TRM Weekly Roundup | September 26, 2024

It’s the last week of September and officially fall ???— the perfect time to cozy up with The Weekly Roundup!

In this edition, our policy experts — Ari Redbord , Isabella Chase , and Angela Ang — give us the scoop on these latest stories:

• Singapore finalizes final tranche of investor protection measures, effective from June 2025
• Australian regulator says “significant number” of crypto firms require licensing under current law
• Germany cracks down on illegal crypto exchanges
• Canada scaling back CBDC project as 134 countries worldwide explore central bank digital currencies.
• Brazilian authorities launch Operation Niflheim to tackle crypto-related financial crimes
• Securities regulators hauled before US Congress for rare hearing with all five SEC commissioners

???? Singapore finalizes final tranche of investor protection measures, effective from June 2025

Last week, the Monetary Authority of Singapore (MAS) updated its Guidelines on Consumer Protection Measures by Digital Payment Token Service Providers (DPTSPs, or crypto service providers) to include detailed requirements on consumer access measures, conflicts of interest, and other business conduct measures, which they had earlier consulted on.

The guidelines align with the final consultation response, and provide more detail on what is expected. For example, DPTSPs will be required to introduce mandatory risk awareness tests for retail customers, and are prohibited from offering referral or sign-up incentives, as well as credit lines and leveraged transactions from these customers. They also cannot accept Singapore-issued card payments. Measures around identifying and mitigating conflicts of interest, token listing and governance, and complaints handling and dispute resolution were also introduced.

These new requirements take effect from June 19, 2025.

?????Australian regulator says “significant number” of crypto firms require licensing under current law

At The Australian Financial Review 's Crypto and Digital Assets Summit this week, ASIC Commissioner Alan Kirkland told the industry that a "significant number of crypto-asset firms in the Australian market are likely to need a license under the current law. This is because we think many widely traded crypto assets are a financial product." Firms that provide financial products and services are required to obtain an Australian Financial Services Licence (AFSL) from ASIC.

This guidance comes in advance of the introduction of a comprehensive digital asset regulatory framework , which would introduce a new financial product, the digital asset facility, into Australian law. It also precedes an update to ASIC's Information Paper 225 , which clarifies ASIC-related regulatory obligations for crypto asset service providers. The paper update is expected by November, while the exposure draft legislation for the digital asset regime is now expected no earlier than next year.

???? Germany cracks down on illegal crypto exchanges

Last week, German authorities shut down 47 crypto exchanges for lack of proper regulatory oversight. According to authorities, criminals had been using these exchanges to fuel the "underground economy," enabling ransomware, botnet operators, and black market traders to launder money. Notices posted on the seized exchange websites stated that authorities had access to stored user data and would now pursue those involved.

As we draw closer to the EU's implementation of the MiCA rules for CASPs, along with EU's Travel Rule deadline on December 30, we can expect more regulatory and enforcement activity. EU member states will be under more pressure to ensure that only authorized exchanges are operating within their jurisdiction, and that those who are follow anti-money laundering rules.

For competent authorities looking for best practices for uncovering unregistered CASPs operating in your jurisdiction, check out TRM’s guide here .

?????Canada scaling back CBDC project as 134 countries worldwide explore central bank digital currencies.

According to reports , the Bank of Canada is getting out of the CBDC business. While Canada’s central bank has been exploring the creation of a blockchain-based central bank digital currency for several years, recent discussions have raised doubts about the necessity of a CBDC in a largely cashless society. As a result, the Bank of Canada is now scaling back its CBDC work and shifting focus toward broader research on payments systems, noting that the knowledge gained will be useful if Canadians decide in the future to pursue a digital currency.

According to the Atlantic Council —which tracks CBDC development—134 countries (including every G20 country), representing 98% of global GDP, are exploring a CBDC.?In addition, countries such as Brazil, Japan, India, Australia, Russia, and Turkey are in the advanced stages of CBDC exploration.

???? Brazilian authorities launch Operation Niflheim to tackle crypto-related financial crimes

On September 10, Brazilian authorities, including the Federal Revenue and the Federal Police, launched Operation Niflheim to investigate a complex network of money laundering, tax evasion, and other financial crimes involving cryptocurrency transactions. The operation aimed to dismantle schemes that used digital currencies for illegal activities such as asset shielding and laundering money from criminal sources, including drug trafficking and smuggling. Law enforcement executed 23 search warrants and eight arrest warrants across multiple cities, including Caxias do Sul, S?o Paulo, Fortaleza, and Brasília.

The investigation primarily targeted two companies based in Caxias do Sul, revealing an extensive network of financial transactions. The first company was found to have moved over BRL 19 billion (approximately USD 3.6 billion) from August 2019 to May 2024, while the second company moved over BRL 15 billion (around USD 2.8 billion) during the same period. Authorities discovered that over half of the deposits linked to the main suspects came from individuals with criminal backgrounds, pointing to widespread use of cryptocurrencies to facilitate illicit activities.

?? For more, read our blog post on Operation Niflheim here .

??? Securities regulators hauled before US Congress for rare hearing with all five SEC commissioners

On Tuesday, SEC Chair Gary Gensler faced harsh scrutiny from lawmakers and within his own agency regarding the SEC's handling of cryptocurrency regulation, at a hearing before the House Financial Services Committee that involved all five SEC commissioners. Commissioner Hester Peirce provided a sharp critique of the agency’s approach under Gensler. She accused the SEC of failing to provide clear regulatory guidance for digital assets, stating that the agency’s ambiguity has created confusion in the crypto industry. Peirce noted that the SEC has “fallen down on our duty as a regulator” and suggested that legal precision has been deliberately avoided, allowing the SEC to enforce regulations in a manner that leaves both companies and investors uncertain about compliance.

Peirce’s critique contrasted sharply with Gensler’s defense of his regulatory actions, particularly his reliance on the Howey Test to classify whether digital assets qualify as securities. Gensler argued that "court after court" has affirmed the clarity of this legal framework. However, Peirce and several lawmakers contended that the lack of direct guidance from the SEC has led to inefficiency and left the industry vulnerable to costly enforcement actions without clear boundaries. Peirce emphasized that while congressional intervention—such as the Financial Innovation and Technology (FIT21) Act—could provide additional clarity, the SEC has the ability to offer guidance that it has chosen not to implement.

The hearing revealed deep divisions within the SEC, with Peirce continuing to be a strong opponent of the agency’s regulatory approach to crypto. Republican lawmakers repeatedly turned to her for support in criticizing Gensler's "scorched earth" approach, which they argued undermines innovation in the US crypto industry. Despite the tense exchanges, Peirce and Gensler both acknowledged moments of collaboration within the commission, emphasizing that policy debates and differences are essential to maintaining robust capital markets.

• ????Our latest episode of TRM Talks is live! Tune in for Ari Redbord ’s conversation with Peter Kerstens of the European Commission to learn more about MiCA implementation, what’s next for DeFi, and what the world can learn from Europe’s crypto experiment. Listen to the episode here .
• ???Several members of the TRM team attended ACAMS Las Vegas this week—our first outing as the first (and only!) FedRAMP? Moderate authorized blockchain intelligence platform. Check out some of the highlights from an action-packed few days in this post .
• ?? Earlier today, our team of policy experts — Ari Redbord , Isabella Chase , and Angela Ang —got together for our Quarterly Crypto Policy Roundtable, unpacking the latest developments in global crypto policy and regulation from the last few months. If you missed the first webinar, be sure to tune in for our APAC session tonight at 9:30pm EDT! Get all the details here .