Regulatory Policy

Focuses on global regulatory developments, policy changes, and compliance requirements. It provides in-depth analysis of government regulations and their impact on the cryptocurrency and blockchain industries, helping businesses and investors proactively manage policy-related risks.

U.S. courts deliver sentencing in SafeMoon case as SBF pushes for new trial

Two major U.S. crypto fraud cases advanced differently on February 10. John Karony, former CEO of SafeMoon, was sentenced to 100 months in prison after victims testified about financial losses caused by his fraudulent assurances. The judge rejected defense arguments and described the scheme as "a massive fraud." Separately, Sam Bankman-Fried filed a pro se motion for a new trial, arguing new witness testimony could weaken the case against him. He was previously convicted and sentenced to 25 years for misusing FTX customer funds. These developments show how crypto cases are diverging—some reaching final sentencing, while others continue through prolonged appeals.

ambcrypto02/10 21:01

U.S. courts deliver sentencing in SafeMoon case as SBF pushes for new trial

ambcrypto02/10 21:01

EU pushes digital euro as dollar-backed stablecoins dominate crypto payments

The European Parliament has approved the creation of a digital euro, a significant step in advancing the central bank digital currency (CBDC) project. With a vote of 429 in favor, the move aims to counter the overwhelming dominance of U.S. dollar-backed stablecoins, which account for over 90% of the global stablecoin market. The digital euro, issued by the European Central Bank, will function as legal tender and support both online and offline payments, enhancing accessibility and privacy. EU officials position the initiative as a strategic effort to reduce reliance on private, foreign-currency payment instruments and preserve monetary sovereignty. A final launch is anticipated around 2029.

ambcrypto02/10 18:08

EU pushes digital euro as dollar-backed stablecoins dominate crypto payments

ambcrypto02/10 18:08

Behind the 2000 BTC Incident: The Fundamental Problem of CEX Ledgers

On February 6, Bithumb, a South Korean cryptocurrency exchange, mistakenly distributed 2,000 BTC each to 249 users due to a unit error during a promotional event—intending to give away 2,000 KRW (≈$1.4) per user. The total erroneous distribution amounted to 62,000 BTC, worth approximately $41.5–44 billion. Although these assets existed only in Bithumb’s internal ledger and not on-chain, they were tradable on the platform, causing BTC/KRW prices to drop nearly 17% within minutes and triggering over $400 million in derivatives liquidations. Bithumb responded within 35 minutes, freezing affected accounts and recovering over 99% of the misallocated BTC. The remaining 1,788 BTC were covered by the exchange’s own funds. The incident exposed a fundamental flaw in centralized exchanges (CEXs): their reliance on internal accounting systems that allow rapid balance adjustments without corresponding on-chain assets. This creates systemic risk, as user balances are essentially IOU entries rather than real assets. The article draws parallels with historical failures like Mt.Gox and FTX, where discrepancies between internal ledgers and actual reserves led to catastrophic collapses. While Bithumb’s quick response limited damage, the event underscores the structural vulnerabilities of CEXs, prompting South Korean regulators to consider stricter oversight. The piece concludes that such incidents highlight the inherent trust asymmetry in CEX operations, where users rely on exchanges to honor ledger entries as real assets—a risk that remains ever-present.

比推02/10 13:52

Behind the 2000 BTC Incident: The Fundamental Problem of CEX Ledgers

比推02/10 13:52

India’s Crypto Policy Under Scrutiny as Chadha Pushes for VDA Legal Recognition

Indian AAP MP Raghav Chadha urged the Indian government to legally recognize Virtual Digital Assets (VDAs) as a formal asset class during a Rajya Sabha address. He highlighted the inconsistency in the current approach where crypto profits are taxed—1% TDS and 30% flat tax—yet lack legal status. This ambiguity has eroded investor confidence, driven an estimated 12 crore Indian investors to offshore platforms, and caused 180 VDA startups to relocate abroad. Chadha noted that 73% of crypto trading volume has moved offshore in FY25, resulting in significant tax revenue loss. He proposed a new licensing law to enhance consumer protection, enforce AML measures, and potentially recover ₹15,000–20,000 crores in annual tax revenue through clear regulation.

TheNewsCrypto02/10 13:19

India’s Crypto Policy Under Scrutiny as Chadha Pushes for VDA Legal Recognition

TheNewsCrypto02/10 13:19

‘Regulation is protection’ – Indian MP Raghav Chadha on India’s crypto crisis

India faces a crypto regulatory crisis, taxing digital assets heavily without providing legal clarity or investor protection. MP Raghav Chadha warns this approach drives talent, startups, and trading volume overseas, costing significant tax revenue. He advocates for legalizing crypto as an asset class with strict regulation, anti-money laundering safeguards, and a domestic regulatory sandbox to retain economic activity and enhance compliance. Despite high public interest, India’s lack of supportive policies has hindered its potential in the crypto space.

ambcrypto02/10 12:17

‘Regulation is protection’ – Indian MP Raghav Chadha on India’s crypto crisis

ambcrypto02/10 12:17

Claiming 'KYC-Free Global Payments', Inevitable Shutdown Within 6 Months

Cryptocurrency cards marketed as "No-KYC global payment" solutions are fundamentally unsustainable and inevitably face shutdown within 6 months due to structural and regulatory realities. These cards rely on exploiting corporate card programs, where a company undergoes business verification (KYB) to issue cards to "employees" without individual KYC. However, Visa and Mastercard's strictly regulated networks mandate that all end-users must be identifiable. When these projects gain traction and transaction volume increases, they attract scrutiny from card networks or issuing banks. Compliance reviews quickly identify the misuse of the corporate card model, leading to account freezes, project termination, and often frozen user funds. Users are attracted to these cards due to privacy concerns or lack of access, but they bear significant risks. Legally, users are not bank customers; their funds are controlled by the company holding the master account, offering no deposit insurance or consumer protection. When projects collapse, users face frozen balances and difficult refund processes. Legitimate alternatives exist, such as low-limit prepaid cards or gift cards purchased with crypto, but they operate within strict boundaries. The only structurally honest path to sustainable no-KYC payments lies outside the Visa/Mastercard duopoly, by building crypto-native networks that integrate directly with payment acquirers, though this approach is more complex and less common. Ultimately, any card bearing a Visa or Mastercard logo that promises high limits without KYC is built on a temporary and fragile foundation destined to fail.

比推02/10 12:11

Claiming 'KYC-Free Global Payments', Inevitable Shutdown Within 6 Months

比推02/10 12:11

South Korea probing Bithumb’s +$40 billion Bitcoin rewards mishap – Report

South Korea has initiated a full investigation into Bithumb and the wider cryptocurrency industry following a major operational error. The exchange mistakenly distributed over $40 billion worth of Bitcoin as customer incentives—far exceeding its actual holdings of around 46,000 BTC. While most of the funds were recovered, some users withdrew the erroneous rewards. The Financial Supervisory Service (FSS) is conducting on-site inspections and has emphasized the seriousness of the incident, stating it will influence upcoming regulatory measures. Bithumb has apologized and pledged to improve internal controls. The event triggered significant Bitcoin withdrawals initially, though outflows have since stabilized.

ambcrypto02/10 11:37

South Korea probing Bithumb’s +$40 billion Bitcoin rewards mishap – Report

ambcrypto02/10 11:37

Fed Governor Stephen Miran Backs Weaker Dollar and Tariff Policies While Crypto Prices Stay Stagnant

Federal Reserve Governor Stephen Miran stated that a weaker U.S. dollar is not a major concern for the central bank and defended Trump’s tariff policies, claiming they affect foreign companies rather than Americans. These remarks come amid stagnant cryptocurrency prices over the past 24 hours. Bitcoin (BTC) dipped slightly but remained around $69,000, while Ethereum (ETH) held above $2,000. Analysts warn of potential further declines, with some predicting BTC drop to as low as $45k–55k, which could trigger broader market losses. Investors remain cautious ahead of key economic data releases.

TheNewsCrypto02/10 11:11

Fed Governor Stephen Miran Backs Weaker Dollar and Tariff Policies While Crypto Prices Stay Stagnant

TheNewsCrypto02/10 11:11

Daren Li Flees Ankle Monitor, Sentenced in Absentia for Global Cryptocurrency Scam

Daren Li, a dual citizen of China and St. Kitts and Nevis, has been sentenced in absentia to 20 years in prison by a U.S. federal court for laundering over $73 million from a global cryptocurrency scam. The scheme used "pig butchering" tactics, where scammers built fake online relationships to lure victims into investing in fraudulent crypto platforms. Li and his associates moved stolen funds through U.S. bank accounts and shell companies before converting them to cryptocurrency. Li removed his ankle monitor and fled in late 2025. Eight other co-conspirators have pleaded guilty as part of an ongoing international effort to dismantle crypto fraud networks.

TheNewsCrypto02/10 10:54

Daren Li Flees Ankle Monitor, Sentenced in Absentia for Global Cryptocurrency Scam

TheNewsCrypto02/10 10:54

Why Crypto Cards That Bypass KYC Are Doomed to Fail?

In the crypto world, "KYC-free crypto cards" are often marketed as tools for financial privacy and accessibility, but they are structurally doomed to fail. These cards rely on Visa or Mastercard networks, which are tightly regulated and require user identification. Most "KYC-free" products exploit a corporate card loophole: a company undergoes KYC (Know Your Business), then issues cards to "employees" (users) without individual verification. This setup is inherently fragile and violates network rules. Such projects follow a predictable lifecycle: initial success, growing visibility, compliance scrutiny, and eventual shutdown within 6–12 months. When terminated, users risk frozen funds with no legal recourse, as they are not direct bank customers. Legitimate alternatives like low-limit prepaid cards or gift cards exist but have strict constraints. The only sustainable path for non-KYC payments is to bypass Visa/Mastercard entirely by building crypto-native networks that integrate directly with acquirers, though this is technically challenging. Ultimately, any card bearing Visa/Mastercard logos and promising high limits without KYC is either misrepresenting its structure or destined for failure.

marsbit02/10 10:50

Why Crypto Cards That Bypass KYC Are Doomed to Fail?

marsbit02/10 10:50

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