Crypto Regulation News: US Treasury suggests to exempt miners from IRS reporting rules, Italy lays out new AML rules for crypto firms, Canada invokes ‘Emergencies Act’ targeting crowdfunding and crypto, UAE to issue federal crypto license for VASPs, FBI launches new crypto crimes unit, Digital euro bill coming in early 2023, and more!

Paradigm

Published in

Paradigm

24 min readFeb 21, 2022

Vol. 88, 7th February — 21st February

TL;DR

The U.S. Treasury affirmed that crypto miners and wallet operators are exempt from the IRS reporting rules, preparing appropriate regulations
Crypto could derail financial stability; crypto market data reporting needs global standards to enable proper risk assessment, says the Financial Stability Board
Biden expected to issue executive order on crypto and CBDCs
US Rep. Josh Gottheimer introduces a bill for government-backed stablecoin insurance. While Rep. Warren Davidson, introduced the bill seeks to protect unhosted crypto wallets from regulators
SEC chair hints at no spot Bitcoin ETFs yet, but cites ‘careful consideration’ for future. SEC hits BlockFi with a 100 million penalty, gives 60 days to comply with a 1940 law. Furthermore, SEC enforcement against Wonderland could mean trouble for DeFi
State lawmakers in Illinois, Georgia propose tax incentives for bitcoin miners
EU finance chief says digital euro bill coming in early 2023
Italy formally lays out crypto firms’ new AML requirements
Spain’s central bank licenses Bit2Me to be country’s first crypto services provider
Hungary’s central bank head calls on the EU to ban crypto mining and trading. Furthermore, crypto advocates push back on Sweden’s call for EU mining ban
Chinese banking regulator warns against fraud risks in the Metaverse
Singaporean megabank DBS works on expanding bitcoin trading to retail
UAE reportedly plans to issue federal crypto license for VASPs
Canada invokes ‘Emergencies Act’ targeting crowdfunding and crypto. Canada sanctions 34 crypto wallets tied to trucker ‘Freedom Convoy’. While Canadian MP introduces bill aimed at encouraging growth in crypto sector
Vitalik Buterin calls Canada’s use of banks to stifle protestors ‘dangerous’
Bank of Russia proceeds with digital ruble, renews push for crypto ban. While Russian ministry wants to legalize bitcoin mining in specific areas
Binance halts activities in Israel following regulator intervention
Ukraine’s updated crypto bill kicks one ministry out as regulator
Belarus president signs decree to support free circulation of crypto
Indian crypto exchanges met with finance ministry officials to seek tax reconsideration
El Salvador bitcoin bond issuance coming as soon as March 15
Georgia lawmakers consider giving crypto miners tax exemptions in new bill. The country punches well above its weight for Bitcoin mining
Zambia’s central bank to explore CBDC following crypto warning
Central bank of Kenya seeks public input on potential CBDC
The Bitfinex laundering story continues: Federal officials arrested two and seized 3.6B in BTC tied to the 2016 Bitfinex hack
Colorado to accept crypto for tax payments by end of summer
Tennessee lawmaker introduces bill which would allow state to invest in crypto. Bipartisan bill would allow Tennessee to invest in crypto and NFTs
Wyoming lawmakers introduce legislation for state-issued stablecoin
Binance’s Paysafe deal worries UK financial watchdog
Binance.US is under investigation from SEC over trading affiliates. Binance.US hires former Gemini exec as chief compliance officer
New Hampshire governor issues executive order establishing commission to study crypto
Central bank of Ireland nixes crypto funds
FBI launches new crypto crimes unit
IMF chief touts advantages of CBDCs over ‘unbacked crypto assets’ and stablecoins
Credit Suisse data leak reveals decades of shady clients and activity
Sustainable bitcoin miner uses waste heat to dry wood
Crypto at the Olympics: NFT skis, bitcoin bobsledders and CBDC controversy
DeFi may turn to DAO governance to reduce regulatory risks in 2022, writes KuCoin Labs
A new report from Chainalysis says criminal whales held over 25 billion dollar worth of cryptocurrency at the end of 2021
How the Marshall Islands is trying to become a global hub for DAO incorporation
Why the SEC keeps rejecting spot Bitcoin ETF application
And more!

Reports

Crypto Could Derail Financial Stability, Global Financial Watchdog Says: Fast-evolving crypto markets could be a threat to global financial stability, according to the Financial Stability Board (FSB), an international organization that monitors and makes recommendations for the global financial system.

In a report, the FSB examined potential vulnerabilities connected to unbacked crypto assets like bitcoin, stablecoins (cryptocurrencies tethered to the value of real assets) and decentralized finance (DeFi) along with crypto trading platforms. Although the global crypto market is still relatively small and the extent of crypto use around the world varies, risks to financial stability “could rapidly escalate,” the FSB said. It emphasized the need for proactive evaluation of policy responses.

The new report comes after regulators in multiple jurisdictions including in the U.S. and U.K. reached similar conclusions. In the five years through October 2021, the cryptocurrency market capitalization grew around 200% to a record $2.7 trillion. It is currently about $2 trillion, according to CoinMarketCap.

“Crypto-asset markets are fast evolving and could reach a point where they represent a threat to global financial stability due to their scale, structural vulnerabilities and increasing interconnectedness with the traditional financial system,” the report said.

Despite the multitrillion-dollar market cap, crypto still makes up a small portion of the assets within the global financial system, according to the FSB. While connections between the crypto market and traditional financial markets are growing fast, they remain limited, the report said.

More traditional participants in global finance began paying attention to crypto during the 2021 price run, but investment has been slow to pick up. While corporations including MicroStrategy and Tesla have significant bitcoin exposure, firms such as Morgan Stanley and JPMorgan seem more cautious.

“Nevertheless, institutional involvement in crypto-asset markets, both as investors and service providers, has grown over the last year, albeit from a low base,” the report said. “If the current trajectory of growth in scale and interconnectedness of crypto-assets to these institutions were to continue, this could have implications for global financial stability.”

In October the FSB said the $133 billion global stablecoin market was still too small to be considered as a mainstream payment method. The new report suggests the rapid growth of DeFi and the stablecoins that power the sector could harm financial markets if something were to go wrong.

“Were a major stablecoin to fail, it is possible that liquidity within the broader crypto-asset ecosystem (including in DeFi) could become constrained, disrupting trading and potentially causing stress in those markets. This could also spill over to short-term funding markets if stablecoin reserve holdings were liquidated in a disorderly fashion.”

The report did not provide any recommendations other than stating the need to preemptively consider policy options for regulating the sector. It did say that it will continue to monitor and recommend effective ways to implement its guidance on global stablecoins from 2020.

Chainalysis Says ‘Criminal Whales’ Account for 4% of the Overall Pod: A new report from blockchain research firm Chainalysis says criminal whales held over $25 billion worth of cryptocurrency at the end of 2021.

DeFi may turn to DAO governance to reduce regulatory risks in 2022: “If DeFi aims to reduce regulatory risk, the form of DeFi governance will gradually become a DAO,” writes KuCoin Labs in its annual report.

Opinions

How the Marshall Islands Is Trying to Become a Global Hub for DAO Incorporation: The law essentially grants DAOs the same privileges as limited liability corporations.

In a bid to become a global hub for the incorporation of DAOs, the Republic of the Marshall Islands has recognized decentralized autonomous organizations as legal entities, becoming the first sovereign nation to do so. The new law essentially grants DAOs the same privileges as limited liability corporations (LLC), allowing them corporate personhood and the ability to hold real estate, done through a modification to the nation’s Non-Profit Entity Act.

DAOs having to register separate LLCs to fully operate is an issue for the sector’s crowdfunding genre (think ConstitutionDAO, LinksDAO, BlimpDAO, etc.) because registration makes it difficult to keep business decisions truly decentralized.

Under the Marshall Islands’ new law, however, DAOs incorporated within its territory would not have to register separate LLCs. The Central Pacific island nation is hoping to become a hotbed for DAOs in the same way that Delaware has become a mainstay for U.S. business incorporation, David Paul, one of its Parliament members, told CoinDesk.

“Our laws have actually been tailored all of these years to be able to cater to this kind of service,” Paul told CoinDesk in an interview. “So making an amendment to the existing framework to include DAOs didn’t take much for us. Of course, we still have a long way to go, but we are excited to keep expanding.”

The first DAO putting the new legislation to the test is Admiral DAO, which has registered its company Shipyard Software, a decentralized exchange software developer, under Marshall Island jurisdiction (despite its name, Shipyard Software is unrelated to any maritime venture).

“We think of [decentralized exchanges] and DAOs as ships. They live in international waters, right?” Mark Lurie, CEO of Shipyard Software, told CoinDesk in an interview. “So when trying to figure out where to incorporate [Shipyard Software], we realized, Oh, let’s look at ships. And it turns out ships are all registered in the Marshall Islands. And that’s what led us here.”

The islands have several advantages over individual U.S. states as a potential DAO domicile, namely not being subject to U.S. federal laws while still having access to the U.S. Postal Services, Federal Aviation Administration (FAA) and the U.S. Military. MIDAO Directory Services has been tapped by the Marshall Islands to help prospective DAOs with the registration process, led by Adam Miller. The Marshall Islands’ initial foray into cryptocurrency came in 2019 when it passed the Sovereign Currency Act to make its legal tender digital. The movement never got off the ground, however, due to what Paul called “regulatory obstacles.”

The Marshall Islands is not the first island nation to enact legislation to advance its crypto ambitions — the Republic of Palau, also located in the Pacific Ocean, launched the first digital residency program in January, allowing anyone from around the world to apply to become a digital resident of the country. The Republic is also working on launching its own stablecoin later in the year.

The Digital Euro: What We Know So Far: The European Commission is planning to introduce a digital euro bill in 2023, but little is known about the European Union’s plans for such a currency.

Making Sense of India’s New Crypto Rules: India’s first concrete steps in acknowledging crypto may be here to stay, having spurred both excitement and confusion over whether the country is approving crypto as an asset.

India’s crypto tax provides little legal clarity for traders and exchanges: The Indian government’s recent announcement of a 30% tax on crypto returns has sparked an industrywide discussion on its feasibility.

Future of finance: US banks partner with crypto custodians: Traditional financial institutions must work hand-in-hand with crypto custodians, sub-custodians and service providers moving forward.

The Metaverse will bring a further erosion of privacy: The Metaverse isn’t coming, it’s already here. And that’s why we look at its impact on our privacy and how decentralization could help.

We are all going public: Privacy rules, tax shelters and the future history of art: Nonfungible tokens, or NFTs, exchanges will need to navigate conflicting aims for the required transparency and the desired anonymity.

Want to weed out ransomware? Regulate crypto exchanges: Ransomware will remain a major threat moving into 2022, and to counter it, the crypto ecosystem must come to terms with more regulation.

Web3 might be crypto’s key to the mainstream market: Decentralization vs. centralization: Web3 may be right around the corner, but the race for central crypto regulation is also speeding up.

Mining worldwide: Where should crypto miners go in a changing landscape? Which nations are the new harbors of miners, and where can Ether and Bitcoin be successfully — and profitably — mined in 2022?

Clarity pushed back: Russian government fails to forge a consolidated stance on crypto regulation: Another tentative deadline for the Finance Ministry and central bank to reach a compromise passes as an expected bill does not arrive.

Bitcoin at the barricades: Ottawa, Ukraine and beyond: If Bitcoin is used for fundraising, is it inevitably tarred by the cause to which it’s been linked, like anti-vax truckers?

SEC v. Ripple: Here’s how two 2012 memos can turn the tide in the milestone crypto case: We will soon know if Ripple’s executives were warned of the possibility of an SEC lawsuit ahead of XRP’s launch.

Here’s why the SEC keeps rejecting spot Bitcoin ETF applications: Crypto investors still hope that the SEC will approve a spot-based BTC ETF one day, but data shows it has good reason not to.

Sanctions and trade: Iran aims to develop a central bank digital currency: While the central bank announced its intention to launch a CBDC, exact details are still scarce.

El Salvador’s Bitcoin Law: Understanding alternatives to government intervention: Last year El Salvador dominated headlines as the first country to adopt Bitcoin as legal tender. Now, it’s time to promote mainstream adoption from the ground up.

Laundering via digital pictures? A new twist in the regulatory discussion around NFTs: From money laundering concerns to the categorization dilemma, these topics will define the emerging regulatory discussion around NFTs.

Why Singapore is one of the most crypto-friendly countries: Singapore, a major financial and shipping center, has emerged as a top global cryptocurrency hub in a short period.

USA

US Treasury Suggests Miners Won’t Be Subject to IRS Reporting Rules: The U.S. Treasury Department in a letter sent to a group of senators signaled that crypto miners and stakers won’t face tax reporting obligations that will be implemented for exchanges.

The letter addresses concerns from the crypto industry that last year’s Infrastructure Investment in Jobs Act would impose undue tax reporting burdens on entities such as crypto miners and stakers that don’t deal directly with customers by broadening the definition of a “broker.” The requirements require brokers to collect detailed information on customers and their trades.

Industry participants pointed out that miners, stakers and other parties don’t typically have access to customer information that exchanges have when they facilitate transactions. An overly broad definition might be impossible for some entities to comply with. Treasury’s letter suggests the expanded definition would be limited to parties that already collect this information.

“Existing regulations impose broker reporting obligations only on market participants engaged in business activities that provide them with access to information about sales of securities by taxpayers,” the letter said.

According to the letter, which was written by Jonathan Davidson, an assistant Treasury secretary for legislative affairs, the department’s view is that “ancillary parties who cannot get access to information that is useful to the IRS (Internal Revenue Service) are not intended to be captured by the reporting requirements for brokers.” Treasury also plans to analyze the “significant differences” between traditional securities supported by brokers and digital assets.

Davidson added that the Treasury Department plans to issue proposed regulations that reflect how it defines a broker, similar to the rulemaking process it follows for other regulations implemented by federal agencies. That process will give the general public and industry participants a chance to comment.

In a letter last month to Treasury Secretary Janet Yellen, a group of U.S. representatives challenged the infrastructure bill’s definition of “broker,” saying it is incompatible with the crypto ecosystem.

Biden expected to issue executive order on crypto and CBDCs next week: Both President Barack Obama and the previous administration issued executive orders related to digital assets.

State Lawmakers in Illinois, Georgia Propose Tax Incentives for Bitcoin Miners: Lawmakers in Illinois and Georgia are hoping to give tax breaks to crypto mining companies

US Bill Seeks to Protect Unhosted Crypto Wallets From Regulators: Rep. Warren Davidson (R-OH), a member of the Blockchain Caucus, introduced the bill on Tuesday.

US Rep. Josh Gottheimer Introduces Bill for Government-Backed Stablecoin Insurance: The bill would designate certain stablecoins as “qualified,” making them redeemable on a one-to-one basis for U.S. dollars.

Colorado to Accept Crypto for Tax Payments by End of Summer: Gov. Jared Polis outlined the plans.

Crypto Heavyweights Coinbase, Fidelity and Robinhood Back US Anti-Money Laundering Group: The 18-member Travel Rule Universal Solution Technology (TRUST) initiative addresses AML data sharing requirements prescribed by FinCEN.

SEC Enforcement Against Wonderland Could Mean Trouble for DeFi: “Protocol Controlled Value” is rarely controlled by a protocol, and enforcement agencies may be taking a closer look.

SEC chair hints at no spot Bitcoin ETFs yet, but cites ‘careful consideration’ for future: Gary Gensler reiterated his stance of being technology-neutral, but will carefully consider concerns raised by congresspersons.

The Bitfinex Laundering Story Continues: Federal officials arrested two and seized $3.6B in BTC tied to the 2016 Bitfinex hack. And everyone’s paying attention now.

Federal Judge Releases ‘Razzlekhan,’ Orders Other Bitfinex Hack Laundering Suspect to Remain in Jail: Monday’s bail review hearing overturned last week’s decision by a New York magistrate judge, at least for one suspect.

BlockFi Will Pay $100M in Settlement With SEC, State Regulators Over High-Yield Accounts: The company has been under investigation since at least November over the lending product, which offers yields as high as 9.5%.

Bipartisan Bill Would Allow Tennessee to Invest in Crypto and NFTs: State Rep. Jason Powell said crypto-friendly laws would help draw more businesses to the state.

Bipartisan Senate Proposal Raises Alarm Over El Salvador’s Bitcoin Adoption: The legislation quickly drew a sharp rebuke from El Salvador President Nayib Bukele.

New bill aims to ‘mitigate risks’ to US from El Salvador’s Bitcoin Law: Three U.S. senators proposed a bill that would commission a lengthy report detailing the inner workings of El Salvador’s Bitcoin Law and a subsequent action plan to mitigate risk.

Wyoming lawmakers introduce legislation for state-issued stablecoin: Avanti Financial CEO Caitlin Long said the bill had its own pros and cons, but it was “definitely a conversation-starter” for lawmakers exploring stablecoins.

Caitlin Long’s Wyoming Crypto Bank Takes a Step Toward Fed Membership: It’s no guarantee of Fed approval, but Avanti Bank now has a routing number through the American Bankers Association.

CFTC Should Oversee Crypto Spot Markets, Chief Reiterates Before Congress: CFTC Chair Rostin Behnam also asked Congress to provide his agency with an additional $100 million so it can properly oversee crypto markets.

Binance.US is under investigation from SEC over trading affiliates: Binance CEO Changpeng Zhao allegedly has connections to two market makers buying and selling crypto on Binance.US.

Binance.US Hires Former Société Générale and Gemini Exec as Chief Compliance Officer: Tammy Weinrib will have a focus on know-your-customer (KYC) and anti-money laundering (AML) programs.

Fed senior officials will soon not be allowed to trade crypto, stocks and bonds: The rules were intended to “support public confidence … by guarding against even the appearance of any conflict of interest.”

Fed never did it: US Senate Banking head lashes out at Super Bowl crypto ads: The lawmaker claimed that crypto is not real money and companies splurging millions on advertisements proves that.

New Hampshire Governor issues executive order establishing commission to study crypto: The commission will have until Aug. 8 to submit a report “regarding the current status of the cryptocurrency and digital asset industry.”

US Federal Reserve bank at the helm of CBDC research effort appoints new president: Susan M. Collins is set to become the first Black woman to head a Federal Reserve Bank.

Tennessee lawmaker introduces bill which would allow state to invest in crypto: The two bills propose allowing the state of Tennessee as well as its counties and municipalities to invest in crypto, as well as forming a committee aimed at studying crypto and blockchain.

Europe & UK

Italy Formally Lays Out Crypto Firms’ New AML Requirements: Italy has published new anti-money laundering (AML) rules for crypto firms, according to a gazette dated Feb. 14.

The rules, which were approved in January, outline registration and reporting requirements for virtual asset service providers (VASP) that align with the European Union’s fifth AML directive and the Financial Action Task Force (FATF) guidelines for crypto firms. Their publication in Italy’s formal journal of record indicates the rules are ready to take effect. The document specifies what is required of VASPs to be registered in a special roster for crypto firms. According to the document, registration in the roster maintained by is required if firms are to offer any digital-asset related services in the country.

The new rules were published just as lawmakers in the European Union (EU) are getting ready to begin discussions on the proposed regulatory package for crypto assets. The Markets in Crypto Assets (MiCA) package seeks to set EU-level standards and requirements for cryptocurrency issuers, service providers and users. Most notably, it is looking to set up a passportable license for crypto firms which would allow companies to easily operate in all EU-member states if they are fully registered and compliant in one EU jurisdiction.

However, Italy’s new rules include a requirement that doesn’t quite align with the EU’s ambitious passportable license for VASPs. In order to qualify for registration in the special roster for approved VASPs in Italy, all entities must comply with Article 17-bis of a 2008 directive related to credit contracts, the document says.According to the Article, any VASP from another EU country must have a permanent establishment, or stabile organizzazione, in Italy to be able to register as an approved VASP.

A report on the new rules published by Lexia Avvocati, an independent Italian law firm, interprets stabile organizzazione to mean a branch or subsidiary.

“Accordingly, VASPs that are incorporated in other EU member states will have to set up an Italian branch or subsidiary in order to operate with Italian customers. VASPs established in third countries will have to incorporate an Italian subsidiary,” the report said.

In addition to the registration requirement, the document says VASPs must report all information required under the AML regulations to the Organismo Agenti e Mediatori (the body responsible for overseeing the VASP roster) at the end of each quarter. The VASP registry will be set up within 90 days of the publication of this document.

EU finance chief says digital euro bill coming in early 2023: The European Union’s finance chief announced that a bill introducing a digital euro will be hitting tables in the European parliament as early as 2023.

Spain’s Central Bank Licenses Bit2Me to Be Country’s First Crypto Services Provider: The exchange will be able to provide banks based in Spain with a white-label service for crypto trading on their platforms.

Hungary’s Central Bank Head Calls on EU to Ban Crypto Mining and Trading: The governor of the Hungarian National Bank said he agreed with the Russian central bank’s earlier proposal to ban crypto activities.

Crypto Advocates Push Back on Sweden’s Call for EU Mining Ban: Regulators are worried renewable energy will be channeled towards crypto mining instead of national grids as EU’s energy crisis worsens

Binance’s Paysafe deal worries UK financial watchdog: Binance lost access to the sterling payment network in July; however, the Paysafe partnership opened the gates to restricted services.

Central Bank of Ireland nixes crypto funds: Too difficult ‘for a retail investor’: The central bank feels that there is too much risk for retail investors who lack the expertise needed to trade crypto, but professional investors are welcome to continue trading.

Asia

Chinese banking regulator warns against fraud risks in the Metaverse: Chinese authorities called the metaverse “attractive and deceptive,” where users are prone to lose money if they are unaware of the risks.

After eradicating crypto trading and mining in the country, the Chinese government’s next concern lies with the growing number of scams around metaverse projects. The Chinese Banking and Insurance Regulatory Commission issued a risk warning for the public against fraudulent metaverse projects. The notice highlighted how the buzz around metaverse had made it a primary target of scammers and fraudsters illegally raising money in the name of such projects and robbing people of their hard-earned money.

The official warning highlighted four different ways in which fraudsters are illicitly making profits using metaverse as the premise of their fraud. The first and most common form of the scam includes projects promising high-tech integration, such as artificial intelligence and virtual reality support. These projects often lure investors by promising high returns. Then the fraudsters get away with the investors’ funds.

The second most common form of metaverse scams is blockchain play-to-earn (P2E) projects, where scammers promise high profits for investing in the native gaming token and often run away with funds once they reach a set goal. Another prominent scheme such projects use includes hyping up the metaverse real-estate to induce panic buying among users.

The Office of Inter-Ministerial Joint Conference on Disposal of Illegal Fund Raising requested the common public to be more aware of such projects and report any suspicious activity to authorities. A Google translated version of the official warning read:

“The fraudulent activities under the banner of “Metaverse,” which is more attractive and deceptive, and participants are prone to property damage. The public is requested to enhance their awareness of risk prevention and identification capabilities, and beware of being deceived.”

Despite a blanket ban on the use and mining of cryptocurrencies in the country, the Chinese government has been more relaxed toward nonfungible token and metaverse projects. This is why several tech giants including Tencent, Huwaei and Alibaba have rushed to file for metaverse trademarks. Shanghai even included the use of blockchain and metaverse for public services in its five-year development plan.

China’s Metaverse plans: Decentralization not required: Experts claim that although China is unlikely to decriminalize crypto soon, NFTs and blockchain still have a place in its Metaverse.

China Casts Long Shadow Over Hong Kong’s Once-Vibrant Crypto Industry: The city’s regulators are looking to finally provide some clarity. Will it be enough to retain crypto companies leery of China’s growing sway?

Young, Crypto-Savvy Voters May Hold Key to South Korea’s Next Election: Presidential candidates woo young retail investors who may decide the outcome.

Singaporean megabank DBS works on expanding Bitcoin trading to retail: DBS Bank’s crypto exchange launched in late 2020, allowing to trade cryptocurrencies only to professional investors.

Rest of the World

UAE to Issue Crypto Licenses in Bid to Become Industry Hub: The United Arab Emirates is preparing to issue federal licenses for virtual assets service providers by the end of this quarter in a bid to attract crypto companies to the country, Bloomberg reported citing a government official.

The Securities and Commodities Authority (SCA) is in the final stage of setting up a framework allowing VASPs to set up shop in the country, the official said. Having considered the approaches of the U.S., U.K. and Singapore, the UAE will take a hybrid approach: The SCA and central bank will be responsible for regulation, with regional financial centers determining their day-to-day procedures on licenses, according to Bloomberg. The government also wants to create a favorable environment for crypto mining, the report said.

The government of Dubai, one of the seven constituent emirates, said in December it will create a favorable regulated zone for crypto service providers in the Dubai World Trade Center, a skyscraper in the city. The next day, Binance, the world’s largest crypto exchange, signed a cooperation agreement with the trade center.

Abu Dhabi Global Market, an international finance hub and free-trade zone, issued its first crypto exchange license, to Matrix, in May 2020. In November 2021, three exchanges headquartered at the center were fully operational while another three were in the process of launching, the finance hub’s regulation chief told local news site The National.

The Dubai Multi Commodities Center, the largest free-trade zone in the UAE set up a regulatory framework for crypto firms in March 2021. It has already licensed 22 companies, Bloomberg reported.

Court Orders Freeze of Canadian ‘Freedom Convoy’ Crypto Fundraising: The funds in over 120 crypto addresses were ordered frozen by a special injunction by an Ontario court.

Canada’s Trudeau Enacts Emergencies Act, and Crypto Is Included: The move by the prime minister includes an expansion of money-laundering laws to include crowdfunding platforms and cryptocurrency transactions.

Canada Sanctions 34 Crypto Wallets Tied to Trucker ‘Freedom Convoy’: Bitcoin, Ethereum, Litecoin, Monero and Cardano addresses are all on the list.

Crypto community condemns Canada for freezing dissidents’ Bitcoin wallets: Kraken’s CEO admitted that the firm could be forced to freeze some wallets by the police, advising to move crypto out of exchanges.

Canadian MP introduces bill aimed at encouraging growth in crypto sector: “To be a world leader, Canada needs to make sure cryptoasset experts and investors are telling us what policy they need or what policy they don’t need,” said Michelle Rempel Garner.

Vitalik Buterin Calls Canada’s Use of Banks to Stifle Protestors ‘Dangerous’: Decentralized systems are not about lawlessness but rather a return to rule of law, the Ethereum founder said in an interview at ETHDenver.

Bank of Russia Proceeds With Digital Ruble, Renews Push for Crypto Ban: Three Russian banks are piloting the CBDC, while the Bank of Russia is suggesting a new, harsher bill to ban cryptocurrencies in Russia.

Russian Central Bank, Government No Closer to Crypto Compromise: The government and central bank decided instead to formalize their disagreements.

Banning Bitcoin in Russia is ‘same as banning the internet,’ minister says: Bank of Russia governor Elvira Nabiullina previously argued that banning Bitcoin in Russia was “quite doable.”

Russian ministry wants to legalize Bitcoin mining in specific areas: The proposal aims to recognize crypto mining as a commercial activity and introduce taxes on its realized profits.

Binance exec to lead crypto expert center by Russian bank association: The Association of Banks of Russia has launched a dedicated expert center focused on cryptocurrency regulation.

Binance Halts Activities in Israel Following Regulator Intervention: Certain services are suspended while the country’s Capital Markets Authority reviews the exchange’s licenses.

Israel’s Securities Regulatory Chief Lays Out Crypto Plans: The securities regulator is hosting a blockchain hackathon next month as a first step towards establishing broader oversight in the country’s fintech space.

Ukraine’s updated crypto bill kicks one ministry out as regulator: Ukraine’s crypto bill was previously returned for revision due to the creation of a new regulatory body for crypto oversight.

Belarus president signs decree to support free circulation of crypto: The decree provides a legal basis for Belarus Hi-Tech Park to set up a register of crypto wallets used in illegal activities.

Indian Crypto Exchanges Met With Finance Ministry Officials to Seek Tax Reconsideration: India announced new tax rules on crypto during the budget speech on Feb. 1.

Indian Finance Minister Says RBI Is on Board With New Crypto Rules: Sitharaman downplayed concerns of disagreements between the central bank and the government on crypto.

Bitcoin Mining-Rig Maker Ebang Registers Crypto Exchange in Australia: Ebang started the registration process back in 2020.

El Salvador Bitcoin Bond Issuance Coming as Soon as March 15: Finance Minister: In a TV appearance, Alejandro Zelaya also confirmed that the coupon for the paper will be 6.5%.

Georgia punches well above its weight for Bitcoin mining: The tiny population of Georgia is a dark horse for Bitcoin mining, contributing close to 1% of the industry’s total hash rate, according to a report by Arcane research.

Georgia lawmakers consider giving crypto miners tax exemptions in new bill: The state is expected to have 56,000 Bitmain miners operating by October as part of an agreement with Bitmain, ISW Holdings, and Bit5iv.

Zambia’s Central Bank to Explore CBDC Following Crypto Warning: The Bank of Zambia wants to cut transaction costs and increase citizens’ participation in the formal financial system.

Central Bank of Kenya seeks public input on potential CBDC: “A key opportunity where CBK sees potential value is the use of CBDC in facilitating cross-border transactions,” the announcement reads.

MISC

FBI Launches New Crypto Crimes Unit: The National Cryptocurrency Enforcement Team will investigate ransomware and other crimes with tools including blockchain analysis.

The National Cryptocurrency Enforcement Team (NCET), announced by Deputy Attorney General Lisa Monaco, will evaluate which types of crimes involving crypto might need more resources to investigate and prosecute these cases. The team will be headed by longtime prosecutor Eun Young Choi, according to a press release. Monaco announced the new unit during a keynote address at the Munich Cyber Security Conference, saying the unit will conduct its own blockchain analysis and seizing of assets involved in crimes.

“I think we are sending a message that cryptocurrencies and virtual currencies should not be considered a safe haven,” Monaco said in a question and answer session following the keynote.

The team will focus on crypto exchanges, mixers, tumblers and other types of digital asset infrastructure providers that might allow for “the criminal misuse of cryptocurrencies,” according to the release. Ransomware will also be a key focus, according to Monaco, who said law enforcement officials have to “bust [the] business model” for launching these types of attacks.

“The NCET will enhance the Criminal Division’s existing efforts to provide support and training to federal, state, local and international law enforcement to build capacity to aggressively investigate and prosecute serious crimes involving cryptocurrency and digital assets in the United States and around the world,” the release said.

The Department of Justice launched its own crypto enforcement team at the end of 2021, composed of anti-money laundering and cybercrime experts. At the time, Monaco said “cryptocurrency exchanges want to be the banks of the future. Well, we need to make sure that folks can have confidence when they’re using these systems and we need to be poised to root out abuse.”

IMF Chief Touts Advantages of CBDCs Over ‘Unbacked Crypto Assets’ and Stablecoins: Kristalina Georgieva said Wednesday that well-designed CBDCs “can potentially offer more resilience, more safety, greater availability and lower costs” than private cryptocurrencies.

Former Presidential Candidate Andrew Yang Launches DAO to Advocate for Web 3: Lobby3 will “prioritize and propose new policy, and aggregate new ideas that need to be top of mind for our leaders.”

Crypto Tax Pros Throw Cold Water on Staking Excitement: Recent media excitement over a lawsuit partially funded by the Proof of Stake Alliance (POSA) has caused confusion over crypto taxes, but experts say it’s best to remain cautious.

Credit Suisse data leak reveals decades of shady clients and activity: Swiss bank secrecy laws have protected Credit Suisse from having to disclose whether it was banking criminal activity, which is a far cry from the transparency blockchain technology offers.

Crypto at the Olympics: NFT skis, Bitcoin bobsledders and CBDC controversy: Bitcoin and nonfungible tokens are all over the Olympics this year while China’s CBDC is there too amid a controversial rollout.

Sustainable Bitcoin miner uses waste heat to dry wood: Not only does one Norwegian Bitcoin miner boast 99% renewable energy stats, but it’s even using waste heat to dry out timber and, soon, seaweed.