Crypto Regulation News: US ‘ECASH’ bill introduced, EU passes privacy-busting crypto rules, Japan to tighten crypto exchange regulation to enforce sanctions, Rio de Janeiro to accept bitcoin for real estate taxes from 2023, India passes stiff crypto tax laws, and more!

Paradigm

Published in

Paradigm

23 min readApr 4, 2022

Vol. 91, 21st March — 4th April

TL;DR

US lawmakers introduce ‘ECASH’ bill in new push to create a digital dollar: The e-cash would be a digital analogue to the greenback and could preserve privacy and anonymous transactions
Biden budget proposal estimates additional 11B dollar in revenues by 2032 by updating crypto rules. While CFTC looks at expanded authority to regulate crypto, for less than a 10% budget increase
US Senate to consider bill examining El Salvador’s Bitcoin experiment. US Congress agency recommends 4 key policy options for blockchain
Newly introduced US “Stablecoin Transparency Act” aims to bring transparency to the stablecoin marketplace
The SEC’s new proposal to redefine ‘dealer’ could spell bad news for DeFi. SEC rejects ARK 21Shares spot Bitcoin ETF application
EU Parliament passes privacy-busting crypto rules despite industry criticism. While EU passes law to ‘rein in’ big tech’s domination over smaller players: Companies such as Google, Apple, Amazon and Meta could face fines as high as 20% of turnover
Small digital euro payments won’t need laundering checks, ECB official says
The UK government to reveal its regulatory package for crypto in the coming weeks. While crypto firms weigh options as UK registration deadline looms: Firms that fail to receive FCA approval might choose to service the UK from abroad or challenge the ruling in court
Ireland’s central bank follows UK’s example in warning of crypto advertisements
Japan to tighten crypto exchange regulation to enforce sanctions. Bank of Japan official calls for G7 nations to adopt common crypto regulations
Rio de Janeiro to accept Bitcoin for real estate taxes from 2023
Indonesia to impose 0.1% crypto tax starting in May
Russia’s energy chief says it would accept Bitcoin for oil and gas. Russian government official calls to legalize mining ‘as soon as possible’
Korean crypto exchanges are now in compliance with the Travel Rule
Vietnamese deputy PM calls for building legal framework for digital assets
Huobi Tech to launch crypto tracking ETF in Hong Kong for retail traders
Thailand SEC bans crypto payments, seeks disclosure of system failure from exchanges
Bosnian court sides with Bitcoin miner in frozen bank account case
Kazakhstan looks to bring crypto exchanges to Central Asian financial hub
11 companies form Canadian Web3 Council to advocate for comprehensive crypto strategy
India passes stiff crypto tax laws despite industry uproar. Furthermore, India identifies 11 crypto exchanges accused of tax evasion
Sudan’s central bank cautions citizens against using crypto
Honduras’ central bank debunks bitcoin as legal tender rumors
Aussie crypto ‘finfluencers’ face tough new legal restrictions
Washington state passes bill aiming to expand local blockchain adoption
Phoenix suburb now takes Bitcoin for utility bills
City of Austin approves ‘fact-finding study’ for tax payments in bitcoin, crypto
Bitcoiner Bruce Fenton confirms he’s running for New Hampshire senate seat
US Justice Dept. charges 2 in NFT ‘rug pull’ scheme
Vanuatu prime minister says yes to Satoshi Island crypto project
Jamaica’s central bank digital currency and the problems it hopes to solve
Top Israeli bank to accept BTC and ETH trading through Paxos’ collaboration
Malaysian deputy finance minister responds to proposal to legalize Bitcoin
MENA Climate Week notes blockchain’s potential for climate action
Coinbase to track off-platform crypto transfers in Canada, Singapore and Japan
Binance wins dismissal of class action over 2018 tokens that tanked
Galaxy Digital delays BitGo acquisition to later on in 2022
And more!

Opinions

The world has synchronized on Russian crypto sanctions:The heavy sanctions on Russia extend to crypto, and here is a deep dive into the legal infrastructure behind them.

Russia Sanctions Could Spur Use of Crypto: IMF’s Gopinath: Gita Gopinath, the first deputy managing director at the IMF, says the Ukraine conflict could promote the wider use of crypto.

After years of doubts and concerns, it is finally Bitcoin’s time to shine: Bitcoin leads the way as investors seek adaptable hedging alternatives in the search for the new digital gold.

Can Crypto Miners Make the World Greener? As it decarbonizes, the mining industry might help push energy producers to build more renewable power sources.

Spot Bitcoin ETFs Could See Approvals by 2023: Bloomberg Intelligence: A proposed change that would require crypto exchanges to register with the SEC may be key to future approvals, two analysts wrote.

DAO regulation in Australia: Issues and solutions: Certain laws need to be passed before DAOs can be properly regulated, which the Australian government aims to achieve.

Securities Regulators Cast Doubt on DeFi’s Decentralization Claims: International standard-setter IOSCO said its members will take coordinated action to control what it called significant risks of the emerging DeFi market.

Indonesia’s cryptocurrency community in 2022: An overview: Regulations, exchanges and local adoption help cryptocurrencies gain traction in Indonesia.

Warren’s battle to curtail crypto gets boost from Ukraine conflict: While Senator Warren’s new bill officially targets Russia, could this just be an excuse to tighten crypto regulation?

Is China’s apprehension to ban NFTs a hopeful sign for investors? China’s mixed signals regarding its local NFT industry have investors confused about where the local market may be headed.

Is Austin the next US crypto hub? Officials approve blockchain resolutions: The City of Austin gears up to become America’s next crypto hot spot by passing two resolutions focused on cryptocurrency and blockchain innovation.

Privacy coins are surging. Will regulatory pressure stall their stellar run? Many privacy coin developers are convinced that all the necessary mechanisms to regulate AECs are already in place.

Colorado accepts tax payments in crypto: Was it just a matter of time? Colorado is set to accept tax payments in crypto. To some experts, it’s only a matter of time before other U.S. states follow suit.

Green ‘light:’ The EU’s approach to crypto balances eco-values with regulatory relevance: European policymakers have backed away from passing rules which would have unfairly targeted Bitcoin for environmental reasons.

Almost half of Germans to invest in crypto: Forty-four percent of Germans are motivated to invest in crypto, according to a report released by KuCoin. What do the experts think?

USA

US e-cash: Bill proposes digital currency that replicates cash, bypasses the Fed: A United States House bill proposes a Treasury-issued, hardware-secured and anonymous form of digital cash.

The Electronic Currency and Secure Hardware Act (ECASH Act), introduced in the United States House of Representatives, could herald a new direction in government-sponsored digital currencies. The legislation calls for the U.S. Secretary of the Treasury to develop and pilot an electronic version of the U.S. dollar that is easy to use for the economically marginalized or technically challenged. It would also “maximize” consumer protection and data privacy, according to its principal sponsor Representative Stephen Lynch, chair of the Fintech Task Force in the House Financial Services Committee.

Interestingly, e-cash, as it’s called, would be issued by the U.S. Treasury Department, not the Federal Reserve Board, which means it would technically not be a central bank digital currency (CBDC) nor would it be built on a blockchain or require the internet to operate. It is designed to “replicate the privacy-respecting features of physical cash,” such as coins and notes to the greatest extent possible.

The initiative isn’t meant to necessarily preclude a Fed-issued CBDC, however. The pilot program launched by the ECASH Act will “complement, and advance ongoing efforts undertaken by the Federal Reserve and President Biden to examine potential design and deployment options for a digital dollar,” said Lynch, a democratic representative from Massachusetts, in a statement. Representatives Chuy Garcia, Ayanna Pressley and Rashida Tlaib are co-sponsors of the bill.

The bill envisions the launch of a two-phase e-cash pilot program within 90 days of enactment — with the deployment of e-cash to the American public expected no later than 48 months after enactment. The legislation is being proposed and supported by a coalition of progressives, consumer advocates, civil libertarians and even some crypto “true believers,” Rohan Grey, assistant professor at Willamette University College of Law, told Cointelegraph. Most Republicans will probably oppose it, “but I hope to be pleasantly surprised,” he added.

What is striking is that the proposal doesn’t involve a central bank or digital ledger technology (DLT), which could presage a new path in state-sponsored digital money development. It arguably offers more privacy and anonymity than any other government-sponsored digital currency project to date, calling for an “electronic dollar” to be used by the general public that is capable of:

“Instantaneous, final, direct, peer-to-peer, offline transactions using secured hardware devices that do not involve or require subsequent or final settlement on or via a common or distributed ledger, or any other additional approval or validation.”

There is presently no other similar CBDC proposal in the world like this, said Grey, who worked with Congressman Lynch’s office in developing the bill. The current CBDC debate on digital money often pits currencies with a centralized digital ledger, like China’s digital yuan, against digital currency issued on a distributed (decentralized) ledger, or blockchain. What is proposed in nearly all instances, however, is the use of a ledger. That is, “transactions get recorded on a common balance sheet somewhere,” said Grey, adding:

“The whole digital currency debate so far has taken place in the realm of account-based money.”

But, with e-cash, there would be no ledger, just as no ledger is used for physical cash transactions. This should appeal to privacy advocates and civil libertarians who want to preserve anonymous monetary transactions. Digital ledger technology, even when decentralized, does not allow for complete anonymity. “If you don’t have a ledger, there’s no one who can censor transactions and no one you have to ask permission for,” explained Grey.

How would it work? E-cash could be exchanged by two individuals tapping their phones together. It might be sent over distances like secured text messages, though this would require phone service, unlike face-to-face. It is intended to be easily used in a retail setting. Grey envisions a future mobile phone app with three accounts or options: one for the owner’s bank account, the second for a credit card account and a third e-cash account. But, dispensing with all intermediaries like credit card companies, banks or the government also introduces some risks. Grey added:

“You’re holding the money on your device. If you lose your device, you lose the money — that’s the risk. Just like you lose your physical wallet on the train, you lose all the money inside the wallet.”

In recent years, the U.S. has been under some growing pressure to develop a central bank digital currency, particularly as China moves closer to a full roll-out of its digital yuan. Lynch referenced the challenges in today’s statement: “As digital payment and currency technologies continue to rapidly expand and with Russia, China, and over 90 countries worldwide already researching and launching some form of Central Bank Digital Currency, it is absolutely critical for the U.S. to remain a world leader in the development and regulation of digital currency and other digital assets.”

As noted above, a Federal Reserve-issued digital dollar could still follow. “There’s nothing precluding the Fed from issuing a CBDC as well,” Grey told Cointelegraph. “In fact, that would be expected since the different designs serve different functions, like cash and checking accounts today.”

E-cash will be subject to U.S. regulations, too. It would be “classified and regulated in a manner similar to physical currency and would therefore be subject to existing anti-money laundering, counterterrorism, Know Your Customer, and financial transaction reporting requirements and regulations,” according to the sponsors. Still, why would e-cash be issued through the Treasury Department and not the Federal Reserve? “If you were to say you wanted to create something digital that works like physical currency: It’s a token, it’s a bearer instrument, there are no accounts, no intermediaries or it’s going to be retail focused, who should issue that?” asked Grey. Treasury is the obvious candidate in his view.

After all, the Treasury already houses the United State Mint, the nation’s oldest monetary institution, as well as the Bureau of Engraving and Printing. The Treasury now participates in activities that are similar to electronic cash, like providing prepaid debit cards. In addition, the institution is more capable than the Fed at balancing competing political interests, he added.

“The Federal Reserve consists mostly of macro-economically trained academics and bankers,” said Grey. They’re not civil liberty experts or foreign affairs specialists. The Treasury, by contrast, encompasses agencies like the Office of Foreign Assets Control, which enforces foreign economic sanctions. Treasury has a wider scope and a broader skill set, in his view. Moreover, U.S. central bankers have been saying for some time that critical decisions regarding digital currencies need to be made by elected lawmakers, Grey added. “So, now we are taking them at their word.”

Newly Introduced Bill Aims to Bring Transparency to the Stablecoin Marketplace: The aptly-named “Stablecoin Transparency Act” would require issuers to report on their reserves.

Wall Street Watchdog Cautions Banks on Trading Crypto Derivatives: OCC Acting Comptroller Michael Hsu said he’s working with global regulators to find “a consistent, careful and cautious approach to bank involvement in crypto.”

CFTC looks at expanded authority to regulate crypto, for less than a 10% budget increase: The agency’s $365 million proposed FY2023 budget includes significant allocation for CPAs and whistleblowers.

Washington state passes bill aiming to expand local blockchain adoption: The Pacific Northwest state’s governor has finally passed a bill into law to form a working group to explore the opportunities for industry and commerce to benefit from blockchain.

Biden Budget Proposal Estimates Additional $11B in Revenues by 2032 by Updating Crypto Rules: The proposal also seeks to expand the DOJ’s budget by $52 million to fight ransomware and combat the “misuse of cryptocurrency.”

US Congress agency recommends 4 key policy options for blockchain: GAO aims to help policymakers, including Congress, federal agencies, state and local governments, observe seamless blockchain implementation.

The SEC’s New Proposal to Redefine ‘Dealer’ Could Spell Bad News for DeFi: The 200-page proposal is ostensibly about the electronic trading of U.S. Treasurys — but many industry insiders smell a sneak attack against crypto.

SEC rejects ARK 21Shares spot Bitcoin ETF application: 21Shares submitted the spot Bitcoin ETF application with Ark Investment Management in June 2021 for listing on the Cboe BZX Exchange.

New SEC guidance on accounting and disclosures rankles Commissioner Peirce: Peirce, sometimes referred to as the Crypto Mom, found the new guidance to be an example of the SEC’s “scattershot and inefficient approach to crypto.”

White House Wants Public Comments on Crypto’s Energy Use and Environmental Impact: The Office of Science and Technology Policy is crafting a report that will examine where crypto fits into the country’s climate goals.

Phoenix Suburb Now Takes Bitcoin for Utility Bills: Chandler, Arizona, will take PayPal-held bitcoin, ether and litecoin for water payments.

Bitcoiner Bruce Fenton Confirms He’s Running for New Hampshire Senate Seat: The long-time crypto proponent will take on vulnerable incumbent Sen. Maggie Hassan, and is initially funding his campaign with $5 million of personal bitcoin wealth.

State Regulators Crack Down on Voyager Digital’s Crypto Interest Offering: The coordinated legal push resembles BlockFi’s legal battle, which ended in a $100 million fine and pledges to register as a security.

US Senate to Consider Bill Examining El Salvador’s Bitcoin Experiment: The bill, which was passed out of committee on Wednesday, generated the displeasure of El Salvador’s president, Nayib Bukele.

Kraken Hits Key Milestone in Quest to Gain Fed Account, Equal Treatment With Traditional Banks: Kraken Bank, the Wyoming subsidiary of the Kraken crypto exchange, received a routing number from the American Bankers Association.

City of Austin Approves ‘Fact-Finding Study’ for Tax Payments in Bitcoin, Crypto: The Texas city will investigate the feasibility of adopting “bitcoin or other cryptocurrencies” with a study due in mid-June.

Former CPA Pleads Guilty to Helping BitClub Architect Launder Funds in $722M Ponzi Scheme: The 57-year-old Nevada man pleaded guilty to one count of conspiracy to commit money laundering and one count of aiding in the preparation of a false tax return.

US Justice Dept. Charges 2 in NFT ‘Rug Pull’ Scheme: “They pulled the rug out from under the victims,” U.S. Attorney Damian Williams said of the creators of the Frosties NFT collection.

What’s at Stake as Josh Jarrett Sues the IRS: The Proof of Stake Alliance advocates for staking rewards to be treated as property, not income.

Mining Industry Not That Worried by SEC’s Proposed New Climate Reporting Rules: Some of the requirements might be challenging for smaller publicly-traded miners to comply with, however.

Grayscale gears up for legal battle with SEC over Bitcoin ETF: “I think all options are on the table,” said the Grayscale CEO, adding that the company has put its “full resources” into converting its flagship Bitcoin trust.

Europe & UK

EU Parliament Passes Privacy-Busting Crypto Rules Despite Industry Criticism: Lawmakers are set to end even the smallest anonymous crypto transactions, and plan measures that could see unregulated exchanges cut off.

European Union lawmakers voted today in favor of controversial measures to outlaw anonymous crypto transactions, a move the industry said would stifle innovation and invade privacy. More than 90 lawmakers voted in favor of the proposal. The proposals are intended to extend anti-money laundering (AML) requirements that apply to conventional payments over EUR 1,000 ($1,114) to the crypto sector. They also scrap the floor for crypto payments, so payers and recipients of even the smallest crypto transactions would need to be identified, including for transactions with unhosted or self-hosted wallets. Further measures under discussion could see unregulated crypto exchanges cut off from the conventional financial system.

National governments said in December they wanted to scrap the EUR 1,000 threshold for crypto, on the basis that digital payments can easily circumvent the limit, and to include private wallets that aren’t operated by regulated crypto asset providers. Members of the center-right European People’s Party (EPP) opposed many of the more controversial changes, condemning what they called a “de facto ban of self-hosted wallets.”

“Such proposals are neither warranted nor proportionate,” EPP economic spokesperson Markus Ferber said in an emailed statement. “With this approach of regulating new technologies, the European Union will fall further behind other, more open-minded jurisdictions.”

A separate legal proposal also discussed today would stop transfers being made to “non-compliant” crypto service providers, which includes those operating in the EU without authorization or that are not affiliated to or established in any jurisdiction. The vote came in spite of objections from major industry participants, such as Coinbase, and from legal experts who warned that overly heavy-handed privacy violations could face legal challenges in EU courts.

Under the new rules, Coinbase would have to report to the authorities any time a customer received over EUR 1,000 of crypto from a self-hosted wallet, the exchange’s CEO Brian Armstrong warned in a tweet posted Wednesday. The plans must also be agreed on by both the parliament and national ministers, who meet as the EU Council, in order to pass into law.

Bitcoin’s price dropped about 2% in minutes as the vote came through, falling from $47,500 to $46,400.

Europe’s CBDC Designers Wrestle With Privacy Issues: The European Central Bank will likely to opt for a centralized solution for its new digital euro, raising questions about state snooping.

Crypto Industry Mobilizes Against Proposed EU Transparency Rules: Crypto advocates were able to sway lawmakers against a provision that could have effectively banned bitcoin in the European Union. Can they do it again?

Crypto Popularity Could Pose Stability Risk, EU Watchdog Warns, as It Ponders New Powers: Fintech firms could face bank-style lending caps to stop crypto markets overheating, the European Systemic Risk Board said.

Lawmakers Want Unregulated Crypto Firms Out of the EU: Proposed anti-money laundering rules are up for a parliamentary committee vote on Thursday along with a separate provision seeking to end anonymous crypto transactions in the European Union.

ECB Official Calls for ‘Less Tolerant’ Approach to Bitcoin ‘Gambling’: Fabio Panetta’s remarks come as EU lawmakers consider measures to end anonymous crypto transactions and cut off unregulated exchanges.

Small Digital Euro Payments Won’t Need Laundering Checks, ECB Official Says: The proposals regarding the potential future central bank digital currency come as lawmakers prepare to scrap anonymous bitcoin payments.

Crypto Privacy Positions Harden Ahead of Crunch EU Vote: Lawmakers don’t appear swayed by crypto industry claims as they consider applying anti-laundering identification rules to the sector, but some argue the EU plans are unworkable or unlawful.

EU Passes Law to ‘Rein In’ Big Tech’s Domination Over Smaller Players: Companies such as Google, Apple, Amazon and Meta could face fines as high as 20% of turnover as the EU seeks to stop “gatekeepers” curbing competition from smaller players.

EU Set to Experiment With Blockchain-Based Stock, Bond and Fund Trading: Lawmakers hailed the pilot legislation Wednesday as putting the bloc at the “forefront of innovation.”

EU Parliament can outlaw transacting with ‘unhosted’ wallets, crypto advocate warns: The proposed legislation would require exchanges to verify personal data behind any transaction.

The UK Wants to Regulate Crypto: Here’s What That Could Look Like: The government is set to reveal its regulatory package for crypto in the coming weeks.

Crypto Firms Weigh Options as UK Registration Deadline Looms: Firms that fail to receive FCA approval might choose to service the U.K. from abroad or challenge the ruling in court.

UK’s FCA Extends Temporary Registration Deadline for Select Crypto Firms: The Temporary Registration Regime will end April 1 “for all but for a small number of firms where it is strictly necessary.”

UK Regulators Say Crypto Adoption Poses Financial Risk, Call for More Oversight: The watchdogs worry that international norms could come too late.

Bank of England and regulators assess crypto regulation in raft of new reports: A bundle of interrelated documents reminds financial institutions of their responsibilities and looks at the state of crypto regulation in the U.K.

FTX Taps Ex-Liechtenstein Regulator as EU Strategy Lead: Marcel Lötscher, previously a senior official at the country’s financial market supervisor, will become head of regulatory strategy for the global crypto exchange in October.

Bosnian court sides with Bitcoin miner in frozen bank account case: The second-largest Italian bank would have to pay $144 million in compensation to the mining farm, the judge rules.

Ireland’s central bank follows UK‘s example in warning of crypto advertisements: The central bank warned people to be mindful of “the risks of misleading advertisements, particularly on social media, where influencers are being paid to advertise crypto assets.”

Asia

Japan plans to tighten crypto exchange regulation to enforce sanctions: The proposed amendment is being carried out to prevent sanctioned countries from taking evasive actions using digital assets.

Japan plans to amend its Foreign Exchange and Foreign Trade Act to bring crypto exchanges under the purview of laws that govern banks, a government official revealed. The proposed amendment is being carried out to prevent sanctioned countries from taking evasive actions using digital assets. Chief Cabinet Secretary Hirokazu Matsuno said in a press conference that the government is planning to introduce a bill to revise the foreign exchange laws to include crypto exchanges. Fumio Kishida, the country’s newly elected prime minister, also supported the proposed revision and called for coordinated moves with Western allies to enforce the new laws.

Under the revised foreign exchange laws, crypto exchanges, just like banks, will be required to verify and flag transactions associated with sanctioned Russian individuals or groups.

Japan, along with most of its Western allies, has conducted various financial sanctions against Russia after its actions in Ukraine. Earlier this month, the financial regulatory body in the country halso asked crypto exchanges to refrain from allowing transactions for sanctioned targets. However, a parliamentary amendment to the law would make it a legal compulsion for crypto exchanges to block transactions for various sanctioned Russian officials, oligarchs, banks and other institutions. The reason for concern about Russia potentially trying to evade sanctions using cryptocurrency arises from the country’s growing interest in the crypto market and recent comments made by its ministers.

The financial sanctions on Russia have forced it to look for alternative payment systems and methods to access the international trade market. While speculations about the possible use of digital assets to evade trade sanctions have been one of the hottest topics of discussion, experts have rejected such concerns as “totally unfounded.”

Bank of Japan official calls for G7 nations to adopt common crypto regulations: The Bank of Japan has warned G7 nations that a common regulatory framework for cryptocurrencies needs to be introduced quickly to discuss digital assets to be used to skirt sanctions.

Korean crypto exchanges are now in compliance with the Travel Rule: Complying with the rules puts South Korea ahead of the curve for regulating virtual assets but could be harming the domestic industry with overbearing transfer restrictions between exchanges.

Vietnamese deputy PM calls for building legal framework for digital assets: Vietnam has had quite a love and hate relationship with the crypto market where it has authorized and banned Bitcoin use on numerous occasions.

Huobi Tech to launch crypto tracking ETF in Hong Kong for retail traders: Although Huobi Tech shares a common name with the popular crypto exchange platform Huobi Global, it has no relation with the crypto firm and works independently.

Thailand SEC bans crypto payments, seeks disclosure of system failure from exchanges: Since December 2021, the government of Thailand has been working on preparing a new regulatory framework by defining “red lines” for the crypto industry.

Rest of the World

Rio de Janeiro to accept Bitcoin for real estate taxes from 2023: Rio de Janeiro will officially start accepting Bitcoin (BTC) payments for taxes related to urban real estate within their city limits, otherwise known as Imposto sobre a propriedade predial e territorial urbana (IPTU). The new pro-crypto tax laws will be implemented from 2023, which was announced by the Secretary of Economic Development, Innovation and Simplification, Chicão Bulhões.

Work from anywhere = Rio! Welcome @binance… Rio on blockchain! @eduardopaes https://t.co/NJEArEvEXV
— Chicão (@ChicaoBulhoes) March 26, 2022

Supporting this cause led by the Brazilian Mayor Eduardo Paes, Binance CEO Changpeng “CZ” Zhao announced to open a new office in the region, stating that “He‘s done his part. We are working on ours.”

9 days ago, I made a handshake deal with mayor @eduardopaes. Rio De Janeiro will accept crypto for tax payments, and @Binance will open an office in Rio. He’s done his part. We are working on ours. https://t.co/HPJONtBfQ8
— CZ Binance (@cz_binance) March 26, 2022

The rollout of this initiative will place Rio de Janeiro as the first Brazilian city to make BTC payments mainstream. According to the translated announcement:

“To enable the operation, the municipality will hire companies specialized in converting crypto assets into reais. In this way, the City Hall will receive 100% of the amount in the currency.”

Brazilian secretary Pedro Paulo further acknowledged that the city’s goal — with the acceptance of cryptocurrencies — is to develop a solid market of this new asset class in the city, adding:

“We will stimulate the circulation of cryptocurrencies by integrating them into the payment of taxes, as in the case of IPTU and, in the future, this can be expanded to services such as taxi races, for example.”

The city also plans to involve nonfungible tokens (NFT)-based governance policies across various markets including arts, culture and tourism. Earlier this year on Jan. 29, Meta, the world’s biggest social media platform, filed a trademark registration with the Brazilian authorities to design, develop and provision hardware and software for various BTC and crypto-related services.

Indonesia to Charge 0.1% Tax on Crypto Transactions, Investments: The valued-added and capita-gains taxes will take effect on May 1.

Russia‘s energy chief says it would accept Bitcoin for oil and gas: The heavily-sanctioned country is scrambling to find ways to increase its revenue and has floated the possibility of allowing China and Turkey to pay for energy in Bitcoin.

Bitcoin mining finds fresh support from Russian Finance Ministry: While supporting crypto mining companies, the Russian lawmakers are still not sure whether they should ban individuals from mining crypto.

Russian government official calls to legalize mining ‘as soon as possible’: The quotas and allocations of mining operators should be set by the regional authorities, not federal, the deputy minister says.

Kazakhstan Looks to Bring Crypto Exchanges to Central Asian Financial Hub: The exchanges would operate in the Astana International Financial Centre in cooperation with the Kazakhstani banks and government agencies.

Dapper Labs, Ether Capital Headline Newly Formed Canadian Web3 Council: The 11-member non-profit trade association includes issuers of financial products, exchange platforms, open-source blockchain projects, investors and more.

Canadian PM candidate supports freedom to use Bitcoin as money: The Conservative candidate for Prime Minister believes Canadians should be free to use Bitcoin and other crypto assets as money in the Great White North.

India Identifies 11 Crypto Exchanges Accused of Tax Evasion: India’s tax authority first began seizing assets to address alleged tax evasion late last year and initially identified six exchanges.

30% crypto tax becomes law in India following Finance Bill approval: India’s new crypto tax policy, which is based on gambling and lottery ticket win tax rules, is set to come into effect on April 1.

‘We Have Entered a Period of Pain,’ Says WazirX CEO of India’s New Tax Laws: Nischal Shetty, one of the most prominent figures in India’s crypto industry, talks candidly and at length about what’s at stake with the country’s new tax provisions.

India Passes Stiff Crypto Tax Laws Despite Industry Uproar: Amendments sought by the crypto industry were not adopted.

‘Nothing is growing as fast as cryptocurrency’: Kyrgyz MP wants national crypto: Kyrgyzstan has regulated the crypto exchanges and the mining industry, however, there are no laws governing the circulation of cryptocurrencies in the country.

Sudan’s Central Bank Warns Against Using Crypto as Economy Suffers: The bank said that cryptos carry high risks, including financial crime, piracy and loss of value.

Honduras’ Central Bank Debunks Bitcoin as Legal Tender Rumors: The BCH is, however, studying the feasibility of a central bank digital currency.

Aussie crypto ‘finfluencers’ face tough new legal restrictions: The Australian securities regulator is taking a stand against financial influencers whom they believe to be bamboozling the general public with misinformation about crypto.

Vanuatu prime minister says yes to Satoshi Island crypto project: The Vanuatu government announces its support for the Satoshi Island Community Project, a private crypto island where fiat isn’t invited.

Jamaica’s central bank digital currency and the problems it hopes to solve: Jamaica’s new central bank digital currency, slated for launch early this year, aims to help address economic issues on the island nation.

Top Israeli bank to accept BTC and ETH trading through Paxos’ collaboration: Pepper Invest users can now buy, sell and hold Bitcoin and Ethereum, subject to regulatory approval.

Malaysian deputy finance minister responds to proposal to legalize Bitcoin: Similar to countries like Indonesia, Malaysia has not banned crypto trading but the government doesn’t want to adopt crypto for payments.

MISC

Does the Metaverse Need a Free Trade Agreement? It’s seeking to be the centerpiece of Web 3, but a successful metaverse could run headfirst into some old-style protectionist barriers like work permits and data blocks, trade policy expert tells.

Crypto industry fires back after EU vote to block ‘unhosted’ wallets: “Imagine if the EU required your bank to report you to the authorities every time you paid your rent merely because the transaction was over 1,000 euros,” said Coinbase CEO Brian Armstrong.

MENA Climate Week notes blockchain’s potential for climate action: Panelists at MENA Climate Week discussed shifting regulations, technological evolution, and increasing awareness and collaboration between the blockchain and climate communities.

Coinbase to track off-platform crypto transfers in Canada, Singapore and Japan: Certain Coinbase users will need to disclose recipient information when sending cryptocurrencies to non-Coinbase wallets.

New crypto owners nearly doubled in 3 key regions in 2021: More than half of respondents in India, Brazil and Hong Kong made the first purchase of a cryptocurrency like Bitcoin in 2021.

Binance wins dismissal of class action over 2018 tokens that tanked: The judge ruled domestic law doesn’t apply to Binance as it is not an exchange domestic to the United States and that the case was filed “too late.”

Galaxy Digital delays BitGo acquisition to later on in 2022: The acquisition is scheduled to follow Galaxy’s domestication in Delaware, which is expected to become effective between Q2 and Q4 of 2022.