The global regulatory framework for crypto assets is undergoing rapid transformation. What developments should be watched?
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The global regulatory framework for crypto assets is undergoing rapid transformation. What developments should be watched?
Reviewing the evolution of events and looking ahead to industry development.
Navigating Web3 tides with focused insightsAuthor: Bulu
Since 2024, multiple countries worldwide have intensified regulatory enforcement in the blockchain and digital asset sector, primarily focusing on combating crimes involving digital assets (such as money laundering and fraud) and ensuring industry compliance.
As a pioneer region in blockchain digital assets and the market with the largest user base, regulatory changes in the United States significantly influence the global development prospects of blockchain digital assets. This article compiles major U.S. enforcement cases in the blockchain digital asset space since 2024, along with key regulatory developments in recent years from the U.S., the European Union, and major Asian countries, enabling readers to understand evolving dynamics and anticipate industry trends.
United States
Key Legislative Developments
▶ U.S. Treasury Proposes Revisions to the Bank Secrecy Act
According to media reports, the U.S. Department of the Treasury’s semiannual regulatory agenda, released on August 16, 2024, indicated that the Federal Reserve Board and the Financial Crimes Enforcement Network (FinCEN) plan to revise the definition of "monetary instruments" under the Bank Secrecy Act. The proposed changes aim to strengthen reporting requirements for financial institutions regarding domestic and cross-border digital asset transactions, extending regulations to cover digital assets and central bank digital currencies. If approved, the proposed amendments could be issued as early as September 2025.
▶ U.S. House Passes the FIT21 Act
On July 20, 2023, U.S. Representatives Glenn Thompson, French Hill, Dusty Johnson, Warren Davidson, and Tom Emmer introduced H.R. 4763—the Financial Innovation and Technology for the 21st Century Act (FIT21 Act). Patrick McHenry, Chairman of the House Committee on Financial Services, is a co-sponsor of the bill.
On May 22, 2024, the U.S. House of Representatives passed the FIT21 Act with overwhelming bipartisan support. The bill is currently under review by the U.S. Senate. By establishing a comprehensive regulatory framework for digital assets, the passage of this legislation has drawn significant attention across the blockchain industry.
▶ U.S. Congress Passes the Blockchain Regulatory Certainty Act
On July 26, 2023, the U.S. Congress passed the Blockchain Regulatory Certainty Act (BRCA), jointly proposed by Representatives Emmer and Soto.
The BRCA defines key terms such as "digital asset," "blockchain developer," and "blockchain service." It clarifies that cryptocurrency is legally recognized as "a form of intangible personal property that can be exclusively controlled by an individual and transferred peer-to-peer without necessarily relying on intermediaries," thereby providing regulatory clarity for blockchain digital assets in the United States.
Enforcement Actions (January 2024 – Present)
○ On August 12, 2024, the U.S. Securities and Exchange Commission (SEC) announced charges against Cynthia and Eddy Petion, along with their company NovaTech Ltd., alleging they raised over $650 million in crypto assets from more than 200,000 investors globally, in connection with a fraudulent scheme. The SEC also charged Martin Zizi, Dapilinu Dunbar, James Corbett, Corrie Sampson, John Garofano, and Marsha Hadley for promoting NovaTech to investors.
○ On July 30, 2024, the SEC announced charges against Nader Al-Naji for executing a multi-million-dollar crypto asset fraud scheme, involving a social media platform called BitClout and its native token BTCLT.
○ On July 1, 2024, the SEC announced charges against Consensys Software Inc., alleging that its MetaMask Staking service engaged in unregistered offers and sales of securities and that both MetaMask Staking and another service, MetaMask Swaps, operated as unregistered securities brokers.
○ On April 24, 2024, the SEC filed a lawsuit against Geosyn Mining, LLC—a Texas-based cryptocurrency mining and custody firm—and its co-founders Caleb Ward and Jeremy McNutt, accusing them of participating in an unregistered and fraudulent securities offering.
○ On March 14, 2024, the SEC announced charges against 17 individuals involved in a Ponzi scheme totaling $300 million. The scheme involved CryptoFX LLC, based in Houston, Texas, and primarily targeted approximately 40,000 Latino investors in the U.S. and two other countries. The SEC had previously taken enforcement action in September 2022 to halt CryptoFX’s operations and filed lawsuits against its two main operators, Mauricio Chavez and Giorgio Benvenuto.
○ On March 5, 2024, the SEC charged ShapeShift AG with operating as an unregistered dealer while running its online cryptocurrency trading platform. ShapeShift agreed to pay a $275,000 penalty.
○ On February 7, 2024, the SEC announced a lawsuit against TradeStation Crypto, Inc., based in Plantation, Florida, for failing to register crypto-lending products offered and sold to U.S. investors. TradeStation agreed to pay a $1.5 million fine.
○ On February 2, 2024, the SEC announced that Brian Sewell and Rockwell Capital Management agreed to settle fraud allegations. The SEC had previously brought fraud charges against Brian Sewell for operating an online cryptocurrency trading course, which resulted in losses of $1.2 million among 15 students.
○ On January 29, 2024, the SEC charged Xue Lee (also known as Sam Lee) and Brenda Chunga (also known as Bitcoin Beautee) with participating in HyperFund, a fraudulent crypto pyramid scheme that raised over $1.7 billion from global investors.
European Union
In May 2023, the European Union enacted the world's first comprehensive regulatory framework for blockchain digital assets: the Markets in Crypto-Assets Regulation (MiCA). MiCA entered into force in June 2023 and includes numerous secondary and tertiary implementing measures.
Under MiCA, all companies issuing or trading blockchain digital assets must obtain licenses to operate. Starting January 2026, all crypto-asset service providers will be required to collect and verify the names of senders and beneficiaries of asset transfers. Additionally, any self-hosted wallet holding more than €1,000 will require ownership verification when conducting transactions.
On June 30, 2024, the stablecoin provisions under MiCA took effect, restricting stablecoins from processing more than one million payment transactions per day or exceeding €200 million in daily transaction volume. Stablecoin issuers must now obtain authorization to legally operate within the EU.
Learn more about MiCA’s implementation timeline and details at: https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica
Asian Countries
Asia hosts a large number of blockchain digital asset users and leads the world in trading volume. However, regulatory approaches toward blockchain digital assets vary significantly across Asian nations.
Japan: Maintains an open stance toward blockchain digital asset trading, allowing citizens to own and trade digital assets. Recently, Japan has strengthened rules requiring cryptocurrency exchanges to share customer information to combat money laundering.
South Korea: Has actively pursued legislative regulation of digital assets. In 2023, South Korea passed the Virtual Asset User Protection Act, enhancing user safeguards through stricter recordkeeping and transparency requirements. The law officially took effect on July 19, 2024.
China: Maintains a comprehensive ban on cryptocurrency exchange services and digital asset trading. On July 19, 2024, the Supreme People's Court and the Supreme People's Procuratorate jointly issued judicial interpretations on handling money laundering criminal cases, explicitly listing transactions conducted via "virtual assets" as one of the methods of money laundering.
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