Regulatory overview – EU sanctions also apply to crypto assets

The international community has been following the war in Ukraine with undiminished sympathy over the past week. The amount of crypto donations to the attacked country also surged to more than $100 million as of March 10. Meanwhile, the EU Commission explicitly underlined that the European sanctions against Russia and Belarus also apply to crypto assets. Therefore, on the evening of March 9, the EU’s top decision-making body declared that crypto assets are to be considered “negotiable securities”. Consequently, these may no longer be traded with parties from Russia and Belarus. The EU Commission also emphasized that the same restrictions apply to crypto loans to these two countries as to all other loans. The BTC Exchange Coinbase meanwhile blocked 25,000 Russian wallet addresses, which are said to be connected to “unauthorized activities”. More crypto news about the Ukraine war can also be found in the live ticker from BTC-ECHO.

US wants innovation-friendly crypto framework

Crypto regulation is also making strides on the other side of the Atlantic. Because on March 9th, Joe Biden signed a presidential decree regulating the crypto space. The decree promises a “holistic approach”. Together with a statement by the US Secretary of the Treasury, it caused juicy gains on the BTC market in the meantime. Because Janet Yellen also promised innovation-promoting regulation of digital assets. Against the background of Biden’s crypto initiative, her authority will work to “promote a fairer, more inclusive and more efficient financial system”. The US government’s crypto course is characterized by “responsible innovation”. Risks should therefore be recognized and potential “threats to the financial system” prevented. The Treasury Department will work with other US agencies to prepare a “Report on the Future of Money and Payment Systems.” As cryptocurrencies raise cross-border issues, Yellen also promises international cooperation. Together with the partners abroad, “solid standards and a level playing field” should be promoted.

The crypto community reacted favorably to Biden and Yellen’s plans. BTC exchange Gemini’s Cameron Winkelvoss and Ripple CEO Brad Garlinghouse both expressed their approval on Twitter. Winkelvoss spoke of a “constructive approach” and “well thought-out crypto regulation”.

China continues to crack down on miners

Some time has passed since the Chinese mining ban. But the authorities in the Middle Kingdom are continuing their fight against any violations of the rules. Officials in Guangdong Province shut down a mining farm that was hiding in an electric vehicle charging center. After a report the local press from March 8, 190 mining devices were confiscated. The equipment is said to have been worth around $790,000. Due to inconsistencies in the energy balance of the mining farms, the authorities found out about the crypto miners.

Cake DeFi wants European crypto license

Cake DeFi announced on March 7 that it is seeking a European crypto license. The German financial regulator BaFin launched investigations into the company back in January. According to the federal authority, the Singapore-based provider of decentralized financial services is said to have offered “illicit banking transactions or financial services in Germany”. One wants to actively take care of the acquisition of the license. On March 9, the company also announced plans for its own investment fund, which will be active in the areas of gaming, web 3.0 and fintech.