• com has sued the SEC for overreaching its regulatory authority over crypto.
• The lawsuit challenges SEC rules categorizing most crypto transactions as securities.
• com seeks clarity on crypto derivatives through a petition with the CFTC.

Crypto.com has today filed a lawsuit against the US Securities and Exchange Commission (SEC) in response to a Wells notice received from the agency.

According to a communication from the exchange, the lawsuit aims to challenge what Crypto.com describes as the SEC’s overreach and misguided regulatory actions that threaten the future of the crypto sector in the United States.

The complaint asserts that the SEC has improperly expanded its jurisdiction, claiming that virtually all cryptocurrency transactions qualify as securities, except for those involving Bitcoin (BTC) and Ethereum (ETH).

This claim is based on the assertion that the SEC has established an unlawful rule without the necessary notice and comment period mandated by the Administrative Procedure Act.

According to Crypto.com, this arbitrary enforcement contradicts the fundamental principles of fair regulatory practices, particularly given that the characteristics and sales methods of various crypto assets are often indistinguishable from those of BTC and ETH.

Crypto.com emphasizes that it has always prioritized compliance and security, operating as a registered money services business with the Financial Crimes Enforcement Network (FinCEN) and holding over 40 state money transmitter licenses. The company views this lawsuit as a necessary step to halt the SEC’s actions, which they argue exceed its legal authority and violate federal law.

In addition to the lawsuit, Crypto.com’s subsidiary, Crypto.com | Derivatives North America, has filed a petition with the Commodity Futures Trading Commission (CFTC) and SEC. This petition seeks a joint interpretation confirming that certain cryptocurrency derivative products fall solely under the CFTC’s jurisdiction, further demonstrating Crypto.com’s commitment to clarifying regulatory frameworks for the industry.

As Crypto.com navigates this unprecedented legal challenge, the company remains steadfast in its operations, asserting that its commitment to regulatory compliance will ultimately benefit its customers and the broader crypto ecosystem.

This lawsuit not only underscores the growing tension between cryptocurrency businesses and regulatory agencies but also highlights the urgent need for clearer regulations in the rapidly evolving digital economy.

• The National Bank of Bahrain launches the GCC’s first Bitcoin investment fund.
• The fund offers accredited investors exposure to Bitcoin as a capital-protecting option.
• Bahrain ranks fifth globally in Bitcoin holdings, emphasizing its crypto-friendly stance.

The National Bank of Bahrain (NBB) has made headlines with the launch of a groundbreaking investment fund aimed at providing accredited investors with exposure to Bitcoin.

This initiative marks the first Bitcoin-linked structured investment in the Gulf Cooperation Council (GCC) region, which includes countries such as Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

National Bank of Bahrain collaborating with APR Digital

In collaboration with APR Digital, the fund is designed to cater to the growing interest in digital assets, particularly Bitcoin.

Hisham AlKurdi, Group Chief Executive of Markets & Client Solutions at NBB, in a press release, expressed pride in introducing this innovative product, stating, “We are proud to introduce this bespoke structured investment, which blends the appeal of digital asset exposure with the security of capital protection.”

This move underscores the bank’s commitment to providing wealth management clients with secure and diverse investment opportunities.

Boost for Bitcoin adoption in Bahrain

As Bitcoin continues to gain traction worldwide, the launch of this fund is a significant boost for BTC adoption in Bahrain.

The country is currently ranked fifth globally for the largest Bitcoin holdings, with a portfolio of approximately 13,166 BTC, valued at around $844 million.

Unlike some nations that acquire BTC mainly through seizures, Bahrain has been actively accumulating the cryptocurrency, positioning itself as a leader in the digital asset space.

Furthermore, the Central Bank of Bahrain (CBB) has implemented a clear legal framework to foster the adoption of digital currencies.

Recently, the CBB granted a payment service license to the crypto exchange Crypto.com, allowing it to provide crypto services to Bahraini users, further solidifying Bahrain’s status as a crypto-friendly nation.

With the introduction of this Bitcoin investment fund, the National Bank of Bahrain aims to capitalize on the growing potential of cryptocurrencies, offering clients a unique avenue for portfolio diversification in an evolving investment landscape.

As interest in digital assets continues to rise, Bahrain’s proactive approach is likely to encourage further investment and innovation in the region.

• The UAE updated its tax laws to exempt crypto transactions from value-added tax.
• The change will take effect on November 15 but retroactively apply to transactions from January 1, 2018.

The UAE government amended its regulations around value-added tax laws to exclude digital assets and transactions involving them.

The document published by the Federal Tax Authority (FTA) of the UAE also exempted the activities of investment funds that manage digital assets, and the transfer of ownership of assets and their conversion to or from fiat from value-added tax.

This development is part of a wider streamlining of digital asset regulations by various regulatory authorities within the UAE. For example, the Securities Commodities Authorities (SCA), UAE’s premier financial regulatory authority, partnered with Dubai’s authority, the Dubai Virtual Asset Regulatory Authority (VARA), to jointly oversee digital asset service providers operating within both nations.

A wider push for legitimacy

The UAE’s amendment to its crypto tax laws lends more legitimacy to digital assets within the region as the same VAT exemption is also applied to traditional financial firms and transactions.

According to PwC, virtual assets within the UAE are considered as a “representation of value that can be digitally traded or converted and can be used for investment purposes.”