Welcome to the February edition of CryptoCubed! This month, we’ve got a bit of everything, from rogue presidents to ground-breaking fines. Buckle up for this month’s dose of Crypto chaos as compliance and regulation take center stage and the sector continues to grapple with evolving challenges.
Argentina’s President Faces Impeachment Calls Over Possible Crypto “Rug Pull”
Argentine President Javier Milei faces impeachment calls and legal action for promoting cryptocurrency on social media. On Friday, he shared a post about the $LIBRA coin, claiming it would help fund small businesses. The coin’s price surged before Milei deleted the post, causing the cryptocurrency’s value to plummet and resulting in significant losses for investors. Some accuse Milei of a “rug pull,” a fraudulent tactic in crypto promotions.
Legal complaints of fraud have been filed, and opposition members are pushing for impeachment. Milei’s office stated the post was removed to prevent speculation and promised an investigation. Critics, including former President Cristina Fernández de Kirchner, have condemned him, calling the situation a “crypto scam.”
For more on this story, click here.
Australia’s AUSTRAC Cracks Down on 13 Crypto and Remittance Firms for Compliance Failures
Australia’s financial crime regulator, AUSTRAC, has targeted 13 remittance and digital currency exchange providers over compliance issues and is investigating 50 more. This follows a year-long campaign to address non-reporting and under-reporting. AUSTRAC has issued alerts to operators who may not adhere to regulations, particularly around reporting suspicious activities. The agency recently canceled, suspended or refused registration renewals for 9 providers who failed to meet obligations under anti-money laundering laws. Two others are under scrutiny, with potential for further action.
Officials at several companies, including Auaisa Trading Pty Ltd and Amco Travelling and Exchange Pty, face serious charges and legal disputes. Some providers have ceased operations or missed registration deadlines, while others, like Currencyfair, have received conditional registration. Zipmex Australia and FTX Express were delisted due to insolvency. Additionally, AUSTRAC has focused on crypto ATM providers violating regulations.
ASIC, Australia’s securities regulator, has taken down over 5,500 fraudulent investment websites and 615 crypto scam sites since July 2023. Investment scams were found to have resulted in losses of $1.3 billion in 2023. These scams often use fake news and deepfake videos to promote fake trading platforms.
For more information, click here.
Chinese Crypto Crackdown – $136 Million Linked to Money Laundering Scheme
Chinese police have found a large fraud operation involving cryptocurrency use to facilitate cross-border fund transfers. China National Radio published a report on February 12th outlining that the network was able to launder over $136 million. Authorities in Yanbian, Jilin, launched an investigation, which led to the arrest of seven key suspects in August 2024.
The operation, which spanned multiple provinces, was led by Zhang Liang, who initially profited from currency exchange and expanded into unauthorized fund transfers. More than 20 people were arrested, highlighting the growing use of crypto in underground banking. Despite China’s crypto ban, digital currencies are increasingly exploited for illicit transactions, posing challenges for law enforcement.
For more on this story, click here.
ESMA Proposes Competence Guidelines for Crypto Staff Under MiCA
The European Securities and Markets Authority (ESMA) has proposed guidelines to assess the knowledge and competence of staff at crypto asset service providers, which is in line with the EU’s Markets in Crypto-Assets Regulation (MiCA).
Released on February 17, the guidelines aim to establish consistent standards for staff providing crypto advice and information, with a focus on investor protection and market trust. Staff would need to understand crypto risks, market functioning, and blockchain technology and meet minimum qualifications, including relevant experience and ongoing professional development. ESMA is seeking feedback on the guidelines through April 22, with final rules expected by Q3 2025.
Find more on this story here.
Bitcoin Falls Below $95K as Chances of U.S. Strategic Reserve Decline
Bitcoin’s price fell below $95,000 on Tuesday, continuing a downtrend that started four weeks ago after reaching a record high of $109,200.
The drop followed a decline in the odds of a U.S. Strategic Bitcoin Reserve (SBR). A Polymarket poll showed that Donald Trump’s likelihood of creating an SBR in his first 100 days was just 12%, down from 40% in January. Similarly, the chance of the Texas Strategic Bitcoin Reserve Act being signed this year dropped to 38% from over 60%.
Other states, including Wisconsin, Arizona, and Florida, have introduced similar bills, while the Trump administration is exploring the creation of an SBR. One option is using Bitcoin seized by the government. The U.S. government currently holds 198,109 BTC, valued at $18 billion.
A U.S. SBR could encourage other countries to follow suit. Bitcoin’s price chart shows a bullish pattern, with a megaphone formation suggesting a potential rebound in the coming weeks.
For more on this story, click here.
Upbit Faces Billions in Fines for 700,000 Rule Breaches Amid South Korea’s Crypto Crackdown
South Korea’s largest crypto exchange, Upbit, is under investigation by the Financial Services Commission (FSC) for over 700,000 KYC violations, which could result in billions of Won in fines and a potential suspension of new user registrations.
As the market leader, holding over 80% of local crypto trading, Upbit’s case may influence other exchanges. Under South Korea’s Special Financial Transactions Act, the fines could reach up to $68,600 per violation. Speculation also suggests temporary operational suspensions or additional compliance measures for Upbit.
This investigation comes as South Korea tightens regulations following the introduction of the Virtual Asset User Protection Act in July 2024. Upbit’s parent company, Dunamu, is working with authorities, but regulatory pressure on smaller exchanges is rising.
Upbit’s past regulatory challenges include compensating users for losses during a December 2023 crisis, and the FSC continues to monitor the exchange closely.
For more on this story, click here.
The Latest Crypto Guide: Understanding UK Crypto in 2025
Our recent crypto guide dives into understanding UK Crypto Regulation in 2025, guiding you through everything you need to know about how regulation might evolve in the coming months. Here’s a sneak peek:
“As the US spearheads the global crypto surge, the future of UK crypto regulation remains uncertain. Tulip Siddiq, the U.K. Treasury Minister and a prominent advocate for cryptocurrency regulation, has resigned, leaving the nation with questions over the future of crypto in Britain. Meanwhile, the FCA reports that 12% of UK adults now own cryptocurrency, a clear indication that Britain is eager to avoid being sidelined as America embraces its new financial frontier. With the U.S. gearing up for Trump’s crypto era, let’s dive into how Britain might follow and what we can expect from 2025 crypto regulation in the UK.”
Read the full piece here.
Time for Some Light-Hearted Creative Criticism?
So you’ve made it to the end of our newsletter. It’s time to enjoy a little satire, worthy reader, you’ve earned it.
🔥THE CRYPTO CUBED POEM: FEBRUARY🔥
Another month, another newsletter, another crypto crook.
Another fraudulent president who doesn’t play by the book.
Another story, another scam, another massive fine,
Another month of regulators drawing new lines.
Another twist, another surprise,
Another CEO telling lies.
But they’ll get caught, you’ll see,
With a fine bigger than their nation’s GDP.
Stay tuned for our March newsletter, and have a great month!
