USDWeekly Global Crypto Crackdown: OKX Pays $500M, Dubai Tightens Market Rules
Bill Introduced to Ban Politicians from Issuing Memecoins Amid TRUMP Launch Controversy
Representative Sam Liccardo (D-Calif.) plans to introduce the MEME Act, aimed at preventing politicians, including President Trump and family, from issuing or endorsing cryptocurrencies like memecoins. This bill would require Trump to return profits from the recently launched memecoins, Official Trump and Melania Meme, which have seen significant price drops since their peaks. Trump’s embrace of cryptocurrency in 2024, including signing an executive order for a digital asset reserve, has garnered criticism over potential conflicts of interest.
The proposed legislation has reignited discussions about banning stock trading by politicians, highlighted by Nancy Pelosi's stock trading history. Although the bill is unlikely to pass in the current Republican-controlled Congress, Liccardo asserts it could serve as a future reference. The concern is that speculative and hype-driven memecoins may harm the overall reputation of the crypto industry and overshadow legitimate innovations.
OKX Settles $500 Million Compliance Case, Aims to Set Global Regulatory Standard
OKX has resolved a substantial $500 million settlement with US authorities after acknowledging significant compliance lapses, particularly concerning the operation of an unregistered money-transmitting business. On February 24, CEO Star Xu noted that US customers constituted a small fraction of their user base and expressed a strong commitment to enhancing regulatory practices globally. The settlement, amounting to over $504 million, includes an $84 million fine and forfeiture of $420 million from US clients.
OKX admitted to failing anti-money laundering safeguards, which permitted over $5 billion in suspicious transactions. The DOJ criticized OKX for allowing US clients access to its platform and for advising users to provide false KYC information. Despite these issues, the company has emphasized that no harm came to customers and that there are no charges against employees. OKX aims to set a compliance benchmark and asserts that its current compliance controls are among the industry’s best.
Upbit Faces Three-Month Ban on New Customers Amid KYC Violations by South Korea's FIU
South Korea’s Financial Intelligence Unit (FIU) has imposed a three-month ban on Upbit, restricting new customer transactions due to violations pertaining to unregistered crypto asset service providers. The suspension, effective February 25, arises from findings of Know Your Customer (KYC) breaches, with reports indicating up to 600,000 violations. Upbit has apologized for any inconvenience, stating it has implemented necessary improvements. The exchange affirmed that existing customers can continue to utilize all services without restrictions.
Moreover, while the sanctions are currently in place, Upbit suggested that they may change based on evolving circumstances and regulatory procedures. The exchange, founded in 2017 and the largest in South Korea, has experienced a significant decline in trading volumes, with a reported drop of about 70% since January, now standing at $4.6 billion in daily transactions.
DOJ Investigates President Milei Over Alleged Fraud Tied to LIBRA Token Collapse
The U.S. Department of Justice (DOJ) has initiated an investigation into President Javier Milei regarding the alleged fraudulent LIBRA token, following its collapse, which is estimated to have resulted in losses between $87 million and $107 million impacting many investors in Argentina. The DOJ's Criminal Division is collecting preliminary data amid claims linking Milei to the project's promotion, noting his social media posts about LIBRA. The investigation also involves U.S. entities, with the potential involvement of agencies like the SEC and FBI.
Key figures in the scheme include American Hayden Mark Davis, Singaporean Julian Peh, and Argentinians Mauricio Novelli and Manuel Terrones Godoy, while Milei faces scrutiny from Argentine authorities for possible abuse of power and influence peddling. Although he distanced himself from LIBRA, asserting he only shared information about it, Milei's connections raise concerns about the project's legitimacy and transparency.
Ethereum Foundation Donates $1.25M to Support Tornado Cash Developer Amid Legal Battle
The Ethereum Foundation has donated $1.25 million to support Alexey Pertsev, a developer of Tornado Cash, to aid in his legal defense against charges related to facilitating money laundering. The Foundation emphasizes that “writing code is not a crime” and highlights the importance of protecting privacy and open-source development. Pertsev expressed gratitude for the donation, which allows him to concentrate on his appeal following his conviction and five-year prison sentence in 2024. His arrest stemmed from U.S. sanctions against Tornado Cash, which he co-founded.
While Pertsev is now under house arrest, a recent U.S. court ruling has overturned sanctions against Tornado Cash, indicating a shift in regulatory authority over immutable smart contracts. This case has drawn significant attention within the crypto community, with key figures like Vitalik Buterin advocating for the protection of developers and the fundamental right to privacy.
Dubai's VARA Unveils New Crypto Regulations to Enhance Transparency and Curb Market Manipulation
Dubai’s Virtual Assets Regulatory Authority (VARA) has announced new regulations targeting cryptocurrency whales to enhance market transparency and mitigate manipulation risk. Key measures include requiring crypto businesses to disclose identities of major token holders, especially if ownership is concentrated among creators or institutions. CEO Matthew White emphasized that the aim is to provide investors with clarity on token ownership, posing challenges due to the pseudonymous nature of crypto transactions.
The regulations will also mandate disclosures regarding the composition and auditing of reserves, alongside transparent redemption mechanisms for investors, with implementation expected in the first quarter of 2025. These efforts align with Dubai’s strategy to position itself as a leading global hub for cryptocurrency, following a 2024 report highlighting its favorable regulatory environment and tax policies, contributing to its success in the virtual asset sector. Dubai’s approach combines transparency, consumer protection, and a business-friendly climate to attract industry participants.
Pakistan Unveils Plans for National Crypto Council to Regulate Digital Assets
Pakistan's finance ministry has announced plans to establish a National Crypto Council, marking a significant policy shift towards regulating digital assets. This initiative follows a meeting with a U.S. delegation, including advisors to President Trump, highlighting a new approach after years of opposition to cryptocurrency. The council will consist of government representatives, regulatory authorities, and industry experts, focusing on policy development, compliance with international financial standards, and addressing regulatory challenges.
With over 20 million active crypto users in Pakistan, Finance Minister Muhammad Aurangzeb aims to create secure regulations to enhance investor participation and tackle high transaction fees. This shift comes amid rising inflation driving demand for alternative assets and the State Bank of Pakistan’s proposal for a central bank digital currency (CBDC) by 2025. As global crypto regulations evolve, Pakistan's strategy could reshape its position in the international digital asset market.
This article has been refined and enhanced by ChatGPT.
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