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Global encryption regulation upgrades: multiple countries in the US, Europe, and Asia intensively introduce new policies.
Encryption Regulatory Updates
Recently, regulatory agencies in various countries have been intensively introducing new policies and regulations in the encryption currency field.
The U.S. Department of the Treasury and the Internal Revenue Service announced that businesses are not required to report digital asset income in the same way as cash income before the relevant regulations are published. The U.S. Securities and Exchange Commission has expanded the definition of "dealer" to include market participants who regularly provide significant liquidity, which may encompass certain encryption companies. These companies must register with the SEC and comply with federal securities laws.
The U.S. Energy Information Administration has received permission to conduct a temporary investigation into the electricity usage of certain domestic encryption mining companies, planning to collect data monthly from February to July 2024.
In terms of regulatory enforcement, the U.S. Commodity Futures Trading Commission has accused a certain digital asset platform of fraudulent misappropriation of customer funds. The U.S. Department of Justice has filed lawsuits related to multiple encryption fraud cases, involving substantial amounts.
On the international front, the EU has reached a preliminary agreement on a new anti-money laundering plan, requiring encryption asset service providers to conduct due diligence on transactions over 1,000 euros. German police seized $2.17 billion worth of Bitcoin in a large-scale operation. South Korea has arrested an executive of a certain cryptocurrency platform, accusing them of stealing a large amount of encryption.
The Bank of England and the Treasury have released a consultation document regarding the digital pound, emphasizing that privacy is a core design feature. The United Nations has published a report discussing the use of encryption in illegal activities in East and Southeast Asia.
Overall, global regulators are strengthening oversight of the encryption industry to address the risks and challenges it presents.