 Chainalysis hit with $650M lawsuit, Italy to hike Bitcoin tax: Law Decoded 
2024-10-22

Blockchain analytics firm Chainalysis appeared at a New York Supreme Court hearing on Oct. 16 after being hit with a $650 million defamation lawsuit. 
The case centers around claims made by Exceptional Media, the company behind the YieldNodes blockchain investment project. Chainalysis previously called YieldNodes an “investment scam.” The company argues that the remarks made by the crypto analytics firm caused harm to its reputation and client base. 
Exceptional Media seeks at least $650 million in damages, citing harm to its reputation and client base. It also alleges malicious intent.
In the time since the initial filing, Chainalysis’ legal team has filed numerous motions to dismiss. According to Chainalysis, Exceptional Media and YieldNodes failed to establish that the YieldNodes project isn’t a scam or to provide any refutation of Chainalysis’ allegations.
Europe’s ESMA calls for amendments to MiCA regulations
The European Securities and Markets Authority (ESMA) has recommended key amendments to the Markets in Crypto-Assets (MiCA) regulations, signaling the need for more robust controls as the crypto market evolves.
ESMA encouraged the European Commission to move forward with its proposal to update several aspects of the framework.
“ESMA acknowledges the legal limitations raised by the Commission but emphasizes the importance of the policy objectives behind the initial proposal,” the regulator wrote.
Among the changes proposed are stricter measures for Anti-Money Laundering compliance and additional checks of crypto asset service providers. These updates come as EU regulators adapt to the rapid growth and increasing complexity of the crypto sector.
Cyprus and Ireland scramble to align with EU crypto rules
Both Cyprus and Ireland are moving quickly to update their regulatory frameworks in response to the EU’s impending crypto regulations. 
Cyprus’ financial regulator, the Cyprus Securities and Exchange Commission (CySEC), says it will no longer accept CASP applications under Cypriote national laws as of Oct. 17. The CASPs successfully registered under the national laws before the Dec. 30 deadline will be able to operate under that jurisdiction until July 1, 2026, unless they are granted or refused authorization under MiCA Article 63 before then. 
Meanwhile, Ireland is drafting urgent legislation to comply with the EU’s forthcoming anti-money laundering (AML) rules, which will heavily impact how virtual asset service providers (VASPs) operate. 
Both nations are in a race against the clock, with the regulatory environment in Europe tightening as the crypto industry continues to expand and MiCA compliance becomes critical. 
UAE sets DAO legal framework in Ras Al Khaimah
The UAE’s Ras Al Khaimah — a free economic zone focused on digital assets — is set to become a hub for decentralized autonomous organizations (DAOs) with the introduction of a new legal framework.
In an announcement sent to Cointelegraph, law firm NeosLegal and RAK DAO said the new regime will be introduced and discussed at the DAO Legal Clinic on Oct. 25. This development will provide regulatory clarity for DAOs looking to establish operations in the free zone.
The move is part of a broader effort by the UAE to position itself as a global leader in crypto and blockchain innovation.
Italy to hike Bitcoin capital gains tax from 26% to 42%
In a move that could significantly impact crypto investors, Italy has raised its capital gains tax on Bitcoin (BTC) from 26% to 42%in its budget. This tax hike is part of the government’s broader effort to regulate the cryptocurrency market and increase its revenue from digital assets.
The new tax rate could dampen investor enthusiasm, particularly among those holding significant amounts of Bitcoin.
Italian regulators also said that the new bill would remove the minimum revenue requirement for Italy’s “web tax,” or the Digital Services Tax (DST), which was introduced as part of the country’s budget in 2019.