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In a filing on December 29, U.S. prosecutors announced that they will not pursue a second trial for additional charges against former FTX founder Sam Bankman-Fried (SBF). SBF was convicted on November 3 of seven charges of fraud. The prosecutors noted that the charge for unlawful political contributions was part of the original indictment. However, the unlawful donations charge, along with those brought by the superseding indictment, were included after SBF was extradited to the U.S. from The Bahamas in December 2022. The prosecutors believe that proceeding with the sentencing is in the public's interest, outweighing the need for a second trial, as it will likely include orders of forfeiture and restitution for the victims. The decision to drop the unlawful donations charge may impact FTX's efforts to recoup the contributions. (Source: Cryptoslate)

Indonesian police authorities have closed down 10 Bitcoin mining operations, accusing organizers of electricity theft amounting to nearly $1 million. The North Sumatra Police Force confiscated 1,134 Bitcoin mining machines, 11 meters of electrical cable, and computer equipment in the multi-site operation. The authorities claim the mining operations engaged in unauthorized access to electricity. (Source: Cointelegraph)

U.S. Congressman Warren Davidson, supported by House Majority Whip Tom Emmer, has advocated for the firing of SEC Chair Gary Gensler in 2024. Davidson attributes his stance to alleged corruption and abuses of power. This comes amid tensions between the SEC and the digital asset sector in 2023. Davidson, concerned about Gensler’s enforcement-first regulatory approach, introduced the SEC Stabilization Act earlier this year, aiming to restructure the SEC and remove Gensler. The Act proposes adding a sixth commissioner and an Executive Director to oversee day-to-day operations. (Source: Cryptoslate)

A United States District Court has ruled in favor of the United States Securities Commission (SEC) using expert assistance in its case against Terraform Labs and its former CEO Do Kwon. The court granted summary judgment for defendants on claims involving offering and effecting transactions in security-based swaps. Terraform Labs' request to exclude the testimony of the SEC's expert witnesses was denied. The ruling heavily relied on the Howey test to determine the nature of the investments. The court noted a previous statement from Kwon, indicating that LUNA investors were effectively putting their money in a common enterprise with expectations of profits from the efforts of Terraform Labs and Kwon. Similarly, the MIR token was judged under the same criteria, with the court concluding that it indeed satisfies the Howey test due to the expectation of profits driven by Terraform’s developmental efforts. (Source: Coingape)

The Financial Intelligence Unit India (FIU IND) has issued compliance Show Cause Notices to nine offshore Virtual Digital Assets Service Providers (VDA SPs), including Binance, Kucoin, Huobi, Kraken, Gate, Bittrex, Bitstamp, MEXC, and Bitfinex. Despite serving a significant number of Indian users, these exchanges are not registered under the provisions of the Prevention of Money Laundering Act, 2002 (PML Act). The notices state that Virtual Digital Assets Service Providers must register with FIU IND as Reporting Entities and comply with obligations defined under PMLA 2002. (Source: PIB)

After Bitcoin-supporting libertarian candidate Javier Milei won the elections in Argentina and became the new president, the government introduced a new tax peace bill. The bill includes cryptocurrencies such as Bitcoin (BTC) among the various assets that taxpayers must declare. Citizens who declare their cryptocurrency holdings before March 31 will be subject to a reduced tax rate of 5%, increasing to a maximum of 15% by November 30. The tax rates for cryptocurrencies will apply regardless of the issuer or storage location. (Source: Bitcoinsistemi)

The Hong Kong Securities and Futures Commission (SFC) has released rules for spot bitcoin exchange-traded fund (ETF) issuers, allowing the use of both cash and in-kind creation models. This is in contrast to the U.S. Securities and Exchange Commission (SEC), which insists on the exclusive use of the cash creation model for spot bitcoin ETFs. The SFC's circular provides requirements for authorizing investment funds with exposure to virtual assets of more than 10% of their net asset value for public offerings in Hong Kong. The move aims to meet the growing demand for virtual asset products while ensuring investor protection safeguards. (Source: Bitcoin.com)

The Eastern Caribbean Central Bank (ECCB) has issued a Request for Vendor Information (RFVI) as part of its exploration process for launching a retail central bank digital currency (CBDC), named DCash 2.0. The ECCB is seeking input from parties with deployment-ready solutions for a retail CBDC, including wallet providers, core banking systems, identity managers, business intelligence, and offline payment providers. The current version of DCash, developed by Bitt, has been in pilot status since 2021 and is now exploring integration with other systems, such as real-time gross settlement (RTGS) and financial institution core banking systems. (Source: Cointelegraph.coms)

Microsoft has introduced Copilot, a standalone AI chatbot app available on the Google Play Store for Android users. Developed in collaboration with OpenAI, Copilot integrates advanced language and image generation capabilities from GPT-4 and DALL-E 3 with image analysis features from GPT-Vision. Positioned as an evolution of the Bing search app, Copilot offers a wide range of AI-enhanced tasks, including answering questions, generating visuals, and assisting in document drafting. Notably, Microsoft consolidates various AI-powered services under the Copilot umbrella, providing users with a unified AI companion at no cost. (Source: Cryptopolitan.com)

Hong Kong has introduced a regulatory proposal for the stablecoin industry, outlining a legal framework that mandates stablecoin issuers to acquire a license within the city. The proposal, collaboratively released by the Hong Kong Monetary Authority (HKMA) and the Bureau of Financial Services and Treasury, details key requirements for stablecoin issuers operating in Hong Kong. To qualify for a license, stablecoin issuers must be locally incorporated, possess a governance presence, and establish an effective stabilization mechanism involving a pool of high-quality, highly liquid reserve assets. The proposed framework aims to regulate stablecoins referencing the value of one or more fiat currencies in Hong Kong. (Source: Bitcoinsistemi.com)

The South Korean government has announced the implementation of a unified public official asset disclosure service, incorporating the registration of cryptocurrency holdings. Beginning January 1, 2024, asset disclosure information for public officials, including cryptocurrency holdings, will be accessible through the Public Ethics Management Information System (PETI). This move aims to enhance transparency and accountability in the public sector, ensuring that approximately 5,800 public officials, including high-ranking civil servants, university professors, National Assembly members, and senior public officials, disclose their assets, including cryptocurrencies, through the centralized PETI platform. The initiative is expected to increase public access to information about the assets held by public officials and fortify measures against conflicts of interest. (Source: Cryptoslate.com)

The U.S. Securities and Exchange Commission (SEC) has established a deadline of December 29 for spot Bitcoin ETF applicants to finalize their filing amendments. Spot Bitcoin ETF issuers have been informed that applications fully updated and submitted by this date will be considered in the initial wave of decisions. Notably, the SEC has emphasized that filings mentioning the in-kind creation method will not be considered, urging the use of the cash creation method. This move comes as various spot Bitcoin ETF applications, including those from BlackRock, await regulatory approval, with market participants anticipating potential approval for multiple spot Bitcoin ETFs simultaneously. (Source: Bitcoin.com)