Weekly Update: The Roller Coaster of Crypto Regulation and Developments

FTX Saga Continues

The crypto world is still buzzing with the latest news from the FTX fallout. The Texas State Securities Board (SSB) has officially invited Sam Bankman-Fried, the former CEO of the now-legendary failed exchange, to a hearing on February 2nd regarding allegations of selling unregistered securities. It seems the SSB’s enforcement director, Joe Rotunda, is gunning for a Cease and Desist order and could likely throw in some glitter for good measure.

However, Bankman-Fried appears less than eager to make a hasty return to the U.S. He has expressed a desire to “learn and review” the situation before addressing Congress. Call it a final exam in crypto, I guess.

Global Ripple Effects from FTX

The fallout isn’t limited to the U.S., with Singapore’s leadership set to feel the heat. Prime Minister Lee Hsien Loong and Deputy Prime Minister Lawrence Wong are facing tough questions regarding their failure to protect retail investors. Given that state-backed investor Temasek was amongst the 69 investors involved in FTX’s $420 million funding in 2021, they’re in for a grilling.

Meanwhile, Europe isn’t lounging about either. Christine Lagarde of the European Central Bank has emphasized the need for further regulations following the collapse of FTX. Expect a hefty paperwork session among her colleagues on December 13!

Brazil Turns the Tide

In brighter news, Brazil has made waves in the crypto world by passing a regulatory framework that allows the use of cryptocurrencies as payment methods. Though Bitcoin won’t be on par with legal tender as seen in El Salvador, the new law brings digital currencies into the fold. This includes regulations for crypto exchange platforms, which ought to avoid more FTX-level catastrophes!

Italy’s Taxing Situation

Meanwhile, Italy is sharpening its claws on crypto as it prepares to impose a 26% capital gains tax on profits exceeding €2,000 ($2,062). The intent? To coax Italians into declaring their digital asset holdings—because nothing says “trust us” like a tax incentive.

Outcomes from South Korea

In South Korea, the judicial system has decided to dismiss existing arrest warrants against Terra co-founder Shin Hyun-seong and some associates. The judge determined there isn’t a significant threat of evidence destruction. Meanwhile, Do Kwon continues to play a game of legal hide and seek, evading his own country’s courts.