USDThis Week’s Global Policy Shift Tightens Grip on Crypto Privacy and Fraud
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EU to Ban Anonymous Crypto Accounts and Privacy Coins by July 2027
Starting July 1, 2027, the EU's Anti-Money Laundering Regulation (AMLR) will ban anonymous crypto accounts and privacy coins like Monero, Zcash, and Dash. Crypto transactions exceeding €1,000 will require complete identity verification through KYC checks across all platforms. The new AMLA (Anti-Money Laundering Authority) will enforce these regulations, monitoring platforms handling over €50 million in transactions or serving more than 20,000 customers in one country. Crypto users in the EU must prepare for these changes, especially if they rely on anonymous services or privacy coins, as compliance will be mandatory within the next two years.
UK Government Proposes Crypto Regulations to Combat Scams and Promote Innovation
The UK government, led by HM Treasury and Chancellor Rachel Reeves, has proposed new draft regulations for cryptocurrencies to enhance consumer protection and curb fraud amid rising crypto ownership. In an April 29 announcement, the government outlined plans to regulate crypto exchanges, dealers, and agents, aiming to protect residents from scams as 12% of UK adults now own crypto, up from 4% in 2021. The proposed rules follow discussions with US officials regarding a cross-border regulatory sandbox. Industry representatives, including CryptoUK's Ian Silvera, welcomed the government's commitment to establish the UK as a global hub for digital asset technologies, although they seek further clarity on aspects like liquid staking and DeFi. The Financial Conduct Authority (FCA) intends to publish final rules in 2026, aligning the UK’s regulatory framework with the European Union’s Markets in Crypto-Assets (MiCA) initiative, which commenced in December 2022.
Crypto Advocacy Groups Urge SEC for Clarity on Staking Regulations
Nearly 30 crypto advocacy groups, led by the Crypto Council for Innovation (CCI), have urged the SEC for clearer regulatory guidance on crypto staking, stating it should not be classified as an investment activity. In an April 30 letter to SEC Commissioner Hester Peirce, the CCI’s Proof of Stake Alliance argued that staking is a technical process essential for the decentralized internet, asserting it does not meet the Howey test definition of an "investment contract" since stakers retain ownership and rewards are determined by blockchain protocols. The coalition seeks support for responsible staking in exchange-traded products (ETPs) without oppressive regulations that could hinder innovation. They reported increased engagement with the SEC, noting significant progress in dialogue. High-profile supporters include firms like Andreessen Horowitz, Consensys, and Kraken. Additionally, the SEC has delayed decisions on crypto staking ETFs, with analysts predicting potential approvals in May.
Arizona Approves Bill to Invest 10% of $31.5 Billion in Public Funds into Bitcoin and NFTs
Arizona state lawmakers passed two significant bills—Senate Bill 1025 and Senate Bill 1373—that enable the state to invest up to 10% of its $31.5 billion in public assets into digital assets like Bitcoin and NFTs. This legislation establishes a Digital Assets Strategic Reserve Fund, intended to incorporate seized crypto assets and future appropriations while ensuring on-chain auditability and standardized risk controls. A successful signature from Governor Katie Hobbs is pending, which would officially authorize the investment process. If enacted, Arizona would become the first U.S. state to hold Bitcoin in its treasury, potentially allocating up to $3.14 billion, equivalent to 31,000 BTC. This initiative mirrors similar efforts in states like Texas and Florida, positioning Arizona as a leader in the integration of Bitcoin into public finance, potentially influencing legislative actions in other states and globally.
North Carolina House Approves Bill to Invest in Bitcoin ETPs, Aiming for Financial Diversification
On May 1, 2025, the North Carolina House approved House Bill 92, allowing the state to invest up to 10% of certain public funds in Bitcoin-related exchange-traded products (ETPs) through regulated platforms like NYSE and NASDAQ. This strategic legislation, aimed at portfolio diversification, could position North Carolina as the first U.S. state to gain Bitcoin exposure in this manner. The bill limits investments to assets with a market cap of at least $750 billion, ensuring security through cold wallets and monthly audits, while requiring legislative approval for any sales during financial emergencies. The bill now awaits Senate approval.
AUSTRAC Targets Inactive Crypto Exchanges, Threatens Deregistration Amid Fraud Concerns
Australia's financial intelligence agency, AUSTRAC, is targeting inactive crypto exchanges, warning that deregistration may occur if these platforms do not withdraw voluntarily. Out of 427 registered exchanges, AUSTRAC has begun contacting those that appear inactive, citing risks of criminal exploitation linked to money laundering and scams. Registration legitimacy is crucial for oversight, and AUSTRAC may cancel registrations if businesses are deemed operationally inactive. Additionally, a publicly searchable register for consumers will be launched. In related efforts, ASIC has ramped up enforcement, shutting down 95 fraudulent firms and over 10,000 scam websites, including 1,500 phishing scams.
South Korea's People Power Party Unveils Crypto Initiatives Ahead of Presidential Election
South Korea's ruling People Power Party (PPP) has announced seven initiatives to enhance its crypto industry ahead of the presidential election on June 3, 2025. Key proposals include permitting spot crypto ETF trading within this year and expanding banking access for exchanges by scrapping the restrictive "one exchange, one bank" rule. Additionally, the PPP aims to legalize security token offerings and establish a regulatory framework for stablecoins. A special crypto committee will be formed under the party's presidential candidate to drive these initiatives, which align with the country's ongoing efforts to ease crypto restrictions and promote investor confidence.
Malaysia Unveils Blockchain Infrastructure to Boost Digital Economy and Innovation
On April 30, 2025, Malaysia launched the Malaysia Blockchain Infrastructure (MBI), developed by MIMOS Berhad, to enhance its digital economy. The platform integrates major blockchain networks like Ethereum and Solana using Zetrix technology, promoting seamless cross-chain transactions. Early adoption from firms like Masverse and Heitech Padu showcases its versatility in supply chain monitoring and digital identity verification. Emphasizing accessibility, MBI supports MyDigitalID for various applications. This initiative fosters public-private partnerships and aims to position Malaysia as a regional tech hub, aligning with the MADANI vision of innovation, sustainability, and equitable access to digital resources.
Roswell, New Mexico Establishes 10-Year Bitcoin Strategic Reserve
Roswell, New Mexico, officially established a Bitcoin Strategic Reserve, reflecting its commitment to holding Bitcoin for at least 10 years. This move aligns with a growing trend among municipalities recognizing Bitcoin's potential as a long-term financial asset, similar to efforts made by cities like Miami and states like North Carolina, where Bitcoin Reserve legislation has gained traction. The city's adoption of Bitcoin aims to enhance financial flexibility and access new investment opportunities, alongside the potential for significant price appreciation, following the experiences of El Salvador, which has seen positive returns from its Bitcoin investments.
Malaysian Police Raid Illegal Bitcoin Mining Operation, Seize 45 Machines Worth $52,145
Malaysian police recently raided an illegal Bitcoin mining operation in Hulu Terengganu and Marang, seizing 45 machines valued at approximately $52,145 (RM225,000). The operation was costing the electricity provider, Tenaga Nasional, around $8,342 (RM36,000) monthly in losses. Since 2018, illegal mining has resulted in approximately $722 million (RM3.4 billion) in electricity theft nationwide. These operations, often run by international criminal syndicates from residential and commercial properties, exploit the local grid illegally. While Bitcoin mining is legal in Malaysia, tampering with electricity connections carries severe penalties, including imprisonment and hefty fines.
Kuwait Cracks Down on Illegal Crypto Mining, Investigates 60 Individuals Amid Power Grid Strain
Kuwait has initiated a major crackdown on illegal cryptocurrency mining, targeting residential properties used as hubs for unlicensed operations. Approximately 60 individuals are under investigation, with some released on bail of 500 Kuwaiti dinars. The crackdown, part of national efforts to combat financial crimes, addresses the significant strain illegal mining places on the power grid, leading to outages affecting residential and commercial areas. The Public Prosecution has ordered the detention of several suspects linked to substantial unexplained financial deposits, while the Ministry of Electricity has begun cutting power to identified sites, requiring clearance for reconnection.
UK FCA Proposes Ban on Credit Card Crypto Purchases to Curb Consumer Debt Risks
The UK's Financial Conduct Authority (FCA) is proposing to ban credit card use for purchasing Bitcoin and other cryptocurrencies to mitigate consumer debt risks. This initiative stems from concerns that consumers may incur unsustainable debt if the value of their crypto investments decreases. The FCA's discussion paper also emphasizes the lack of protections for crypto investors compared to traditional financial assets. Additionally, the FCA aims to implement a comprehensive regulatory framework for the crypto market, requiring UK trading platforms to be authorized and setting strict standards for crypto lending and staking. Feedback is sought until June 13, 2025.
This article has been refined and enhanced by ChatGPT.
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