We begin this week’s crypto wrap with news from London, where the Labour government has said it intends to introduce a bill that will ensure protection for individuals and firms who own bitcoins and other cryptocurrency.
According to the proposed bill, all types of digital assets, including cryptocurrencies, NFTs and carbon credits will be considered personal property, reports have said.
The move comes at a time when regulators around the globe are coming under increasing pressure to come up with mechanisms that can effectively deal with legal and commercial aspects of crypto.
“It is essential that the law keeps pace with evolving technologies and this legislation will mean that the sector can maintain its position as a global leader in crypto assets and bring clarity to complex property cases.”
Heidi Alexander, UK Justice Minister
The UK bill is aimed at protecting owners and companies from crypto-related fraud, and could also help judges deal with complex cases involving digital assets, the report adds.
“It is essential that the law keeps pace with evolving technologies and this legislation will mean that the sector can maintain its position as a global leader in crypto assets and bring clarity to complex property cases,” Justice Minister Heidi Alexander has said.
The urgency of the task is highlighted by the fact that crypto-related cyber crime has reached record levels globally.
First UK charges for crypto ATM fraud
A 45-year old man has become the first person in the UK to be charged with running unregistered crypto ATMs in the country.
The FCA has said Olumide Osunkoya was illegally running multiple ATMs which were not registered with them, the Financial Times reported.
Crypto ATMs have mostly been in use in the US, where they were recently linked with cyber criminals scamming elderly individuals out of their cash. But this is the first time a UK authority has initiated criminal prosecution involving the use of these machines.
Crypto ATMs look like the standard cash machines in use around the world. The difference is that, unlike the standard ATMs, these machines accept cash in return for the cryptocurrency.
“They can take in cash, convert it to a cryptocurrency such as bitcoin, and send the digital money to a customer’s crypto wallet address”, according to the FT.
The FCA has said Osunkoya ran these machines between December 2021 and September 2023, and that there were £2.6m ($3.4m) worth of cryptocurrency on his ATMs.
Increase in fines against crypto in US
From the UK to the US now, where authorities seem to be tightening their grip on the crypto industry by continuing to impose heavy fines worth billions of dollars.
The SEC’s actions are meant “to ensure transparency, protect investors, and enforce legal compliance”, according to reports.
Since 2013, a total of $7.42 billion has been levied in fines against firms and individuals in the crypto industry, the report adds. What’s important is that 63% of that fine amount has been levied in 2024 only. With more than three months still to go, that yearly figure could look a lot more damaging.
The trend shows that the SEC not only wants to impose tougher regulations against the digital assets, but is also starting to target some of the biggest firms in the crypto industry.
The likes of Ripple, Telegram and Terraform Labs are some of the big crypto players who have been targeted by the SEC over the past few years.
No sign of crypto in presidential debate
Crypto has remained a key part of the discourse around the US presidential race over the last few months. That’s partly because one of the contenders, former President Donald Trump, has openly flirted with the idea of launching his own crypto platform.
But companies and investors are also keen to hear from both candidates about their potential future policies in relation to digital assets.
But, despite the interest, the topic did not make the cut during Tuesday nights’s debate between Donald Trump and Kamala Harris. This left some audiences disappointed, according to reports.
“It was simply proof that crypto is nowhere near as important to either presidential candidate as it is to us in the Web3 world.”
Tim Kravchunovsky, founder of Chirp
Tim Kravchunovsky, founder of decentralized telecommunications network Chirp, said: “It was simply proof that crypto is nowhere near as important to either presidential candidate as it is to us in the Web3 world,” the report adds.
Or, as one observer in our offices put it: “Yeah, sorry we had to focus on the cost of buying a home and two major wars. Blockheads.”
Trump’s corner has drawn more crypto focus during this race, giving his public backing to the so called World Liberty Financial, a digital asset platform that involves some of his family members as founders.
He has so far maintained a supportive tone towards the crypto question and has attracted support from investors. This is in stark contract from his time when he was in office as President. Back then, he openly criticised the digital asset on a number of occasions.
