Crypto Regulation Update October 2024

At Oxido Solutions, we offer crypto trading bot software for professional and institutional clients worldwide. While our services don’t require licensing, our clients often face complex regulatory requirements. Keeping track of global crypto regulations is crucial, as they affect our ability to serve our clients. Here’s a roundup of the latest developments in crypto compliance and regulation from October 2024:

🇺🇸 Gary Gensler (image) Reaffirms Bitcoin’s Non-Security Status
In an interview with CNBC, SEC Chair Gary Gensler reiterated that Bitcoin is not classified as a security under U.S. law. While Bitcoin enjoys this exemption, Gensler emphasized the need for strict regulations for the broader crypto sector. He also highlighted the SEC’s role in fostering trust in the markets, citing the approval of several Bitcoin ETFs as evidence of regulatory progress.

🇩🇪 Germany Shuts Down 47 Crypto Exchanges Linked to Illegal Activity
Germany’s Federal Criminal Police Office and its Central Office for Combating Cybercrime have shut down 47 crypto exchanges linked to money laundering and other illegal activities. The exchanges failed to comply with KYC regulations, and authorities are focusing on dismantling infrastructure that supports illicit financial operations.

🇨🇳 China’s Underground Crypto Trading Surges to $75 Billion
Despite China’s ban on cryptocurrency trading, underground markets are thriving. Over-the-counter (OTC) brokers handled inflows of $75.4 billion in the nine months ending June 2024. This surge highlights the challenges of enforcing the ban and the growing demand for alternative investments as China’s traditional markets struggle.

🇦🇪 UAE Exempts Crypto Transfers from VAT
The UAE’s Federal Tax Authority has introduced amendments to exempt cryptocurrency transfers and conversions from value-added tax (VAT). This exemption, applied retrospectively from January 2018, positions the UAE as a more attractive hub for digital asset transactions, further enhancing its status as a crypto-friendly jurisdiction.

🇪🇺 OECD Releases Crypto-Asset Reporting Framework (CARF)
The OECD published its XML Schemas and User Guides to facilitate information exchanges between tax authorities under the Crypto-Asset Reporting Framework (CARF). The framework aims to ensure global consistency in reporting requirements for Crypto-Asset Service Providers. First exchanges under CARF are expected to begin in 2027, with a focus on automatic information exchanges between jurisdictions.

🇺🇸 Blockchain’s Role in Mitigating Illicit Finance
Despite misconceptions about crypto being a primary tool for illicit finance, the U.S. Department of Treasury’s 2024 report shows that cash remains far more popular for criminal activities. Blockchain’s transparent and traceable nature offers law enforcement valuable tools to combat financial crime. Crypto platforms are increasingly working with authorities to crack down on illegal activities, further dispelling the notion that crypto is inherently linked to crime.

🇪🇺 Coinbase to Delist Non-Compliant Stablecoins in EU
Coinbase will delist unauthorized stablecoins in the European Economic Area (EEA) by December 30, 2024, as part of its compliance with the EU’s Markets in Crypto Assets (MiCA) regulations. MiCA requires stablecoin issuers to obtain e-money licenses. While Circle’s USDC is compliant, Tether has announced plans to address MiCA’s complexities with a technology-based solution tailored for the European market.

🇺🇸 SEC Delays Decision on Ethereum ETF Options
The U.S. Securities and Exchange Commission (SEC) has delayed its ruling on options trading for Ethereum ETFs until November 2024. Approval could pave the way for increased liquidity in Ethereum markets, following the success of Bitcoin ETF options, which have drawn significant interest from institutional investors.

🇰🇿 Binance Secures Full Crypto Trading License in Kazakhstan
Binance has obtained a Digital Asset Trading Facility (DATF) license in Kazakhstan, making it the first Central Asian country where the exchange has full regulatory approval. This allows Binance to operate as a trading platform, broker-dealer, and custodian, marking Kazakhstan as a key player in the region’s emerging crypto market.

🇹🇼 Taiwan Opens Digital Asset ETFs to Professional Investors
Taiwan’s Financial Supervisory Commission has approved the trading of foreign digital asset exchange-traded funds (ETFs) for professional investors. This move is designed to diversify investment options while maintaining high standards for investor protection, given the volatile nature of virtual assets.

🇭🇰 Hong Kong Expands Crypto Licensing Deadline
Hong Kong’s Securities and Futures Commission (SFC) has extended the deadline for crypto exchange licenses beyond May 2024. The extension reflects the city’s commitment to becoming a global crypto hub, with 11 additional exchanges under consideration for licenses, including major players like Binance and Crypto.com.

Stay tuned for more updates in Oxido Solutions’ next Crypto Regulation Update!