12 Days of Bobmas 2025: Highlights from Bits of Blocks
- Contributors
- 11 minutes ago
- 5 min read
Regulatory shake-ups for digital assets continued into and throughout 2025, with newly enacted legislation and anticipated policy shifts in hopes of encouraging innovation and confidence in the digital asset space. Bits of Blocks (Bob) has been on the beat, delivering breaking news on legal developments affecting the blockchain and crypto industry. To celebrate, we present the '12 Days of Bobmas' – a chronological journey through our top stories of the year.
On the first day of Bobmas, we saw a long-awaited return. Cryptopia finally distributed $400M in crypto to creditors, closing one of the industry’s most drawn-out insolvency sagas. This follows after Justice Gendall's 2020 decision recognising cryptocurrencies as intangible property. That decision has proven influential in a number of subsequent judgments including a judgment of the Tasmanian Court of Appeal this year endorsing a third category of property. After years of uncertainty, this payout proves that even in crypto dystopia, redemption is possible.
On the second day of Bobmas, Celsius turned up the heat. The bankrupt lender began serving clawback actions in Australia to recover funds from the crypto winter collapse, highlighting the global reach of insolvency proceedings and the challenges facing creditors. Celsius sought to rely on provisions under the US Bankruptcy Code to avoid and recover from customers who made net withdrawals exceeding USD$100,000 in the 90 days prior to bankruptcy. Piper Alderman is providing assistance to Australian-based customers who may be affected by the clawback actions.
On the third day of Bobmas, the Daleks came for Bitcoin ATMs. The UK Financial Conduct Authority (FCA) cracked down on unregistered operators, serving a strong reminder to crypto kiosks to ensure regulatory compliance—and not to hope for a regulatory 'Doctor' to save the day. The FCA's crackdown on crypto ATM operators amounted to a 'shadow-ban'. Over the year, Australia's anti-money laundering regulator, AUSTRAC, also stepped up scrutiny of crypto ATMs by imposing new registration conditions. Meanwhile, the Government threatened to give AUSTRAC powers to ban high risk channels.
On the fourth day of Bobmas, regulators called the bluff. The Ontario Securities Commission (OSC) settled enforcement proceedings with Polymarket, signalling growing scrutiny of prediction markets . The OSC initiated an enforcement proceeding against two US companies operating the Polymarket prediction service. In response, Polymarket placed geoblock restrictions on Canadian residents. Meanwhile, the rise of prediction markets continued at pace with Polymarket and Kalshi featuring prominently in public discourse, and Coinbase planning to launch its own service.
On the fifth day of Bobmas, Block Earner rang in a big win. The company successfully overturned ASIC’s appeal, indicating the boundaries of financial services law and setting a precedent for crypto businesses in Australia. The Full Federal Court ruled that Block Earner's fixed yield 'Earner' product did not constitute a 'financial product' under the Corporations Act 2001 (Cth). Consequently, Block Earner was not required to hold an Australian Financial Services Licence. This case clarified several legal principles applicable to investment/financial products and was a big victory for the crypto industry. However, with ASIC's appeal to the High Court, it remains to be seen whether the regulator will be successful in overturning the Full Court's decision.
On the sixth day of Bobmas, age verification went on-chain. Australia trialed blockchain-based solutions to keep minors off social media, showcasing blockchain’s potential beyond finance and into online safety. ShareRing, a Melbourne-based blockchain company has been testing their age verification tools ahead of the world's first laws restricting under-16s from joining social media. Now that the laws are in force, we will be keeping an eye on how ShareRing and other blockchain technologies innovate digital safety and privacy.
On the seventh day of Bobmas, Washington DC tightened its grip. Democratic Senators jeff Merkley and Chuck Schumer introduced a new bill aimed to curb crypto corruption with stricter disclosure and anti-bribery measures, signalling a push for cleaner digital asset dealings. In what appears to be a response to the launch of the $TRUMP and $MELANIA meme coins and Trump-backed World Liberty Financial's latest stablecoin venture, the bill would prohibit any 'covered individual' (President, Vice President, Members of Congress, and others) or their spouse or dependent child from engaging in prohibited financial transactions during their term of service and for one year after leaving office. It's unlikely we will see this bill passed. The bill nevertheless highlighted concerns over public officials taking financial positions in respect of legislative and administrative matters.
On the eighth day of Bobmas, GENIUS got its glow-up. The GENIUS Act passed a key Senate vote, paving the way for broader stablecoin adoption based on clearer regulatory frameworks in the US. The move forms part of a broader strategy by the Trump administration to promote the primacy of the US dollar and position the country as a leader in taking financial markets on-chain.
On the ninth day of Bobmas, Cayman made its move. The jurisdiction is set to update its laws to support tokenised securities and real world assets (RWA), positioning itself as a global hub for digital finance innovation. The Cayman Islands have a Virtual Asset Service Provider (VASP) regime, but uncertainties exist in relation to when a token would fall under one regime or the other. The proposed bill is set to provide further clarity for tokenised securities and RWA and will have retrospective effect.
On the tenth day of Bobmas, ASIC went on the offensive. The regulator sued a Blockchain Global director over alleged breaches tied to one of Australia’s most notorious crypto collapses, seeking accountability in the sector. Liang 'Allan' Guo departed Australia before the travel restriction orders expired. Meanwhile, ASIC secured a judgment against NGS Crypto over unlicensed dealings.
On the eleventh day of Bobmas, patience paid off. Australia finally released comprehensive draft legislation for digital assets. The draft exposure legislation Treasury Laws Amendment Bill 2025: Digital Asset, and Tokenised Custody, Platforms proposed big changes to the sector, outlining rules for digital asset licensing that would bring crypto-asset intermediaries within Australia's financial regulatory framework. Industry consultations were followed by a draft bill introduced to Parliament in November. We expect debate on the bill to continue in the new year.
On the twelfth day of Bobmas, ASIC unwrapped new guidance on digital assets. The updated INFO225 clarified ASIC's views on financial product definitions, stablecoins, and disclosure obligations, coupled with the promise of no-action relief for operators who apply for an AFSL before 30 June 2025. This is a significant development for anyone operating in the Australian crypto and digital assets space as it illuminates how ASIC interprets the current financial services regime in relation to digital assets. ASIC also moved to provide regulatory relief for certain stablecoin activities.
Happy holidays to our readers!
Thank you to our readers for your support. From major regulatory developments to courtroom victories, 2025 has been a year of transformation for blockchain and digital assets. Here’s to an even more innovative and compliant 2026: may your blocks be merry and your chains bright!
Brought to you by the Piper Alderman Blockchain team of Steven Pettigrove, Luke Higgins, Jordan Markezic, Will Deeb, Tahlia Kelly and Sophie Nguyen, with Michael Bacina.
