Encryption Regulatory Dynamics: The regulatory framework is gradually improving, presenting new opportunities and challenges for industry development.

Recently, the global encryption industry regulatory landscape has been continuously evolving, with regulatory authorities and legislative bodies in various countries introducing new policies and regulations aimed at standardizing industry development and mitigating risks. Below is an overview of the main developments:

US Regulatory Trends

The Ministry of Finance and the State Taxation Administration announced that, before relevant regulations are introduced, companies do not need to report digital asset income like they do for cash income. This transitional measure provides breathing room for the industry.

The Securities and Exchange Commission has expanded the definition of "dealer" to include market participants that frequently provide significant liquidity, including parties related to digital asset securities. This means that some encryption companies may need to register and comply with stricter regulatory requirements.

The Energy Information Administration has been authorized to conduct a temporary investigation into the electricity usage of specific encryption mining companies within the United States, planning to collect data monthly from February to July 2024. This move may provide a basis for formulating relevant energy policies.

The Commodity Futures Trading Commission (CFTC) has recently issued multiple warnings, reminding the public to be cautious of encryption investment scams related to artificial intelligence, social media, and other areas. CFTC Chairman Rostin Behnam emphasized that despite the lack of legislation, enthusiasm for digital assets remains high, and the necessity for federal legislation is increasingly evident.

On the congressional front, several lawmakers have proposed bills or sent letters to relevant departments regarding topics such as encryption asset regulation, information sharing, and stablecoins. The Department of Justice continues to crack down on encryption-related crimes, including charges against individuals associated with the BTC-e exchange and cases of SIM card hijacking scams.

International Regulatory Landscape

The EU has reached a preliminary agreement on a new anti-money laundering plan, requiring encryption service providers to conduct customer due diligence on transactions over 1,000 euros and to strengthen risk control for self-custody wallet transactions.

German police seized 50,000 bitcoins worth approximately $2.17 billion in a large-scale operation. South Korean authorities arrested executives of the encryption platform Haru Invest, suspected of stealing around $828 million in cryptocurrency.

The Thai SEC has ordered a certain exchange to suspend services for 15 days to rectify financial and operational issues. The Bank of England and the Treasury have responded to the consultation document on the digital pound, promising to make privacy a core design feature.

The United Nations report discussed the use of cryptocurrencies in illegal activities in East Asia and Southeast Asia, raising concerns.

Industry Impact and Outlook

As the regulatory framework gradually improves, the encryption industry faces new opportunities and challenges. On one hand, clear rules help the long-term healthy development of the industry; on the other hand, companies need to adapt to stricter compliance requirements.

In the future, countries may further strengthen cross-border regulatory cooperation and improve the governance system for digital assets. Industry participants should closely monitor policy changes, proactively comply, and promote healthy development of the industry.