It’s no secret that most governments are anything but enthusiastic about cryptocurrencies. Whether it is risks related to money laundering, terrorist financing, investment scams, tax avoidance or the escalating demand for electricity – the list of government concerns is long. Miners in particular believed that they were in the regulators’ crosshairs.
China threatens Bitcoin miners with a blacklist – Huobi and BTC.TOP are packing their bags
Anyone who has already hoped for the opening of China in terms of cryptocurrencies will be disappointed by now at the latest. Last week, headlines again caused a stir, according to which Beijing could get serious about the unpopular mining scene in the country and tighten the thumbscrews significantly. Specifically, it is about strict requirements that promise the miners a place on the black lists of the social credit system in the event of non-compliance. As a result, the first companies took action and packed their suitcases. According to media reports, the miners from HashCow and BTC.TOP have now wholly or partially ceased their activities in China. The crypto exchange Huobi announced that it would now concentrate on business overseas. This should be music to Beijing’s ears. In the long term, they only want to see the digital yuan in circulation.
Bitcoin mining in Iran – currency injection or electricity guzzler?
In recent times, Iran has often been accused of using Bitcoin mining to circumvent the international sanctions that exist primarily because of the nuclear program. Corresponding speculations confirm the latest study by the compliance and analysis company Elliptic. However, domestic reports show that their calculations may not be true. These indicate a growing influence of Chinese companies in the Iranian mining industry. In addition, the lion’s share of mining activities should come from private households. The government is now taking action against them. Due to a power shortage, all mining activities in the country are suspended for the time being until September forbidden.
Big ambitions – South Africa and Indonesia start pilot CBDC projects
Meanwhile, the global race for central bank digital currencies continues. The central banks of South Africa and Indonesia are now at the start. The former recently announced that it would examine how useful a digital currency would be for retailers in the country. Results should be available in 2022 at the latest. The plans in the island state of Indonesia are more specific. Bank Indonesia is already examining which technology can be used for the digital rupiah. While the goal of CBDC is already firmly on the flag here, a corresponding date is still missing in the authorities’ calendars. When you want to spend the digital rupiah is still open at the moment.
Majority of the EU wants E-Euro – Olaf Scholz calls for a pilot project
If the majority of EU citizens have their way, payments using a digital version of the euro should soon also be possible in European latitudes. The latest survey data from the Euro-Barometer testify to this. Around 80 percent of those surveyed said that they consider the e-euro to be a good thing. This was last announced by ECB boss Christin Lagarde about her Social media channels.
In addition to the public, there is also growing political support for the European digital currency. If Federal Finance Minister Olaf Scholz has his way, the ECB should start a corresponding pilot project this year. That was what the SPD candidate for Chancellor demanded last week. Scholz emphasized that the e-euro could strengthen the international role of the currency and at the same time act as a counterweight to private-sector crypto currencies.
Goodbye anonymity – the Federal Ministry of Finance requires insight into crypto transactions
However, his Federal Ministry of Finance continues to be critical of private cryptocurrencies. The government intends to fight hard against money laundering and terrorist financing in the future. This emerges from the latest draft law that the ministry has now presented. In it, the federal treasurers demand comprehensive information with regard to crypto transactions. Senders and recipients of crypto currencies may well have to pull out in the future.
Fear of money laundering – Uganda’s monetary authorities call for legislation
Investment scams, money laundering, terrorist financing – if you let crypto users run wild, it usually doesn’t take long for black sheep to mingle with the herd of Bitcoin enthusiasts. The Ugandan monetary authorities have also recognized this. They are now asking the government of the country to respond to that legal vacuum in the country. If the head of the domestic financial supervisory authority, Syndey Asubo, has his way, a corresponding adjustment of the existing guideline is sorely necessary. The domestic industry will be pleased with his advance. Because corresponding laws promise not only regulatory clarity, but also legal legitimacy.
Kuwait Central Bank warns of crypto investments
Last week’s price crash should have been grist to the mill of many crypto-skeptics. This is especially true for numerous central banks, which fear for their state money monopoly. The Kuwait central bank recently took advantage of the excitement to reassure the residents of the Gulf State against crypto investments to warn. In the communication of the regulators it is said that Bitcoin and Co. are “in no way to be compared with real currencies”. Due to the high risks associated with fluctuations in the market, users should refrain from making such investments.
Digital dollar, bitcoin tax, innovation committee – US lawmakers are fine-tuning the rules
In the United States, meanwhile, law enforcement officials are busy working on the regulatory toolbox. The past few days bear witness to this: and we see a common one Bill The Republicans and Democrats propose to hold the Treasury Department accountable in view of the general political climate around CBDCs and to examine the role of a digital dollar in the process. At the same time, the Financial Innovation Caucus – a kind of exchange forum on digital payments and crypto currencies – was launched in the Senate last week. Like the founder Cynthia Lummins most recently at the industry fair Consensus affirmed, this should strive for “clear rules” with a view to financial innovations. And then there is Colorado’s governor Jared polis. He also used the big stage of Consensus to break a lance for crypto currencies. If the Democrats have their way, the citizens of the state should soon be able to pay their taxes in Bitcoin. “That would inspire me,” said Polis euphorically.