Russia is giving in to crypto regulation
The crypto tug-of-war between the Russian Treasury and the Central Bank is nearing its end. Because the two authorities are said to have reached an agreement when discussing a possible BTC ban. the daily newspaper comersant after, the ministry and the elaborate Bank Rosii a joint draft law by February 18. Cryptocurrencies should therefore be given a status similar to that of the US dollar and comparable “analogue currencies”. The use of cryptocurrencies in the regulated financial sector is also permitted, but only with disclosure of one’s own identity. The only intermediaries are banks and similar service providers who have previously acquired a license. Transactions of more than approximately 7,000 euros (600,000 rubles) must be reported. If they take place outside the regulated financial infrastructure, they are considered a criminal offence. It is not yet certain what status BTC mining will have in Russia in the future.
Kazakhstan turns on the screws for Miner
Since the Chinese mining ban, Kazakhstan has become a Mecca for crypto miners. The reason for this was not least the low energy costs. But that could soon be over. Because the Kazakh government will raise the price of electricity for BTC miners. Deputy Finance Minister Marat Sultangaziyev already made such a proposal on February 4. Sultangaziyev also brought up taxes on mining equipment. Probably based on ordered Kazakh President Kassym-Jomart Tokayev on February 8 announced an increase in the energy tax for miners. The government also announced that it would take tougher action against unregistered mining farms.
US Congress votes against bill regulating stablecoins
The debate over the regulation of stablecoins continues. The US Treasury Department has drafted a new bill. The agency presented him on February 8 at a hearing in the House of Representatives. The focus of the discussion was the demand to restrict the right to issue stablecoins to insured investment institutions (IDIs). The majority of MPs agreed that stablecoins need to be capped and hedged. However, the Treasury’s proposal went too far for many. Democratic MP Gregory Meeks fears that there will be barriers to competition if only bank-like players are authorized to issue stablecoins. Nellie Liang, undersecretary at the Treasury Department and the driving force behind the new regulation push, plans to present her proposal to the Senate Banking Committee this week. According to observers, it is not particularly likely that the law will be passed.
BTC bonds if El Salvador in March
The International Monetary Fund is not enthusiastic about El Salvador’s BTC plans. But the Central American country remains true to the course chosen by controversial President Nayib Bukele. In an interview with local media on Feb. 8, Finance Minister Alejandro Zelaya indicated that El Salvador’s BTC-based government bond will go live in March. The government has therefore decided to finish the preparations for the BTC bonds between March 15th and 20th. Zelaya also underscored that his government intends to spend $1 billion on the bonds. The BTC Bond also promises to appeal to a broader target group than with a conventional bond. After all, the minimum investment is only 100 US dollars. The US rating agency fitsch meanwhile downgraded El Salvador’s rating. The decision is directly related to the country’s BTC plans.
Ireland’s central bank will not allow investment funds to invest in BTC
The Central Bank of Ireland is sticking to a crypto-skeptical course. Accordingly, it is “highly unlikely” that Irish mutual funds open to retail investors will be allowed to invest in BTC in the future. According to Patricia Dunne, director of securities and market surveillance, there are too many unanswered questions about “issues like custody, money laundering and even liquidity”. The Irish central bank remains true to its well-known line. Because Gabriel Makhlouf, her former boss, compared the crypto hype to the 17th-century Dutch tulip bubble last year. Investments in special purpose acquisition companies (SPACs) are also to be capped at 10 per cent for Irish investment funds. Dunne attested the SPACs problems with transparency.