🚀 EU Agencies Analyze DeFi and Crypto Lending Risks
#EU #DeFi #CryptoLending #Cryptocurrency #FinancialRisks #DecentralizedFinance #EBA #ESMA #MoneyLaundering #TerrorismFinancing #CryptoAssets #MarketAnalysis #ConsumerProtection #FinancialStability
According to PANews, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have released a joint report analyzing decentralized finance (DeFi) and crypto lending and staking. The report highlights that DeFi remains a niche phenomenon, with the value locked in DeFi protocols accounting for 4% of the global crypto asset market value. It also notes that while the European Union's adoption of DeFi is above the global average, it lags behind other developed economies such as the United States and South Korea.
The report points out a positive correlation between the number of DeFi hacks and the value of stolen crypto assets with the size of the DeFi market. It also identifies significant money laundering and terrorism financing (ML/TF) risks within DeFi protocols, as decentralized exchanges account for 10% of global spot crypto trading volume. Additionally, the impact of maximum extractable value (MEV) is prevalent in the DeFi market, with its negative externalities requiring technical solutions.
Regarding crypto asset lending and staking, the report examines the main business model types and typical characteristics observed in the market, including centralized and decentralized models. Based on limited existing evidence, the participation of EU consumers and financial institutions in crypto lending and staking services appears limited. The report lists and assesses specific risks associated with each service, such as excessive leverage, information asymmetry, ML/TF risk exposure, and systemic risks arising from rehypothecation, collateral chains, procyclicality, and interconnectedness.
Particularly, some users may not receive adequate information about the terms and conditions of these services, including fees, interest rates or yields paid, changes in collateral requirements, and other relevant disclosures. However, the EBA and ESMA have not yet identified current risks from a financial stability perspective.#EU #DeFi #CryptoLending #Cryptocurrency #FinancialRisks #DecentralizedFinance #EBA #ESMA #MoneyLaundering #TerrorismFinancing #CryptoAssets #MarketAnalysis #ConsumerProtection #FinancialStability
🚀 Kenya Proposes Law For Local Offices Of Virtual Asset Providers
#Kenya #VirtualAssets #Regulation #DigitalAssets #ConsumerProtection #Tax #Cybersecurity #Governance #DataPrivacy #MoneyLaundering #TerrorismFinancing #TaxEvasion #Fraud #Cybercrime
According to PANews, the Kenyan government is drafting legislation that would require virtual asset service providers to establish local offices. This move aims to enhance regulation of the rapidly expanding digital asset sector.
The proposed policy will not apply to assets that cannot be transferred, traded, or used for payments and investments outside closed ecosystems. It seeks to address gaps in the legal and regulatory framework for virtual assets, focusing on consumer protection, governance, data privacy, and cybersecurity.
In 2023, Kenya introduced a 3% tax on digital asset transaction income but has yet to establish a comprehensive regulatory framework for the industry. The government aims to fill this regulatory void while addressing risks such as money laundering, terrorism financing, tax evasion, fraud, and cybercrime.#Kenya #VirtualAssets #Regulation #DigitalAssets #ConsumerProtection #Tax #Cybersecurity #Governance #DataPrivacy #MoneyLaundering #TerrorismFinancing #TaxEvasion #Fraud #Cybercrime
🚀 U.S. Lawmakers Reintroduce Bill to Combat Illegal Cryptocurrency Financing
#USLawmakers #Cryptocurrency #IllegalFinancing #FTPA #FinancialTechnologyProtectionAct #TerrorismFinancing #DigitalAssets #TaskForce
According to PANews, U.S. Representatives Zach Nunn, a Republican from Iowa, and Jim Himes, a Democrat from Connecticut, have reintroduced a bill aimed at combating illegal financial activities and terrorism financing on digital asset platforms. The Financial Technology Protection Act (FTPA) proposes the creation of an intergovernmental task force to address illegal cryptocurrency financing. This task force would include leaders and analysts from the cryptocurrency industry. The bill had previously passed in the House of Representatives but did not progress in the Senate before the end of the congressional session.#USLawmakers #Cryptocurrency #IllegalFinancing #FTPA #FinancialTechnologyProtectionAct #TerrorismFinancing #DigitalAssets #TaskForce
🚀 U.S. Justice Department Clarifies Liability in Cryptocurrency Use
#US #JusticeDepartment #Cryptocurrency #LegalMemorandum #Developers #CriminalLiability #Blockchain #Fraud #TerrorismFinancing #BankingServices #CryptocurrencyExchanges
According to Odaily, the U.S. Department of Justice has issued a legal memorandum regarding cryptocurrency, clarifying that developers are not liable if their code is used by criminals. The responsibility lies with those who engage in illegal activities using the code. The statement indicates that law enforcement will focus on actual criminal activities such as fraud and terrorism financing. It also emphasizes the protection of legitimate blockchain users and businesses, supporting their fair access to banking services, and reducing enforcement actions against cryptocurrency exchanges and mixing services.#US #JusticeDepartment #Cryptocurrency #LegalMemorandum #Developers #CriminalLiability #Blockchain #Fraud #TerrorismFinancing #BankingServices #CryptocurrencyExchanges
🚀 Morocco Moves to Legalize Cryptocurrency Use with New Legislation
#Morocco #Cryptocurrency #Legalization #CryptoAssets #FinancialRegulation #ConsumerProtection #MarketIntegrity #FraudPrevention #MoneyLaundering #TerrorismFinancing #FinancialStability
According to Foresight News, the Governor of Morocco's central bank announced at the African Central Bank meeting in Rabat that Morocco has finalized a draft law to legalize the use of crypto assets. The legislation aims to ensure comprehensive protection for consumers and investors, enhance market integrity, combat fraud, manipulation, money laundering, and terrorism financing, while maintaining financial stability.#Morocco #Cryptocurrency #Legalization #CryptoAssets #FinancialRegulation #ConsumerProtection #MarketIntegrity #FraudPrevention #MoneyLaundering #TerrorismFinancing #FinancialStability
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🚀 Algeria Enacts Comprehensive Ban on Cryptocurrency Activities
#Algeria #Cryptocurrency #Ban #Law25-10 #CryptoAssets #FinancialCrime #AntiMoneyLaundering #TerrorismFinancing #MiningBan #DigitalWallets #CriminalOffense #FinancialRegulation #YouthCryptocurrency #OrganizedCrime #BTC
According to PANews, Algeria has passed a revised law that prohibits all activities related to cryptocurrencies, including holding, trading, mining, and promotion. The legislation, known as Law No. 25-10, was enacted on July 24, 2025, and explicitly bans the issuance, sale, purchase, possession, use, and promotion of all crypto assets, such as Bitcoin and USDT. Additionally, mining activities, the use of digital wallets, and the operation of cryptocurrency exchanges are classified as criminal offenses.
The law aims to strengthen the financial system's defenses against crime and terrorism, aligning with international standards and implementing guidelines from the Financial Action Task Force. It also addresses the growing popularity of cryptocurrencies among young people and off-grid miners in the southern regions. Under anti-money laundering and anti-terrorism financing laws, the use of cryptocurrencies is considered a financial crime, and all crypto assets are categorized uniformly, regardless of their intended use.
Violators of the law face penalties ranging from two months to one year of imprisonment and fines between 200,000 to 1,000,000 dinars. If the offenses are linked to organized crime, the penalties are more severe.#Algeria #Cryptocurrency #Ban #Law25-10 #CryptoAssets #FinancialCrime #AntiMoneyLaundering #TerrorismFinancing #MiningBan #DigitalWallets #CriminalOffense #FinancialRegulation #YouthCryptocurrency #OrganizedCrime #BTC
🚀 Israel Seizes Wallets Linked to Iranian Revolutionary Guard
#Israel #IRGC #IranianRevolutionaryGuard #CryptoWallets #NBCTF #AntiTerrorismLaw #USDT #TerrorismFinancing #IsraelNews #ForesightNews
According to Foresight News, Israel has seized 187 cryptocurrency wallets associated with the Iranian Revolutionary Guard. The National Bureau for Counter Terror Financing (NBCTF) and Defense Minister Israel Katz issued the seizure order under the 2016 Anti-Terrorism Law. These wallets previously handled 1.5 billion USDT, with approximately $1.5 million remaining. Katz stated that the funds may belong to the Iranian Revolutionary Guard or be used for serious terrorist activities. The Iranian Revolutionary Guard is still designated as a terrorist organization by Israel, the United States, the European Union, Canada, and the United Kingdom.#Israel #IRGC #IranianRevolutionaryGuard #CryptoWallets #NBCTF #AntiTerrorismLaw #USDT #TerrorismFinancing #IsraelNews #ForesightNews
🚀 Fiji Reaffirms Comprehensive Ban on Virtual Asset Service Providers
#Fiji #NAMLC #VirtualAssetServiceProviders #VASPs #MoneyLaundering #TerrorismFinancing #WeaponsOfMassDestruction #CrossBorder #Anonymity #Cryptocurrencies
According to BlockBeats, the National Anti-Money Laundering Council (NAMLC) of Fiji has reiterated its complete prohibition on virtual asset service providers (VASPs). The decision is based on concerns that cryptocurrencies pose significant risks in areas such as money laundering, terrorism financing, and the funding of weapons of mass destruction proliferation. NAMLC highlighted that the anonymity and cross-border nature of cryptocurrencies make them highly susceptible to exploitation by criminals.#Fiji #NAMLC #VirtualAssetServiceProviders #VASPs #MoneyLaundering #TerrorismFinancing #WeaponsOfMassDestruction #CrossBorder #Anonymity #Cryptocurrencies
🚀 Interpol and Afripol Arrest 83 in Anti-Terrorism Financing Operation
#Interpol #Afripol #TerrorismFinancing #VirtualAssets #Africa #Operation #Arrest #IllegalActivities #AssetSeizure #Investigation #Security
According to PANews, a joint operation by Interpol and Afripol targeting terrorism financing and illegal activities has led to the arrest of 83 individuals across six African countries. Among those detained, 19 were apprehended for the 'illegal use' of virtual assets. During the two-month operation, authorities from participating countries screened over 15,000 individuals and entities, uncovering approximately $260 million in fiat and virtual currencies potentially linked to terrorist activities. Around $600,000 has been seized so far, with ongoing investigations aimed at tracking and recovering additional assets.#Interpol #Afripol #TerrorismFinancing #VirtualAssets #Africa #Operation #Arrest #IllegalActivities #AssetSeizure #Investigation #Security