For anyone who is interested in or wants to start a business in crypto, the million dollar question is what’s the best country on earth to invest in crypto. And we have an answer for you, thanks to an analysis published by crypto resource hub Social Capital Markets.
It has carried out an “in-depth analysis of regulatory policies, tax frameworks, and business conditions” to come up with the “top 10 countries shaping crypto businesses’ future.”
And the results are not entirely surprising. According to the report, “nations like Switzerland and Singapore are consistently recognised as top crypto-friendly jurisdictions, while others such as Estonia, Malta, and the UAE are also making significant strides in this arena.” As for the number one? It’s Dubai.
Each country has been given a score out of 100 and a number of factors have been taken into consideration. The full list of the top 10 countries and their scores is as follows:
- Dubai (score: 79);
- Switzerland (74.5);
- South Korea (73.5);
- Singapore (72);
- USA (71);
- Estonia (69.5);
- Italy (68);
- Russia (67);
- Germany (66.5); and
- Brazil (66.5).
SEC charges for crypto violations
We move to developments in the US, where the SEC has charged Chicago-based Cumberland DRW LLC with “operating as an unregistered dealer in more than $2 billion of crypto assets offered and sold as securities.”
A press release by SEC says the firms dealings in this regard were “in violation of the registration requirements of the federal securities laws that are designed to protect investors.”
The US regulator says “Cumberland has acted as an unregistered dealer by buying and selling crypto assets offered and sold as securities for its own accounts as part of its regular business”, and that this has been going on since 2018.
The firm has also been accused of engaging in “trading crypto assets that are offered and sold as investment contracts on third-party crypto asset exchanges as part of its regular business.”
The SEC says it “seeks permanent injunctive relief, disgorgement of ill-gotten gains, prejudgment interest, and civil penalties” in this case.
Separately, the SEC has also announced fraud charges against “United Arab Emirates entity CLS Global FZC LLC, a self-proclaimed crypto asset market maker.”
The regulator has charged one of the firm’s employees, Andrey Zhorzhes, “for engaging in a scheme to manipulate the market for “NexFundAI,” a crypto asset being offered and sold as a security to retail investors.
A press release by the SEC says “the scheme was intended to induce investor victims to purchase NexFundAI by creating the false appearance of an active trading market for it.”
And in another crypto-related case, the SEC has announced fraud charges against Belize entity Gotbit Consulting LLC a/k/a Gotbit Hedge Fund, a self-proclaimed crypto asset market maker.
One of its employees, Fedor Kedrov, has also been charged with engaging in a scheme to manipulate the market for “Robo Inu,” a crypto asset being offered and sold as a security to retail investors.
A press release by the SEC says “the scheme was intended to induce investor victims to purchase Robo Inu by creating the false appearance of an active trading market for it.”
EU watchdog demands consumer protection
From the US to the EU, where the market regulator has demanded that “crypto companies should be forced to hold external audits of their cyber defences.”
The European Securities and Markets Authority (ESMA) believes there should be more cyber security for customers as part of the regulation of crypto companies in the EU, according to reports.
The block has put together the ‘EU’s Markets in Crypto-Assets Regulation’, which is designed to regulate all aspects of the digital asset. The aim to prevent future fraud and scandals in a market that has largely remained unregulated so far.
As part of the rules which have been passed by lawmakers last year, ESMA will demand that crypto companies allow third party audits of their ability to prevent cybercrime.
However, there are also concerns within the block that Esma is “overreaching by going beyond the remit of the legislation,” according to reports.
Cybercrime around digital assets has seen a huge rise this year, with around $1.5 billion stolen from crypto companies in the first six months of 2024, according to a report by Chainalysis.
Crypto expert wanted
And to wrap up, there could be a job opportunity for you if you are a crypto expert. New York’s financial regulator is looking out for “a senior blockchain analytics analyst to tackle financial crimes, including money laundering, in the crypto industry,” according to reports.
“Candidates should have at least one year of experience in the crypto industry, using blockchain analytics and Open-Source Intelligence tools,” the report says.
Other requirements include “a solid understanding of the Bank Secrecy Act, anti-money laundering (AML) rules and related legal frameworks.”
The announcement of the role makes perfect sense, with crypto-related scams and cybercrime on the rise. As we said earlier, $1.5 billion has been lost to such scams in the first six months of 2024 alone.
