Crypto regulation in the world: weekly digest #57


US Senators Elizabeth Warren and Roger Marshall reintroduced The Digital Asset Anti-Money Laundering Act this week. The bill aims to mitigate the risks that digital assets pose to national security by closing loopholes and bringing the digital asset industry under the existing Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) regulatory framework. The bill directs specified federal financial agencies to establish rules regarding digital assets, and the Financial Crimes Enforcement Network (FinCEN) must establish a process for examining and reviewing money service businesses to assess compliance with BSA and AML requirements.

On if the most discussible provision of the bill is that it extends BSA rules regarding reporting of foreign bank accounts to include digital assets by requiring United States persons engaged in a transaction with a value greater than $10,000 in digital assets through one or more offshore accounts to file a Report of Foreign Bank and Financial Accounts.

That’s why some critics argue that the legislation is unnecessary and designed to further a policy banning crypto outright. They argue that money laundering has long been illegal in the United States and throughout the world, and that new legislation is not needed to combat it.

We remind you that the original Bill proposal, DAAMLA, was introduced by Senator Warren at the end of 2022 and was subjected to significant criticism from legislators and the crypto community.

FTX Update

On August 11, 2023, a judge revoked Sam Bankman-Fried's bail and ordered him to be sent to jail. This decision was made after federal prosecutors argued that there were no conditions to prevent Bankman-Fried from witness tampering.

Prior to being sent to jail Bankman-Fried had been under house arrest at his parents' home prior to being sent to jail but it seems that federal prosecutors had insisted on changing the measure of restraint.

Sam Bankman-Fried, the founder of FTX, a cryptocurrency exchange, is facing charges of fraud, bribery, campaign finance violations, and conspiracy to defraud customers and lenders of FTX and Alameda, his crypto hedge fund. The charges allege that he misappropriated customer deposits, committed securities fraud and money laundering, and made millions of dollars in political contributions funded by Alameda Research to federal political candidates and committees in advance of the 2022 election. The trial is set to begin on October 2, 2023.

In addition to the criminal charges, FTX Trading has sued Bankman-Fried and other former executives of the cryptocurrency exchange, seeking to recoup more than $1 billion. FTX lawyers have also accused Bankman-Fried of financing his criminal defense with $10 million in misappropriated funds.


PayPal, the popular online payment platform, has made a significant move into the world of cryptocurrencies by announcing the launch of its own stablecoin called PayPal USD (PYUSD). This stablecoin is designed to contribute to the growing trend of stablecoins for payments and transfers, offering users a digital token that is pegged to the value of the U.S. dollar.

PayPal USD is 100% backed by U.S. dollar deposits, ensuring that each token is fully redeemable for its equivalent value in U.S. dollars. The company intends to use PYUSD for payments and transfers, providing users with a seamless and efficient way to transact using digital currency.

While PayPal's stablecoin launch is an exciting development, it enters a market that is already crowded with stablecoins like USDT and USDC or DAI. However, PayPal's strong user base of 435 million users gives it a significant advantage in reaching a wide audience and driving adoption of its stablecoin.

It is worth noting that the announcement of PayPal's stablecoin launch has also led to the emergence of fake PYUSD tokens. As with any digital currency, users should exercise caution and ensure they are transacting with legitimate and authorized sources.

Same time, the US Congresswoman Maxine Waters has expressed concerns about PayPal's stablecoin launch due to the lack of federal regulatory laws in place. She stated that launching a stablecoin without proper oversight is worrisome. However, PayPal has claimed that they have conducted due diligence and have ensured that PYUSD is fully backed by company’s assets.

News from other countries:

  • Brazil intends to increase taxes on cryptocurrencies for foreign investors. The country’s Congress approved amendments to a bill recognizing cryptocurrencies as «financial assets» for levying taxes on foreign investors. Voting will take place on August 28.

  • Binance obtained license in El Salvador, becoming the first licensed crypto company in the country.

The SEC has delayed a decision on the Ark21 Shares Bitcoin ETF, as the regulatory agency gathers more public comments regarding one of the amendments in the application. We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!

The TokenScope Team
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