Crypto Regulation and Compliance Updates

Gate News reports that on March 29, the police in Chenzhou, Hunan province, uncovered a new type of investment fraud case involving virtual currency called "two golds for cash." They intercepted 7 packages of gold related to the fraud and seized 310 grams of gold. The police investigation revealed that the criminals lured victims under the guise of investment and financial management, encouraging them to purchase gold offline and send it to designated addresses. The illicit funds were then repeatedly circulated through virtual currency exchanges and overseas account transfers. The involved gold is currently being gradually returned to the victims, and the case is still under further investigation.

NVIDIA has recently faced a class-action lawsuit from investors for concealing over $1 billion in cryptocurrency mining revenue, which has been officially approved to proceed by a U.S. federal judge. Investors allege that NVIDIA failed to adequately disclose its business's reliance on cryptocurrency demand during the period from 2017 to 2018, which affected its stock price. Although NVIDIA claims that cryptocurrency mining only accounts for a small portion of its business, the company benefited significantly during the crypto boom, and subsequently, its business performance was impacted by fluctuations in demand.

_AI crypto agents in DeFi are executing unscripted trades, raising risks of exploits, losses, and unpredictable market behavior._ A crypto researcher is raising red flags about AI agents managing real funds in DeFi. Tanaka, who has been testing these agent setups firsthand, says the danger is

Failing to pass the crypto market structure bill, known as the CLARITY Act, could leave the door open for a future less industry-friendly US government to crack down on crypto again, Peter Van Valkenburgh the executive director of advocacy group Coin Center says. In an X post on Friday, Van Valkenb

_Lummis backs stronger DeFi protections, but critics warn unclear rules could still expose developers to legal risk._ As the CLARITY Act moves closer to a Senate committee review, debate around it is intensifying. Critics question whether the bill truly protects DeFi developers from legal risk. Sen

Gauntlet has updated the progress on resolving the vulnerability on platform X. The USDC Frontier (v1) on the Base network has been reallocated, eliminating bad debt risk. Deposits for v1 and v2 vaults are now reopened, and Morpho will remove the warning tomorrow. The mainnet USDC Frontier (v2) vault is being restarted, and more information will be provided based on subsequent fixes.

The List DAO has released an update on platform X, stating that the $8.6 million loan has been repaid $8.4 million, and all positions have been redeemed at a 1:1 ratio, with no losses to users. Only $26,000 remains unpaid, and relevant users are urged to contact us as soon as possible to complete repayment.

On March 29, Singapore cracked a case of internal employee conflict involving the theft of cryptocurrency assets, with an amount of 8.83 million Singapore dollars at stake. Three defendants, dissatisfied with their dismissal, illegally hacked into their former employer SafeX's account, stole cryptocurrency, and laundered money. Zhang Xinghua has pleaded guilty and received a two-year sentence, while one of the other two has fled.

The UK has imposed new sanctions on Southeast Asian scam networks, naming Chen Zhi and his long-time collaborator Hu Xiaowei, and sanctioning the cryptocurrency exchange "New Coin," alleging that it supports fraudulent activities.

Gate News reports that on March 29, South Korean President Lee Jae-myung nominated Shin Hyun Song, the head of the Monetary and Economic Department of the Bank for International Settlements, as a candidate for the new governor of the Bank of Korea. It is reported that Shin Hyun Song is known as a "pragmatic hawk" and holds a negative attitude towards the Korean won-pegged stablecoin promoted by the Lee administration. Shin Hyun Song believes that in countries with highly volatile exchange rates that are susceptible to capital outflows, stablecoins can easily become a tool for capital flight, and stablecoins pegged to the local currency may accelerate this trend.

Canada’s federal government has proposed a total ban on cryptocurrency donations to political parties, citing concerns that foreign entities could exploit the technology to interfere in elections. Known as the Strong and Free Elections Act, the bill was introduced on Thursday and proposed to

Gate News reported that on March 29, the Turkish Parliament removed the tax provisions related to cryptocurrency assets during the deliberation of a comprehensive bill. Previously, the provision aimed to impose a 0.3% transaction tax on cryptocurrency transactions conducted through service providers and to implement withholding tax on cryptocurrency gains. This adjustment stemmed from strong opposition from the opposition party. Turkish officials stated that the relevant content may be reintroduced in the future as separate legislation.

Economist Peter Schiff warns that crypto asset mortgages may increase the cost of home purchases and the risk of default, as borrowers must take on both mortgage and crypto "second loan" interest. This model amplifies leverage levels, raising concerns.

Senator Elizabeth Warren requested the U.S. Department of Commerce to provide records on Bitmain Technologies amid concerns of national security risks related to its bitcoin mining equipment. This inquiry is part of the ongoing "Operation Red Sunset" investigation into potential espionage and power grid disruptions. Warren also expressed worries about possible political influences due to business ties between the Trump family and Bitmain.

Coin Center's Executive Director stated that the Trump administration failed to fulfill its promises, leading to legal risks for developers of cryptocurrency privacy software. Currently, the U.S. Department of Justice has filed lawsuits against multiple developers, exacerbating compliance uncertainty in the industry.

Gate News reports that on March 29, California Governor Gavin Newsom signed an executive order prohibiting government appointees from using non-public information obtained during their official duties to profit from insider trading in prediction markets. The executive order specifies that public officials appointed by the governor are not allowed to use "confidential or non-public information" to bet on political or economic events related to their positions. The ban extends to their spouses, family members, and former business partners. Newsom stated that public service should not become a tool for profit and that the boundaries between power and interests need to be clearly defined.

U.S. Congressman Steven Horsford and Max Miller have released a draft discussion of the “Digital Assets PARITY Act,” aiming to establish a unified tax framework, promote the development of digital assets, and propose measures such as small-amount tax exemptions and deferred tax payments. It is still under discussion.

The Canadian government has introduced the “Strong and Free Elections Act,” planning to ban political donations in forms such as cryptocurrency because they may create risks to election integrity. At the same time, the UK Labour Party has also paused accepting cryptocurrency donations until the regulatory framework is improved.

The Washington State attorney general filed a civil lawsuit against prediction market platform Kalshi, alleging it violated state law with prediction services covering sports events and other events. Kalshi denies the alleged violations and says it is confident it will prevail. This case is one of several lawsuits it is facing.

Gate News message: March 29, US Senator Thom Tillis’s office plans to publicly release next week proposed legislation related to stablecoin yield and reward mechanisms. It is still in ongoing discussions with industry stakeholders. The backdrop for this move is that some crypto industry participants, such as a certain CEX, have expressed dissatisfaction with the relevant provisions that were shown earlier this week. The CEX’s global investment research director, David Duong, said the industry is preparing a coordinated, unified counterproposal aimed at pushing for adjustments to the provisions to protect users while maintaining a sustainable rewards mechanism.