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Regulatory overview – BTC ban in the EU is up for debate again

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European BTC ban not off the table after all?

The uncertainties surrounding European crypto regulation will have contributed to BTC’s slide. The current development in the trilogue negotiations on the MiCa crypto set of rules comes at exactly the wrong time. Because according to a draft, the environmental ban on proof-of-work services is back on the agenda. The proposal was already in the room in February, but at that time the EU Parliament had decided against it. Now two demands from the European groups of Left, Greens and Social Democrats are reviving the BTC ban debate.

The first proposal concerns an information obligation. Crypto white papers should therefore contain information on the climate compatibility of a digital currency. The problem: The BTC Whitepaper does not contain any such information and cannot be rewritten afterwards. The proposed law also wants EU securities regulators to define “thresholds” on the environmental impact of crypto services. Previously, only “guidelines” were mentioned. As a result, the tone sharpens. Because bans could result from non-compliance with the threshold values. It was not clear at the time of going to press whether the three factions had been successful with their proposed change.

Russia bans domestic crypto payments

At least the fundamental end of BTC services has not been up for debate in Russia for some time. But last week, the State Duma passed a ban on the acceptance of cryptocurrencies as a means of payment in the first reading. The change to the existing crypto law defines BTC and Co. as “money substitute products” that cannot be used to buy goods and services. The law also introduces the concept of “electronic platform” for brokers and exchanges, which are to be subject to central bank supervision in the future. Behind the bill is Anatoly Aksakov, who chairs the Finance Committee of the Russian Parliament. The law still requires the approval of the Federation Council and President Putin. It should be noted that the ban appears to be limited to the Russian interior. Because Elwira Nabiullina, president of the crypto-skeptical central bank, recently emphasized againthat crypto payments in foreign trade are quite conceivable.

Korean BTC exchanges plan emergency system

The Terra crash sent the entire crypto space into turmoil. In South Korea in particular – the home of the crashed token – it left clear traces. As a consequence, the BTC exchanges there have agreed on a common approach for similar debacles. According to a local media report Daily SportsThe largest crypto exchanges came to an agreement with government representatives last Monday on voluntary rules. These include, for example, a warning system for investors in crypto assets that are particularly risky. Cross-exchange guidelines for the listing of tokens will also apply from October. This is intended to strengthen investor confidence. It remains to be seen what impact the new rule set will have on the profitability of the trading venues.

SEC wants to take action against insider trading

In the USA, too, the Terra crash was evidently noted with concern. Finally, there is the assumption that insider trading is behind the collapse. The US Securities and Exchange Commission probably therefore initiated investigations to find out how BTC exchanges act against such business practices. Noisy Fox business at least one leading trading place received a letter with a related questionnaire. Which exchanges are affected by the investigation was unclear last week. Both the SEC and a number of trading venues gave evidence Fox business no statement. It is therefore also unclear whether the SEC is specifically looking for information in order to initiate criminal proceedings. It is also conceivable that it is only a matter of checking compliance measures.

Panama’s President Blocks BTC Law

In other parts of the world, too, politicians are busy working on binding crypto rules. This is also the case in the Central American tax haven of Panama. Parliament there passed a law two months ago that gave BTC the status of a recognized means of payment. But now President Laurentino Cortizo blocked the crypto-friendly project with a veto. The reason: lack of measures to prevent money laundering. The President announced his veto plans back in May. However, the initiative is not off the table, Parliament only has to make improvements in a few places.

DLT pilot regime regulates trading with tokenized securities in the EU

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