Regulatory overview – Is Russia Planning BTC Commodity Deals?

Russia brings gas payments in BTC into play

The economic war between Russia and the West has intensified in the past week. In response to Western economic sanctions, President Putin decided that “unfriendly states” would have to pay their oil and gas bills in rubles in the future. Refusing to pay in US dollars is a clear breach of contract. However, not all states are equally affected by the new regulation. Pavel Zavalny, Chairman of the State Duma Energy Committee, explained on March 24 that “friendly states” like Turkey or China could also pay for their fossil fuels with gold or national currencies. “Currencies can be different and this is normal practice, you can also trade BTC,” added the politician. The BTC price rose noticeably afterwards. 

US law on BTC situation in El Salvador goes into the next round

El Salvador’s decision to adopt BTC as official tender raised a frown in Washington. That’s why it happened on March 23rd Accountability for Cryptocurrency in El Salvador (ACES) Act the relevant committee in the US Senate. Next, the full US Legislative Body is scheduled to vote on the draft law identifying “potential risks” in BTC adoption in El Salvador. El Salvador’s President Nayib Bukele clearly criticized these plans on Twitter: “Never in my wildest dreams would I have thought that the US government would be afraid of what we are doing here.” However, El Salvador had to postpone the introduction of the planned BTC-based government bonds; according to Finance Minister Alejandro Zelaya, the market environment is currently too volatile. The bond is now scheduled to start trading in April or May. Bukele and his government want to use the government bond to make their ambitious Bitcoin city finance.

Thailand blocks crypto payments

It is certainly known that BTC does not achieve the same level of popularity everywhere as in El Salvador. But in Thailand, cryptocurrencies apparently have a particularly difficult standing. It has been clear since last week that goods and services can no longer be paid for with BTC and Co. from April 1st. The country’s stock exchange regulator announced the decision, and the central bank also supports it. Crypto service providers have 30 days to adapt to the new regulation. Thailand is thus making a certain turnaround, because last year the tourism ministry of the Southeast Asian country wanted to attract well-heeled guests to the country by being crypto-friendly.

Malaysia considers BTC legalization

In contrast to Thailand, people in neighboring Malaysia view El Salvador’s pioneering work with greater benevolence. Because the local newspaper the star reported on May 21 about the plans of the Malaysian Communications Minister Datuk Zahidi Zainul Abidin, who wants to recognize BTC and Co. as legal means of payment. This crate was therefore designed as a reaction to an increased BTC adaptation among the younger generation. However, the Ministry of Communications has no decision-making authority on such issues. The decision on this would have to come from the stock exchange regulator and the central bank. The latter is at least dealing intensively with CBDCs, as it stands on Zainul Abidin’s crypto proposal is uncertain.

German FinTech receives crypto custody license

With Upvest, another company in Germany secured an official license for storing BTC and other crypto assets on March 23. The company also holds four crypto-related BaFin licenses. It is not yet clear whose assets Upvest will hold in safekeeping in the future.

Florida plans to pay taxes with BTC

Pay your tax debts conveniently with BTC? At least for companies, this could soon be possible in the US state of Florida. Because Florida’s governor Ron DeSantis indicated that he had submitted a corresponding instruction to his authorities. DeSantis also spoke out in favor of greater blockchain integration in the administrative apparatus. DeSantis is generally considered a crypto friend, but the Republican rejects CBDCs. Because here he suspects too much state control.