Tender cut: The Hindu Editorial on cryptocurrencies and regulation

Tender cut: The Hindu Editorial on cryptocurrencies and regulation

Instead of shutting out cryptocurrencies, the government must ensure smart regulation The government’s statement about bringing in a law on cryptocurrencies is welcome, as it could put an end to the existing ambiguity over the legality of these currencies in India. The vagueness exists notwithstanding the fact that the government has, from time to time, … Janet Yellen, the new U.S. Treasury Secretary, has warned about “a growing problem” from “the misuse of cryptocurrencies.” She emphasized that “cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism.” Janet Yellen has beforehand warned in regards to the unlawful use of cryptocurrencies like bitcoin
Jacquelyn Martin/AP
US Treasury The Icelandic Central Bank has warned against the use of cryptocurrencies, RÚV reports, due to the lack of regulatory protection…. Bitcoin News Roundup for Feb. 11, 2021

The government’s statement about bringing in a law on cryptocurrencies is welcome, as it could put an end to the existing ambiguity over the legality of these currencies in India. The vagueness exists notwithstanding the fact that the government has, from time to time, suggested that it does not consider them to be legal tender. It has not, however, been able to channel this understandable disapproval — arising out of the fact that such currencies are highly volatile, used for illicit Internet transactions, and wholly outside the ambit of the state — into any sort of regulation. In 2018, the RBI did send a circular to banks directing them not to provide services for those trading in cryptocurrencies. But this was eventually set aside by the Supreme Court, which found the circular to be “disproportionate,” given that the central bank had consistently maintained that virtual currencies were not banned in India. Also, the RBI could not show that entities that it regulated were adversely impacted by exchanges dealing in virtual currencies. The Minister of State for Finance, Anurag Thakur, who on Tuesday confirmed in the Rajya Sabha that a Bill was in the offing, highlighted the complexity in regulation. He said, “Regulatory bodies like RBI and Sebi etc also don’t have a legal framework to directly regulate cryptocurrencies as they are neither currencies nor assets or securities or commodities issued by an identifiable user.”

This legal ambivalence has not, however, been able to prevent cryptocurrencies from having a growing clientele in India. Their attraction may only grow now, given that the most well-known of them as also the most valuable, Bitcoin, has hit new peaks in price and is gaining influential followers such as Tesla founder Elon Musk. So, what will the Bill seek to do? Those associated with this niche but growing ecosystem will be worried about this question the most. Cryptocurrency exchanges, which have sprung up, are reportedly lobbying with the government to make sure these currencies are regulated rather than banned outright. Smart regulation is preferable, as a ban on something that is based on a technology of distributed ledger cannot be implemented for all practical purposes. Even in China, where cryptocurrencies have been banned and the Internet is controlled, trading in cryptocurrencies has been low but not non-existent, as an India inter-ministerial committee found out. Despite this and the fact that most countries it studied had opted for regulation, this committee still went ahead to recommend an outright ban. Of course, it encouragingly also batted for an official digital currency as well as for the promotion of the underlying blockchain technology. The government must resist the idea of a ban and push for smart regulation.

Source: otcpm24.com

Author: News Bureau


US Treasury Secretary Janet Yellen Says 'the Misuse of Cryptocurrencies Is a Growing Problem' – Regulation Bitcoin News

US Treasury Secretary Janet Yellen Says ‘the Misuse of Cryptocurrencies Is a Growing Problem’ – Regulation Bitcoin News

Janet Yellen, the new U.S. Treasury Secretary, has warned about “a growing problem” from “the misuse of cryptocurrencies.” She emphasized that “cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism.”

The U.S. Department of the Treasury hosted its inaugural Financial Sector Innovation Policy Roundtable on Feb. 9 and 10. “The Roundtable brought together policymakers and regulators with experts from the private sector to exchange views for collaborating on policy issues and innovative technologies,” the department described.

Treasury Secretary Janet Yellen briefly talked about cryptocurrencies during her opening remarks at the event. “We’re living amidst an explosion of risk related to fraud, money laundering, terrorist financing, and data privacy. As the pandemic has moved more of life online, crime has moved with it,” she opined. One of the problems she outlined concerns cryptocurrency.

Yellen asserted:

The misuse of cryptocurrencies and virtual assets is a growing problem, too. I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism.

“From my time at the Fed, I know the crucial role your institutions play in combating crimes like these,” she told the event participants. “The private sector invests enormous resources, finding ways to stop bad actors from misusing existing technologies. You also develop new ones.”

At her Senate confirmation hearing, Yellen caused quite a stir in the crypto community by saying that cryptocurrencies are “mainly for illicit financing.” However, a report by blockchain analytics firm Chainalysis shows that only 0.34% of all crypto transactions last year were related to criminal activities. Many also pointed out that the majority of money laundering activities are done via fiat currencies, particularly the U.S. dollar.

Yellen subsequently clarified her position regarding cryptocurrencies and promised “effective” crypto regulation. Meanwhile, the pro-bitcoin U.S. Senator Cynthia Lummis has talked to Yellen about cryptocurrencies and is planning to convince the Treasury Secretary that bitcoin is “a great store of value.”

What do you think about what Yellen said about cryptocurrencies? Let us know in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Source: news.bitcoin.com

Author: Regulation

by
Kevin Helms


Janet Yellen says ‘misuse’ of cryptocurrencies like bitcoin is a growing problem as regulators tighten scrutiny afte

Janet Yellen says ‘misuse’ of cryptocurrencies like bitcoin is a growing problem as regulators tighten scrutiny afte

Jacquelyn Martin/AP

US Treasury Secretary Janet Yellen has known as the “misuse of cryptocurrencies” equivalent to bitcoin a rising downside, in an indication that policymakers are growing their scrutiny of digital property.

But the Treasury Secretary – who took up her submit in January – additionally stated she noticed “the promise” of cryptocurrencies, in opening remarks on the Treasury’s innovation coverage roundtable launched on Wednesday night.

There was one other surge in curiosity in cryptocurrencies over the previous couple of days, after Elon Musk’s electric-car firm Tesla revealed it had bought $1.5 billion of bitcoin and meant to simply accept it as fee.

The stampede into cryptocurrencies has caught the eye of regulators and policymakers.

Yellen instructed the Treasury’s monetary sector innovation coverage roundtable “the misuse of cryptocurrencies and digital property is a rising downside.”

Learn extra: A Ruffer portfolio manager invested a portion of his $4.8 billion fund in Bitcoin. Here’s what swayed him to bet on crypto – and the 2 other ways he’s hedging against worrying speculative bubbles

She added: “I see the promise of those new applied sciences, however I additionally see the truth: cryptocurrencies have been used to launder the income of on-line drug traffickers; they have been a instrument to finance terrorism.”

Her phrases echoed comments she made in her hearing for the position of Treasury secretary in January, when she stated: “I believe we actually want to look at methods wherein we will curtail [cryptocurrencies’] use and ensure that cash laundering does not happen by means of these channels.”

Advocates of bitcoin and different cryptocurrencies – which aren’t regulated by a government – say that the speedy development out there means illicit transactions play a smaller and smaller position.

Additionally they argue that criticism from the US authorities is hypocritical, as a result of big banks and the greenback play a a lot greater position in funding criminality.

Hovering ranges of curiosity in bitcoin led the UK regulator to warn potential patrons in January they might “lose all their money” because of the wild swings within the worth of the token.

Learn Extra: The CIO of a $700 million crypto asset manager breaks down why Elon Musk’s gradual acceptance of bitcoin means the digital currency has room to run – and shares why it’s launching an over-the-counter fund

Source: thefutureraise.com

Author: admin


From Iceland — Central Bank Warns Against Use Of Cryptocurrencies

From Iceland — Central Bank Warns Against Use Of Cryptocurrencies

Published February 11, 2021

John Pearson

Photo by

Thought Catalogue via Unsplash

The Icelandic Central Bank has warned against the use of cryptocurrencies, RÚV reports, due to the lack of regulatory protection.

The bank has no real oversight of the production of cryptocurrencies in the country, and very little control over how they are traded. This is despite an estimated 8% of the world’s supply of leading cryptocurrency, Bitcoin, now originating in Iceland, according to Fréttablaðið.

The bank’s Financial Supervisory Authority have issued a reminder that cryptocurrencies are not legal tender, and so are not covered by existing currency legislation. Companies operating in this area are not subject to standard financial licencing procedures, and of the estimated 60 companies mining bitcoin in Iceland only three are registered.

Authorities in the US have previously raised concerns that the anonymity of cryptocurrency trading provides cover for criminal activities, such as terrorism and child pornography. This situation is compounded by companies that deliberately “mix”  electronic currency, make it harder to track transactions.

Also of concern is the environmental impact of the large installations of computing equipment used to create—or “mine”—cryptocurrencies. Icelandic data centres consume 5% of the island’s electrical power, and of that an estimated 90% is used for mining cryptocurrencies. Consequently, an estimated 4.5% of the country’s electrical power is consumed in the process.

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Source: grapevine.is

Author: Words by
John Pearson


Mastercard Will Start Supporting Cryptocurrencies Directly on its Network – Digital Coin Owner

Mastercard Will Start Supporting Cryptocurrencies Directly on its Network – Digital Coin Owner

Payments giant Mastercard has announced that it is preparing to allow a number of cryptocurrencies to move through its network directly. Customers, merchants, and businesses will no longer need to convert cryptocurrencies into fiat currencies to transfer through the Mastercard network.

Mastercard announced Wednesday that it will start “bringing crypto onto its network.” In a blog post on the company’s official website, Raj Dhamodharan, Executive Vice President of Digital Asset and Blockchain, explained that “digital assets are becoming a more important part of the payments world.” He noted that customers are using Mastercards to buy cryptocurrencies, especially during bitcoin’s bull runs, elaborating:

We are preparing right now for the future of crypto and payments, announcing that this year Mastercard will start supporting select cryptocurrencies directly on our network. This is a big change that will require a lot of work.

“We will be very thoughtful about which assets we support based on our principles for digital currencies,” the executive emphasized, adding that the same standard applies to stablecoins. “We are here to enable customers, merchants and businesses to move digital value,” he opined.

Dhamodharan pointed out that Mastercard is involved in a number of crypto projects, having teamed up with Wirex and Bitpay last year to create crypto cards that allow people to transact using their cryptocurrencies. The company then joined forces with crypto exchange LVL this year. “These relationships — with many more planned in the pipeline — build on our many years of crypto collaborations,” he said.

Even though Mastercard is involved in a number of crypto projects, Dhamodharan said that “cryptocurrencies still don’t move through our network. Our crypto partners convert the digital assets on their end to traditional currencies, then transmit them through to the Mastercard network.” He continued:

Our change to supporting digital assets directly will allow many more merchants to accept crypto — an ability that’s currently limited by proprietary methods unique to each digital asset. This change will also cut out inefficiencies, letting both consumers and merchants avoid having to convert back and forth between crypto and traditional [fiat currencies] to make purchases.

Lastly, Dhamodharan said that his company is “actively engaging” with several major central banks worldwide as they explore central bank digital currencies (CBDCs). “Last year, we created a test platform for these banks to use these currencies in a simulated environment,” he noted, adding that Mastercard already has “one of the payments industry’s biggest blockchain patent portfolios to draw from to make these projects successful.”

Commenting on the Mastercard news, bitcoin bull Mike Novogratz tweeted: “The Mastercard news is huge. A few months ago it would have been all the crypto community would focus on for the ensuing month. Now we are getting so much good news it almost goes unnoticed. Let me repeat. It is huge news. Crypto adoption is here.”

Recently, Mad Money host Jim Cramer said that Mastercard, along with Paypal and Elon Musk’s Tesla, is driving bitcoin more into the mainstream. Tesla revealed Monday that it has put $1.5 billion into bitcoin.

What do you think about Mastercard directly supporting cryptocurrencies on its network? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Source: digitalcoinowner.org


Tender cut: The Hindu Editorial on cryptocurrencies and regulation

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