Tag Archives: Encryption compliance

This tag is used to compile compliance risks, regulatory concerns, internal control requirements, and case studies related to encryption compliance.

An abstract diagram illustrating the process by which digital asset transaction data enters the institutional accounting, tax, and auditing record-keeping processes.
FinTax discloses seed round funding: led by YZi Labs, post-money valuation of $4,000 million.

FinTax has announced the completion of its seed round of financing, led by EASY Residency S4, a subsidiary of YZi Labs, valuing the company at $4,000 million post-money. The company did not disclose the total amount raised in this round. This article distinguishes between funding amount and valuation, and explains that institutions using crypto-based financial and tax tools still need to independently verify data, rules, and boundaries of responsibility.

27
June
Illinois' 0.2% digital asset tax law faces lawsuit: BA and CCI challenge constitutionality and due process.
Illinois' 0.2% digital asset tax law faces lawsuit: BA and CCI challenge constitutionality and due process.

Illinois' Digital Asset Tax Act proposes a 0.2% tax on digital asset-related business activities, effective January 1, 2027. The Blockchain Association and the Crypto Innovation Council filed a lawsuit on August 21, 2026, arguing that the law violates the U.S. Constitution.

25
June
Suspected Data Breach at US-based BitcoinIRA and iTrustCapital: Analysis of Customer Information Protection and Compliance Obligations for Crypto IRA Platforms
Suspected Data Breach at US-based BitcoinIRA and iTrustCapital: Analysis of Customer Information Protection and Compliance Obligations for Crypto IRA Platforms

On August 24, 2026, blockchain detective ZachXBT disclosed that the US-based crypto IRA platforms BitcoinIRA and iTrustCapital were suspected of experiencing a data breach this year, which neither party publicly disclosed. The leaked data included user information, holdings, and bank and custody information. If true, both platforms will trigger [further action/actions].

25
June
Pakistan VASP Licenses: PVARA sets a September 5th registration deadline; 11 types of licenses under the Virtual Assets Act are now in effect.
Pakistan VASP Licenses: PVARA sets a September 5th registration deadline; 11 types of licenses under the Virtual Assets Act are now in effect.

Pakistan's PVARA has opened its licensing portal. Transitional entities already operating before March 5, 2026, must apply for a certificate of no objection by September 5, or they will have to cease operations. The Virtual Assets Act 2026 establishes 11 types of licenses, requiring locally registered companies, paid-up capital, suitability testing, and anti-money laundering systems. Offshore exchanges must establish local subsidiaries to renew their licenses.

25
June
US Crypto Compliance: Strategy's Bitcoin Treasury Returns to Profitability, Institutional Crypto Holding Paths Under Regulatory Clarity
US Crypto Compliance: Strategy's Bitcoin Treasury Returns to Profitability, Institutional Crypto Holding Paths Under Regulatory Clarity

Strategy (Nasdaq: MSTR) holds 840,447 BTC, and as Bitcoin climbed above its cost basis of approximately $75,385, its holdings returned to unprofitable territory after several months. This rebound was catalyzed by regulatory benefits such as increased US Treasury bond buybacks, the White House Crypto Roundtable, and progress on the Clarity Act; the CFTC chairman stated that if the bill is blocked, they will use existing authority to build a market structure framework.

25
June
The US SEC's "Reg Crypto" regulatory rule has been implemented, establishing a compliance framework for crypto issuance and brokerage licenses.
The US SEC's "Reg Crypto" regulatory rule has been implemented, establishing a compliance framework for crypto issuance and brokerage licenses.

U.S. SEC Chairman Atkins stated that the "Reg Crypto" proposal has been submitted to the White House's Office of Information and Research (OIRA) for review and approval. This proposal focuses on the Securities Act of 1933, clarifying exemptions for crypto issuance and fundraising. The SEC has included three crypto rules in its 2026 regulatory agenda and is working with the CFTC.

25
June
South Korea's FIU (International Federation of Trade Unions) introduces new regulations for virtual asset transfers: personal wallets and overseas exchanges will be managed according to risk levels.
South Korea's FIU (International Federation of Trade Unions) introduces new regulations for virtual asset transfers: personal wallets and overseas exchanges will be managed according to risk levels.

South Korea's Financial Institutional Investor (FIU) has announced revised anti-money laundering regulations for virtual assets. High-risk transfers from personal wallets are restricted, while non-high-risk transfers are limited to the individual's own wallet. Overseas exchanges are categorized into low, medium, and high-risk levels for control. The Travel Rule has removed the 1 million won threshold, and VASP registration terms will take effect on August 20th. Requirements for personal wallets and overseas exchanges are expected to be implemented by 2026.

24
June
Pakistan's PVARA sets a September 5th deadline for crypto platform licenses: NOC application and a framework for 10 types of VASP licenses.
Pakistan's PVARA sets a September 5th deadline for crypto platform licenses: NOC application and a framework for 10 types of VASP licenses.

Pakistan's PVARA has launched an application process for encryption platform licenses. Existing operators must submit their Nomination of Authorization (NOC) applications by September 5, 2026, or face closure. Under Section 70 of the Virtual Assets Act 2026, the NOC is only a preliminary authorization and does not equate to a formal VASP license. The Act establishes 10 types of licenses; Binance and HTX obtained their NOCs in December 2025.

24
June
Qualified Crypto Custodians under the US GENIUS Act and California DFAL: Licensing, Segregation Obligations, and List of Licensed Institutions
Qualified Crypto Custodians under the US GENIUS Act and California DFAL: Licensing, Segregation Obligations, and List of Licensed Institutions

The U.S. GENIUS Act requires that stablecoin reserves be held in custody by federally or state-regulated financial institutions, prohibiting self-custody, and will take effect on January 18, 2027. California's DFAL will be in effect from July 2026.

23
June
A map and three-tier structure of truly licensed crypto asset custody institutions worldwide in 2026: US, EU, and Singapore licenses.
A map and three-tier structure of truly licensed crypto asset custody institutions worldwide in 2026: US, EU, and Singapore licenses.

Custody is a legal status, not a key architecture: regulation focuses on whether the provider can unilaterally transfer assets outside the client's control, and is unrelated to MPC or multisignature. The market is divided into three tiers—qualified custodians, custody technology, and wallet infrastructure. This article lists the truly licensed crypto asset custodians in 2026 and their regulatory status in the US, EU, and Singapore, and reviews recent license consolidation.

23
June
Illinois' digital asset transaction tax faces industry-led lawsuit: 0.2% sparks controversy over blockchain tax compliance.
Illinois' digital asset transaction tax faces industry-led lawsuit: 0.2% sparks controversy over blockchain tax compliance.

Illinois' Digital Asset Tax Act imposes a 0.2% transaction tax on brokers' digital asset transactions involving state clients, effective January 2027. The Chamber of Digital Commerce filed a lawsuit in July 2026, arguing that the law violates the state and federal constitutions and the Internet Freedom Act. This article outlines the core provisions of the tax law, six allegations in the lawsuit, and its compliance impact on interstate crypto brokers.

22
June
The U.S. SEC released a framework for exemptions from fundraising for Regulation Crypto Assets, while the CFTC prepared a contingency plan for voluntary legislation should the Clarity deal fail.
The U.S. SEC released a framework for exemptions from fundraising for Regulation Crypto Assets, while the CFTC prepared a contingency plan for voluntary legislation should the Clarity deal fail.

On August 18, 2026, the U.S. Securities and Exchange Commission (SEC) released a proposal for Regulation Crypto Assets, creating a $5 million startup exemption for crypto asset investment contracts.

22
June
The US IRS warns crypto investors to be wary of fake paper phishing emails: Compliance communications and anti-fraud obligations.
The US IRS warns crypto investors to be wary of fake paper phishing emails: Compliance communications and anti-fraud obligations.

In August 2026, the U.S. Internal Revenue Service (IRS) issued a security alert, warning that fraudsters were forging IRS paper letters, using the guise of a "Digital Asset Compliance Portal" and Form 1099-DA filings, to steal private keys from cryptocurrency wallets via QR codes. While this incident was not related to licensing approvals, it highlights the ongoing compliance obligations of licensed exchanges in customer protection and fraud prevention.

22
June
US Poll: Majority of Public Opinion Believes Trump Family's Crypto Asset Profits Exceed Compliance Standards
US Poll: Majority of Public Opinion Believes Trump Family's Crypto Asset Profits Exceed Compliance Standards

A Reuters/Ipsos poll shows that 63% of U.S. respondents believe the Trump family's profits from cryptocurrencies are inappropriate, and 69% believe their business interests influence policy decisions. This article analyzes the poll data, the background of the $14 billion in profits, and its cross-influence with the ethical provisions of the Clarity Act.

21
June
The U.S. Clarity Act, a digital asset market structure bill, has been criticized as anti-crypto legislation.
The U.S. Clarity Act, a digital asset market structure bill, has been criticized as anti-crypto legislation.

On August 21, 2026, CoinDesk published an opinion piece arguing that the U.S. Clarity Act, a digital asset market structure bill, is essentially anti-crypto legislation. This article outlines the core arguments, the background of the bill, and the current state of the Senate legislation, providing licensed institutions with insights into the uncertainties surrounding market access in the United States.

21
June
South Korea's STO Tokenization Vanguard: Shinhan Asset Management Partners with Solana Foundation to Pilot Won-Denominated Fund
South Korea's STO Tokenization Vanguard: Shinhan Asset Management Partners with Solana Foundation to Pilot Won-Denominated Fund

Shinhan Asset Management, together with the Solana Foundation, Etherfuse, and Orca, signed a four-party MOU to launch a proof-of-concept (PoC) for a Korean won-denominated tokenized fund, structured similarly to the BlackRock BUIDL. The PoC will undergo KYC/AML and compliance requirements under the Foreign Exchange Trading Act, aiming to be among the first to comply with South Korea's STO (Security Token Offering) framework by 2027.

21
June
Ondo executives: Asset tokenization is developing along the path of early ETFs, with overseas markets leading the way.
Ondo executives: Asset tokenization is developing along the path of early ETFs, with overseas markets leading the way.

John Hoffman, Head of Product at Ondo Finance, stated that asset tokenization is following the early ETF path, with adoption accelerating. Ondo Treasury products have approximately $20 billion locked in assets, and its tokenized stock platform has an 8-month TVL.

21
June
CFTC Chairman: Legislation remains the top priority, while staff are asked to explore existing avenues of authority.
CFTC Chairman: Legislation remains the top priority, while staff are asked to explore existing avenues of authority.

During the Innovation Advisory Committee event on August 20, 2026, the CFTC Chairman stated that congressional legislation remains the preferred option for establishing the crypto asset market structure, while staff have been instructed to explore the work that institutions can undertake within their existing authority. This is a policy direction and preliminary exploration, not an already enacted rule, nor does it prove full jurisdiction over spot, custody, or on-chain protocols.

21
June
Anchored says it plans to deploy tokenized shares on Arbitrum via UniswapX: target date subject to preconditions.
Anchored says it plans to deploy tokenized shares on Arbitrum via UniswapX: target date subject to preconditions.

On August 20, 2026, Anchored announced in a company press release its plan to deploy its tokenized shares on Arbitrum, with UniswapX as the initial on-chain access path. The team initially set August 21 as the target date, but explicitly stated that it was subject to technical readiness, liquidity arrangements, partner review, and applicable compliance approvals. This announcement does not prove that the deployment was complete, nor does it support the assertion that Alpaca, the initial 10 tokens, or 300% growth are established facts.

20
June
The US OCC is pushing forward with the GENIUS Act's final rules for stablecoins: the final version is expected by November 2026, impacting issuer licenses.
The US OCC is pushing forward with the GENIUS Act's final rules for stablecoins: the final version is expected by November 2026, impacting issuer licenses.

On August 19, 2026, Jonathan Gould, Comptroller of the Currency (OCC), stated that GENIUS would be released by November 2026.

20
June

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