EU energy-efficiency labels for blockchains, US 3AC investigations, Japan to loosen crypto listing rules, US sanctions compliance on Ethereum, Israel to test DLT government bonds, IRS tax update
CryptoLaw #66
Hello everyone,
It’s been a relatively quiet week in crypto legal land, but still various interesting legal developments around the world:
TL/DR:
The EU plans to roll out energy efficiency labels for blockchains. EU countries must be ready to switch off crypto mining in case of electricity shortages, the European Commission warned.
The US CFTC and SEC reporteldy are investigating whether bankrupt crypto hedge fund 3AC misled investors about its balance sheet and its registration with US authorities. 3AC is already under investigation in Singapore. Meanwhile, the US liquidators of 3AC took the unusual step of asking the court for permission to serve 3AC’s founders subpoenas through Twitter and email.
Japan plans to loosen its rules for crypto listings further.
Majority of Ethereum blocks screen out US sanctioned addresses.
Israel is about to test blockchain-based government bonds together with the Tel Aviv Stock Exchange. The pilot will use a private permissioned EVM (Ethereum Virtual Machine)-compatible.
And also…
The metaverse has hardly taken off, but the European Commission’s competition department is already concerned that it may be dominated by a few Big Tech companies like Meta.
The US IRS updated its tax reporting guidelines on crypto assets.
The state of crypto in China (https://twitter.com/i/spaces/1MnxnpAbMqdGO?s=20)
When is an NFT that incorporates a third party’s IP rights a piece of art or a plain vanilla IP infringement? The Hermes International v. Rothschild case in US court will test the boundaries of art versus IP infringement. In that case, the artist created NFTs that slightly altered Hermès‘ famous Birkins bags. Yuga Labs‘ lawsuit against Ripps for its Bored Ape Yacht Club-referencing NFTs is testing the same legal issue:
A UK crypto consultation paper “may be persuasive in addressing legal issues” arising in US crypto cases, wrote the US judge overseeing the Celsius bankruptcy.
Coin Center filed suit in a US federal court against OFAC, challenging its authority to sanction Tornado Cash immutable smart contracts.
LeXpunK Army and the DeFi Education Fund each filed an amicus curiae briefs in the CFTC’s enforcement action against OokiDAO. DAOs aren’t legal persons and relevant software users must be served individually, LeXpunK argued.
As France wants to become a crypto hub, the newly appointed head of the French financial market authority AMF warned registered crypto companies that their licenses can be taken away.
The UK Financial Conduct Authority’s head of AML compliance is stepping down in Spring 2023.
Crypto assets are a financial product, according to a notice from South Africa’s Financial Sector Conduct Authority clarifying crypto’s status under the Financial
Advisory and Intermediary Services Act, 2022.US law firm Wachtell calls for “the SEC to provide more prescriptive guidance and/or no-action relief for industry leaders who are acting in good faith to comply with rules oriented toward traditional ‘centralized’ securities that do not squarely fit cryptoassets (such as transfer agent rules)”. “In the competitive and inherently borderless global marketplace for cryptoasset projects, the U.S. agencies, including the SEC, should consider solutions proffered by foreign jurisdictions, such as the European Union’s nascent ‚Markets in Crypto-assets‘ regulation.”
This week’s edition of Around the Blockchain discusses LexPunk & DeFi Education Fund v. CFTC; Mangoes & (more) rugs; the state of Tornado's wake; Ape securities?; Crypto Cowboys, and more.
Thanks for reading!