Digital Currency

Leading Swiss Stock Exchange Now Offers 12 Crypto Exchange-Traded Products

25/01/2020 by Idelto Editor

Switzerland’s principal stock exchange, SIX Swiss Exchange, now has 12 cryptocurrency exchange-traded products listed. The latest addition, the 21shares Short Bitcoin, allows investors to profit from falling prices of the digital currency. Other listed crypto products include those that track the price movements of BCH, BTC, ETH, XRP, BNB, and tezos.

Also read: Regulatory Roundup — New US Crypto Tax Bill, Central Banks Join Forces on Digital Currencies

Newest Addition: An Inverse Product

SIX Swiss Exchange has listed an inverse bitcoin exchange-traded product (ETP) issued by fintech company Amun AG. The company announced on Thursday that this product “is the first short or inverse product of its kind using a digital asset as the underlying for an ETP structure.”

The product “tracks the opposite performance of bitcoin to give investors an easy, cost-effective and convenient way to gain exposure in both directions of the bitcoin price movements,” the company detailed. It is “designed to enable investors to profit from falling adverse price movements of bitcoin.” According to the announcement:

The 21shares Short Bitcoin ETP (Ticker: SBTC) seeks to provide a -1x return to the performance of bitcoin for a single day. This product obtains short exposure through borrowing bitcoin and simultaneously selling it on an execution platform.

Leading Swiss Stock Exchange Offers 12 Crypto Exchange-Traded Products With One That Shorts Bitcoin — The above chart reflects the value of a $100 investment at the inception of the ETP, as of Dec. 31, with 2.5% per annum fee deducted. Returns shown are for illustrative purposes only and do not reflect any transaction costs or expenses. Source: Amun AG.

According to SIX Swiss Exchange’s website, the 21shares Short Bitcoin ETP started trading on Jan. 22. It is rebalanced daily, resetting at the end of each day, and its performance is not rolled over.

12 ETPs Listed on Leading Swiss Stock Exchange

SIX Swiss Exchange has a range of crypto ETPs listed. The first one was the Amun Crypto Basket Index ETP in USD, which began trading on Nov. 21, 2018.

The exchange then listed 10 more ETPs in 2019, nine of which were issued by Amun. They are Crypto Basket Index, Bitcoin, Ethereum, XRP, Bitcoin Cash, Binance, Tezos, Bitcoin Suisse Index, Bitwise 10, and Sygnum Platform Winners Index — all trade in USD, except the Amun Bitcoin Suisse Index which trades in CHF. The 10th ETP launched on SIX Swiss Exchange last year was Wisdomtree Bitcoin in USD.

This year, besides the aforementioned inverse bitcoin ETP, the leading Swiss stock exchange began offering several existing Amun ETPs in additional currencies. On Jan. 7, the Amun Bitcoin ETP and the Amun Ethereum ETP started trading in both CHF and EUR in addition to USD. On the same day, the Amun Crypto Basket Index ETP started trading in EUR, with the Amun Crypto Basket Index as the underlying investment. According to Amun, all of its crypto ETPs are listed on SIX Swiss Exchange, BX Swiss and Boerse Stuttgart in CHF, USD and EUR.

Amun further explained in its Thursday announcement that “21shares” now represents the new name of all ETPs it issues. The 11 existing ones will be migrated over to the new brand during the second quarter of this year. Moreover, the company’s base prospectus for exchange-traded products has recently been approved by the Swedish Financial Supervisory Authority.

What do you think of all the cryptocurrency ETPs listed on SIX Swiss Exchange? Would you invest in the new inverse bitcoin ETP? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images courtesy of Shutterstock and Amun AG.

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Iran Issues More Than 1,000 Cryptocurrency Mining Licenses

25/01/2020 by Idelto Editor

Iran Has Issued More Than 1,000 Licenses for Cryptocurrency Mining

The Iranian government has reportedly issued more than 1,000 licenses for cryptocurrency mining since it began regulating the industry. A number of large mining farms have set up in the country, but high electricity tariffs have kept many small investors away.

Also read: Regulatory Roundup — New US Crypto Tax Bill, Central Banks Join Forces on Digital Currencies

1,000+ Licenses Granted to Miners

An official with Iran’s ICT Guild Organization, Amir Hossein Saeedi Naeini, has revealed the state of the country’s cryptocurrency mining industry, the Financial Tribune reported Friday. In an interview with Ibena publication, he said that cryptocurrency mining is a new industry but many people have been attracted to it in Iran. Noting that miners need to obtain a license, he shared:

The Ministry of Industry, Mine and Trade has issued more than 1,000 licenses for cryptocurrency mining in the country.

The official further elaborated, “Our studies show that the crypto mining industry has the potential to add $8.5 billion to the economy,” the news outlet detailed.

Major Challenge – Electricity Cost

Amir Hossein Saeedi Naeini believes that the cryptocurrency mining industry has the potential to help the Iranian economy. However, he explained that the cost of electricity is a major challenge for crypto miners in Iran. While “A number of large and industrial farming mines have been set up,” the official told the news outlet:

High electricity tariffs plus stringent regulations have made the sector less appealing for small investors.

He opined, “the operating conditions in this industry should not be such that only large capitalists enter the cryptocurrency mining market but that all miners can operate,” emphasizing that modifying the electricity rates and terms could boost the crypto mining industry and generate more revenue.

Iranian Crypto Mining Law

Iran’s cryptocurrency mining industry has been regulated since last year. The Iranian government officially recognized cryptocurrency mining as an industry in August after months of deliberation, Aljazeera reported on Aug. 4, 2019. Crypto miners must be licensed by the Ministry of Industry, Mine and Trade before beginning their operations.

The recognition of the industry followed a crackdown by various government authorities on crypto miners accused of using subsidized power. In June last year, Iran’s state television reported that the authorities seized approximately 1,000 bitcoin mining machines in two abandoned factories allegedly using government-subsidized electricity. A spokesperson for the country’s Energy Ministry said at the time that these mining machines were responsible for a 7% increase in power consumption.

“The electricity price offered to miners will be equal to the average rial price at which Iran exports its electricity to other nations, or to 70% of the average rial price at which the country ships off its natural gas,” the news outlet explained. Furthermore, the cabinet’s directive states that “Using electricity or natural gas to mine cryptocurrencies is forbidden in peak consumption times,” and calls for the ministry to set peak hours and install a grid of smart power meters. In addition, “using electricity and gas provided at household, agricultural or industrial grades is forbidden and will be met with legal action if found out,” the directive adds.

However, Amir Hossein Saeedi Naeini told Ibena that discussions are underway to set more favorable terms for crypto miners. Meanwhile, Iranian President Hassan Rouhani has been discussing creating a unified cryptocurrency for Muslim countries with leaders of other Muslim nations.

What do you think of the mining industry in Iran? Let us know in the comments section below.

Images courtesy of Shutterstock and Ibena.

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Panic Withdrawals at Indian Bank Over Alarming KYC Notice

24/01/2020 by Idelto Editor

Hundreds of customers went on a withdrawal spree after an Indian bank announced its revised KYC requirements. The bank’s action followed the decision by the Reserve Bank of India (RBI) to include the National Population Register letter as a valid KYC document for opening bank accounts. Customers are worried their funds could be frozen.

Also read: Regulatory Roundup — New US Crypto Tax Bill, Central Banks Join Forces on Digital Currencies

Customers on Withdrawal Spree

Customers of the Central Bank of India’s Kayalpattinam branch in the state of Tamil Nadu have been on a “panic withdrawal” spree after the bank issued a notice in a local newspaper regarding its revised know-your-customer (KYC) requirements, local media reported on Jan. 23. The Central Bank of India, a government-owned bank, is one of the oldest and largest commercial banks in India.

The notice, posted on Jan. 11, states that a letter from the National Population Register (NPR) will be made a valid document as part of the bank’s KYC process. Panic ensued as many people oppose the contentious Citizenship Amendment Act (CAA), the National Register of Citizens (NRC), as well as the NPR. Many customers reportedly said they are scared that their money could be blocked.

An officer of the bank told NDTV on Wednesday that “Normally we would have a withdrawal of around 25 lakh [2.5 million] every day,” adding:

Now this has shot up by six times. People are just leaving minimum balance in their accounts.

The Indian Express reported on Thursday that soon after the notice, “Hundreds of customers in Kayalpattinam village, many of them belonging to the Muslim community, reached the bank branch to withdraw their money.” A bank official said similar reports are coming from branches in many places.

According to the Siasat publication, the documents mentioned in the bank’s notice were the PAN card, passport, voter identity card, driving license, National Rural Employment Guarantee Act card, Aadhaar and NPR letter. The notice further states that the accounts of the persons who failed to submit documents would be frozen, but does not mention whether the customers have to submit all the documents or any one of them.

Optional but Customers Won’t Listen

Following mass withdrawals, the bank sent out another notice on Jan. 19 to clarify that the NPR letter is optional and customers can choose to submit it or other KYC documents. The bank further claims that its earlier announcement was a mistake. However, local media reported that confusion prevailed and customers continued their “cash withdrawal spree.”

“We approached community leaders and Jamaat committees of Kayalpattinam to convince our customers as a large amount was withdrawn in less than three days,” an official of the bank told the Indian Express. “We do not even know if we could convince all customers and get them back to our branch.” Noting that most of the branch’s customers are Muslim and many of them have withdrawn almost their entire savings, he said:

Customers were not listening to our words. The panic was so much that even community elders had to struggle to convince them.

A government employee and customer of the bank told the news outlet that nearly all customers of the branch had panicked. She was quoted by the publication as saying:

Since we had the experience of demonetisation that forced us to stand in the queue for so many days, every customer who was panicked reached the bank. Bank officials were helpless as they couldn’t convince us why RBI included NPR in the list before it is even updated in most states.

According to local media, some customers withdrew due to the KYC notice confusion while others did it as a mark of protest against the NRC and the NPR.

RBI’s Decision to Include NPR Letter for KYC

The bank’s notice followed the decision by the RBI to include the NPR letter as a valid KYC document. According to the “Master Direction” for KYC posted on the RBI website, updated on Jan. 9, “‘Officially Valid Document’ (OVD) means the passport, the driving license, proof of possession of Aadhaar number, the Voter’s Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the state government and letter issued by the National Population Register containing details of name and address.”

The NPR is a register of “usual residents” of the country, which is defined as a person who has resided in a local area for the past six months or more or a person who intends to reside in that area for the next six months or more, explained India’s Office of the Registrar General & Census Commissioner. The NPR data was first collected in 2010 and it is to be done every 10 years. It is mandatory for every usual resident of India to register in the NPR.

Some Muslim groups and parties like the Manithaneya Makkal Katchi (MMK) are up in arms over the new requirements, NDTV reported. “Many fear it is a move to normalize the submission of the NPR letter … Many protested outside the RBI blaming it for the confusion and have called for a boycott of the Central Bank of India for hasty implementation amid public protest.”

Ahmed Shah, a lawyer who opposes the NPR, transferred his savings to a private bank. He told NDTV that he would close all accounts at the bank if this rule is implemented. He was quoted as saying, “We are not even accepting NPR and why should we even show it?” MMK founder Professor Jawahirullah led the NPR protests on Wednesday. He was quoted as saying:

What we demand is RBI should withdraw this circular demanding NPR as one of the components of KYC as we fear in the next step NPR will be the only one document which they may need.

What do you think about providing the NPR letter for KYC to open a bank account? Let us know in the comments section below.

Images courtesy of Shutterstock, Outlook India, and Biplov Bhuyan/Hindustan Times via Getty Images.

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Indian Supreme Court Warms Up to Crypto as RBI Defends Its Ban Power

23/01/2020 by Idelto Editor

Indian Supreme Court Warms Up to Crypto - RBI's Arguments Not Convincing

India’s supreme court heard the crypto case on Thursday, starting with the arguments by the counsel for the Reserve Bank of India (RBI). After pointing out that the RBI ban only hurts crypto businesses but does not stop crypto trading, the court explained that “being an honest contributor to the blockchain is more profitable than trying to tamper with the chain.”

Also read: Crypto vs RBI — 3 Days of Intense Supreme Court Hearings

RBI in Hot Seat, Ban Can’t Stop Crypto

The Indian supreme court resumed hearing the crypto vs. RBI case Thursday morning. Local news platform Crypto Kanoon reported from the courtroom that Shyam Divan, counsel for the central bank, picked up his arguments from the previous day. The counsel began by reading out the RBI’s reply to crypto exchanges’ representation and briefly explained about peer-to-peer exchanges operating in India and how crypto exchanges allow their users to transfer funds abroad. He claims that this exposes them to the risks associated with FEMA (Foreign Exchange Management Act), AML (anti-money laundering) and CFT (combating the financing of terrorism).

The judge pointed out that the RBI circular only stopped banks from providing services to crypto exchanges but is unable to stop crypto trading. The counsel replied that it is up to the banks to identify crypto transactions and stop them. The judge quickly interrupted him, asking: “how would the bank know without conducting an investigation and knowing the source of transactions.” The counsel admitted that the measure is not so effective but insisted that it discourages crypto transactions. Crypto Kanoon described:

Justice Nariman points a finger towards the exchanges’ counsel and says by this their business has come to end and the constituent i.e. trading of crypto is still active.

RBI Circular Did Not Cause Crypto Price Drops

While admitting that crypto trading is still active, the counsel made the claim that volumes have decreased. He then read from his brief about a sharp decline in crypto prices after the RBI circular was issued, which banned banks from providing services to crypto exchanges. The judge quickly interrupted him again, clarifying:

If you see in 2017 the graph was going up and from 2018 it is globally declining. It is not because of your circular that prices are coming down.

Indian Supreme Court Warms Up to Crypto, Unconvinced by RBI Arguments — BTC price chart on Bitcoin.com

The counsel conceded, admitting that “there may be various other factors and it may or may not be because of RBI circular,” Crypto Kanoon conveyed. After discussing among themselves, one of the judges elaborated:

Being an honest contributor to the blockchain is more profitable than trying to tamper [with] the chain.

The RBI counsel persevered, citing several other cases’ judgments to support his arguments. He even referred to the judgments which state that the scope of the court’s intervention is “limited when an expert committee like RBI has acted under its statutory power as it is an expert body for a particular domain.”

After the lunch break, the RBI counsel continued his arguments, referring to more past judgments. They discussed the RBI’s power to regulate, which includes the power to prohibit. In concluding his arguments, the counsel insisted that the central bank has a statutory power to take the action it did. The RBI also said it has been cautioning crypto trading since 2013 and has kept a keen eye on the industry.

IAMAI Responds to RBI’s Issues

Next, the counsel for the Internet and Mobile Association of India (IAMAI), Ashim Sood, took the center stage and made his rejoinder submissions. He began by referring to the Central Goods and Services Tax Act, claiming that the law does not prohibit using cryptocurrency as a medium of exchange. Nonetheless, he added that no one uses it for that purpose due to its volatility and explained crypto’s investment potential.

The IAMAI counsel proceeded to discuss blockchain technology, using Ethereum as an example. He asserted that cryptocurrency is needed to maintain the efficiency of blockchains. Crypto Kanoon quoted him as saying:

We don’t say that it is not possible to separate crypto from blockchain. But there is a valid and legitimate reason for both to go together. Crypto makes blockchain viable for certain uses.

Sood then argued against the RBI having the authority to ban crypto, referencing a few past cases. “When RBI knows that there are legitimate uses of crypto. Then RBI should make a determination of those uses and not turn a blind eye by just citing illegitimate uses,” he said.

Further, the IAMAI counsel emphasized that there is not a single finding that crypto is impacting the payment system in any manner, noting that it was not even mentioned in the report by the interministerial committee which drafted the draft bill to ban cryptocurrencies, except state-issued ones. Sood added that there is no merit in the claim that law enforcement agencies are unable to stop crimes involving cryptocurrencies.

He proceeded to dissect the documents the RBI relied on one by one, showing the court that they are not sufficient for the central bank to take such measures. Sood also discredited the RBI’s terrorism financing argument, stating that it is part of the central bank’s kitchen-sink approach to stop crypto activities indirectly since it has no direct control over the sector.

Sood then read out a few past judgments from other cases, mentioning that the RBI annual report states that the risk from cryptocurrency is negligible. He further noted that the RBI’s reply to a Right to Information (RTI) request revealed that the central bank formed no committee to study the issue prior to issuing the April circular. While the RBI claims to take action in the interest of consumers, the IAMAI counsel read out the interdisciplinary committee’s recommendations which do not mention market integrity, financial stability, payment system, credit system, or monetary policy. Sood will continue his arguments on Tuesday. Crypto Kanoon commented from the courtroom:

It is a wonderful experience to witness a supreme court judge explaining facts about blockchain and advocating its immutability. It is more exciting to see a judge upholding Satoshi’s view.

What do you think of the supreme court hearing today? Do you think the RBI ban will be lifted next week? Let us know in the comments section below.

Images courtesy of Shutterstock and Bitcoin.com.

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Regulatory Roundup: New US Crypto Tax Bill, Central Banks Join Forces on Digital Currencies

23/01/2020 by Idelto Editor

In this roundup, we cover an exceptionally busy week for crypto regulations around the globe. We start our coverage with the U.S. Virtual Currency Tax Fairness Act of 2020, actions by the SEC, Ripple’s lawsuit, India’s supreme court hearings, Australia green-lighting a bitcoin retail fund, Thailand approving a new crypto exchange, and new crypto guidelines in Canada and Malaysia. We also cover the FATF’s progress to ensure countries implement its crypto standards, the regulatory developments in South Korea, China, Russia, Uzbekistan, Venezuela, and six central banks and the Bank for International Settlements collaborating on central bank digital currencies.

Also read: Regulatory Roundup: EU-Wide Crypto Regulations, New Rules in Europe, US, Asia

US Virtual Currency Tax Fairness Act of 2020

The U.S. made headlines last week when Representative Suzan K. DelBene introduced a bill on Jan. 16 “To amend the Internal Revenue Code of 1986 to exclude from gross income gain from disposition of virtual currency in a personal transaction.” H.R.5635 – Virtual Currency Tax Fairness Act of 2020 states:

Gross income of an individual shall not include gain, by reason of changes in exchange rates, from the disposition of virtual currency in a personal transaction … The preceding sentence shall not apply if the gain which would otherwise be recognized on the transaction exceeds $200.

As for the effective date, the bill proposes that the amendments apply to crypto transactions entered into after Dec. 31, 2019.

Oklahoma’s Depository, SEC Onto IEOs, Ripple Lawsuit

The U.S. state of Oklahoma has a new crypto bill. Senate Bill 1430, authored by Senator Nathan Dahm, was introduced on Jan. 15 to establish a “new type of financial institution to be a state-chartered financial institution and the central depository for virtual currency used by governmental agencies in this state.” The new financial institution will also provide financial and technical services to blockchain and crypto innovators as well as developers.

The U.S. Securities and Exchange Commission (SEC) took crypto-related actions this past week. On Jan. 14, the agency issued an Investor Alert on initial exchange offerings (IEOs). The notice came from the commission’s Office of Investor Education and Advocacy. It explains various aspects of IEOs, including whether they comply with federal securities laws. “Be cautious if considering an investment in an IEO,” the notice states. “It is a red flag if the IEO and its participants, including the online trading platform, do not address or discuss the applicability of the federal securities laws.”

In addition, the SEC said on Jan. 21 that it has reached agreements to settle with three defendants, including the former Riot Blockchain CEO.

Meanwhile, a lawsuit against Ripple continues at the U.S. District Court for the Northern District of California, the outcome of which may decide the fate of XRP.

India’s Supreme Court Hearings

The Indian supreme court has been actively hearing the crypto vs. RBI case over the past week. The court heard the case over three consecutive days last week as the counsel for the Internet and Mobile Association of India (IAMAI) presented his arguments against the banking restrictions by the central bank. He explained that the RBI does not have the power to ban cryptocurrency, but taking away the bank accounts of crypto exchanges constitutes an “absolute ban.” The central bank argued that it did not ban cryptocurrencies.

On Wednesday, Jan. 22, the court resumed hearing the case. The counsel for crypto exchanges presented his arguments against the banking restrictions. The RBI counsel also took center stage, arguing on behalf of the central bank.

Meanwhile, a Center of Excellence in Blockchain Technology has been inaugurated by Union Minister Ravi Shankar Prasad in Bengaluru.

Canada’s New Guidance on How Securities Law Applies to Crypto

The Canadian Securities Administrators (CSA) on Jan. 16 published Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets. The aim of the notice is “to help these entities to determine situations where securities legislation may or may not apply.” The regulator detailed that, for example, “Securities legislation may apply to platforms that facilitate the buying and selling of crypto assets that are commodities, because the user’s contractual right to the crypto asset may itself constitute a derivative, a security or both.” However, it added:

The relevant determination will depend on the facts and circumstances, including the obligations and intention to provide immediate delivery of the crypto asset.

Australia Green-Lights Bitcoin Retail Fund

The Australian Securities and Investment Commission (ASIC) has reportedly approved micro-investment fintech company Raiz to operate a bitcoin retail fund. The company plans to launch the fund in the first half of this year. In December, it had $445 million in funds under management from 211,000 paying customers, out of the 300,000 users who opened an account. The fund is expected to invest 95% in exchange-traded funds (ETFs) and 5% directly in bitcoin.

Thailand Approves Crypto Exchange, Malaysia Issues New Token Regulation

The Thai Securities and Exchange Commission has approved a new company to operate a digital asset exchange. According to the commission’s website, Zipmex is not yet operational but has been approved to offer both cryptocurrency and digital token trading. Headquartered in Singapore, Zipmex also has offices in Thailand, Australia, and Indonesia.

In Malaysia, the Securities Commission Malaysia has issued guidelines on fundraising via token sales. All token offerings must now be conducted on approved initial exchange offering platforms, which must be registered with the commission. No offerings can take place until the law goes into effect.

South Korea Mulls 20% Crypto Tax While Blockchain Projects Multiply

South Korea has made headlines several times over the past week regarding its plans to tax crypto profits. The Ministry of Economy and Finance recently clarified that they cannot be taxed under the current law. Nonetheless, the country’s National Tax Service imposed a withholding tax of $69 million on Bithumb, one of the country’s largest crypto exchanges. Bithumb has filed a complaint with Tax Tribunal seeking to recoup the tax payment it already made.

The ministry has also reiterated several times that it is reviewing the tax code so that crypto profits can be taxed. The country made headlines again on Jan. 20 when a government official, who spoke on the condition of anonymity, told the Korea Times:

The finance ministry has not finalized its plan to tax cryptocurrencies. But, there is a possibility that the government may impose a 20% tax on cryptocurrencies.

Meanwhile, the Ministry of Science and ICT is planning to provide a number of blockchain-based public services, Business Korea reported on Jan. 20. The ministry will allocate a budget of 16.1 billion won ($13,839,711) for blockchain R&D and resume preliminary feasibility studies. The ministry and the Korea Internet & Security Agency are preparing to launch pilot blockchain projects.

Blockchain-based platforms for use in a number of areas have been mentioned, including evidence management, crop production and logistics management, a welfare benefit management, food safety data, chronic disease management, decentralized identity-based public service, self-driving reliability enhancement, toll payment, water supply quality management, and electric vehicle management system.

China’s Communist Party Book

A 200-page handbook on digital currency has been published by the publishing house of People’s Daily. Entitled “Digital Currency: A Reader for Cadres,” the book includes 23 articles on topics ranging from the basics of the concept to its impact on monetary systems and global finance. It is an addition to a series of guides for cadres covering a variety of subjects, including artificial intelligence and blockchain.

The book contains articles by experts and scholars from central banks, including the People’s Bank of China, major commercial banks, and well-known research institutes. It explains and analyzes the nature, development, impact, opportunities, and challenges of digital currencies in detail. According to Bloomberg, its postscript describes that the articles selected “hope to help Party cadres deepen their understanding” of the technology.

Venezuela Launching Crypto Casino

In Venezuela, President Nicolas Maduro has continued to push the petro, his country’s so-called cryptocurrency which many are calling a scam. He announced on Jan. 17 that a casino will be opened at the Humboldt Hotel in Caracas where all bets must be placed in petros. He explained that people can exchange yuan, yen, dollars, euros and a number of other cryptocurrencies for petro tokens and gamble.

UK to Pay £100K for Blockchain Analysis Tool

The U.K. tax authority, HM Revenue & Customs, posted an open opportunity for contractors to create “cryptoasset blockchain analysis tools,” suitable for small and medium-sized enterprises. The notice states that the contract, worth £100,000, seeks:

A tool that will support intelligence gathering methods to identify and cluster cryptoasset transactions into linked transactions and identify those linked to cryptoasset service providers.

New Russian PM; Uzbekistan’s Exchange & Mining Pool

The Russian Federation has a new prime minister, Mikhail Mishustin. The former head of the Russian tax agency has made comments about cryptocurrencies on multiple occasions. He made it clear he viewed digital currencies as financial instruments that should be taxed as such. Meanwhile, the Russian Direct Democracy Party plans to find solutions to numerous issues that concern the crypto space.

Several recent crypto regulatory developments stem from Uzbekistan. The National Agency for Project Management (NAPM), a government body under the country’s president, revealed this week its 2020 plans for the regulation of crypto trading and the implementation of blockchain technologies. A mining pool has been proposed that will help consolidate the capacities of domestic and foreign miners at the national level.

Moreover, a new presidential decree envisages the introduction of tax exemptions for crypto-related income. A recently published draft document incorporates proposals to establish a blockchain valley and licensing regime for cryptocurrency miners. The country has just launched its first licensed crypto exchange where miners can sell their mined coins.

Global Efforts by 6 Central Banks, the BIS, OECD, FATF

Six central banks and the Bank of International Settlements (BIS) have formed a group to share experience as they assess potential cases for central bank digital currencies (CBDCs) in their home jurisdictions. The central banks involved are the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Sveriges Riksbank, and the Swiss National Bank.

Co-chaired by Benoît Cœuré, the head of BIS Innovation Hub, and Bank of England Deputy Governor Jon Cunliffe, the group will work closely with relevant organizations such as the Financial Stability Board (FSB) and the Committee on Payments and Market Infrastructures (CPMI). Its members will include senior representatives of the participating institutions. According to the Bank of England:

The group will assess CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies.

Earlier this week, the Organisation for Economic Cooperation and Development (OECD), with 36 member countries, formed a “high-level expert group” for blockchain, which includes executives of crypto companies. They will advise the organization on blockchain technology.

Another intergovernmental organization that recently made efforts towards crypto oversight is the Financial Action Task Force (FATF). It recently held a supervisors’ forum to discuss the supervision of crypto assets and related service providers. This is the first time regulators and supervisors had the opportunity to discuss and share crypto supervisory knowledge and experience since the FATF issued its guidance on crypto assets in June last year.

What do you think of the regulatory developments worldwide covered in this roundup? Let us know in the comments section below.

Images courtesy of Shutterstock and Foreign Policy.

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