Hebei is the latest China province to wield the crypto crackdown hammer

September 14, 2021 Coin Telegraph

China

Authorities in the province say crypto mining is inimical to China's environmental conservation efforts.

Hebei, a province in Northern China, is the latest jurisdiction in the country to read the riot act to crypto miners and traders.

According to Reuters on Tuesday, the province's cyberspace commission has announced plans to curtail cryptocurrency mining and trading activities in the region.

The move is in tandem with a broader anti-crypto policy in China that has seen most of the country's cryptocurrency mining establishment forced to relocate overseas.

In a statement by the commission quoted by Reuters, authorities in the province stated: "Cryptocurrency mining consumes an enormous amount of energy, which is against China’s ‘carbon neutral’ goal."

As part of the crypto mining ban, the Hebei cyberspace commission has enjoined all relevant government stakeholders in the province, including the education, public security, communications and financial regulators, to participate in the crackdown efforts.

These departments will reportedly have until Sept. 30 to verify that their respective information systems are not supporting illegal crypto mining and trading operations.

China's crypto mining ban has resulted in a significant East-West hash power migration that could see North American miners command a greater share of the global hash rate distribution.

Pro-crypto Congressman stacks, anti-crypto Congressman receives $100K from TradFi

July 7, 2021 Coin Telegraph

Pro-crypto Congressman stacks, anti-crypto Congressman receives 0K from TradFi

Barry Moore

Alabama congressman Barry Moore has snapped up ETH, ADA, and Doge over the past two months, but his holdings have taken a significant hit amid the crypto downturn.

News of two contrasting approaches to crypto from U.S. members of congress surfaced this week.

Alabama Congressman Barry Moore has been loading up on cryptocurrencies such as Ethereum (ETH), Cardano (ADA), and Dogecoin (DOGE) over the past two months.

Meanwhile anti-crypto California Congressman Brad Sherman — whose stated aim is to shut crypto down — has reportedly received more than $100,000 in campaign donations from top financial firms.

According to a July 2 trading disclosures filing with the clerk of the House of Representatives, Moore purchased ETH on May 5, he bought ADA on May 10, 11, 13, and bought DOGE on June 13.

The filing, which misspells Ethereum as “Etherium” and crypto as “cryto”, doesn’t specify the exact amounts Moore invested but does provide a range between $1,001 to $15,000 for each purchase.

The maximum amount Moore could have spent is $75,000, and he may have been forced into a hodl approach, as all of his investments have taken a hit amid the crypto downturn which began around May 12.

Ethereum was priced at around $3,400 on May 5 and has since declined by 32% to sit at $2,300 at the time of writing, according to data from CoinGecko.

The Republican Congressman’s committee assignments include the Committee on Agriculture and the Committee on Veteran’s affairs, and the 54-year-old hasn’t expressed his opinions towards crypto publicly. But actions speak louder than words.

Other pro-crypto Republicans include Senator Cynthia Lummis, who advocated for using Bitcoin as part of a diversification strategy for retirement plans last month.

Brad Sherman

California Democrat Congressman Brad Sherman is one of the most vocally anti-crypto members of congress, he has called for crypto to be banned in the past, and recently claimed that buying lottery tickets is more sensible than investing in crypto.

“Cryptocurrencies have the political support of the ‘patriotic’ anarchists who are rooting for tax evasion,” he said and added that “I hope we shut it down.”

SO your going with "We need to keep up with China in restricting our citizens freedoms"?https://t.co/claRw8D92b
— Cameron (@BlevCam) June 30, 2021

A recent article from the Foundation for Economic Education highlights data from OpenSecrets.org that shows eight financial firms rank amongst Sherman’s top 20 donors for his 2020 campaign committee, including Capital Group Companies with $18,400, Blackstone Group with $16,800, BlackRock Inc with $11,250, and American Bankers Association with $10,000. Make of that what you will.

*Brad Sherman, top 20 donors: OpenSecrets*

Tanzania central bank may rescind crypto ban after presidential endorsement

June 25, 2021 Coin Telegraph

Bitcoin ban

President Samia Suluhu Hassan’s positive stance on crypto could see Tanzania’s central bank reversing its previous cryptocurrency prohibition.

The Bank of Tanzania is reportedly working to overturn its ban on crypto amid favorable cryptocurrency comments made by the country’s president.

According to Reuters, Tanzania’s central bank has begun working on directives from the country’s federal government that could see a reversal of its November 2019 crypto ban.

As previously reported by Cointelegraph, president Hassan urged the central bank to begin exploring Bitcoin (BTC) and digital assets earlier this month.

At the time, Hassan enjoined the Bank of Tanzania to keep up with the times, given the growing popularity of cryptocurrencies.

These favorable comments on crypto came on the heels of El Salvador’s Bitcoin Law and a wave of positive BTC sentiment across several nations in Latin America.

However, in Africa, crypto-related regulations beyond central bank bans are yet to emerge. Back in February, Nigeria’s central bank also prohibited financial institutions in the country from servicing crypto exchanges.

For Abdulmajid Nsekela, chairman of the Tanzania Bankers Association, the move could help to diversify financial transactions in the country that are currently dominated by cash payments.

Nsekela also echoed the president’s comments about the Bank of Tanzania needing to become better acquainted with the crypto market, adding, “The most challenging element for regulators is to be caught by surprise by innovations.”

According to data from Useful Tulips — a platform that tracks peer-to-peer BTC trading across the globe — Tanzania ranks seventh in peer-to-peer trading volume in Sub-Saharan Africa. Nigeria still accounts for more than half of the region’s Bitcoin trading activity.

While clear-cut crypto regulations are yet to emerge on the continent, some nations are working toward floating central bank digital currencies. Indeed, the central banks of both Nigeria and Ghana have issued announcements to that effect in June.

Proposed crypto ban legislation reportedly under review by India’s government

June 16, 2021 Coin Telegraph

Coin Telegraph

Authorities in India are reportedly weighing up options concerning crypto regulations in the country.

India’s government is reportedly reviewing modalities for banning or regulating cryptocurrencies in the country.

According to Bloomberg Quint, reports indicate that the government is in talks with financial regulators and industry stakeholders to examine the provisions of an earlier proposal that effectively called for a blanket prohibition of crypto in India.

Back in February, several reports out of India stoked fears of a possible crypto ban that has so far failed to materialize. Instead, the emerging narrative out of the country is that the authorities are considering a more nuanced approach to cryptocurrency regulations with blanker prohibitions out of the question.

The anonymous source quoted by Bloomberg Quint says the current discussions are going over the clauses in the previous crypto ban bill to determine whether to follow through or seek an alternative approach.

According to the publication, these discussions are proceeding along three fronts. The first two issues are reportedly around whether crypto can be regulated or if the government should wield the “ban hammer.”

The third issue on the agenda is reportedly ascertaining the types of crypto activities that could be permitted under a standardized cryptocurrency regulatory paradigm in India.

As previously reported by Cointelegraph, the Reserve Bank of India continues to maintain its anti-crypto stance. The RBI has previously said that it has communicated its reservations about cryptocurrencies to the federal government.

Back in May, the RBI clarified that commercial banks were not under orders from the central bank to refuse service to crypto exchanges. Indeed, India’s Supreme Court in March 2020 overturned a previous RBI mandate prohibiting banks from servicing exchanges in the country.

Given the deliberate pace of the ongoing discussions, the quoted source also added that an amended crypto regulatory bill is unlikely to be introduced during the upcoming Monsoon session of Parliament beginning in July.

Meanwhile, three major cryptocurrency exchanges — Kraken, Bitfinex and KuCoin — are reportedly mulling an expansion of their business to India to offer services to the country’s estimated 15 million crypto investors.

India to reportedly ditch Bitcoin ban agenda in favor of asset classification

June 10, 2021 Coin Telegraph

Bitcoin

Indian state officials are reportedly no longer keen on banning Bitcoin and a crypto regulatory bill may be up for discussion during the Monsoon Session of Parliament.

The tide may have finally turned for cryptocurrencies in India as reports indicate a softer stance by the government towards crypto.

According to a report by The New Indian Express on Thursday, the government’s hostile stance towards Bitcoin (BTC) appears to be shifting towards more common-sense regulatory policies for cryptocurrencies.

According to inside sources quoted by the publication, authorities have dropped earlier plans for a blanket Bitcoin ban in favor of classifying cryptocurrencies as an alternative asset class.

The Securities and Exchange Board of India will reportedly be tasked with overseeing crypto regulations in the country in collaboration with the finance ministry.

These inside sources also claim that Parliament will debate a comprehensive crypto regulatory bill during the Monsoon Session beginning in July. An expert panel created by the finance ministry is reportedly studying protocols for crypto regulation and its finding could form part of the parliamentary deliberations next month.

Commenting on the emerging positive signals on the crypto regulatory front, Ketan Surana, a member of the Internet and Mobile Association of India said:

“We can definitely say that the new committee which is working on cryptocurrencies is very optimistic on cryptocurrency regulation and legislation.”

Back in May, Indiatech.org, a technology lobby group in India urged the government to define crypto as digital assets and not currencies.

Meanwhile, the Reserve Bank of India remains a staunch crypto critic with the central bank recently stating that its position on cryptocurrencies remains unchanged. However, the RBI has distanced itself from reports that it mandated banks to block services to crypto exchanges.

Indeed, India’s Supreme Court overturned in March 2020 overturned a 2018 RBI ban that prohibited banks from servicing cryptocurrency exchanges. As previously reported by Cointelegraph, three major crypto exchanges — Kraken, Bitfinex and KuCoin — are looking to enter the Indian market.

Restricting crypto trading to millionaires good for Hong Kong, says official

May 27, 2021 Coin Telegraph

Coin Telegraph

Hong Kong’s Treasury Secretary says the government is right to pursue restrictive crypto regulations in the city.

Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury has defended the recent proposal by the city’s Financial Services and the Treasury Bureau to ban retail crypto trading.

In a speech delivered at StartmeupHK virtual fintech summit on Thursday, Hui said that the proposal was in line with the government’s plan to properly police the emerging crypto market.

As previously reported by Cointelegraph, the FSTB issued a proposal after months of consultation, calling for a ban on retail crypto trading and the establishment of a strict regulatory regime for cryptocurrency exchanges.

As part of the proposal set to be presented before the city’s legislature, the FSTB argued for a minimum investment threshold for crypto trading at about $1 million. This provision will reportedly exclude about 93% of Hong Kong’s population from the city’s cryptocurrency market if passed by the government.

However, Hui is of a different view, stating, “We are of the view that a proper regulatory system could facilitate development and at the same time protect investors and adhere to international regulatory standards.” According to the Hong Kong treasury chief:

“Imposing mandatory requirements to protect investors, prohibit market manipulation, and guard against money laundering and terrorist financing, we believe the proposed regime will further facilitate development of the virtual assets industry in Hong Kong, leveraging our world-class regulatory framework.”

Apart from shutting out retail crypto activity, Hong Kong’s restrictive laws may also force exchanges out of the city despite the government’s plan to allow foreign companies to obtain operating licenses in the city.

Indeed, back in December 2020, when the FSTB was still in the middle of its consultations, several industry stakeholders criticized the planned crypto regulations. At the time, critics argued that these restrictive digital currency laws would be inimical to Hong Kong’s financial innovation agenda.

Hong Kong regulators set to ban retail Bitcoin trading

May 21, 2021 Coin Telegraph

Bitcoin ban

Only millionaires will be allowed to trade Bitcoin and cryptocurrencies in Hong Kong if the FSTB proposal is passed by the city’s legislature.

Hong Kong regulators have moved to ban retail trading in Hong Kong after months of intense speculation about a likely prohibition.

According to a report by Reuters on Friday, the Financial Services and the Treasury Bureau of Hong Kong has released the results of its consultation on a possible retail crypto trading ban, which began back in November 2020.

As part of its conclusions, Hong Kong’s FSTB called for a comprehensive licensing regime for crypto exchanges while restricting trading only to qualified investors. Per Hong Kong law, only individuals with portfolios worth 8 million Hong Kong dollars (about $1 million) qualify as professional investors.

For the FSTB, the retail crypto trading ban is necessary at least in the early stages of the comprehensive crypto licensing regime. The FSTB reportedly plans to present its conclusions before legislators in Hong Kong to facilitate the passage of the proposal into law.

If passed, the proposed licensing regime will also replace the current opt-in paradigm for crypto exchanges in the city.

By limiting crypto trading in Hong Kong to persons with portfolios worth at least $1 million, the FSTB is potentially excluding up to 93% of the city’s population from gaining access to cryptocurrencies.

Several stakeholders in Hong Kong’s vibrant crypto industry have expressed their dissatisfaction with the plan in the past, arguing that the move was inimical to the government’s goal of encouraging financial innovation.

In another related development, Hong Kong’s government is reportedly planning to empower the city’s Securities and Futures Commission to withdraw the licenses of already authorized crypto exchanges.

Tweeting on Friday, Chinese crypto media outlet 8BTC News revealed that the SFC may soon be given the power to exercise the right at will.

Back in November 2020, the SFC announced a proposal to expand its crypto oversight responsibilities beyond security tokens to cover all digital asset service providers.

Indian government is rethinking crypto ban: The Economic Times

May 19, 2021 Coin Telegraph

Coin Telegraph

A new panel will be formed to address "outdated" recommendations on crypto trading.

Reports are emerging that India’s government may be reconsidering its stance on cryptocurrencies with the formation of a new regulatory panel.

A May 19 report in the Economic Times, cited three sources privy to discussion on the formation of a fresh panel of experts with a view to regulating cryptocurrency trading in India.

The move comes amid increasing support for overturning recommendations made by a committee led by former finance secretary Subhash Garg in 2019 for a blanket ban on crypto assets on the grounds they have become outdated.

The report quoted an unnamed official with knowledge of the matter who stated:

“There is a view within the government that the recommendations made by the Subhash Garg are dated and a fresh look is needed at use of cryptos rather than a total ban,”

The new panel may be used to investigate the use of blockchain for technological enhancement and suggest ways to regulate crypto assets separately to fia currencies. It may also work closely with the Reserve Bank of India on any proposed digital Rupee project.

Minister of State for Finance and Corporate Affairs, Anurag Thakur, may be considered to join the new committee according to the report. Thakur and Finance minister Nirmala Sitharaman have both previously stated that the government would prefer to take a calibrated approach to regulation for crypto assets rather than impose an outright ban.

The RBI had banned all banks from allowing customers to trade in cryptocurrency in 2018, however, this was overturned by the Supreme Court in February 2020 following a petition filed by Indian fintech entrepreneurs and experts.

There have been many reports that a blanket ban would be reimposed with an anonymous source claiming to be a senior Indian Finance Ministry official claiming such earlier this year.

The Cryptocurrency and Regulation of Official Digital Currency Bill 2021 was scheduled to be addressed in parliament in March but it was deferred for reasons not made public, the Economic Times report added.

Sitharaman is expected to be briefed by her team later this month regarding ongoing developments in the cryptocurrency space and collective breaths are being held again in Indian crypto industry circles.

There has been massive momentum on crypto exchanges and sustained retail demand in India in recent months despite the ever-present regulatory fears.