Crypto regulation in the world: weekly digest #17


We already wrote that the CFTC and the SEC that are two more powerful financial regulators in the USA are fighting to regulate the cryptocurrency market. The Responsible Financial Innovation Act (RFIA) proposal, that was introduced this year in June by bipartisan senators, suggested that cryptocurrencies should be overseen by the CFTC. Senators believe it would be much better for the industry if cryptoassets were treated as commodities rather than securities, which are subject to more stringent regulations.

The bill will most likely not pass this year, but the CFTC is already actively influencing the digital asset market. This week, the regulator released its Annual Enforcement Results, which stated that 20% of the watchdog’s enforcement actions in 2022 were directed to the digital asset market.

According to a CFTC press release, the agency has initiated 82 lawsuits this year to prevent fraud, manipulation and misconduct related to digital assets. The CFTC has also obtained orders imposing over $2.5 billion in restitution, disgorgement and civil monetary penalties either through settlement or litigation.

In particular, the regulator mentioned actions against crypto derivatives platform “Digitex” for illegally offering futures, manipulating the price of its own DGTX token, and failing to comply with customer identification (KYC) and anti-money laundering (AML) procedures.

In the same time, the CFTC found the cryptocurrency trading platform, Bitfinex, engaged in illegal, off-exchange retail commodity transactions in digital assets with U.S persons and operated as an FCM without registering as required. The CFTC also found Tether Holdings Limited, and others, made untrue or misleading statements and omissions of material fact in connection with the U.S. dollar tether token (USDT) stablecoin. The order requires Tether to pay a civil monetary penalty of $41 million.

Meanwhile, the US Federal Deposit Insurance Corporation (FDIC) stated it needs to make a study of cryptocurrencies risks before it can provide any advice to financial institutions. Banks will have to slow down their acceptance of the crypto market until the regulator examines all the risks associated with cryptocurrencies.

Earlier, the US Federal Reserve System (FRS) has already reported that financial institutions that hold cryptocurrencies should be aware of risks associated with them. The Fed, together with the FDIC, is already working on a special framework for banks that are interested in the money of crypto companies. At the same time, the regulator does not intend to prohibit banks from serving cryptocurrency companies.

Previously we wrote that The House of Representatives was planning to take over the supervision of stablecoins into the hands of four US regulators at once: OOC (Office of the Comptroller of the Currency), FDIC (Federal Deposit Insurance Corporation), FED (Federal Reserve Board) and SEC (Securities and Exchange Commission).


The Hong Kong Securities and Futures Commission (SFC) is planning to introduce its own bill to regulate cryptocurrencies, that will differ from that has been already adopted in China. The agency is currently considering to allow retail investors to invest in digital assets directly. The Commission is now reviewing restrictions on crypto-currency trading in Hong Kong and is also planning to allow retail investors to invest in exchange-traded funds (ETFs) linked to crypto assets. The main objective of the planned innovations is to attract more investors and cryptocurrency startups to the region.

Earlier the Hong Kong Monetary Authority (HKMA) announced that it was planning to start testing its own cryptocurrency, the digital Hong Kong dollar. At the same time, another special administrative region of China Macau will provide the state digital currency of China e-CNY with the status of legal tender.

Earlier this week, it was reported that in Japan, lawmakers are preparing changes to several laws, including those regulating cryptocurrencies. The changes are primarily related to combating money laundering and terrorism financing. A bill proposal that was already approved by the Japanese Cabinet of Ministers, require cryptocurrency companies to apply full KYC procedures and share relevant information both among themselves and with the competent authorities.

The proposed bills also increase the liability for money laundering using cryptocurrencies. It also adds obligations established by the FATF standards, according to which it will be possible to seize assets of organizations and individuals involved in the proliferation of weapons of mass destruction.

News from other countries:

  • The Chilean government approved the Cryptocurrency and Fintech Bill. The bill provides for the oversight of cryptocurrency exchanges and defines crypto assets. Financial Market Commission (CMF) will be an industry’s watchdog.
  • In South Africa, Bitcoin is recognized as a financial product. Now bitcoin can be legally sold and bought, transferred between legal and natural persons and stored as property. This decision was the first legislative initiative in the field of bitcoin and digital assets in South Africa.
  • The Russian State Duma plans to adopt a law on cross-border payments in cryptocurrencies in December 2022. It will also be the first law to regulate the use of cryptocurrencies in the country.

We continue to highlight the news of the world of crypto regulation worldwide. Stay tuned for the latest news!

The TokenScope Team
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