November 2023 – Forbes Advisor Australia

In addition to its courtroom loss to Grayscale, the SEC also announced in October that it was dropping its civil lawsuits against two cryptocurrency executives charged with assisting in illegal sales of Ripple Labs cryptocurrency XRP. The SEC appears to be moving past its legal battle with Ripple and focusing on ongoing lawsuits against cryptocurrency exchanges Coinbase (COIN) and Binance.

The Wall Street Journal reported in October that digital currency wallets linked to militant groups Hamas, Palestinian Islamic Jihad and Hezbollah received at least $US134 million in cryptocurrency between August 2021 and June of 2023 ahead of Hamas’ October attack on Israel that killed more than 1,000 civilians.

Hamas and its ally organisations have been labelled foreign terrorist groups by the US government and have limited access to the traditional banking system. For these “debanked” organisations physical cash and cryptocurrency have become an essential way to launder money and receive pseudo-anonymous funding.

Following the attack on Israel, the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) proposed a new set of regulations that would increase transparency for cryptocurrency “mixers,” software tools that allow users to hide the owner’s identity or source of digital assets.

The new rules would require US financial institutions to collect data on international mixer transactions, such as personal and transactional details, and report certain information to regulators.

Anthony Georgiades, co-founder of Pastel Network, says the regulatory landscape will remain the key issue in the crypto world heading into the end of 2023.

“The regulatory landscape is not just a backdrop but a critical player in shaping the industry’s trajectory,” Georgiades says.

“The recent uptick in Bitcoin’s value and the broader market sentiment are encouraging, but they also underscore the need for a more robust and transparent regulatory framework.”

In Australia, the Federal Government is forging ahead with crypto regulation, and, in one of its discussion papers, has proposed compelling exchanges operating in Australia to obtain an Australian Financial Services License (AFSL).

This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class.  Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.