Sam Bankman-Fried arrested and consented to the extradition — Regulation Decoded, Dec. 12-19.
Welcome to Regulation Decoded, your weekly digest of all the main developments within the area of regulation.
The FTX drama escalated final week when the Royal Bahamas Police Power arrested its former CEO, Sam Bankman-Fried, on the request of the US authorities. Inside hours, politicians, crypto executives and influencers had all booted up their Twitter apps to comment on the arrest of the previous CEO, who needed to miss his testimony earlier than the U.S. Congress. Nonetheless, the textual content of SBF’s deliberate testimony was obtained by the media, whereby he blamed the inclusion of FTX.US within the Chapter 11 chapter on John J. Ray III, a restructuring lawyer who assumed the position of FTX CEO after the chapter submitting.
The physique of allegations towards FTX and SBF personally is stacking up. The US Securities and Change Fee (SEC) charged Bankman-Fried with violating the anti-fraud provisions of the Securities Act of 1933 and the Securities Change Act of 1934. On the identical time, the Commodity Futures Buying and selling Fee (CFTC) has filed a lawsuit towards Sam Bankman-Fried, FTX and Alameda Analysis, claiming violations of the Commodity Change Act and demanding a jury trial. A contemporary indictment, signed by United States Legal professional for the Southern District of New York Damian Williams, is 14 pages lengthy and contains eight counts.
Bankman-Fried reportedly reconsidered his earlier decision to contest extradition and is predicted to look in courtroom within the Bahamas on Dec. 19 to hunt a reversal. By consenting to extradition, he would be capable to seem in a United States courtroom, the place If convicted, he may stand up to 115 years in jail. Nonetheless, there’s a “lot to play out” within the case till he will get a ultimate sentence inside the subsequent few months and even years, legal commentators told Cointelegraph.
Senators Warren and Marshall introduce money-laundering laws for crypto
U.S. Senators Elizabeth Warren and Roger Marshall launched the Digital Asset Anti-Money Laundering Act of 2022. The seven-page invoice would broaden the classification of a cash service enterprise (MSB), prohibit monetary establishments from utilizing know-how equivalent to digital asset mixers and regulate digital asset kiosks, in any other case often known as ATMs.
Cash service companies can be required to have written Anti-Cash Laundering insurance policies and to implement them. The invoice would finalize reporting necessities already proposed by FinCEN and impose new necessities, together with reporting transactions over $10,000 in accordance with the Financial institution Secrecy Act.
Canada bans crypto leverage and margin buying and selling
The Canadian Securities Directors (CSA), the council of Canada’s provincial and territorial securities regulators, issued an replace to crypto buying and selling platforms working within the nation. Based on the assertion, all crypto buying and selling corporations working in Canada — each native and overseas ones — have to comply with newly expanded terms, which ban them from providing margin or leverage buying and selling companies to any Canadian purchasers. The expanded phrases additionally require crypto trade companies suppliers in Canada to segregate custody property from the platform’s proprietary enterprise.
Nigeria set to move invoice recognizing Bitcoin and cryptocurrencies
The Nigerian authorities will reportedly quickly move a legislation that will recognize the usage of Bitcoin (BTC) and different cryptocurrencies as a way to maintain updated with international practices. If the Investments and Securities Act 2007 (Modification) Invoice is signed into legislation, it could enable the native Securities and Change Fee to “acknowledge cryptocurrency and different digital funds as capital for funding.”
The report comes nearly 24 months after Nigeria banned crypto activity in February 2021, with the Central Financial institution of Nigeria (CBN) ordering native crypto exchanges and repair suppliers to stop exercise and mandating banks to shutter the accounts of any people or entities discovered to be partaking in buying and selling actions.