Crypto Regulation and Compliance Updates

The SEC has reached a $10 million settlement with Justin Sun, resolving allegations of securities fraud linked to TRX and BTT tokens. The agreement dismisses personal claims against Sun and highlights the SEC's ongoing regulatory efforts in the crypto industry.

Curve Finance recently stated that a certain decentralized trading platform used its code without permission, violating open-source licenses, and emphasized that this action is illegal and unwise. Curve Finance proposed that legitimate use of its Stableswap functionality can be achieved through licensing or collaboration to ensure the safety of user funds.

Ragnarshib warns the Shiba Inu community about a hacked account belonging to Vet Kusama, currently used by scammers to send fraudulent messages. Users are advised not to interact with the account or its links until it is recovered.

A certain CEX recently responded to a U.S. senator's inquiry about anti-money laundering, stating that the allegations are false. The platform emphasized that it has established strict compliance and sanctions controls, prohibiting Iranian users. It also launched an internal investigation, delisted related entities, and helped law enforcement recover over $752 million in the past three years. Moving forward, it will continue to strengthen its compliance system.

Charles Hoskinson argues that under the revised CLARITY Act, tokens like XRP would qualify as securities, igniting his feud with the XRP community. He called Ripple CEO Brad Garlinghouse out again, cautioning that having no laws is better than having a bad law. Cardano founder Charles Hoskin

According to the latest FATF report, stablecoins have become a primary funding tool for illegal transactions, especially in countries like North Korea and Iran. The report indicates that by 2025, stablecoins will account for 84% of illegal virtual asset trading volume, and calls for increased regulation of stablecoin issuers to prevent money laundering and other criminal activities. The global stablecoin market value has exceeded $300 billion, and regulators need to act quickly to close regulatory gaps.

As the US-Israel coalition's military actions against Iran escalate, Iran's "shadow economy" becomes a focal point. Iran has legalized Bitcoin mining and is utilizing cheap electricity for mining to bypass US dollar sanctions, with the mining scale potentially reaching $7.8 billion and being heavily relied upon by the military. The rial has depreciated by over 96%, and the stablecoin USDT has become a new tool for trade, while the public is turning to Bitcoin to protect their assets.

IoTeX reports that the ioTube cross-chain bridge incident on March 6 resulted in approximately $4.4 million in losses. 99.5% of the stolen assets have been frozen, and the team has committed to fully compensate affected users. The mainnet has resumed operation, and the attacker’s address has been blacklisted. Meanwhile, efforts are underway to promote decentralized governance and security audits.

Odaily Planet Daily reports that Bitcoin payment app Strike has officially received the BitLicense license issued by the New York State Department of Financial Services, allowing it to operate cryptocurrency services locally. Strike also announced the launch of a Bitcoin collateral credit line service, enabling users to borrow fiat currency in real-time for lightning payments or bill payments. Currently, this service supports low-threshold lending and will initially be launched in Georgia and Massachusetts, with plans to expand to more states across the United States.

Vancouver Mayor Ken Sim proposed establishing a "Bitcoin Strategic Reserve," but city officials assessed that Bitcoin does not meet legal investment standards and recommended that the city council withdraw the proposal. According to the report, Bitcoin is not classified as a legal asset and requires reallocation of human resources to align with municipal priority plans. The Ministry of Municipal Affairs of British Columbia has already stated that local governments are not permitted to include cryptocurrencies in their financial reserves to avoid risks.

U.S. Senator Elizabeth Warren criticizes the SEC for reaching a $10 million settlement with Justin Sun, claiming that regulatory agencies favor crypto allies. The settlement involves SEC charges against Sun and his company. Warren emphasizes the need to ensure crypto legislation prevents the president from profiting through the crypto industry. Justin Sun calls the settlement a conclusion to the case and commits to promoting crypto innovation.

ChainCatcher News: The Pakistani Parliament officially passed the "Virtual Assets Bill 2026," announcing the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA), responsible for licensing and regulating virtual asset service providers within the country. The bill aims to protect investors, combat money laundering and terrorist financing, and promote fintech innovation, aligning Pakistan's regulatory standards with international practices. PVARA was previously a temporary agency established by a presidential order in July 2025; this legislation marks its formal legalization.

Taipei District Prosecutors Office is investigating the Cambodia "Prince Group" money laundering case, indicting 62 individuals and 13 companies. The involved amount of money laundering is 10.7 billion, and assets worth 5.5 billion have been seized. The group used USDT and their self-developed "OJBK Wallet" to conduct cross-border money laundering, conceal criminal proceeds, and withdraw cash in multiple countries.

The Goyang Branch of the District Court of the Government sentenced former police officer A to 6 years in prison and a fine of 10 billion Korean won for accepting a bribe of 120 million Korean won during a cryptocurrency scam investigation and for embezzling 7.88 million Korean won in false overtime allowances. Legal service personnel B involved in the case was sentenced to 2 years and 6 months in prison, with a 4-year probation.

PEI Licensing has sued Pudgy Penguins for trademark infringement, alleging consumer confusion due to branding overlap as Pudgy expands from NFTs to physical merchandise. The case highlights tensions between traditional IP law and the growing digital asset sector.

Russia plans to legislate cryptocurrency trading regulation, with the central bank governor proposing to allow qualified banks and brokerage firms to obtain trading licenses, establish compliance systems, monitor fund flows, and control risks. This new regulation aims to be implemented by July 2026 to promote the legalization of digital assets.

HyperEVM's custodial lending protocol HypurrFi disclosed that previous versions of Aave V3 had a "rounding error" vulnerability, allowing attackers to extract underlying tokens. HypurrFi guarantees the safety of user funds, has paused supply and borrowing operations in affected markets, and is working with relevant parties to address security issues.

The Financial Services Commission of South Korea held its first virtual assets committee meeting of 2026 on March 4 in Seoul, discussing cryptocurrency legislation and reviewing a draft of the Digital Asset Basic Act.

A South Korean cryptocurrency scammer reappeared after being declared dead and has repaid approximately $60,000 to the victims. The man fled to Cambodia and was deported back to his home country. Prosecutors canceled his missing person declaration, restored his legal status, and handled his frozen assets, actively investigating the case and protecting human rights.

Chainalysis report shows that in 2025, crypto-related illegal activities linked to sanctions increased significantly, with sanctioned entities receiving $104 billion in cryptocurrency, driving the total illegal on-chain transaction volume for the year to $154 billion. Sanctioned countries such as Russia, Iran, and North Korea are using cryptocurrencies to evade financial sanctions, with stablecoins accounting for as much as 84% of illegal transactions.