Continued inflows at US$43m, Blockchain equities see largest inflows on record

Four individuals in Los Angeles have been charged by the U.S. Department of Justice for allegedly laundering over $80 million of victims' funds obtained through crypto investment scams. The scheme involved opening shell companies and bank accounts to conceal the proceeds of fraudulent activities, including "pig butchering" scams. The accused face charges of conspiracy to commit money laundering, concealment money laundering, and international money laundering. Two of the accused, Lu Zhang and Justin Walker, could face up to 20 years in prison if convicted.

Gary Gensler, the Chairman of the US SEC, stated that many investors have suffered losses in the cryptocurrency market.

US Senator Elizabeth Warren has gained more support for her Digital Asset Anti-Money Laundering Act, which aims to enforce the same money laundering rules on the crypto industry as the traditional financial system. The bill would extend Bank Secrecy Act responsibilities, including Know-Your-Customer requirements, to crypto wallet providers, miners, validators, and other network participants. Pro-crypto lobbying groups have criticized the legislation, with some calling it a ban on crypto assets in the US. The bill is currently being considered by the Senate Committee on Banking, Housing, and Urban Affairs.

The Financial Accounting Standards Board (FASB) has updated its standards to allow companies to recognize changes in the "fair value" of their cryptocurrency holdings. This will benefit companies like MicroStrategy who have crypto on their balance sheets. Previously, companies had to report a loss if the value of their crypto holdings decreased, even if they hadn't sold the assets. The new rules will require companies to report the fair value, cost-basis, and types of assets they hold. The FASB received feedback from stakeholders indicating that the existing guidance did not provide useful information for investors or other parties. The new rules will take effect after Dec. 15, 2024.

According to a report by Glavportal, as cryptocurrency adoption increases and Russia prepares to launch its CBDC, more and more Russians are refusing cash and opting for "non-cash" payments. In the third quarter of 2023, non-cash turnover accounted for 64.2% of Russia's business, breaking the record of 63.3% set in the first quarter of the 2023 fiscal year. The authors of the study noted a +3.6% increase in the same period of the 2022 fiscal year. The Nenets Autonomous Okrug in the far north ranks first, with nearly 76% of payments made in non-cash form, followed closely by Yakutia and the Chechen Republic in Russia's Far East, with slightly over 75%.

Jinse Finance reported that the Consular Department of the Ministry of Foreign Affairs issued a reminder to Chinese citizens through the official WeChat account "Consular Express" of the Consulate General in Osaka to be cautious of telecommunications fraud related to online dating. It was pointed out that Chinese citizens in the jurisdiction of the Consulate General in Osaka have recently been repeatedly victims of telecommunications fraud related to online dating. The fraudsters approach the victims under the guise of online dating, gain their trust, and then lure them to invest large amounts of money into so-called "virtual currency trading platforms", "investment websites", or even online gambling platforms. The victims are encouraged to invest in virtual currencies such as "Bitcoin" and deliberately given high returns in the initial investment phase to gain their trust, and then disappear after inducing the victims to invest large amounts.

According to a report by Cointlegraph on December 13th, the Criminal Investigation Department of the US Internal Revenue Service (IRS) has listed four cases related to cryptocurrency as one of the top ten "most prominent and noteworthy investigations" for 2023. These cases include investigations into the Silk Road market, OneCoin, Oyster Protocol founder "Bruno Block," and a money laundering scheme using Bitcoin self-service terminals.

Rostin Behnam, chairman of the US Commodity Futures Trading Commission (CFTC), admitted in an interview with CNBC that many tokens constitute commodities under current law. Behnam stated that we are trying to figure out how existing, decades-old laws adapt to this seemingly changing new technology, and ultimately need a new approach centered around policy and legislation. Under current law, many tokens constitute commodities. This direct statement provides much-needed clarity on the regulatory status of cryptocurrencies in the United States. Rostin Behnam also delved into the complex regulatory issues facing the cryptocurrency industry and emphasized the urgent need for legislative action. Behnam stated, I think members of Congress are trying to figure it out. Integrating new digital assets into traditional regulatory models is a challenge. Behnam also emphasized CFTC's commitment to stable markets in the interview.

Li Weihong, a financial services sector legislator in the Hong Kong Legislative Council, said that some licensed companies have reported that their official websites have been imitated for promotion, and there have been multiple fraud cases in recent months. Some people in society believe that "many virtual assets are fake," so they hope to correct this statement. He pointed out that there is currently no problem with the regulation of virtual assets, and the public can verify whether a company is licensed through official channels.