At the end of the year, regulators around the world gave another insight into their stance on BTC and Co. India, Russia and the USA expect new crypto regulations in 2022. Last week in the regulatory overview.
US Treasury Department insists on rules for stablecoins
Anyone who follows the political debates around the crypto market will quickly notice that stablecoins are still ahead of BTC in terms of regulatory priority in some countries – for example in the USA. In an interview with Bloomberg Nellie Liang stressed the urgency of an expanded set of rules on December 17th. The Treasury Undersecretary said, “If Congress fails to legislate, regulators will try to use whatever powers they have.” Without changing the law, however, she sees difficulties in taking the necessary measures to protect financial stability. Congress remains divided on the stablecoin issue. It therefore remains to be seen whether a stablecoin law can be expected in the USA as early as the beginning of 2022.
Despite the ban: China’s BTC miners remain online
The Chinese government’s mining ban was undoubtedly one of the most drastic events in the crypto year 2021. In the name of environmental protection and the preservation of energy reserves, the Chinese authorities gradually pulled the plug on BTC miners. What in retrospect may have turned out to be a harbinger of the Chinese BTC ban had serious consequences for the mining industry. Until the ban, Chinese companies ultimately held a supremacy when it came to mining. The BTC hash rate only reached its old level a few weeks ago.
But even in China itself, the mining of BTC does not seem to have come to a complete standstill. The latest media reports suggest that up to 20 percent of the global hash rate can still be assigned to the Middle Kingdom. The secret mining takes place mainly via hydroelectric power plants, whose energy reserves are particularly easy to tap. However, the miners also use other methods to go undetected. More than 100,000 mining IPs are active in China every day.
Russia: BTC only through foreign exchanges
In terms of crypto regulation, we received contrary news from Russia last week. While the central bank pushed for a general BTC ban, voices from politics advocated a more sensitive regulatory approach. Now a more concrete picture seems to be emerging. Because the Russian news agency Tass reported last Monday that crypto transactions in Russia should remain legal even if the central bank wants. According to Vladimir Chistyukhin, a deputy director of the central bank, it is assumed that the possession and sale of BTC and Co. is legal in Russia. However, there is one important restriction here. Because Russian citizens have to conduct their transactions via foreign stock exchanges and infrastructures. Chistyukhin also promised that the central bank would soon clarify its view on the role of cryptocurrencies in the Russian financial system in a report. The official added: “Let me give you a tip: we don’t see any place for cryptocurrencies in the Russian financial market.”
Indian crypto law not until next year
The Indian parliament did not vote on a potential BTC ban this year. Because, unlike a month ago reported, the crypto law plunges into one updated version no longer appears on the agenda of the House of Commons of India. Parliament met for the last time on December 22nd for 2021. There has also been no vote in the past few weeks. The decision on cryptocurrencies will therefore be postponed to the coming year. the Economic Times reported that Prime Minister Narendra Modi’s government plans to hold “broader deliberations” prior to a decision. The paths for a more crypto-friendly regulatory approach are therefore still open.