Navigating the waters of EU regulations and pathways for lending protocols to overcome challenges

Lawmakers in Virginia passed Bill 339 by a majority vote of 97, which proposes the establishment of a working group to specifically study the entire cryptocurrency ecosystem and make recommendations to promote the expansion of this technology. The upcoming cryptocurrency working group will consist of 13 members, including 5 from the Senate, 5 from the House of Representatives, 2 non-legislative civilian members from the blockchain industry, and 1 non-legislative civilian representative from local government. The deadline is November 1, 2024. Recently, the state also introduced cryptocurrency mining legislation aimed at exempting cryptocurrency miners from the requirement to obtain a currency transfer license.

Skybridge founder and managing partner Anthony Scaramucci stated that US President Joe Biden has had a positive impact on cryptocurrency and financial markets. Biden's commitment to the rule of law is expected to accelerate cryptocurrency regulation and provide a stable legal framework. While these regulations may not satisfy everyone, clear guidance will provide a solid foundation for legal arguments in court.

The Spanish National Securities Market Commission (CNMV) has published a list of 18 companies operating in the country without a license, including several cryptocurrency companies such as BITBINX, Crytomerge, and CryptoMaxiTrade. These companies are not registered with the CNMV and are therefore not authorized to provide investment services or other regulated activities. The regulatory body advises affected investors to seek help from ordinary courts. As of 2023, the number of officially registered cryptocurrency companies in Spain has grown by 56%, currently including 83 companies, including multinational companies such as Binance, Bitpanda, Revolut, and Crypto.com. Last year, the CNMV and Spanish regulatory bodies strengthened their policies towards the cryptocurrency industry. In October 2023, the Spanish Ministry of Economy and Digital Transformation announced the accelerated implementation of the EU's first comprehensive crypto framework, the Markets in Crypto-Assets Regulation (MiCA).

The head of the South Korean financial regulatory agency will meet with Gary Gensler, the chairman of the U.S. Securities and Exchange Commission, in May of this year to discuss the classification of non-fungible tokens (NFTs) and approve spot bitcoin exchange-traded funds. Currently, South Korea does not classify NFTs as "virtual assets" because the government believes that their impact on the financial market is minimal compared to cryptocurrencies. Lee Bok-hyun, the head of the Financial Supervisory Service, plans to discuss whether NFTs should be legally classified as virtual assets with Gensler, as speculation surrounding NFTs increases with the value of major cryptocurrencies.

Gyeonggi, South Korea's most populous province, has recovered $4.6 million from 2,390 crypto tax evaders out of the 5,910 identified, thanks to a new digital tracking system. The system uses the local registration number of delinquents to reveal their mobile numbers, which are then used to track linked accounts on crypto exchanges. The system has reduced the previous six-month process of requesting information from crypto exchanges to just 15 days. South Korea has been investigating some firms for tax evasion while repeatedly delaying the implementation of its tax policies on crypto earnings.

Hong Kong Monetary Authority believes that it is time to provide guidance on tokenized product-related activities, to provide clear regulatory requirements for the banking industry, to support the industry's continued innovation and the benefits of tokenization, and to take appropriate measures to protect consumers/investors.

The National Bank and Securities Commission regulatory agency in Honduras stated in a resolution that due to the risk of fraud and money laundering, the country's financial system is banned from trading cryptocurrencies and similar virtual assets. The commission stated that the resolution, dated Monday, was made public on Friday with immediate effect. The resolution prohibits its regulated institutions from "holding, investing or trading in cryptocurrencies, crypto assets, virtual currencies, tokens or any similar virtual assets that have not been issued or authorized by the central bank."

Kraken has requested its UK users to verify their self-hosted wallets. Based on recent posts, Kraken has started implementing this verification process, citing "UK regulations".

The SEC has voted to adopt new rules that extend federal securities laws to cover the cryptocurrency and DeFi sectors, with an exemption for those with assets less than $50 million. The rules require individuals and entities engaged in transactions involving crypto assets that meet the definition of securities or government securities to comply with federal securities laws, and target market participants who engage in trading activities as part of a regular business. The adoption of these rules is part of a broader regulatory push to bring greater clarity and oversight to the cryptocurrency industry, but has sparked debate within the crypto community regarding the inclusion of DeFi. Despite industry objections, the SEC proceeded with the adoption of the rules, with Chairman Gary Gensler noting that they are "common sense" measures to protect investors and promote market integrity.