Crypto Legal

Weekly Legal Digest: 5th October 2018

“Blockchain makes cryptocurrencies the inevitable future of money, more transparent since it helps filter good businesses from bad businesses. But these distributed ledger technologies can do much more.” — the Prime Minister of Malta, Joseph Muscat


By the end of 2018, deputies of the State Duma of the Russian Federation are preparing to adopt nine laws relating to the development of the digital economy in Russia. This was stated by Dmitry Sazonov, Deputy Chairman of the Chamber’s Committee on Economic Policy, Industry, Innovative Development, and Entrepreneurship. State Duma representatives will focus on working out the details of the company’s exit procedure on ICO, the turnover of digital financial assets, the regulation of mining, the blockchain technology and the definition of the concept of smart contracts.


Ripple will lead a group of crypto startups to lobby lawmakers and financial regulators in D.C. to support crypto and blockchain innovation.

The new group, called Securing America’s Internet of Value Coalition, aims to soften the government’s stance to encourage innovation and support competition in the ecosystem of global crypto markets.

The coalition, together with the lobby group, will raise issues with Congress, as well as the Securities and Exchange Commission (SEC), the Internal Revenue Service (IRS), and other agencies that have relations to cryptocurrency.

Belarus and Switzerland

Diplomats from both countries at a meeting in Lausanne discussed the regulation of cryptoindustry and agreed to cooperate with the Swiss Financial Market Supervision Authority in the regulation of cryptocurrency.

South Korea

The chairman of Korea’s National Policy Committee has called for the legalization of ICOs, provided that a regulatory framework is put in place.

Min Byung-Doo, who is a member of the country’s governing Democratic party, said that, with token sales becoming a global trend, “I do not want the ICO door closed completely … The state should not ignore.”

“We can see that the flow of investment is clearly changing compared to ICO and angel fundraising. The ICO has raised $1.7 billion for Telegram and $4 billion for Block.One, It is getting bigger and bigger.”


In a recent announcement securities regulator of Brazil, Comissão de Valores Mobiliários (CVM) has allowed investment funds in the country, to indirectly invest in the crypto ecosystem by acquiring derivatives and foreign funds.

According to the circular, that is available on the website of the Securities and Exchange Commission of Brazil (CVM), the regulator has directed administrators, managers, and auditors of investment fund, who wanted to seek clarification, that it does not prohibit indirect investment in cryptocurrencies while dealing in foreign funds, as long as these are regulated where they’re traded.


A district court in Shanghai Hongkou District has released a statement that Ether [ETH], Ethereum’s native token is indeed property and is duly protected by the law. The statement after its ruling on a crypto-related case brought before the court last year.

European Union

On Wednesday, Members of the European Parliament passed a resolution by the Industry, Research and Energy Committee about the blockchain technology that contains many interesting details and insights that will no doubt be good news to blockchain and crypto followers.

The move comes a few days after various European crypto bodies like Etoro called for the speedy passing of laws and regulations that will govern the industry.

“Initial Coin Offerings (ICOs) have a strong potential in funding innovation and accelerate technology transfer; ICOs are a distinct asset class with strong potential; Calls on the Commission to propose a framework for ICOs”.


To improve internal cybersecurity, the Israel Securities Authority (ISA) has implemented blockchain technology for its messaging and information systems.

The Israeli government agency responsible for capital markets and securities regulation recently announced the improvement to its “Yael” system, which is used to deliver communications to bodies subject to ISA regulation. The ISA describes the development as adding “another layer to ensuring the credibility” of information relayed to the bodies under its jurisdiction. The ISA explained:

“The technology verifies the messages’ authenticity, prevents fraud, and prevents them from being edited or deleted. Additionally, the system prevents the option of denying that a message was received from the ISA.”


Venezuela has officially launched the pre-sale of its new digital currency called the petro.

“Petro is born, and we are going to have a total success for the welfare of Venezuela,” President Nicolas Madurosaid on Tuesday.

According to the government, the petro is backed by oil, gas, gold, and diamonds, and is meant to help overcome US and EU sanctions.


The self-regulatory Japan Virtual Currency Exchange Association (JVCEA) plans to stricten its customer asset management measures. The Japan Times outlet reported this news Sunday, September 30, citing “informed sources.”

JVCEA is a self-regulatory group of some of the largest licensed exchange operators in Japan, established in April of this year. Now, the organization is reportedly planning to tighten its rules by establishing a limit on the number of digital currencies that can be managed online by any exchange.

According to The Japan Times’ sources, the limit will likely be set at around 10 to 20 percent of customer deposits. JVCEA is reportedly in the process of revising its rules, originally formulated in July, after which they will be presented for certification to Japan’s Financial Services Agency (FSA).

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Published by GMT Legal

GMT Legal
GMT Legal is an International law firm providing services in crypto and blockchain industry.