Regulation

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.

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 Ibena.

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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.

The post Indian Supreme Court Warms Up to Crypto as RBI Defends Its Ban Power appeared first on Bitcoin News.

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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Crypto vs RBI Case Heats Up at Indian Supreme Court as RBI Begins Arguments

22/01/2020 by Idelto Editor

India’s supreme court spent all day on Wednesday hearing extensive arguments from both the counsel representing crypto exchanges and the central bank, the Reserve Bank of India (RBI). While reiterating that cryptocurrency is not banned in India, the RBI counsel presented many arguments leading up to the banking restrictions.

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

All-Day Hearing at Supreme Court

The Supreme Court of India resumed hearing the crypto vs. RBI case on Wednesday. Local news and regulatory analysis platform Crypto Kanoon reported that Nakul Dewan, the counsel representing a number of crypto exchanges, opened his arguments by countering the RBI’s claim that crypto has no intrinsic value. He argued that by the same logic fiat currency also has no value since gold backing has been removed. The counsel also gave an overview of how money was developed. While agreeing that there are risks, he read out a report outlining alternative measures to banking restrictions, emphasizing that crypto is not banned in India.

Dewan proceeded to discuss the effects of the RBI ban, citing the government’s earlier statement that banning will reduce the ability of law enforcement agencies to monitor crypto activities. He explained to the judges how the crypto exchange business works, noting that the business is completely dependant on the banking channel. Dewan compared cryptocurrencies to airline miles which people could use and redeem for other services, adding that the RBI does not stop these similar arrangements. The court questioned if the two are really the same; the counsel insisted that both have the same economic nature.

Crypto, Medium of Exchange, RBI’s Power to Ban

Dewan told the court that “There are 2 things that a crypto does. Its creation is that of a ‘good’ by the work of validation. Another is the medium of exchange for the group of people who recognize value in it,” Crypto Kanoon conveyed. The judges responded by saying that if crypto is a medium of exchange then it must be controlled. The counsel argued that the legislature is aware that it can be used as a medium of exchange, but did not choose to pass any law.

The counsel read out several judgments by various courts worldwide that crypto is not money, such as in the U.S. and Singapore. He discussed the definition of goods from the Indian Sale of Goods Act before bringing up the Banking Regulation Act to challenge the powers of the central bank to place a banking restriction on the crypto industry.

In its response to the petitioners’ representation, the RBI wrote in one place that “technological innovations like VCs [virtual currencies] not to be encouraged,” according to the news portal. Dewan asserted that it is not within the RBI’s power to encourage or otherwise. The central bank’s response further states that “we are restricting you because you are convertible to legal tender at entry and exit levels.” The counsel told the court that this statement applies to all kinds of other schemes including airline miles. He referred to the Doctrine of Proportionality before concluding his arguments.

RBI’s Turn to Present Arguments

Next, Shyam Diwan opened his arguments on behalf of the central bank which claims to have acted with the input of other regulators and domestic needs. He referenced the view of the interministerial committee (IMC) which drafted the bill to ban cryptocurrencies. Crypto Kanoon quoted Diwan as saying:

Our [RBI’s] purpose is to adopt nip in the bud approach in order to ensure that payment system is protected and other alternates are not allowed to pop up in the economy. And we are empowered by law for this.

Diwan asserted that “Crypto could be a store of value or commodity, but we see it as a digital means of payment. Crypto ecosystem may affect the existing payment system and influence the economic policy,” the news platform also reported. “I am not a crime detector or a tax collector. But since I am the protector of monetary policy and the monitor of cross border transactions, it comes under my domain to restrict this in the interest of monetary policy,” the counsel added. The central bank has listed many risks associated with cryptocurrencies such as money laundering, tax evasion, and terrorist financing.

The counsel also discussed the size of the crypto market and the history of cryptocurrency, including Satoshi Nakamoto, which the judges shared their knowledge. The RBI claims that “crypto payments take place in peer to peer system without an authorized agency which expose the user to the risk of having no legal recourse,” the news outlet noted.

After the lunch break, Diwan read out some crypto-related announcements by the central bank and referred to the definition of virtual currencies, the Financial Action Task Force (FATF) guidelines, and the challenges in dealing with cryptocurrencies for law enforcement. He mentioned terrorist financing and consumer protection issues, adding that growing crypto investments can lead to reduced bank reserves, Crypto Kanoon detailed. The counsel claims that even a small challenge may result in several adverse effects given the complexity of the financial market, citing an RBI Financial Stability report which explains the complexity of the monetary system.

Diwan referred to the recommendations by the inter-disciplinary committee which previously issued a warning to crypto exchange users. The judge then asked about the Crypto Token Bill 2018 which was drafted based on the recommendations of the inter-disciplinary committee report dated 2017. The counsel revealed that the recommendations were not accepted and the interministerial committee was formed. Diwan further claims that the central bank conducted a detailed study before taking action. According to Crypto Kanoon, the counsel described:

RBI recognizes that crypto is negligible today but it will undermine the formal payment system … For the total economy, it may be small but it has immense potential to impact the system including cross border capability.

The judge asked whether virtual currencies are legal. The counsel clarified that “in India, VCs are not illegal and there is no ban in place. No prohibition.”

However, the counsel insisted that the RBI has the power to maintain financial stability, referencing a few research papers, including the minutes of an IMC meeting which concluded that crypto should be banned. The Securities and Exchange Board of India (SEBI) said during that meeting that the use of virtual currencies is “likely to grow and due to its nature, regulating it by a single regulator would not be feasible,” the news outlet detailed.

Diwan proceeded to read out the IMC report, including the draft bill entitled “Banning of Cryptocurrency & Regulation of Official Digital Currency Bill 2019.” However, it has been almost a year since this bill was drafted and submitted to the government, but it has yet to be introduced in parliament. The crypto community in India believes that this bill will not be introduced since it is flawed in many ways. The counsel also read from the report the use of initial coin offerings (ICOs) as an alternative to traditional financing methods for startups. The differences between fiat money and virtual currencies were also discussed. The RBI counsel is expected to continue his arguments on Thursday.

What do you think of the supreme court hearing today? Do you think the court will lift the RBI ban tomorrow? Let us know in the comments section below.

Images courtesy of Shutterstock.

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Vodafone Becomes 8th Company to Exit Libra Association

22/01/2020 by Idelto Editor

After a spate of big names parting ways with the Libra Association late last year such as Paypal, Visa, Mastercard, and Ebay, British telecommunications giant Vodafone has become the latest to bid the ambitious digital asset project farewell. While Vodafone’s statement notes it does not rule out the possibility of working with Libra in the future, a statement issued Tuesday by the Libra Association confirms the exit.

Also Read: EU Finance Ministers Place Defacto Ban on Libra

Another Big Name Exits the Libra Association

The Libra Association‘s membership continues to shrink as British telecommunications conglomerate Vodafone has become the latest to announce a split from the group. The Libra Association describes its role as working “to evolve and scale the network and reserve” of the planned Libra cryptocurrency.

Despite publication of a signed charter in October last year, with Vodafone representation signing on, the group confirmed their departure Tuesday and noted in a statement: “We will continue to monitor the development of the Libra Association and do not rule out the possibility of future co-operation.”

The association, which began with 28 founding members, is now down to 20 as Booking Holdings, Ebay, Mastercard, Mercado Pago, Paypal, Stripe, Visa and Vodafone have all exited. Vodafone is making the move to direct resources and attention to M-pesa, its own digital payments service. Some speculate Libra’s ongoing confrontations with government regulators and financial policymakers could also be an influencing factor in the decision.

Libra Pushes Forward Despite Uncertainty

Dante Disparte, the Libra Association’s head of policy and communication said in a statement issued to multiple media outlets:

Although the makeup of the Association members may change over time, the design of Libra’s governance and technology ensures the Libra payment system will remain resilient. The Association is continuing the work to achieve a safe, transparent, and consumer-friendly implementation of the Libra payment system.

Though the planned 2020 launch of the libra crypto is doubted by some — thanks in part to lack of specific mention in Facebook CEO Mark Zuckerberg’s recent “vision for the decade” social media post — the Libra Association pushes on. Libra also does not appear to be lacking interest from companies hoping to participate, with reports of a wait list of over 1,500 companies and plans to admit new members in 2020.

The Libra project has been targeted from the outset by politicians and lawmakers, and even made fun of by influencers in the crypto space for not being a true crypto in the sense of decentralization and limited supply. Still, the saga stretches on into a brand new decade while the crypto community watches to see what unfolds.

What are your thoughts on Vodafone exiting the Libra Association? Let us know in the comments section below.

Image credits: Shutterstock

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