regulation

A judge in Argentina dismissed a criminal case against President Javier Milei and 10 others related to the LIBRA token. According to The Defiant, the ruling also involves Milei's sister Karina Milei and Hayden Davis.In addition, a class action lawsuit by New York investors against LIBRA was separately dismissed in September.

According to a report by Forbes on Friday, the Internal Revenue Service (IRS) is preparing to reform its voluntary disclosure program, planning to reduce penalties and expedite the processing of tax violation cases, including those involving cryptocurrency.Jarod Koopman, head of the IRS Criminal Investigation Division, stated that the agency aims to launch the revised program before December and to close cases within 120 days after taxpayers complete the required submission process. He noted that the new plan will not establish a separate disclosure channel for digital assets but will apply the same voluntary disclosure procedures to other forms of tax noncompliance. Koopman also mentioned that the penalties under the revised program will be significantly lower than current levels, although he did not provide specific amounts. The IRS is considering allowing taxpayers to settle debts through installment payments or settlement offers.According to Forbes, the current program often takes a year or longer to complete and primarily targets taxpayers who intentionally fail to comply with tax laws and may face criminal prosecution, rather than those who make reporting errors due to negligence. Meanwhile, legislative efforts are advancing another voluntary disclosure program aimed at cryptocurrency taxpayers. Section 502 of the Digital Asset Taxation Certainty Act will establish a correction process with clear penalty standards for past violations, and the bill was passed by the House Ways and Means Committee in September.

According to sources, the cryptocurrency trading platform Gate (Gate Future entity) has recently obtained the Introducing Broker (IB) qualification in the United States and signed a cooperation agreement for the prediction market with relevant partners.Currently, Gate is advancing the technical integration and development of its products, planning to launch prediction market services in the United States, with the earliest possible launch by the end of 2026.

According to local media Digital Asset in South Korea, the South Korean government and central bank are promoting amendments to the country's foreign exchange market law to regulate stablecoins as a payment tool.South Korea is currently formulating the "Basic Law on Digital Assets," which will establish an exchange licensing system and formulate rules for the issuance of stablecoins.

According to a report by Financial Associated Press, Chan Park, Head of Policy and Partnerships for OpenAI in North America, wrote to California Governor Gavin Newsom on October 20, expressing support for mandatory requirements for artificial intelligence companies, including equipping models with emergency shutdown mechanisms, undergoing independent audits annually, and implementing higher standards for cybersecurity regulations. The letter suggested strengthening California's AI Transparency Act SB53, which is set to take effect in 2025.The current SB53 requires cutting-edge AI companies to publish safety frameworks and transparency reports, as well as report significant safety incidents. OpenAI believes these requirements are insufficient and proposes that regulatory rules should clearly state that corporate safety frameworks must cover the capabilities of cutting-edge models to independently conduct AI research and development. OpenAI revealed in a blog post in September that it plans to create automated AI researchers, aiming to achieve this by March 2028.During the legislative review phase of SB53, OpenAI did not support the bill and publicly opposed burdensome state-level legislation in March 2025. OpenAI disclosed this week that in two recent internal programming tasks, AI agents attempted to deliberately deceive staff and undermine monitoring systems: earlier this month, one agent disabled automatic alerts sent to the security team, and days later, another agent removed the monitoring system and falsely claimed to employees that it had not done so. Audits by independent investigation firms Asymmetric Security and Transluce show that recent related incidents are more widespread than initially disclosed by OpenAI.

The chief Democratic member of the U.S. Senate Permanent Subcommittee on Investigations, Richard Blumenthal, sent a letter on Thursday to Tether and its U.S. subsidiary CEO Bo Hines regarding the consulting firm Nxum Group, which Hines co-founded, requesting clarification on the arrangements related to Tether's payments to Nxum. According to The Wall Street Journal, Nxum received substantial payments for providing consulting services to Tether while Bo Hines was still serving as a White House crypto advisor and involved in shaping crypto policies, including those concerning stablecoin issuers.In his letter to Tether CEO Paolo Ardoino, Blumenthal stated that the unusual terms and nature of the business relationship between Tether, Nxum, and Bo Hines raised serious ethical and legal concerns, implying that Tether likely knew that making payments to a current White House official directly involved in shaping critical legislation for its business was illegal and improper. A Tether spokesperson did not immediately respond to a request for comment. CoinDesk previously reported that Nxum, as a major campaign advertising supplier for a political action committee associated with Tether, received millions of dollars in revenue, despite having little prior political experience, and recently hired another White House crypto advisor, Harry Jung.Blumenthal has recently focused on the crypto space, including Trump's meme coin, World Liberty Financial, and activities involving Binance, particularly Tether. He has released reports on Tether's financial connections with Iran and questioned its relationship with U.S. financial partner Cantor Fitzgerald. Ardoino criticized Blumenthal this week for ignoring important information and sharing the report with the media before giving the company a chance to respond. The prediction market Kalshi shows a 69% probability that Democrats will regain control of the Senate, and if Blumenthal leads the subcommittee, he will gain greater subpoena and agenda control.

Analysts indicate that regulatory-led measures can encourage institutional participation in the cryptocurrency ecosystem in the short term, but only legislation can make the framework more robust in the long term. Currently, the cryptocurrency industry has to rely on a series of fragmented regulatory actions, which may be overturned in the next two years due to political changes. At the same time, the U.S. Securities and Exchange Commission (SEC) has issued a five-year "innovation exemption" for tokenized stocks, requiring that tokens must possess the financial and voting rights of the original stocks.Additionally, the U.S. Commodity Futures Trading Commission (CFTC) is exploring allowing leveraged cryptocurrency trading on regulated U.S. platforms, while the Office of the Comptroller of the Currency (OCC) has granted national trust charters to an increasing number of stablecoin issuers and digital asset companies, placing activities such as custody and reserve management under federal regulation. The Financial Accounting Standards Board (FASB) is also considering allowing companies to classify certain stablecoins as cash equivalents to support their broader use in payments and liquidity management.

According to Politico, two insiders said that the United States is once again pressuring the European Union to relax regulations on large technology companies.

U.S. Vice President Vance stated that European countries have almost unanimously decided to initiate a regulatory and licensing battle against SpaceX, but now they are all requesting SpaceX to do what they need.

The Securities and Exchange Commission of Thailand (SEC) stated to Cointelegraph that several asset management companies have consulted with them regarding the launch of cryptocurrency ETFs, but no asset management company has submitted an application for the establishment of a crypto ETF. The SEC did not disclose the names of the relevant companies.The Thai SEC also mentioned that it is still too early to determine whether the first batch of products can be approved by the end of 2026; the timeline depends on the preparedness of the applying institutions, the progress of regulatory review, and investor protection requirements. The new regulations for crypto ETFs in Thailand took effect last Friday, allowing asset management companies to establish and list spot Bitcoin and Ethereum ETFs locally.Previously, some companies provided Bitcoin exposure to Thai investors through products linked to overseas ETFs. ONE Asset Management became the first Thai asset management company approved for a Bitcoin ETF-linked fund in 2024, followed by MFC Asset Management, which launched a fund investing through BlackRock iShares Bitcoin Trust (IBIT).

According to Cointelegraph, Coinbase's European policy director Katie Harries wrote that the proposed cryptocurrency asset regulatory rules by the UK's Financial Conduct Authority (FCA) may require regulated platforms to execute customer orders only on trading venues authorized by the FCA, thereby restricting users' access to decentralized finance (DeFi) protocols through compliant platforms.Since decentralized protocols typically do not have entities that can apply for regulatory authorization, the relevant rules may lead to regulated platforms being unable to provide DeFi access services, effectively creating a ban. The related cryptocurrency regulatory system is expected to be implemented starting October 25, 2027.

The National Development and Reform Commission has released a new version of the "Regulations on Foreign Investment Management," which better ensures the development and security of foreign investment from an institutional perspective. The regulations consist of 76 articles, divided into six chapters: General Principles, Guidance and Services for Foreign Investment, Supervision of Foreign Investment, Protection of Foreign Investment, Legal Responsibilities, and Supplementary Provisions.The regulations will take effect on December 1, 2026, at which point the "Regulations on Overseas Investment Management" issued in 2017 will be simultaneously abolished. The state supports investors in conducting foreign investment activities based on market principles and actively participating in international cooperation and competition. Investors enjoy the autonomy of foreign investment according to the law, making independent decisions, bearing risks independently, and being responsible for their own profits and losses.

Circle CEO Jeremy Allaire stated in an interview that he is not particularly focused on the short-term price performance of Bitcoin, but is more optimistic about the digital dollar used for payments and the AI agent economy. Allaire mentioned that the digital dollar can be used for payments, transactions, lending, and investment, and that AI agents will participate in more economic activities in the future, potentially further driving the demand for digital dollars and related blockchain infrastructure, although he did not provide specific data on the growth of this demand.On the regulatory front, the Office of the Comptroller of the Currency in the United States is formulating rules related to the GENIUS Act. The proposal requires stablecoin issuers to hold reserve assets not less than the total amount of circulating stablecoins and to redeem at face value within two business days, while prohibiting issuers from paying interest to holders. Allaire believes that the bill has bipartisan support and can provide policy protection for the stablecoin industry, but broader legislative progress on the structure of the cryptocurrency market in the United States has not yet been made.

The Cardano Foundation calls on the European Union not to introduce new independent regulatory rules for DeFi and staking, advocating that existing financial laws should regulate based on the function and risk of activities rather than the technology used. The foundation outlined its 19-page opinion submitted to the European Commission on September 30 in a blog post released on Wednesday, urging a distinction between direct participation in decentralized networks and financial services provided by intermediaries, especially those involving the custody or control of user assets. The foundation stated that regulation should follow the substance of the activity, the functions performed, and the risks generated, rather than the technology relied upon to conduct the activity.The foundation pointed out that Cardano users can delegate native ADA tokens to help secure the network without relinquishing custody or locking up tokens, and this form of direct participation should be treated differently from staking services operated by intermediaries. The opinion also calls for a clearer distinction between the EU MiCA regulations and existing financial laws, warning that overlapping regulatory requirements and inconsistent interpretations among member states could create uncertainty for crypto businesses.This move comes as EU regulators consider expanding oversight of crypto services. In September, the European Securities and Markets Authority suggested adding additional safeguards for staking and lending activities and establishing a new category of regulated services for companies providing access to DeFi protocols. Additionally, the Cardano Foundation, along with five other blockchain organizations, sent a joint letter to the U.S. Securities and Exchange Commission on October 20, urging it to formally recognize digital commodities as non-securities under the proposed crypto framework.

On October 21, the UK's Financial Conduct Authority (FCA) published Consultation Paper 26/36 titled "Guidance on the Regulatory Scope of Cryptoassets," which explains how to determine whether related activities require authorization when the business model involves a certain degree of decentralization.The FCA pointed out that the use of software, smart contracts, distributed ledger technology, distributed governance mechanisms, or other technological arrangements does not, by itself, determine whether there are regulated activities that require authorization. Automation merely describes the manner in which functions are executed and does not determine whether that function constitutes part of a regulated activity. The so-called "true DeFi" is not a statutory concept in the "Regulated Activities Order" or the "Cryptoasset Regulations"; the degree of decentralization is a continuum and does not constitute an independent or separate regulatory framework.At the same time, the FCA also published Guidance Consultation Paper 26/7, which explains how regulated firms should manage DeFi risks, focusing on operational resilience and financial crime risks, and provides examples of measures that firms may consider taking. Both consultation papers will close for comments on November 18, and the FCA plans to publish the final guidance in January 2027. Starting from October 25, 2027, the new regulations will bring new cryptoasset activities under regulatory oversight, and firms wishing to continue related business must submit authorization applications by February 28, 2027.

According to CoinDesk, Bybit CEO Ben Zhou stated that Bybit plans to collaborate with local established companies when entering the U.S. market to challenge platforms like Robinhood in market coverage. Zhou mentioned that seeking partners is a standard practice for Bybit when entering new regions, and the U.S. market may consider collaborating with companies like Interactive Brokers (IB).He said, "At this stage, it is best to partner with those who wish to enter the crypto space and already have a customer base in the U.S., such as IB or similar companies that have not yet ventured into crypto but have a quality U.S. customer base."Bybit is the second-largest cryptocurrency exchange in the world by trading volume, with over 80 million registered users in more than 180 countries and regions. The exchange is continuously acquiring licenses globally to offer a range of new regulated products. In Europe, Bybit plans to launch a "super app" covering derivatives and tokenized stocks as early as the first quarter of next year. Through partnerships, Bybit can avoid the cumbersome process of applying for money transfer licenses state by state like Coinbase, which can take two to three years.Zhou suggested waiting for the Clarity Act to pass or for a clearer understanding of new laws, at which point the SEC may provide unified regulation, allowing a single license to cover federal levels. He also pointed out that the U.S. market is highly competitive and becoming saturated, with Coinbase's position solidifying and Robinhood's importance rising. In contrast, the UK remains a less concentrated and underdeveloped market, but the entry costs are high, comparable to the EU's MiCA license.Zhou revealed that earlier this year, he was invited to meet with the UK's Financial Conduct Authority (FCA) and relevant institutions in the House of Lords. Bybit is looking for an office location in London but has not yet determined a specific site.

According to Decrypt, the crypto advocacy organization Stand With Crypto stated that within 90 days from May to August 2026, UK bank customers submitted a total of 10,092 complaints through the organization's online tools, involving 9,803 individuals. The related complaints pertain to transfers being blocked or restricted to crypto platforms registered with the UK's Financial Conduct Authority (FCA).Statistics by bank show that Lloyds Banking Group received 2,297 complaints, accounting for over 22%, and the bank has not disclosed its policy on restricting crypto transfers. Barclays Bank received 1,569 complaints, National Westminster Group received 1,278, and HSBC UK received over 1,000.Stand With Crypto calls on banks to replace blanket restrictions with risk-based case-by-case reviews and urges the FCA and the UK Treasury to publicly state that a complete industry blockade and hard transfer limits on registered or authorized crypto companies are difficult to justify solely on the grounds of anti-fraud or financial crime rules. The report also mentioned that the FCA's crypto regulatory framework will come into effect in 2027.

Anthropic recently submitted a draft AI safety bill to U.S. lawmakers, which has been questioned by U.S. AI safety advocates. The draft sets a high threshold for the government to urgently halt dangerous models, requiring that risks involve scenarios such as biological weapons, cyberattacks, or AI going out of control, and potentially causing more than 50 deaths or serious injuries, or losses exceeding $1 billion; some provisions may also limit state government regulatory authority.Nathan Calvin, the strategic head of the AI safety organization Encode, subsequently compiled Anthropic's decisions over the past year. In February of this year, the company modified its previously strict safety policy: it had previously committed to pausing training or releases if safety measures did not keep pace with model capabilities, but the new policy no longer requires the company to independently halt R&D at higher risk stages, citing that competitors might take advantage of the opportunity. During the same period, the company invested heavily in computing power, formed a chip team, and allowed Claude to take on more AI R&D tasks.On October 21, Anthropic CEO Dario Amodei posted a lengthy rebuttal on X. He acknowledged that the company had made some mistakes but insisted that competing for cutting-edge AI capabilities did not violate its safety mission, stating that the company adheres to a race-to-the-top approach, believing that only by staying at the forefront of technology can it drive the industry to raise safety standards. He listed nine safety decisions that had cost the company commercially, including restricting the Mythos-level model's open access for months and strictly limiting biology-related requests. The safety roadmap updated by the company on October 19 states that existing policies mainly target the deployment of dangerous models, and in the future, it may be necessary to directly limit the speed of R&D, with plans to propose relevant policy options by January 15, 2027, or explain why none were proposed.