👋 Welcome back to CryptoCubed!
This month brings significant developments in the crypto and AML landscape, marked by Algeria’s sweeping and strict crypto ban. Meanwhile, the UK is introducing fines for crypto holders who fail to disclose their assets, reflecting growing global regulatory efforts. Additionally, the UK’s CB Payments Limited faced hefty fines over AML breaches, and a high-profile crypto fraud duo received lengthy prison sentences. These events underscore the continuing turbulence and tightening of compliance in the crypto world. Are you ready? Read on below.
Algeria Imposes Shocking “Complete” Crypto Ban
Just last week, on the 24th of July, Algeria, the tenth-most populous country in Africa, imposed Law No. 25-10. The Law is noted as one of the strictest and most robust legislations globally, involving a total ban on cryptocurrency. Under the Law, anyone issuing, mining, promoting, or possessing digital assets will be penalized heavily. Crypto exchanges and digital wallets are fully prohibited from operating. Additionally, any influencer found advertising cryptocurrency will be criminalized as well.
The penalty is severe, with any violation found to be punishable by jail time going up to a year and fines ranging from $1,540 to $7,700. The legislation provides regulatory authorities with extensive enforcement power, including broad oversight of central banking activities.
The Algerian government marks this move as a vital progressive measure to end money laundering and terrorist financing effectively. Despite many other countries, such as South Korea and the US, leading the charge towards crypto assets, Algeria argues that this move is crucial for the country to protect its financial systems. Many have mentioned that the Law could boost the country as one of the safest financial hubs in Africa. In contrast, others have noted that it will completely isolate the country from global developments in digital finance.
For more on this story, click here.
Crypto Holders in the UK to Face Fines for Non-Discloures
From January 1st, 2026, all UK-based crypto holders need to submit key personal information, including name, address, date of birth, and national insurance, to crypto service providers. These new rules are introduced to crack down on the growing tax evasion in the UK’s crypto world. Any failure to submit accurate information will result in a £300 penalty.
In addition, crypto service providers are mandated to run essential Know Your Customer (KYC) checks to facilitate the new rules. Aside from gathering user information, they must also collect data on an individual’s transaction activities and submit details on the types and amounts of cryptoassets involved.
The Director General for Customer Strategy and Tax Design at HMRC, Jonathan Athow, says, “These new reporting requirements will give us the information to help people get their tax affairs right. I urge all cryptoasset users to check the details you must give your provider. Taking action now will help you avoid penalties in the future.”
HMRC obliges taxpayers to submit full information on any profits or income made from crypto through new dedicated reporting sections. These new rules usher in a new commitment to safeguarding the UK’s crypto sector, with officials estimating an additional £315 million in tax revenue by 2030.
For more on this story, click here.
CBPL fined over £3 Million for Facilitating High-Risk Transactions
CB Payments Limited (CBPL), a private limited company founded in 2015 under the Coinbase Group, was fined by the Financial Conduct Authority (FCA) a whopping £3,503,546 for gaps in its Anti-Money Laundering (AML) processes. After investigations, the FCA found that CBPL did not uphold its voluntary agreement reached in 2020, which stated strictly that the company could not onboard any more high-risk customers before their AML gaps had been remediated.
Even though the company received repeated warnings over the course of two years, it enabled over 13,000 high-risk customers to conduct payment and transaction services. Out of the 13,416 high-risk users, 31% made deposits worth nearly $24.9 million, enabling over $226 million in crypto transactions to be made through Coinbase entities.
CBPL was found to have extensive weaknesses in its customer due diligence processes, including failure to oversee major AML controls. This case highlights the importance of rigorously identifying and addressing the gaps in AML that can contribute to financial crime. The FCA’s steadfast enforcement action serves as a strong warning to other crypto platforms on the importance of abiding by compliance regulations.
For more on this story, click here.
12 Years in Prison for Crypto Fraud Duo
Between 2017 and 2019, Raymondip Bedi and Patrick Mavanga committed crypto fraud amounting to £1.5 million. The two cold-called around 65 victims, deceiving them into making fake crypto investments. The fraudulent money was channelled through companies such as Astaria Group LLP and CCX Capital.
According to reports by the FCA, the pair was found intent on exploiting regulatory loopholes arising from weak KYC and AML systems. Bedi received five years and four months, while Mavanga received six years and six months. The latter pleaded guilty to possessing a false ID and deleting important evidence.
Currently, regulatory authorities are still working on recovering the stolen funds. The crypto fraud duo case underscores the FCA’s ongoing dedication to protecting investors and tackling financial crime in the crypto sector. Investors are reminded to always conduct due diligence before investing, and for crypto service providers to implement strong compliance protocols.
For more on this story, click here.
America Positions Itself as Crypto Capital of the World Under Trump
The White House released a landmark 166-page report from the President’s Working Group on Digital Asset Markets on July 30th. The report sets forth the U.S. strategy for innovation and regulation in the cryptocurrency sector. One of its key points covers the use of advanced technologies such as AI and blockchain analytics to strengthen real-time monitoring in AML and Counter-Terror Financing (CFT) frameworks.
The report outlines comprehensive standards to position the US as a global leader in digital finance, including regulatory frameworks and addressing common financial risks. One such recommendation is that Congress pass increased clarity and comprehensive legislation that provides tailored rules for different asset types based on economic function.
Overall, the report signals a paradigm shift toward comprehensive, cohesive U.S. crypto policy embracing innovation while safeguarding consumers and financial stability, fulfilling President Trump’s goal to make America the “crypto capital of the world.”
For more on this story, click here.
Time for The Poem You Have Been Waiting for
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: JUNE🔥
Across the world, the crypto tide,
Brings law and order, far and wide.
From Algeria’s resolute, iron hand,
A total ban to guard the land.
Two fraudsters caught in prison’s grip,
Their schemes exposed, no more to slip.
Through rules, reports, and justice met,
The crypto age seeks to reset.
Stay tuned for our August newsletter, and have a great month!
