LEGAL

 

Policy and Legal
Since the emergence of Bitcoin, policies and laws around cryptocurrencies has been controversial. Some countries have started to embrace digital currencies, while others have decided to ban digital assets altogether. Lawmakers and policymakers are beginning to evaluate the benefits of cryptocurrencies, while also raising concerns.


Celsius Network Considers Legal Action Against Crypto Blogger
Celsius Network is considering taking legal action against crypto blogger Tiffany Fong for leaking internal information regarding the company’s bankruptcy case. Fong has been reporting on the bankruptcy case via YouTube and social media platforms, sharing leaked internal information allegedly provided to her by disgruntled former Celsius employees.
Terraform Labs CEO Sends Millions to Law Firm Before Collapse
Terraform Labs CEO, Do Kwon, sent millions to a South Korean law firm right before the company's collapse. Prosecutors believe Kwon's actions were deliberate and prove his awareness of the impending collapse and anticipated legal problems. Kwon is currently facing extradition to both the United States and South Korea, and prosecutors suspect he converted illegal funds from Terra to Bitcoin. Prosecutors have identified over $314 million in illicit assets associated with Kwon and his associates.
Sango Coin Listing Delayed in Central African Republic
The launch of the Central African Republic's Sango Coin has been postponed for a few weeks due to legal and regulatory obstacles. The Sango Project, which is behind the initiative, stated that the delay is necessary to ensure compliance with all relevant regulations.
US District Judge Rules in Favor of Custodial Arrangement for bZx DAO Members
A US district judge has ruled that bZx DAO transactions are custodial due to the ability for developers to upgrade a smart contract where the key is held by a single developer, as highlighted in a class-action lawsuit against bZx DAO and others. This may impact DeFi platforms that use multisigs and require them to obtain custody licenses to comply with the law.
SEC Scholars Program Opens Applications for Fall 2023 Internship
The SEC is accepting applications for its Scholars Program for Fall 2023. The program offers internships for undergraduate and graduate students in business and legal programs. The traineeships are paid and range from $15.09 to $35.27 per hour. The SEC encourages students with an interest in blockchain, computer science, and cybersecurity to apply.
Utah Passes Law Recognizing Decentralized Autonomous Organizations
The Utah State Legislature has passed the Utah Decentralized Autonomous Organizations Act, providing legal recognition and limited liability to DAOs, also known as "Utah LLDs". The act defines ownership, protects anonymity, and introduces quality assurance protocols.
South Koreans transacted $4.3 billion through illegal crypto exchanges
In 2022, South Koreans transacted $4.3 billion through illegal crypto exchanges, comprising almost 70% of all illicit money traffic captured by officers. The transactions aimed to purchase foreign virtual assets to sell in the country later due to the South Korean regulatory regime isolating the local market.
Colombia Holds Landmark Virtual Court Trial in Metaverse
Colombia's Magdalena Administrative Court conducted a trial in the metaverse on February 15, with participants appearing as avatars in a virtual courtroom. The trial involved a traffic dispute brought by a regional transport union against the police and lasted two hours. The verdict could also be given in the metaverse. Colombia is one of the first countries to test legal proceedings in the metaverse.
Israeli Securities Regulator Seeks Crypto Legal Framework
ISA proposes digital asset regulation. Over 150 firms operate in Israel, and more investors are exposed to digital assets. Over the years, the authority has formed many committees to control cryptocurrency supply and encourage digital markets. It also requires digital asset issuers to publish a prospectus-like document before issuance or trade. After Israel's top economist urged for a more comprehensive regulatory framework to align trading platforms and crypto issuers.
Australian regulator sues Finder.com for crypto yield offering
Australia's financial services authority is suing Finder.com for selling a bitcoin yield-bearing instrument without a license. Finder disputes ASIC's accusation that a registered exchange product was unlicensed, but it hasn't said whether it would contest the complaint. After Block Earner last November, it's the regulator's second domestic crypto income product supplier. ASIC sued Finder.com for selling three crypto-backed fixed-yield products without an AFS license. The regulator's third action against crypto financial products and businesses in three months. When asked whether it will fight the action, Finder declined to respond.

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