Countries around the world are passing crypto laws — but the U.S. is the top cop out there
A flag outside the U.S. Securities and Exchange Commission headquarters in Washington, Feb. 23, 2022.
Al Drago | Bloomberg | Getty Images
Regulators around the world from Europe to Asia ramped up efforts to bring about formal laws for digital currencies in 2023 — but it was the U.S. that took some of the harshest legal actions against major players in the industry.
In a year that saw crypto heavyweight Binance ordered to pay more than $4 billion to U.S. authorities and its former CEO’s guilty plea, along with high-profile lawsuits against five crypto companies by the Securities and Exchange Commission, regulators overseas have been equally busy both adopting new legislation — and pushing for more — to rein in the sector’s bad actors.
Here’s the state of play globally for crypto regulation and enforcement in 2023 — and a look at what to expect in 2024.
U.S. tops the list globally for enforcement
The U.S. has proven to be one of the most active enforcers of penalties and legal action against crypto companies this year, as authorities looked to counter bad practices in the industry following the collapse of Sam Bankman-Fried’s crypto empire — including his FTX exchange and sister firm Alameda Research.
“To be clear, in some cases — like FTX — enforcement was necessary,” said Renato Mariotti, a former prosecutor in the U.S. Justice Department’s Securities and Commodities Fraud Section. “But U.S. enforcement actions against market participants that are more focused on compliance are questionable and the result of the U.S. ‘regulation by enforcement’ approach.”
While many regions have passed laws with potentially tough penalties, the U.S. is still the only country that has actively taken action against large-scale crypto companies and projects. Thus far, the U.S. has led that campaign against crypto firms by enforcement and has, by far, been the most punishing of regulators when it comes to penalties and fines.
“Other countries have a comprehensive regulatory framework in place. We don’t,” Mariotti told CNBC. “As a result, issues that should be determined by legislation or regulation are instead litigated.”
Indeed, in the absence of hard-and-fast rules from Capitol Hill, the SEC, the Commodity Futures Trading Commission, the Department of Justice, and Treasury’s Financial Crimes Enforcement Network (FinCen), have worked in parallel to police the space, in a sort of patch-quilt version of regulation-by-enforcement.
Richard Levin, a partner at Nelson Mullins Riley & Scarborough who has represented clients before the SEC, CFTC, and Congress, tells CNBC that these agencies have been some of the most active enforcers around the world concerning the regulation of digital assets and cryptocurrencies.
“These agencies have provided guidance to the industry on how digital assets and cryptocurrencies must be offered and sold, traded, and held by custodians,” said Levin, who has been involved in the fintech sector for 30 years.
“However, much of their work has involved providing guidance to the industry through enforcement actions,” continued Levin.
Since 2019, Justice’s Market Integrity and Major Frauds Unit has charged cryptocurrency fraud cases involving over $2 billion in intended financial losses to investors worldwide.
In its annual report summing up enforcement actions, the CFTC noted that nearly half of all cases in 2023 involved conduct related to digital asset commodities. Meanwhile, the SEC highlighted that 2023 was notable for its enforcement of “crypto-related misconduct, including fraud schemes, unregistered crypto assets and platforms, and illegal celebrity touting.” Since 2014, the SEC has brought more than 200 actions related to crypto asset and cyber enforcement.
The most stringent cases played out in the first half of the year when the SEC accused Binance and Coinbase of engaging in illegal securities dealing in a pair of lawsuits.
Most notably, the SEC alleges that at least 13 crypto assets available to Coinbase customers — including Solana’s sol, Cardano’s ada, and Protocol Labs’ filecoin — should be considered securities, meaning they’d need to be subject to strict transparency and disclosure requirements.
In Binance’s case, the SEC went a step further. In addition to securities law violations, the company and its co-founder and CEO Changpeng Zhao were also accused of commingling customer assets with company funds.
Concerning criminal enforcement, Damian Williams, the U.S. attorney for the Southern District of New York, has been leading some of Justice’s highest-profile crypto prosecutions, including the monthlong trial of Bankman-Fried, the disgraced FTX founder. In November, a jury found the former FTX chief executive guilty of all seven criminal counts against him following a few hours of deliberation.
But crypto companies have begun to push back, with some threatening to decamp from the U.S. entirely should this dynamic of policing by enforcement continue.
Coinbase CEO Brian Armstrong condemned the SEC’s actions against the exchange and suggested the company may be forced to move its headquarters overseas. Armstrong later walked back the threat of relocating abroad, but Coinbase and other major crypto firms have still begun to invest more heavily in their international operations.
Crypto market participants nevertheless hope that the spate of legal challenges brought to crypto companies in 2023 will bring clarity in the form of new regulations.
“Clearer regulatory frameworks and stance from regulators globally have provided a sense of legitimacy and security, encouraging more widespread participation in the bitcoin market,” Alyse Killeen, managing partner of Stillmark Capital, told CNBC.
The crypto industry saw the most legislative progress on crypto laws in the U.S. this year, with one of the competing digital asset bills making it past multiple House committees for the first time.
Even as U.S. lawmakers take steps toward crypto legislation, there remains no law in the U.S. tailored specifically for the industry. Nelson Mullins Riley & Scarborough’s Levin tells CNBC it’s unlikely that we’ll see much progress in a presidential election year and with a divided federal government.
He argues that even without rules on crypto from lawmakers, routine complaints that U.S. regulators are not providing guidance to the industry are without merit.
According to Levin, “The SEC, the CFTC and FinCEN routinely provide informal guidance on the regulation of digital assets and cryptocurrencies.”
“The SEC even went so far as to provide a framework for the analysis of digital assets and cryptocurrencies. The SEC also created a fake digital asset (Hosey Coin) that gave advice to the FinTech community on how not to launch a digital asset,” Levin added.
“Some members of the industry forget the SEC is relying on laws that were written when American football players wore leather helmets, and the SEC must apply those laws to the FinTech industry,” he said.
Despite crypto’s recent fading buzz, Killeen of Stillmark Capital doesn’t expect regulators to become fatigued by crypto in 2024. In the same time year that two of crypto’s leading figures were sent to jail, shares of Coinbase — and prices of digital currencies like bitcoin and ether — have rallied sharply.
Since the start of this year, Coinbase’s stock price has surged more than 400%. Bitcoin and ether, meanwhile, have both roughly doubled in price. That’s as investors anticipate that approval for a bitcoin exchange-traded fund by the SEC may be around the corner.
Europe
The European Union looks set to apply its Markets in Crypto-Assets legislation, which is aimed at taming the “Wild West” of the crypto industry, in full force starting next year.
The law, initially proposed in 2019 as a response to Meta’s digital currency project Diem, formerly known as Libra, aimed to clean up fraud, money laundering and other illicit financing in the crypto space, and stamp out the sector’s bad actors more broadly.
It also sought to tackle a perceived threat from so-called stablecoins, or blockchain-based tokens that serve as a representation of government money but are backed by private companies. Stablecoins are effectively digital currencies that are pegged to the value of fiat currencies like the dollar.
While tether and Circle’s USDC aren’t perceived as “systemic” assets capable of disrupting financial stability, a private stablecoin from a massive company like Meta, Visa or Mastercard could pose a bigger threat and potentially undermine sovereign currencies, in several EU central bankers’ eyes.
The U.S.’s dominant role in global finance and its focus on consumer protection plays a crucial role in its leading position in crypto regulation enforcement. However, the landscape is evolving, and other jurisdictions are steadily enhancing their regulatory and enforcement frameworks in crypto.
Braden Perry
Former federal enforcement attorney and current partner at
Part of the EU’s framework for crypto is aimed at tackling threats — particularly that of the euro being undermined — by making it impossible for issuers to mint stablecoins backed by currencies other than the euro, like the U.S. dollar, once they meet the threshold of more than 1 million transactions per day.
Meanwhile, the European Union is moving towards a unified regulatory framework for cryptocurrencies with its Markets in Crypto-Assets Regulation (MiCA).
This year, the three main political institutions of the EU-approved MiCA, paving the way for the regulation to become law. MiCA came into force in June 2023, but it’s not expected to apply fully until December 2024.
Companies are already getting ready to take advantage of the new rules, with Coinbase submitting an application for a universal MiCA license in Ireland. If and when it is approved, this would allow Coinbase to “passport” its services into other countries like Germany, France, Italy, and the Netherlands.
Braden Perry, former federal enforcement attorney and current partner at law firm Kennyhertz Perry, said that while the U.S. remains a top enforcer for the crypto industry, its perception as a regulator “may be diminishing,” as other jurisdictions have stepped in with clearer rules.
“This perception stems from the proactive measures taken by U.S. regulatory bodies like the SEC, CFTC, and IRS, especially in addressing fraud and security issues in the crypto market. High-profile legal actions in the U.S. further cement its image as a strict enforcer,” he said.
“However, other regions, including Singapore, Dubai, Hong Kong, and the European Union, are also developing robust regulatory frameworks,” Perry added. “While these regions may not be as visible in international media for enforcement actions, they possess significant and sometimes stringent regulatory mechanisms.”
But while the broader EU has been racing to implement new crypto laws, individual European countries haven’t been resting on their laurels.
France has been tempting crypto companies and traders alike to its shores with the promise of tax cuts on crypto profits and a smoother registration process for digital asset firms.
Starting from Jan 1, 2024, France’s Financial Markets Authority, or AMF, is set to amend its registration requirements for crypto firms to better align with MiCA, according to an August statement from the regulator.
At the same time, French authorities have kept a skeptical eye on fraudulent activity among various crypto players. In September, French regulators added 22 fraudulent websites — including some that market trading in crypto and crypto-linked derivatives — to a blacklist of unauthorized foreign exchange providers.
In Germany, meanwhile, the financial regulator Bafin has said it wants to accelerate its approach to licensing crypto custody services, as part of a broader effort to instill trust and transparency in the crypto market.
The U.K., a non-member of the EU, passed a law in June that gives regulators the ability to oversee stablecoins. But there are no concrete rules for crypto just yet.
The U.K.’s Treasury department released its response to a consultation on new crypto rules earlier this year, confirming that it plans to bring a range of crypto activities, including crypto custody and lending, within existing laws governing financial services firms in the country.
Asia
Earlier this year, the Monetary Authority of Singapore, which is recognized for clear fintech and crypto regulations that do not rely heavily on enforcement actions, finalized rules for stablecoins, making it one of the world’s first jurisdictions to do so.
Singapore was notably bruised by the collapse of TerraUSD, a controversial algorithmic stablecoin, in 2022, as well as the fall of Three Arrows Capital, or 3AC. Both Terra Labs, the company behind Terra, and 3AC were headquartered in Singapore.
Singapore’s new framework requires stablecoin issuers to back them with low-risk and highly-liquid assets, which must equal or exceed the value of tokens in circulation at all times, return the par value of the digital currency to holders within five business days of a redemption request, and disclose audit results of reserves to users.
Hong Kong, meanwhile, is undergoing a public consultation on stablecoins and seeks to introduce regulation next year.
The region has been increasingly warming to crypto assets, despite a broader anti-crypto push from China, which banned bitcoin trading and mining in 2021.
The Hong Kong Securities and Futures Commission, or SFC, launched a registration regime for digital asset businesses earlier this year, with clear regulations for crypto exchanges and funds.
So far, only two firms, OSL Digital and Hash Blockchain, have been handed licenses.
The Middle East and Africa
The United Arab Emirates has emerged as a popular base for the fintech sector more broadly, given its lack of personal income tax, flexible visa policies, and competitive incentives for international businesses and workers.
In 2022, in a bid to lead the virtual assets sector in the Middle East and Africa, Dubai — the UAE’s most populous city — launched VARA, or the Virtual Asset Regulatory Authority.
“Dubai and the UAE have created favorable conditions for cryptocurrency businesses, offering specific zones and guidelines for crypto trading,” said Perry.
Blockchain analytics firm Chainalysis notes that regulators in the UAE were early to cryptocurrency, with Dubai leading the charge when it launched a blockchain strategy in 2016.
“Since then, UAE regulators have remained at the forefront of the industry,” according to a Chainalysis report.
Two years later, in 2018, Abu Dhabi Global Market created the world’s first regulatory framework for cryptocurrency to foster innovation while safeguarding consumers.
Earlier this year, the UAE passed further crypto regulations at the federal level to make it easier for regulators like VARA to police the sector and run economic-free zones.
In the sportscar world, there is much discussion about retaining the “purity” of the sputtering, underperforming gas-guzzling engines of yesteryear. After a drive in Everrati’s Porsche 911 restomod, you’ll be ready to embrace the present and see just how much the drive experience can improve with modern technology.
There has been a lot of discussion about “purity” of the driving experience related to EVs. Some decry the “numb” feeling of the consumer-focused EVs they’ve driven, and think that this is indicative of some wider impossibility to provide an engaging drive experience in an electric vehicle.
But of course, when you compare a modern jellybean SUV, regardless of powertrain, with a purpose-built sportscar, there are going to be some differences in drive dynamics that aren’t flattering to the SUVs.
So lets make that comparison a little more fair. Let’s take an actual sportscar, a Porsche 911 (964) RSR, updated to the present day with an electric powertrain, and see just how much that “purity” in drive experience can be carried over with intentional effort, rather than kowtowing to perceptions of current market trends.
For some background on myself, I started driving EVs with the original Mini E, which was merely a retrofit vehicle with the back seats replaced by a giant stack of batteries. It was a bit of a kludge, but I still fell in love with it largely due to the strengths of electric propulsion.
I then went on to buy an original Tesla Roadster, one of the few true sportscars out there that runs on electricity, so I’ve got more experience than most in small electric two-seaters.
There are certainly a lot of high-performance EVs these days, but most of them are hefty (4,000-5,000 lbs or more), 4-5 seaters with all-wheel drive (my toxic trait is that as far as I’m concerned, if it isn’t rear wheel drive, it isn’t really a sportscar).
So imagine my enthusiasm when I was offered a drive in a custom-built electric Porsche 911 (as long as Porsche refuses to make one itself…).
So, I headed down to Crystal Cove in Newport Beach, California, to meet Everrati CEO Justin Lunny and take this thing for a spin, to see what this real electric sportscar can do – and lets just say there might be a new entry on my lottery ticket shopping list.
Everrati is a UK-based company that does electric restomods of several vehicles, including the Porsche 911, Mercedes-Benz W113 Pagoda, Land Rover Series IIA and Ford GT40.
The company has completed 20 cars so far, with Porsche 911s being the most popular vehicle to convert.
I caught Lunny charging the Porsche as I pulled up, at a 50kW charging station. It has two charging inlets – one in the rear, under the trunk, which does DC or AC charging, and one in the front, using the 911’s original fuel door, which only does AC charging. The car is capable of 70kW charge rates, and while we don’t know what its charge curve looks like, that should mean 30-45 mins for a 10-80% charge.
The vehicle I drove is a 911 (964) RSR, created by Everrati as a commission, as many of its vehicles are. The vehicle still has a few finishing touches that need to be put on it, but otherwise was mostly complete. As a commission, the buyer was able to customize various aspects of the vehicle (including, for example, charge port location).
The interior of the vehicle is nicely finished, with everything redone from the original, but still in retro style. Gauges, knobs and switches are all in a similar style to the original, though a small single-DIN CarPlay headunit betrays the modernization under the hood.
It’s a two-seater, with some room behind the seats for some bags, but no seatbelts or room for people due to the rollbar. And the seats are heavily bolstered, locking you into position for when you whip it through corners. This is a real sportscar, it’s not just masquerading as one.
On a weekday on public roads, there wasn’t much opportunity to really open up the car or get in too much trouble, but the California weather and scenery were exactly what you’d expect. Our drive went up and down PCH and through some canyons, with a quick dip onto the freeway.
The amount of trouble we could get into was also limited by the car’s excellent handling. With a light weight and wide tires (295s on the rear, 30mm wider than the originals), the car felt extremely planted wherever we took it.
Everrati says that it’s important to maintain the weight of every vehicle it releases, and that it tries to ensure that its restomods don’t come out heavier than the original vehicle. It says this restomod is about 40lbs lighter than a 964 turbo (though that would make it heavier than the original RSR, which had significant weight-savings applied).
Despite the addition of a chunky 62kWh battery pack (range ~200 miles), Everrati says it was able to keep weight down by replacing several body panels with carbon fiber, in cooperation with Aria group, a contract manufacturer in Irvine, CA. Aria group works with Singer, the highly regarded Porsche restomodder – and is also helping TELO produce its tiny electric truck.
Everrati even went to the effort of ensuring weight distribution is similar to the original 911.
Famously, 911s are one of few cars designed with a rear-mounted engine, whose weight hangs behind the rear axle. From an engineering perspective, this is simply the wrong way to design a car – you want to reduce the car’s moment of inertia, which means bringing any heavy components as far inboard as possible.
Everrati did bring the motor slightly inboard of where the 911’s engine is, but it’s still placed behind the rear axle, maintaining the 911’s historically weird handling. And 70% of the car’s batteries are in the rear, to keep it rear-heavy.
In our drive test, the handling certainly didn’t feel heavy and felt extremely well-balanced, so we think Everrati did a good job here.
Steering is something else that Porsche has always been praised for. Everrati tried to maintain the steering feel of the original, with only light power assist leading to a heavy steering feel.
This was welcome to me, as my Roadster has manual steering, with no power assist at all. So I’m used to having to crank a small wheel around. The steering had a little bit of “play” in the wheel, which I imagine owes to its early 90s heritage (though still much tighter than the classic Bronco restomod I just drove prior), but otherwise felt exactly how I wanted it to – a relatively quick steering ratio with plenty of feeling transmitted to the driver.
But it has also managed to roughly double the horsepower from the original Porsche it was based on. Everrati says its restomod can produce about 500 horsepower, compared to the ~300 horsepower of even the racing version of the 964 911.
As is the case with Everrati’s vehicles, its drive software was customized for the customer in question. The customer asked for a drive experience that closely mirrored the original Porsche it was based on, so it wasn’t as “punchy” as some of today’s most powerful EVs, like Tesla’s Plaid Model S or the Turbo edition of Porsche’s Taycan and Macan EVs.
I liked this, myself, as I do think that we’ve gotten a little too punchy these days and lost the linearity I appreciate out of the throttle pedals in the Roadster and original RWD Model 3.
It also had virtually no off-throttle regen, instead placing the regenerative braking on the pedal. This is a sticking point for me, as I prefer one-pedal driving with strong off-throttle regen like many longtime EV drivers who have experienced it, so I’m glad that Everrati said it could offer something like that for customers who request it.
Speaking of brakes, the brake pedal, to me, felt a little soft. This could have been due to the tuning of the regenerative braking system, and also could surely be modified to an owner’s desires. I never did any particularly hard braking events that would have needed to engage the car’s friction brakes, but I just would have liked a little touchier brake pedal.
We also had a quick stop for a shake at the nearby Crystal Cove Shake Shack, and impressed some onlookers from the surrounding all-too-wealthy area. We caught several passers-by checking the car out, and they were quite surprised to learn that the classic Porsche they were looking at (otherwise not too rare of a sight in “New Porsche Beach”…) was electric.
Overall, this restomod is better put together than any I’ve seen or felt, and drove fantastically well.
I am often disappointed in some way by the EVs that I test drive, because they’re just not as fun to drive as the EVs that I’ve spent all my time in (Mini E, Tesla Roadster and Model 3). There’s often something missing, or something different, which may or may not have a good reason for being how it is, but at the end of the day it just makes the car less appealing to me than the EVs that I really love.
Not so with the Everrati. While I’d tune a couple things differently myself, this thing felt great. Just absolutely top tier. I just had to keep interrupting myself while talking to Lunny during my test drive, telling him how great this car felt. Just fantastic.
And that leads us back to the beginning – whether an EV can offer a “pure” driving experience. While taking this thing up and down PCH, through canyons, on a perfect Southern California day, without any of the rumbling, noise, or delayed shifting of gears needed from a traditional ICE engine.
There’s nothing to get between you and driving, and all the sensory experiences that motion entails. The car did what I wanted, when I wanted, and felt and looked great doing it. That sounds like as pure a driving experience as one can find.
As for the price? Well… “if you have to ask, you can’t afford it.” Everrati’s website doesn’t list prices, rather listing it as “POA” (price on application) and having a “let’s talk” button to reach out. The car we drove cost around $450k – on top of the donor car, which can’t have been cheap to begin with.
So, if you happen to have recently found that bitcoin drive you misplaced in 2011, now you know what to do with it.
If you’d like to read more (and see more photos) head on over and take a look at Everrati’s brand book, with lots of pretty pictures of the company’s vehicle projects.
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InMotion, a well-known brand in the world of personal electric mobility, has officially launched its latest electric unicycle, the InMotion V9. Combining advanced technology and new safety features, the V9’s design positions this electric unicycle as a key option for urban commuters and adventure seekers alike who want good performance without spending a fortune.
Believe it or not, the electric unicycle market is quite broad. There are dozens of interesting models, offering everything from slow, beginner-friendly wheels to massively powerful and scary fast off-road electric unicycles (EUCs).
The new InMotion V9 launches as something of an in-between wheel, providing enough power and speed to keep it fun and interesting, yet without going so over-the-top that it becomes unaffordable or unapproachable by newer riders.
Priced at $1,299, the InMotion V9 is powered by a 1,000W motor that can reach peak outputs of 2,000W. This setup delivers a top speed of around 28 mph (45 km/h), positioning it well for urban streets and bike lanes, two of the most common stomping grounds for EUCs.
Range anxiety isn’t just a concern for cars; it can also affect micromobility riders. For its part, InMotion gave the V9 a fairly hefty 84V and 750Wh battery. This capacity allows the V9 to achieve up to 37 miles (60 km) per charge under optimal conditions. The UL-listed battery charges fairly quickly, reaching full capacity in approximately five hours.
One key feature of the V9 not found on most beginner-friendly wheels is its Nimbus Air suspension system, which provides 60 mm of travel to enhance rider comfort and reduce fatigue on uneven surfaces.
The included suspension is even more notable considering the V9 is currently InMotion’s lightest suspension-equipped electric unicycle, weighing around 48.5 lbs (22 kg). And speaking of weight, the EUC can support riders weighing up to 265 lbs (120 kg).
The InMotion V9 doesn’t skimp on smart features, either. Its integrated GPS tracking enables owners to remotely locate and monitor their unicycle via InMotion’s mobile app, even when powered off. Remote locking functionality further enhances security, ensuring peace of mind for riders frequently leaving their wheel unattended.
Additional smart integrations include customizable RGB side accent lights and built-in Bluetooth speakers, allowing riders to personalize their ride and stay entertained while commuting – or just keep cars and other road users more aware of their presence. The V9 also includes USB-A and USB-C ports with 20W output to ensure riders can conveniently charge their mobile devices while on the go.
Safety is always paramount in electric transportation devices, especially those that come with their own unique concerns like electric unicycles. The V9 has TÜV Rheinland UL2272 certification and “advanced fire-resistant technology” to mitigate risks further.
The InMotion V9 is now available for purchase through local InMotion dealers and via the official InMotion online store.
I don’t cover electric unicycles as often as e-bikes, scooters, and other micromobility devices, but not because they are less deserving. They’re certainly more niche, but I know that the EUC community is adamant about their advantages. And listen, I get it. They’re small and convenient to park or store inside, they don’t require much maintenance at all, and they’re pretty fun after you get the hang of them. An EUC can be intimidating at first, but once it clicks in your brain after a few learning sessions, riding one is a blast!
With the electric unicycle market continuing to gain traction, InMotion still faces competition from other premium brands. However, the V9’s comprehensive package of comfort, safety, and advanced smart features, combined with its competitive price point, should place it pretty well in the crowded landscape of personal electric transportation.
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