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On 5 August 2024, Indian authorities have issued a substantial tax bill to Binance, the world’s largest cryptocurrency exchange. The Directorate General of Goods and Services Tax Intelligence (DGGI) from Ahmedabad has served Binance with a show cause notice demanding $86,033,159 in Goods and Services Tax (GST) for non-compliance issues. This tax recovery notice stems from allegations that Binance collected fees from Indian customers trading in virtual digital assets (VDAs) on its platform without registering under the Indian GST framework, reflecting India's intensified efforts to bring cryptocurrency operations under its tax regime. Binance, which holds an estimated 40% market share in the global cryptocurrency market and operates in over 150 countries, now faces increased scrutiny from Indian tax authorities. This latest development underscores India's assertion of regulatory authority over international crypto platforms serving Indian customers. The timeframe for the alleged tax...

On 30 July 2024, the Law Commission of England and Wales published a supplemental report and draft Bill proposing the establishment of a third category of personal property to encompass certain digital and other assets. This initiative aims to clarify the legal status of digital assets, such as crypto-tokens and non-fungible tokens (NFTs), confirming their capability to attract personal property rights. In its June 2023 digital assets report, the Commission concluded that digital assets are fundamentally different from both physical assets and rights-based assets like debts and financial securities. As such, these digital assets do not neatly fit within the traditional categories of personal property. The draft Bill seeks to address this by affirming that an object can be the subject of personal property rights even if it is neither a thing in action nor a thing in possession. This legislative move mirrors recent case law developments but aims to eliminate the remaining uncertainties...

On 5 August 2024, the United States Senator Cynthia Lummis is set to introduce the "Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide Act of 2024," popularly known as the BITCOIN Act of 2024 in the second session of the 118th Congress. This bill, introduced by Senator Lummis, aims to establish a Strategic Bitcoin Reserve, marking the first time in history that the U.S. government will integrate Bitcoin into its national financial strategy. The proposal outlines a comprehensive plan to purchase and securely store up to 1,000,000 Bitcoins over five years, enhance financial resilience, and position the U.S. as a leader in global financial innovation. By incorporating Bitcoin as a digital counterpart to traditional gold reserves, the act seeks to provide a hedge against economic uncertainty and monetary instability, ensuring long-term financial security for the nation. The BITCOIN Act of 2024 proposes the creation of a decentralized network of...

On 2 August 2024, the Commodity Futures Trading Commission (CFTC) announced the unanimous approval of an amended order exempting two recognized market operators (RMOs) in Singapore from the swap execution facility (SEF) registration requirements. The RMOs receiving this exemption are FMX Securities (Singapore) Pte. Limited and LMAX Pte. Ltd. These exemptions are granted under Section 5h(g) of the Commodity Exchange Act (CEA), which allows the CFTC to exempt foreign SEFs from registration if they are subject to comparable, comprehensive supervision and regulation by their home country's appropriate governmental authorities. The CFTC retains the authority to revoke the exempt status if the facility is no longer authorized or in good standing in its home country. The CFTC's decision builds on an order issued on March 13, 2019, which determined that the Monetary Authority of Singapore's (MAS) regulatory framework for approved exchanges (AEs) and RMOs meets the standards required by the...

On 2 August 2024, the Securities and Exchange Commission (SEC) announced a proposal for joint data standards under the Financial Data Transparency Act of 2022. This initiative aims to establish technical standards for data submitted to various financial regulatory agencies, enhancing interoperability and consistency across the sector. Alongside the SEC, eight other agencies are involved or expected to propose these standards: the Board of Governors of the Federal Reserve System, the Commodity Futures Trading Commission, the Consumer Financial Protection Bureau, the Department of the Treasury, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the Office of the Comptroller of the Currency. The proposed standards aim to streamline the submission process for financial institutions by creating common identifiers for entities, geographic locations, dates, and specific products and currencies. SEC Chair Gary Gensler...

On 26 July 2024, Latvijas Banka published its Financial Stability Report, offering a comprehensive analysis of Latvia's financial system. The report addresses key areas such as the macrofinancial environment, the real estate market, credit institution sector developments, and macroprudential policy measures. It provides insights into the economic challenges and risks facing Latvia, as well as the measures being taken to ensure financial stability and resilience. The report highlights several critical developments, including the impact of geopolitical tensions on the financial sector, the slow growth in domestic lending, and the significant role of household and corporate solvency in maintaining economic stability. Additionally, it discusses the importance of enhancing the resilience of the banking sector through strategic measures such as increasing capital buffers and revising lending standards to promote sustainable investments. Latvia is witnessing a growing interest in...

On 1 August 2024, Mr. Lim Tuang Lee, Assistant Managing Director (Capital Markets Group) at the Monetary Authority of Singapore (MAS), addressed the Singapore Governance and Transparency Forum, highlighting the critical importance of sustainable governance. Mr. Lim congratulated the award winners for their progress in corporate governance disclosures and practices, emphasizing the theme “Navigating Sustainable Governance.” He stressed the growing investor interest in companies that prioritize sustainability, business ethics, and integrity. Mr. Lim articulated three key principles—Profit, People, and Planet—that companies should focus on to achieve sustainable governance. He proposed that businesses, while aiming for profitability, should also prioritize their ecosystems, including customers, employees, and communities, to ensure long-term viability. He emphasized the importance of fostering a positive culture within organizations to engage stakeholders effectively and highlighted the...

On 30 July 2024, Coinbase came under scrutiny following allegations that it violated campaign finance laws by making a $25 million donation to the Fairshake super political action committee (PAC) while bidding for a federal government contract. These claims were brought forward by Molly White, a prominent crypto skeptic and founder of the “Web3 is Going Just Great” website. White contends that the timing of Coinbase’s contribution coincides suspiciously with its involvement in federal contract negotiations. She noted that the U.S. Marshals Service had issued a request for proposals on 4 March 2024, with Coinbase securing a $32.5 million contract on 1 July 2024. White alleges that the $25 million donation on 30 May 2024 fell within a period prohibited for contributions by federal contractors. In response, Paul Grewal, Coinbase’s Chief Legal Officer, dismissed the allegations as "misinformation" in a post on 2 August 2024. Grewal emphasized that Coinbase does not classify as a federal...

On 30 July 2024, in a recent development, the XRP Ledger will now offer tokenized US Treasury bills (T-bills) to investors through a new partnership with OpenEden, a leading tokenization platform. This initiative, set to transform decentralized finance (DeFi), integrates traditional real-world assets (RWAs) into the XRPL ecosystem, providing new investment opportunities and enhanced security. OpenEden’s introduction of tokenized T-bills to the XRP Ledger marks a significant milestone. T-bills, short-term US government debt obligations backed by the Department of the Treasury, will be available as TBILL tokens on the XRPL. These tokens are backed by short-dated US T-bills and reverse repurchase agreements collateralized by US Treasuries. To ensure security and regulatory compliance, minters undergo stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) screenings. Ripple, the company behind the cryptocurrency XRP, has committed $10 million to OpenEden’s TBILL tokens. This...

On 30 July 2024, the Commodity Futures Trading Commission’s (CFTC) Office of Customer Education and Outreach (OCEO) issued a customer advisory highlighting the risks and multi-faceted nature of fraud schemes that often target victims repeatedly. This warning serves to remind the public that trading frauds can evolve into additional scams, such as fraud-recovery scams and money laundering schemes. Fraud in the digital asset space has become increasingly sophisticated, often involving multiple stages to extract as much value as possible from victims. "We tend to see this in what we call relationship confidence frauds or what the perpetrators call pig butchering frauds," said Melanie Devoe, Director of the Office of Customer Education and Outreach. "These frauds are heinous crimes that leave victims with significant losses and broken hearts. Then, the victims are harmed again by fraud-recovery schemes or convinced to open bank accounts and move stolen money." Victims of initial frauds...

On 26 July 2024, the Commodity Futures Trading Commission (CFTC) announced that Senior Judge David C. Guaderrama of the U.S. District Court for the Western District of Texas entered an order on 9 July 2024, assessing monetary relief totaling over $31 million against Abner Alejandro Tinoco and his company, Kikit & Mess Investments, LLC. The court's ruling mandates Tinoco and Kikit & Mess to pay, jointly and severally, $6,203,792.18 in restitution to 199 defrauded victims, $6,257,904.89 in disgorgement with credit for restitution payments, and a $18,773,714 civil monetary penalty, which is three times the amount of unlawful gains from their fraudulent forex and cryptocurrency scheme. This order follows an initial consent decree issued on 25 March 2022, permanently enjoining Tinoco and his firm from future violations of the Commodity Exchange Act (CEA) and CFTC regulations, and banning them from trading in any CFTC-regulated markets. The court found that the defendants engaged...

On 30 July 2024, the Seoul Central District Court made a landmark ruling in favor of Wemade CEO Park Kwan-ho, ordering the now-defunct virtual asset exchange GDAC to return 7.8 million WEMIX tokens, valued at approximately $7.31 million, to Park. This decision brings to light critical issues surrounding exchange operations, regulatory compliance, and investor protection in the unpredictable world of digital assets. The court's decision, which supports Park’s application for a temporary injunction filed on 29 July 2024, requires GDAC to comply within 30 days or face a daily fine of 3 million won after the deadline. The ruling dismisses GDAC’s allegations against Park of market manipulation and money laundering, raising questions about the exchange’s ability to maintain a 100% reserve ratio, contradicting its previous statements. GDAC's troubles began after a hacker attack in April 2022 resulted in losses of about 20 billion won ($14.48 million), which may have compromised the...