Rest of the World

Crypto And Blockchain Included In Canadian Securities Administrators’ 2019–2022 Business Plan: The Canadian Securities Administrators (CSA) has published its plans for the next three years, which include cryptocurrencies and blockchain technology. In its Business Plan for 2019–2022, the CSA said that it is considering the implications of emerging technologies, such as the growing influence of social media and innovation in distributed ledger technology (DLT), including blockchain.

Russian Ministry of Finance Considers Allowing Cryptocurrency Trading: A representative of the Russian Ministry of Finance (MinFin) says the ministry is considering allowing cryptocurrency trading. Per the report, the Deputy Minister of Finance Alexei Moiseyev told journalists on Friday that, while MinFin had reached no final decision, cryptocurrency trading may be allowed in the coming bill on the circulation of cryptocurrencies in the Russian Federation. A bill prohibiting the use of crypto assets as a means of payment in the Russian Federation passed in May of last year.

Russia to Adopt Crypto Legislation Within Two Weeks: Deputy Finance Minister: Russia’s parliament, the State Duma, will adopt the country’s major crypto bill “On Digital Financial Assets” (DFA) in the next two weeks. Russia’s deputy finance minister, Alexei Moiseev, revealed that the State Duma is currently considering the DFA, and is expected to adopt the bill in the second reading within the next two weeks. Moiseev added that the authority has approved separate legislation for initial coin offerings, which will be a part of Russia’s law on crowdfunding. Russia will thus have two bills related to cryptocurrencies, the DFA and the law on crowdfunding, Moiseev stated, adding that the DFA is expected to be approved in the version that has been prepared for the second reading.

Russia Will Not Legalize Facebook’s Cryptocurrency, Official Says: Chairman of the Russian State Duma Committee on Financial Market Anatoly Aksakov has said that Facebook’s forthcoming cryptocurrency Libra will not be legalized in Russia. Aksakov stated that Russia will not legalize the use of Facebook’s Libra cryptocurrency which the company intends to roll out in 2020, because it may pose a threat to the financial system of the country. Aksakov also stressed that Russia has no plans to adopt legislation “which provides space for the active use of crypto tools created in the framework of open platforms, blockchains.” Aksakov’s statements would seem contradictory to those of Deputy Finance Minister Alexei Moiseev, who said that the country’s major cryptocurrency bill “On Digital Financial Assets” could be adopted in the next two weeks.

Abkhazia Develops Draft Law on Crypto Mining: The Ministry of Economy of the partially-recognized Republic of Abkhazia has developed a law draft on the settlement of cryptocurrency mining activities in the country. The press service of the Ministry told Sputnik that the drafted bill was approved and sent to the Cabinet of Ministers of the republic. The proposed regulation defines legal, economic, organizational, and technical rules for the implementation of mining cryptocurrency activities in the republic. To conduct crypto mining operations, one will have to register as a legal entity or an entrepreneur, as well as register with the revenue authorities as a taxpayer and obtain a license for cryptocurrency mining activities.

Iranian Government to Cut Off Power to Crypto Mining Until Approval of New Energy Prices: The Iranian government will be cutting off power to crypto mining until new energy prices are approved. Mostafa Rajabi Mashhadi, an official at Iran’s Ministry of Energy, reportedly revealed that the country has seen a 7% spike of electricity consumption over a monthly period ending on June 21, 2019. Rajabi emphasized the unusual nature of the spike, as opposed to similar time spans in the past years, revealing that the country’s power grid had evidently become unstable. According to the official, the Iranian Ministry of Energy believes that the surge was caused by the growing number of crypto mining activity in the country, adding that the state will take necessary measures to prevent energy issues.

India: Another Crypto Exchange Closes Due to Regulatory Pressure: Indian crypto exchange Koinex has ceased operations effective immediately, co-founder Rahul Raj confirmed in a blog post on June 27. Raj said multiple delays by government agencies in clarifying crypto regulation have played a factor in the decision to close. This month’s proposal to introduce a 10-year jail sentence for Indian citizens who use cryptocurrencies had also contributed to a “sharp decline in trading volumes.” According to Raj, Koinex had experienced “regular disruption,” including denials when attempting to use payment services. He alleged this disruption extended to non-crypto transactions as well — with exchange employees asked questions by banks whenever they received their salary or attempted to pay their rent.

Facebook Has Not Applied for RBI Approval to Operate Libra in India: Report: Facebook’s newly announced cryptocurrency, libra, may not be available in India due to the current ban of blockchain-based currency transactions. Citing people familiar with the matter, the report says that the social media giant has not applied for approval with the Reserve Bank of India (RBI) to operate its digital currency in the country. A Facebook spokesperson has underlined that Facebook’s digital wallet, Calibra, “won’t be available in U.S.-sanctioned countries or countries that ban cryptocurrencies,” potentially preventing its use in some of Facebook’s largest markets, including India. The Economic Times notes that RBI has not confirmed or denied the allegations.

As Brazil’s Economy Risks Recession, Regulators and Banks Implement Blockchain: Brazil’s weak economic growth and inflationary pressure have led to more than 13 million Brazilians currently out of work. The unemployment rate currently stands at 12.5%. While the country runs the risk of recession, cryptocurrency’s low barrier for entry and promise of large returns appeal to Brazilians. Bruno Peroni, chief sales officer at Atlas Quantum, told Cointelegraph: “We have a higher number of people investing in crypto than on the local stocks markets. The most recent estimates show that there are 1.5 million Brazilians investing in crypto, whereas the local stock markets, called B3, has just reached 1 million investors.”

Santander Loses Appeal Against Brazilian Crypto Exchange, Fine Upheld: Major Spanish bank Santander has been denied an appeal regarding a decision by the Court of Justice of the State of São Paulo in a case against crypto exchange Mercado Bitcoin. Santander was sued by the Brazilian exchange Mercado Bitcoin in 2018, after the bank purportedly closed the exchange’s account at its sole discretion. The bank, which has branches in Latin America, cited concerns over the origin of the account’s fund due to the nature of the crypto exchange’s activities. Over 1 million reals (around $350,000) were locked, but the court subsequently ordered Santander to free the funds. Additionally, the bank must pay a monthly fine equal to 1% interest for the funds that were locked; this reportedly comes out to over 200,000 reals ($51,000).

What Indonesia Reveals About Facebook’s Cryptocurrency Ambitions: Facebook published plans for the Libra cryptocurrency in seven languages, including Indonesia’s Bahasa — a move that offers perhaps the clearest glimpse of what Facebook’s fintech ascent might look like. “Indonesia has the fourth-highest number of Facebook users in the world,” Pang Xue Kai, co-founder of the Indonesian crypto exchange Tokocrypto, told CoinDesk. “If Facebook’s Libra can address the [local] issues, it has the potential to succeed.” According to the annual media report released by We Are Social and Hootsuite, Indonesia has the world’s highest rate of Facebook post engagement among internet users, over 4 percent, and the highest frequency of online shopping, with 86 percent of Indonesian survey respondents saying they bought something online in the past month.