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Federal Reserve Governor States That Cryptocurrency Regulation is Morally Necessary

By
Adam Barry
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0

Christopher Waller, the governor of the Federal Reserve, has said that it will be morally unacceptable for cryptocurrency investors to keep making huge losses. Waller added that the moral intolerance would be higher in cases where investors had little knowledge of crypto and lost all their money.

Losses as high as Terra demonstrate the need for regulation 

Waller made this statement in a speech in Switzerland on Crypto assets and Financial innovation at the SNB-CIF Conference. He added that losses as high as with the Terra ecosystem could bring the need for regulation.

According to Waller, it calls for action when losses become widespread. He states that such losses make the issue morally, practically, and politically intolerable. Moreover, it becomes a problem when investors lose their lifesaving because they want to participate in hot markets, thus could lead to a call for action.

Walker states that contrary to popular belief, regulations are not there to protect high net worth participants. Instead, they also work to protect smaller investors from making high losses. Additionally, the crypto market is on the rise, despite being poorly understood and new, which necessitates regulations.

Although many established crypto investors are against regulating the industry, Waller believes it is crucial. Despite this, he acknowledges their worries that setting up cryptocurrency rules could stifle innovation and drive costs. However, Waller thinks it must be done to protect investors.

The government should protect investors

Waller advises that regulation should mainly focus on educating investors. He notes that many cases were due to poor management practices, bad financial advice, and insufficient due diligence.

Unfortunately, people who make losses have a hard time fighting for their rights as it costs too much. For this reason, the Federal Reserve Governor believes the government’s intervention is necessary.

Waller’s views are not just his own, as three months previously, the U.S President, Joe Biden, had signed an executive order for federal agencies to design measures regulating cryptocurrency development.

In other countries, central banks have decided to issue their own central bank digital currencies to control the influence of digital assets. Waller is not supportive of this measure. He notes that one advantage of the system is that the currencies will be governed according to the central bank’s policies. However, he questions if this will help in any way.

Kenya’s Geothermal Power Production Firm To Offer Bitcoin Mining Firms Surplus Energy

By
Adam Barry
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0

Following rising demand from various operators, Kenya’s big power generation firm KenGen has agreed to provide Bitcoin mining firms with extra geothermal electricity.

KenGen to offer geothermal power for BTC mining 

On June 2, 2022, QZ reported that considering no Bitcoin mining firm has set office in Africa, it is thought that the corporations aiming the utilize KenGen’s surplus power are located in the US and Europe. The beneficiaries are expected to set up shop at KenGen’s geothermal facility, which is around 123 kilometers from Kenya’s capital, Nairobi.

KenGen’s Geothermal Development Director Peketsa Mwangi said, “We’ll have them here because we have the space and the power is near, which helps with stability. Their power requests vary, some of them had asked to start with 20MW to be later graduated. Crypto mining is very energy-intensive.”

The shift into geothermal power is expected to address the Bitcoin mining carbon footprint issues, and KenGen fits the bill as it uses renewable sources for power production. Kenya currently has a 10,000 MW geothermal energy potential across the Rift Valley region. The firm has already installed a total of 863 MW of geothermal power capacity.

Kenya joins El Salvador in providing alternative energy for BTC mining 

If the proposal comes to fruition, Kenya will join El Salvador in mining Bitcoin using alternative types of energy. After proclaiming Bitcoin as legal currency, the Central American republic launched historic mining by volcanic energy.

Though KenGen has stated its ambition to assist Bitcoin mining, there are presently no rules in place to govern the industry in Kenya. On the other hand, the government is exploring a central bank digital coin rollout, but regulators are wary about digital assets trade due to a surge in scams.

Advocates have been lobbying to adopt renewable power to alleviate Bitcoin mining’s environmental concerns. As a result, according to Finbold, the White House is considering a first-of-its-kind policy to regulate the Bitcoin mining industry. After analyzing aspects such as Bitcoin’s carbon emissions, energy control, and noise pollution, authorities are expected to provide recommendations.

New Bill Introduced In New York to Ban Bitcoin Mining Because of Environmental Concerns

By
Adam Barry
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0

The New York State Senate enacted legislation on June 3 targeting proof-of-work mining (PoW) to address some environmental concerns that are being expressed about cryptocurrencies.

Bitcoin (BTC) and some other crypto projects use the PoW consensus technique to verify transaction requests.

It’s important to note that the legislation, which passed the state Legislature last month, might put a two-year moratorium on new carbon-based fossil fuel PoW mining ventures in New York. Present mining companies and those preparing to renew their licenses, on the other hand, would be allowed to continue functioning. 

One existing facility unaffected by the legislation 

Senator Kevin Parker, the legislation’s Democratic backer, claims that only one center of this type is currently active, and it shall be unaffected by the legislation. He also mentioned the potential of putting one of the ongoing petitions on suspension until the investigation was completed.

Most people expected the legislation to die in committee after the Senate Environmental Conservation Committee failed to consider it in its final session meeting, similar to the previous version a year before.

The committee’s chairman, Senator Todd Kaminsky, expressed concern in May that the bill would harm the state’s economy if it was perceived as anti-BTC and anti-cryptocurrency. Therefore, people would be more likely to oppose the measure if they had this perspective.

The legislation sailed through on the last-minute recommendation 

However, due to a last-minute recommendation from the Senate Energy and Telecommunications Committee on June 2, the proposal barely made it to the Senate House for voting some hours before the regular session ended at midnight.

Because of the state’s comparatively inexpensive hydroelectricity, bitcoin plus other crypto mining enterprises have long seen New York as suitable for setting up operations.

Mining companies have started converting coal power plants that had earlier been decommissioned for their uses in recent times. In the instance that the moratorium is voted into law, crypto mining corporations operating in New York have openly indicated their desire to transfer to regions that are mining-friendly states, like the state of Texas.

Bermuda Is Banking On Its Clear Cryptocurrency Regulations To appeal to Crypto Firms

By
Adam Barry
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0

Bermuda is betting on the openness of its cryptocurrency regulations to lure more cryptocurrency projects and enterprises, despite the present volatility in the crypto industry.

Bermuda is among nations that have enacted crypto legislations 

As per a June 3 Wall Street Journal report, Bermuda is among the few nations in the world to have created a comprehensive framework governing cryptocurrency.

Bermudan policymakers hope that their competence in international trade, which represents roughly 27% of the country’s GDP, combined with talented local workers, will form the foundation for a robust cryptocurrency sector.

Bermuda’s Economy and Labor minister Jason Hayward stated, “We are aware of the recent devaluation in the price of cryptocurrencies and remain confident that it does not threaten the island’s ability to become a crypto hub. On the contrary, this industry downturn is likely to advance our goal and positively impact our long-term growth and role in this sector.”

Bermuda is vying for a piece of the cryptocurrency pie

Bermuda is currently competing with other countries such as Liechtenstein and Malta for a piece of the crypto pie. Bermuda’s plan to attract crypto companies comes when several cryptocurrency companies have stated that regulatory ambiguity remains a hurdle to the sector’s wider adoption and potential expansion.

In particular, the bitcoin market in the US now lacks adequate supervision and investor protection. As a result, president Biden signed an executive decree in March allowing several federal agencies to conduct a study into digital currencies.

The idea that Bermuda is attempting to portray itself as a cryptocurrency hub has not surprised analysts. Bermuda is positioning itself as the pioneer in constructing a crypto infrastructure, as per David Schwartz, head of the country’s Financial & International Business Association.

Recently, Bermuda approved a comprehensive regulatory framework for digital assets and reinforced its regulations on money laundering. However, two potential roadblocks to the crypto sector’s growth in the country are Bermuda: a lack of familiarity with the anti-money laundering process one must fulfill to receive a license and insurers and banks’ reluctance to collaborate with crypto firms as customers.

VeChain Foundation Is Eyeing Expansion in Europe With New Headquarters 

By
Adam Barry
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0

During Hannover Messe 2022, PwC’s Europe blockchain head Husen Kapasi spoke about VeChain technology showing how a retailer or manufacturer can provide active real end-to-end traceability of an item from the supplier to consumers. Hannover Messe is among the biggest industrial development trade fairs worldwide.

VeChain expanding in Europe

Husen explained that the core focus of a connected supply chain is sustainability and transparency. Also, he said demonstrated how a retailer and manufacturer can embed end-to-end traceability to the consumer’s end from the supplier.

He said, “We integrated supply chain control tower with blockchain-based traceability applications gathering information across the value chain.”

Also, Husen gave a live demonstration showing an example. As the product flows from the vendor to the final client, he illustrated how the whole transparency system operates. The demonstration also concentrates on how the tech works on the VeChain blockchain and how it may help with transparency.

VeChain and Europe have a long history of working together. However, in terms of worldwide expansion, 2021 is regarded as one of the most successful years for VeChain.

On February 15, 2022, the organization announced the inauguration of its European offices. VeChain hopes for widespread acceptance in Europe and has tweeted about the continent’s desire for further blockchain offerings.

Sunny Lu, the CEO of VeChain, was summoned to San Marino for a carbon-neutral initiative. VeChain began to spread its wings throughout Europe gradually. VeChain established a technology team and a tech center in Europe to meet the growing demand for tech-based solutions.

VeChain Foundation reported $1.2 billion in stable coins in Q1 2022

Recently VeChain Foundation released its Q1 earnings report indicating that its treasury had amassed $1.2 billion in digital assets at the end of the quarter, a drop from $1.38 billion reported in the fourth quarter of 2021. In addition, the foundation spent almost $4.1 million in the first quarter for operational and business purposes, with $1.8 million going into ecosystem operations development. VeChain Foundation said that the loss during the quarter was attributed to the company’s other outgoings and cryptocurrency market fluctuations.

Kevin De Bryune Signs Partnership With Phemex To Their Brand Ambassador 

By
Adam Barry
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0

Kevin De Bryune, a Belgian professional footballer who plays for Manchester City, has announced a new relationship with Phemex. This action has the potential to alter the crypto ecosystem as we understand it. Some even speculate that this might be the game-changing moment that ultimately gives cryptocurrency credibility in a new phase of popular use.

De Bruyne to help market Phemex

De Bruyne will become the brand’s face and assist market the network to a larger audience as a result of this agreement. This revelation arrives at a period when the cryptocurrency community is in desperate need of positive news. Following a year of negative markets, scams, and hacks, the sector desperately needs a boost.

De Bruyne has joined the crypto industry as a brand ambassador for cryptocurrency exchange Phemex.

He will act as Phemex’s ambassador and assist market the network to potential customers under the agreement terms. He’ll also help teach prospective users to understand and explore the potential that the future will hold with crypto through initiatives like the Phemex Citizen, which enlighten families and raise awareness of the exchange’s creative components.

De Bruyne’s contribution will obviously, draw a huge amount of interest to Phemex. He has massive influence in the mainstream realm as one of the top players in the world. His support could give Phemex the boost it needs to gain widespread acceptance.

Phemex handles over $6 billion in average daily volume. 

Phemex is a crypto exchange situated in Singapore that claims to be the industry’s most user-friendly and fast exchange. In 2019, ex-Morgan Stanley managers established the exchange to make cryptocurrency investing more available. It now handles more than $6 billion in average daily trading volume and serves over 2 million users worldwide.

The exchange has a host of options that appeal to both seasoned traders and newbies. They provide a platform having all whistle and bells you’d want from a leading exchange for the professional trader. Derivatives and spot trading are an example of the options the platform offers to its users.

Argentines Turn to Cryptocurrency as Inflation in The Country Continues To Surge and Peso Despricates 

By
Adam Barry
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0

Argentina is increasingly becoming cryptocurrency-friendly in terms of adoption as inflation continues to surge. The country has been in a fight against rising inflation caused by various factors, including government overspending and lack of trust in the Argentinian central bank. As a result depreciation of the country’s currency, the peso has negatively affected the purchasing power of consumers.

Inflation and depreciation in Argentina pushing the adoption of digital assets 

According to an American Market Intelligence report, cryptocurrency adoption in the country had reached 12%, which was almost double that of other Latin American countries like Mexico and Peru. The peso has depreciated considerably and has lost 14% versus the dollar in the past year. The capital control restrictions on foreign exchange to around$200 per month have also pushed people to adopt cryptocurrencies.

This has pushed 37.3% of the people into poverty, and many more have seen their money suddenly disappear. Against this context, most Argentines have resorted to Bitcoin (BTC) and other cryptocurrencies as a way to protect themselves from 60% inflation, notwithstanding the economy being in the red for weeks and the central bank prohibiting financial firms from dealing with digital assets.

Argentinians have been gradually shifting to stablecoins, besides Bitcoin, to keep wealth in the US dollar, particularly as their nation enforces tight currency regulations on foreign exchange transactions.

Crypto use in Argentina increasing 

When Vitalik Buterin, the founder of Ethereum, toured Argentina in December 2020, he indicated that cryptocurrency use was increasing in the country and stablecoin acceptance. However, he emphasized that this could change if the United States dollar began to demonstrate major issues.

Argentina seems to be adopting a cautious approach to online assets legislation on a larger scale. Last year Argentinian president Alberto Fernandez said, “There’s a huge discussion about cryptocurrencies, it’s a global debate and I must confess it’s a matter of caution.”

On the brighter side, Fernandez stated that cryptocurrencies have an advantage since they help contain inflation and that they are basically steady assets.

MoneyGram Partners With Stellar Blockchain To create Stablecoin-based Payment Platform 

By
Adam Barry
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0

One of the top cross-border transfer companies, MoneyGram International, has teamed up with the Stellar blockchain to develop a stablecoin-based payment processing platform. 

The decision comes as payments are becoming more common in emerging economies and also as stablecoins face increased scrutiny. Holders of Stellar wallets will be capable of sending Circle’s USD Coin (USDC) to receivers who can cash out the USDC for fiat money via the MoneyGram network.

MoneyGram is looking to be the bridge between fiat and crypto world

CEO of MoneyGram Alex Holmes said in an interview with Bloomberg News, “The world of crypto and the world of fiat are not really compatible today. We’re trying to be a bridge from the crypto world to the fiat world.” 

MoneyGram is also in discussions with third-party firms in El Salvador to offer mobile wallets in addition to the government-supported Chivo wallets that were launched last year when the state approved Bitcoin (BTC) as a legal tender. Interestingly, MoneyGram will be capable of competing for BTC transactions if it strikes an agreement with one of these companies.

Homes stated, “If a country like El Salvador is going to make Bitcoin seamless with US dollars in country, I think that consumers, through MoneyGram, should be able to transfer Bitcoin to El Salvador or transfer dollars and convert them to Bitcoin. If that’s where the world is going, let’s participate in that world and let’s see how we can help fulfill that opportunity.”

MoneyGram broke with Ripple in 2021 following a lawsuit

Ripple Labs, which previously held a major portion of MoneyGram’s equity, has a prior agreement with the company. MoneyGram and Ripple broke up in March last year, immediately after the US Securities and Exchange Commission filed a suit against Ripple. In March 2021, a class-action lawsuit was filed against MoneyGram as a consequence of their engagement with Ripple.

MoneyGram and Stellar began collaborating in October 2021, and a trial service was released in November 2021. Additionally, there were rumors that Stellar was keen to buy MoneyGram earlier in the summer.

The Paraguayan Congress Passes New Bill To Regulate Cryptocurrencies Despite Central Bank and Budget Commission Objections 

By
Adam Barry
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0

The Paraguayan Congress had approved a new cryptocurrency regulation bill despite opposition to the budget commission and the central bank. The bill’s approval is meant to regulate and guarantee legal, fiscal, and financial security in operations derived from crypto mining and commercialization.

Paraguay is the preferred destination for crypto operations because of the cheap power 

Because of low electricity prices and relatively lenient taxation, many see Paraguay as a possible hotspot for crypto adoption. The administration is looking to leverage this chance by introducing new regulations governing virtual currencies. The proposal creates the Ministry of Industry and Commerce’s (MIC) application agency that will oversee the registration, monitoring, and control of crypto operations.

The Paraguayan Congress passed the bill on May 25 that governs crypto trading, mining, and storage by a margin of 40 versus 12. The bill now needs to be adopted by the Senate before it can be delivered to President Mario Abdo Benitez.

If enacted, the legislation may apply to anybody in Paraguay who is involved in cryptocurrency mining, trading, commercialization, sending, manufacturing, custody, or management, as well as associated tasks. In addition, the bill proposes legal and financial protections for enterprises and individuals and spending and taxes constraints on electricity.

For instance, a section of article 11 of the proposal states, “Crypto mining is recognized as an industrial and innovative activity. This activity will be a beneficiary of all mechanisms and incentives foreseen in the national legislation.”

Bill paved the way for crypto regulation as opposed to Paraguayan Central Bank.

Both the budget commission and the Paraguayan Central Bank have voiced their disapproval of cryptocurrencies labeling them a “high-risk project with no benefit for the state.” This comment was backed by the customary fear that cryptocurrencies promote criminal activity and drive up electricity costs significantly.

Paraguay is among various Latin American governments looking into digital asset legislation. In June last year, El Salvador became the first country to recognize Bitcoin as legal tender. Brazil, Argentina, Panama, and Uruguay are among the countries that are now debating crypto policy.

Russia is considering Cryptocurrencies for International Payments Following Sanctions

By
Adam Barry
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0

After its assault on Ukraine prompted a harsh reaction from Western countries in the way of sanctions, Moscow has taken a constructive approach toward cryptoassets. The Russian Federation is now considering accepting cryptos for international payment following the sanctions after its invasion of Ukraine at the start of the year.

Russia is considering cryptos for international payments 

According to the Moscow-based Interfax media organization and Reuters, Ivan Chebeskov, the head of Russia’s Finance Ministry’s Financial Policy Division, is actively studying the potential of introducing cryptocurrency payments.

Chebeskov said, “The idea of using digital currencies in transactions for international settlements is being actively discussed.”

The Ministry Of Finance is contemplating including the idea of overseas payments in an amended version of a cryptocurrency law which is currently in the works, as per a local newspaper Vedomosti.

The Russian administration looks to be united in its support for crypto legalization. Moscow intends to legalize cryptocurrency payments “sooner rather than later,” as per trade minister Denis Manturov. The country’s Ministry of finance backed adoption in April with a measure called “On Digital Currency.”

Also, in April, the Bank of Russia’s governor revealed that the central bank was reviewing its anti-digital asset stance. Cryptocurrency is being evaluated as one of the various strategies to lessen the effects of international sanctions on the Russian economy, according to Central Bank Governor Elvira Nabiullina.

Conducting business with designated Russian Individuals and companies prohibited 

Considering that the cryptocurrency market is neither big nor liquid enough to satisfy an independent nation’s transaction demands, it’s unclear how Russia will be able to employ virtual currencies to circumvent Western sanctions. To begin with, the US Office of Foreign Assets Control (OFAC) has prohibited any American from doing trade with people or companies on its Specially Designated Nationals and Blocked Persons (SDN) List. Irrespective of the payment channels in place, conducting trade with Russian SDNs is prohibited.

US-based Blockchain Association’s head of policy, Jake Chervinsky, said, “There are zero reasons to think crypto’s existence will convince any of them to willfully violate sanctions laws, risking fines & jail time.”

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