Blockchain and the fear of the authorities

Whether in the portfolios of private individuals or large investors – in 2021, cryptocurrencies will be an indispensable part of the financial world. What Bitcoin enthusiasts have long considered to be a key technology, however, continues to stir up fears on the part of the state. The US authorities in particular are particularly suspicious these days. They complain about environmental damage, a lack of government control and the lack of transparency in cryptocurrencies and decentralized technologies. Meanwhile, the Bundestag is clearing the way for digital securities. Some observers see a turning point in this era.

BIS head of innovation Cœuré warns of shadow banks through defi-services

As ECB director, Benoît Cœuré had cryptocurrencies on the screen long before the mainstream. The current head of innovation at the Bank for International Settlements (BIS) warned early on of Facebook’s Libra currency experiment. He advised early on to look at digital central bank currencies. Last week, Cœuré reiterated his warning. in the Handelsblatt he warned against decentralized financial services via blockchain. These are currently still completely unregulated and could result in a dangerous shadow banking system in the future. For the central banker it is therefore clear: In order to survive the state against the blockchain hype, the European Union will not be able to avoid the introduction of the e-euro.

California vs. Kraken – US court calls for tax transparency

The US authorities in particular are worried about lack of transparency. A court in California did that Kraken crypto exchange now obliged to disclose their customer data to the tax inspectorate IRS. Specifically, this concerns customers who have made transactions worth ÚS 20,000 or more annually. Many a person who has concealed his lucrative business from the authorities should work up a sweat. Users who are concerned about anonymity will therefore look for another trading venue in the future.

Climate sinners – New York brings mining ban on the way

On the east coast of the USA, however, the environmental compatibility of crypto technology is causing government to frown. The immense energy consumption has been criticized for a long time. Now the state of New York is following the warnings of experts into action. Since last week, the Senate has had a corresponding bill “to set up a moratorium on the operation of crypto mining centers”. This provides for a three-year ban for “mining operations” that do not meet the applicable environmental requirements. However, the law has not yet been passed.

Bundestag passes eWpG and clears the way for digital securities

Three years of deliberation, now the knot has burst. Last week the Bundestag passed the “Law on the Introduction of Electronic Securities” – eWpG for short. The law now clears the way for digitized securities. Up until now, a physical certificate was always required for each security. This regulation will now be partially abolished. Both praise and harsh criticism followed from politics and business.

But what does the law mean for the crypto industry? And what impact do the new guidelines have on companies? Specialist lawyer Lutz Auffenberg addressed these questions in his guest article for BTC-ECHO.

Georgian Central Bank is planning its own digital currency

Georgia has been a pioneer in government blockchain applications for years. This was ensured, among other things, by early pilot tests by a digital land registry office. The announced last week Central Bank of the Country now the next step. Soon, like numerous thought leaders around the world, the country wants to issue its own state digital currency. The digital lari will then improve the efficiency of financial services in the South Caucasus. However, concrete plans are still a long time coming.

Pyramid scheme – $ 1.5 billion scam: Police investigate crypto exchange

The latest headlines from South Korea prove that many a skeptical view of the law enforcement officers and monetary authorities on the crypto space is justified. A crypto exchange is said to have cheated investors on a large scale with the help of a well-known pyramid scheme. Then investigators stepped in. In the past week, investigators confiscated around $ 214 million. This should further increase the skepticism of the South Korean authorities towards the crypto space.