Global crypto regulation is an industry headache


Good morning and welcome to Protocol Fintech. This Tuesday: Global Regulation Swamp, Elon Musk Reveals Cartel’s Ether and Crypto Holdings.

off the chain

Crypto donations are benefiting Ukraine, it is true, but it seems that fiat is the key to making those funds available for war and relief efforts. Kuna founder Michael Chobanian he recently claimed that his exchange was helping the country spend donations directly with crypto providers. but ukraine now it’s time FTX to convert crypto to fiat. A Ukrainian official credited crypto for raising awareness of the country’s fundraising efforts. But you can’t buy ammunition with a conscience.

—Owen Thomas (E-mail | twitter)

crypto against the world

Crypto scored a significant win in Europe on Monday. The European Parliament voted in favor advance a regulatory proposal without a controversial provision that would ban proof-of-work cryptocurrencies like bitcoin.

But the debate in Europe is far from over. And it highlights a major challenge for the industry: the battle over how crypto should be regulated is playing out in different ways across major geographies.

The EU’s approach to crypto regulation is slow but steady. The regulatory framework proposed in the Markets in Crypto Assets bill could set the stage for the digital asset industry internationally if adopted into law.

  • First introduced in 2020, the Markets in Crypto Assets proposal went through a series of revisions and delays due to controversial language requiring environmental sustainability standards for proof-of-work cryptocurrencies like bitcoin and the early version of ether. While some EU leaders have asked for a test-of-work ban since November, the EU vote finally excluded the language.
  • “Many countries around the world will now be watching MiCA closely,” said Stefan Berger, the member of the European Parliament spearheading the legislation. in a press release. He called it a “pioneer” in establishing “trusted oversight structures”, something crypto firms in the US have called for.
  • While many in the cryptocurrency industry viewed Monday’s vote as a victory, the industry is set to see proposals for more legislation to combat the negative environmental impact of cryptocurrencies, in line with the goals of the European Green Deal.
  • The European Commission will present a proposal to amend the draft MiCA law to include language for “the EU sustainable finance taxonomy [of] any crypto-asset mining activity that substantially contributes to climate change mitigation and adaptation” by January 2025.

Meanwhile, the UK is cracking down on cryptocurrencies, with an emphasis on stablecoins. The UK, which has forged a separate regulatory path since Brexit, is working to get the industry properly licensed and registered.

  • The Financial Conduct Authority announced this month which had 50 live investigations into unauthorized crypto companies after opening more than 300 cases related to unregistered crypto companies.
  • The Treasury has also revealed plans to specifically regulate stablecoinsas they were considered an immediate risk to traditional payment methods.
  • But while it is forging its own path on the app, Britain is expected to be “largely consistent” with the EU’s approach to crypto regulation. said ComplyAdvantage, a London-based provider of financial compliance data and software.

Crypto is dealing with bigger regulatory issues in the US. The country’s fragmented financial regulatory scheme, which includes multiple agencies vying for a role in crypto and 50 states exercising some level of financial oversight, is a headache.

  • Crypto is under fire on multiple fronts. The SEC argues that many cryptocurrencies are actually securities that should be subject to strict regulations. The Treasury Department is concerned with financial stability as well as money laundering and other crimes.
  • The United States has “separate securities laws and separate derivatives or commodities laws” as well as “very broad concepts of what constitutes a security,” Michael Philipp, a partner at Morgan, Lewis & Bockius, told Protocol.
  • That makes the US the “most complex” and “hardest place to do business” for crypto companies, he added. Philipp’s advice to crypto entrepreneurs: “Unless you can commit to the regulations [process]start somewhere abroad.”

“Sanity and logic” prevailed in Europe, Diogo Monica, President of Anchorage Digital said of the EU vote. But there are plenty of other fights ahead for cryptocurrencies on the battlefields over potentially much stricter rules. If you plan to operate globally, be prepared to rack up some miles. The only good news may be that Brussels Airlines is picking up his Dulles without stopping this month.

—Lindsey ChooE-mail | twitter) and Benjamin Pimentel (E-mail | twitter)

A version of this story first appeared on read them here.



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in the money

About Protocol: the block is plan to use a fingerprint sensor for its new bitcoin hardware wallet to “achieve seamless authentication,” but also acknowledged that it might not work, for example, for people who wanted to share a wallet with family members.

Senator Joe Manchin spoke out against Fed confirmation of Sarah Bloom Raskin. Democratic Senator Probably Made Raskin’s Fed Confirmation almost impossible after saying he couldn’t support her because of her views on climate risks.

TikTok could allow crypto ads soon. The social media app is supposedly running beta tests for crypto ads in the US and Canada, and if successful, will allow crypto businesses registered with an approved regulatory body to run paid ads.

Ukraine has partnered with FTX and Everstake to launch a crypto donation website. Together with his exchange Kuna, Ukraine new cryptocurrency donation siteHelp for Ukraine will convert the donated cryptocurrencies into fiat money and send them to the National Bank of Ukraine.

Japan called on cryptocurrency exchanges to comply with Russian sanctions. The Japanese authorities have ordered crypto exchanges not process transactions subject to asset freeze sanctions imposed against Russia and Belarus.

A UN report said Mexican cartels have laundered $25 billion a year in bitcoin. The Jalisco New Generation Cartel and the Sinaloa Cartel are using more and more small online bitcoin purchases to avoid money laundering checks, the International Narcotics Control Board said.


Elon Musk he believes that it is better to invest in physical things rather than dollars, and he also believes that people get investment advice on Twitter. “As a general principle, for those seeking advice from this thread, it is generally better to own physical things like a house or shares in companies that you think are good commodities than dollars when inflation is high. I still have and will not sell my bitcoin, [ether] or doge fwiw,” he tweeted. People got excited about Musk’s admission that he owns ether.

Current PayPal CEO Dan Schulman is more interested in the use of crypto in payments. “I think the initial things that everyone thinks about cryptocurrencies, buying and selling them, and what is the price of bitcoin tomorrow, that’s the least interesting part about digital currencies for me.” he said in an interview with CTech.

crypto miners are moving from Kazakhstan after infighting and government pressure, after moving there just six months ago. “It’s a disaster, essentially, a great disaster,” alexander of the towerformer vice president of the bitcoin mining pool swimming pool, said.

Operations Flow

Acorns is valued at $1.9 billion after raising $300 million. The investment app round F series it was led by TPG, with the participation of Bain Capital Ventures, BlackRock, Galaxy Digital and Thirty Five Ventures.

Prestable is worth $4.5 billion after raising $275 million. UK consumer loan company fundraising round it was run by the Ontario Teachers’ Pension Plan Board.

Alfred raised $125 million and acquired RKW Residential. home technology company last round it was led by Rialto Capital, with participation from NEA, 166 2nd Financial Services, Holland Management and others.

Lunar grossed $76 million. the digital bank series D-2 round it was run by Heartland, with participation from existing investors Kinnevik, Tencent, and IDC Ventures.

Branch raised $75 million. The workforce payment service round c series It was led by Addition, with the participation of new and returning investors such as General Atlantic, Drive Capital, Crosscut Ventures and Indeed.

Gauntlet achieved unicorn status after grossing $23.8 million. The blockchain financial modeling service round B series it was run by Ribbit Capital, with participation from existing investors Paradigm and Polychain Capital.

PPRO acquired Alpha Fintech. With the acquisitionthe digital payments company hopes to enhance its presence in the Asia-Pacific region and improve its services and products.



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