USDThis Week’s Global Policy Recap: Crypto Bills, Seizures, and ATM Bans
Congress Set for Crypto Week: Key Bills on Regulation, Stablecoins, and CBDC Ban Scheduled for Debate
As the US Congress initiates "Crypto Week," lawmakers are set to debate three key bills: the CLARITY Act, which seeks to clarify regulatory roles; the GENIUS Act for stablecoin frameworks; and the Anti-CBDC Surveillance State Act, banning a US central bank digital currency. Advocacy group Stand With Crypto, supported by Coinbase, emphasizes the urgent need for legislation, highlighting over 50 million American crypto owners and significant bipartisan support. With a letter from more than 65 companies urging action, the upcoming week represents a crucial opportunity for the crypto industry to influence US regulation and address long-standing uncertainties.
US Treasury Drops Tornado Cash Sanctions Appeal
The US Treasury has dropped its appeal regarding Tornado Cash sanctions, leading the Eleventh Circuit Court to vacate the judgment and end the enforcement of the sanctions. This resolution was reached after the Treasury and Coin Center jointly agreed to dismiss the case. Tornado Cash co-founder Roman Storm, however, is set for a criminal trial on July 14, facing charges of laundering over $1 billion linked to the Lazarus Group. Storm’s defense argues the government is targeting software code rather than actions, gaining slight traction as legal challenges continue. Earlier, another developer, Alexey Pertsev, was convicted in the Netherlands.
Hong Kong Attracts Stablecoin Firms Ahead of New Regulations; Sinolink Seeks Digital Asset License
Hong Kong is actively engaging prospective stablecoin firms ahead of new regulations expected in August 2025, as highlighted by InvestHK’s Alpha Lau. Nearly 50% of 630 mainland Chinese firms entering the city in the past two and a half years did so under national policy support. Sinolink Securities plans to apply for a digital asset trading license, emphasizing institutional engagement in digital assets. Hong Kong's competitive corporate tax rate of 16.5% and its free port status attract businesses to diversify beyond American markets, signaling a potential shift towards regulated digital asset operations among Asian financial hubs.
Sweden Expands Asset Seizure Law to Include Crypto, Facing Civil Liberties Concerns
Sweden has expanded its asset seizure law to include cryptocurrencies and luxury goods, empowering authorities to confiscate unexplained wealth without criminal charges. Since its implementation in November 2024, over $8.3 million in assets have been seized, though the crypto component remains unspecified. The law aims to disrupt criminal financing and confront violent crime by allowing asset confiscation if individuals cannot justify wealth origins. Legal experts express concerns about civil liberties violations. Additionally, lawmakers propose incorporating Bitcoin into Sweden’s foreign reserves, reflecting a strategy to retain seized assets rather than liquidate them, akin to U.S. practices under former President Trump.
New Zealand Bans Crypto ATMs and Tightens International Cash Transfers to Combat Financial Crime
New Zealand has introduced new legislation to ban all crypto ATMs and tighten international cash transfer limits to combat financial crime, particularly money laundering linked to drug trafficking. The country currently has 221 crypto ATMs under scrutiny. Deputy Justice Minister Nicole McKee emphasized broader investigative powers for authorities alongside enhanced access to financial data. Industry reactions are mixed; some praise the need for better oversight, while others highlight vulnerabilities due to the lack of identity checks. This move aligns with global trends, as other countries like the USA and Australia also implement stricter regulations in response to rising fraud cases.
Malta Faces EU Scrutiny Over Crypto Licensing Standards
Malta's crypto licensing practices are under scrutiny following a European Securities and Markets Authority (ESMA) review, which identified deficiencies in the Malta Financial Services Authority's (MFSA) authorization process for crypto asset service providers (CASPs) under the MiCA framework. The review, part of a broader EU initiative for consistency in MiCA implementation, highlighted gaps in pre-licensing oversight. While Malta has four licensed firms—Bitpanda, Crypto.com, OKX, and ZBX—ESMA's findings may prompt stricter screening of applicants without revoking existing licenses. This situation underscores the tension between Malta's monitoring approach and ESMA's enforcement preferences.
This article has been refined and enhanced by ChatGPT.
