News & Events

On March 9, 2022, President Joe Biden signed a much-anticipated executive order (EO) titled “Ensuring Responsible Development of Digital Assets” as well as released an accompanying fact sheet. The order focuses on six key areas — ensuring consumer and investor protection, maintaining financial stability, combating illicit financing activities, establishing U.S. leadership in the global financial system, and securing economic competitiveness, financial inclusion, and responsible innovation.

Before the ongoing Russo-Ukrainian conflict reignited in late February, the U.S. and several other jurisdictions have already imposed sanctions and economic pressure on Russia. More recently, after Russian troops positioned in Belarus launched an invasion of Ukraine, the U.S. Department of Treasury stepped up its sanctions against Russia and imposed additional sanctions on Belarusian financial institutions and the defense sector. 

On March 4, 2022, the Financial Action Task Force (FATF), in its plenary session, added the United Arab Emirates (UAE) to its grey list due to strategic deficiencies in its framework to counter money laundering, terrorist financing, and proliferation financing. The UAE has joined 22 other jurisdictions on the list including Malta, Turkey, Syria, the Caymen Islands, Yemen, and more.

As the Russian invasion continues, millions in cryptocurrency donations are pouring into Ukraine. We are proud to announce the launch of Crypto For Ukraine: Powered by Merkle Science — a live dashboard tracking cryptocurrency donations to various government and non-profit organizations supporting Ukrainian efforts on the ground. 

[Update: 2022.03.02]

The United States, the European Union, the United Kingdom, Canada, Australia, and Japan have all announced sanctions against Russian financial institutions and oligarchy, while Germany has halted Nord Stream 2, a major Russian gas pipeline project. These sanctions have been issued in response to Russian President Vladimir Putin's decision to deploy additional Russian forces into the Ukrainian territory and recognize the separatist-controlled Donetsk and Luhansk regions in Ukraine as independent states 

On February 14, 2022, the Securities and Exchange Commission (SEC) announced that BlockFi Lending LLC has reached a settlement with it and has agreed to pay a $100 million penalty for selling its crypto-lending product without registering it with the SEC. BlockFi is a financial services company that offers its users crypto wallets, trading, and crypto-backed loans.

The NFTs market has grown exponentially over the past year. Reportedly, the booming NFTs market generated over $23 billion in trading volume in 2021, compared to just $ 94.9 million in 2020. Further, greater commercial viability and an increase in the trading volumes have resulted in increased risk for fraudulent activities such as AML/CFT risks, tax frauds, and copyright violations. The risks associated with NFTs have captured the attention of regulators all around the globe. On February 4, 2022, the U.S. Department of Treasury published a report, warning the investors that NFTs may, potentially, become a tool for money laundering in the high-value art market. Shortly after that, on February 14, 2022, BBC reported that Her Majesty’s Revenue and Customs (HMRC), the chief tax authority in the United Kingdom, has seized three NFTs as part of a probe into a suspected value-added tax (VAT) fraud case involving 250 alleged fake companies.

As the crypto and Decentralized Finance (DeFi) momentum gains traction, there has been a parabolic rise in market participants. The year 2021 saw the influx of both retail investors and institutional service firms space into the market. The surge in the crypto and DeFi’s growth has also garnered the interest of various regulatory bodies including the federal taxing agencies.

On January 20, 2022, the Board of Governors of the Federal Reserve System (Fed), released its long-awaited white paper on central bank digital currencies (CBDCs), titled — Money and Payments: The U.S. Dollar in the Age of Digital Transformation.