montenegro has overturned the High Court's decision to extradite Do Kwon, co-founder of Terraform Labs, to the United States. The court cited procedural irregularities and lack of authority on the part of the High Court to make such an executive decision. Kwon's legal defense team successfully appealed against the extradition, arguing that proper procedures were not followed and that the High Court did not conclusively determine the sequence of extradition requests from South Korea and the US. The reversal of the extradition decision highlights the importance of procedural fairness and adherence to legal standards in extradition proceedings. It also underscores the complexity and jurisdictional challenges in international legal cases involving individuals like Kwon, who are subject to extradition requests from multiple countries. The legal uncertainty surrounding Kwon's case in Montenegro continues, reflecting broader issues related to extradition, jurisdiction,...

The U.S. Treasury's 2024 National Risk Assessments reveal an alarming trend of criminals turning to cryptocurrencies for illegal activities like money laundering and terrorist financing. The reports highlight challenges such as non-compliance among Virtual Asset Service Providers (VASPs) and the strategic use of stablecoins by terrorist groups. Additionally, the assessments identify the online gaming industry as a growing venue for money laundering. In response, the Treasury plans to release a strategic plan aimed at enhancing compliance and addressing vulnerabilities in the digital finance sector. The findings underscore the urgent need for robust regulation and compliance measures within the cryptocurrency space to combat illicit finance. The increasing misuse of virtual assets by criminals poses significant challenges for law enforcement and regulatory authorities. Addressing these issues will require coordinated efforts between governments, financial institutions, and technology...

Abu Dhabi Global Market (ADGM) has inked a memorandum of understanding with the Solana Foundation to propel the advancement of distributed ledger technology (DLT). While specific measures were not disclosed, the collaboration aims to explore development opportunities within ADGM's DLT Foundations Regulations. ADGM Registration Authority CEO Hamad Al Mazrouei expressed enthusiasm for the partnership, highlighting the importance of regulation and compliance in fostering robust and sustainable development in the blockchain space. ADGM, known for its innovative regulatory framework, introduced the DLT Foundations Regulations in November, positioning itself as a global leader in blockchain governance. Solana Foundation CEO Lily Liu emphasized the potential of the partnership to attract talent to Abu Dhabi and the broader Middle East region, underscoring Solana's recent surge in popularity and developer activity. Despite recent technical challenges, including an outage in February, Solana...

The European Commission is contemplating criminalizing artificial intelligence (AI)-generated imagery and deepfakes depicting child sexual abuse (CSA) as part of updated laws responding to technological advancements. The proposal aims to introduce new criminal offenses for live-streaming child sexual abuse, possession and exchange of "pedophile manuals," and the use of AI chatbots for child abuse. This initiative seeks to address the surge in online risks for children due to increased online presence and technological developments, emphasizing the need for enhanced awareness and crime prevention measures. While the final form of the proposals will be decided by the European Parliament and the European Council, this move underscores the EU's commitment to combating CSA and leveraging legislative measures to protect children online. (Source: Cointelegraph)

The United States Securities and Exchange Commission (SEC) has stepped up its regulatory efforts targeting the crypto and Decentralized Finance (DeFi) sectors with new rules imposing registration requirements on "dealers" and "government securities dealers." While SEC Chair Gary Gensler defends these measures as crucial for investor protection and market integrity, Commissioner Hester Pierce has voiced strong opposition. The newly adopted rules refine the definition of "dealers" and "government securities dealers," requiring registration with the SEC, SRO membership, and compliance with federal securities laws. However, Commissioner Pierce argues that these rules distort market behavior and quality, diverging from existing statutory frameworks. She criticizes the broad scope of the rules, categorizing market participants solely based on liquidity-providing activities, which she believes penalizes liquidity provision and may reduce market competition. Pierce calls for revised...

South Korea's Financial Intelligence Unit (FIU) is reportedly probing OKX following accusations of operating as an unregistered cryptocurrency exchange. The Digital Asset Exchange Association (DAXA) reportedly alerted the FIU, prompting an investigation into OKX's activities. Allegations suggest OKX promoted its token sales platform to South Korean investors without proper registration, leveraging local influencers for promotion. Failure to register could result in penalties from financial regulators, with recent announcements indicating potential severe penalties for crypto criminals. A flash crash in OKX's token OKB further intensified scrutiny, with its price dropping 48% in minutes before recovering. OKX has yet to respond to requests for comment. (Source: Cointelegraph)

Under proposed regulations, decentralized exchanges (DEXs) with liquidity positions exceeding $50 million would need to register with the SEC. While DEXs have been instrumental in the DeFi revolution, offering peer-to-peer cryptocurrency trading without intermediaries, concerns persist about market integrity and investor protection. The SEC aims to address these concerns by bringing significant DEX operations under its regulatory oversight, potentially requiring adherence to compliance standards such as disclosure requirements and anti-money laundering measures. Critics caution that such regulations could stifle innovation and undermine the decentralized ethos of DeFi, while stakeholders prepare for vigorous debate during the public commentary period. The outcome will shape the future of decentralized exchanges and the broader DeFi ecosystem. (Source: Altcoinbuzz.io)