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Argentinians criticize the IMF’s requirement that the country’s cryptocurrency adoption be slowed.

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A perceived anti-crypto requirement in the newly-approved deal Argentina signed with the IMF has Argentinians talking about the implications it might have on the adoption of crypto in the country. The agreement, which serves to restructure the $45 million in debt Argentina has with the international organization, will give the country a much-needed time period to repay this debt.

The debated statement slipped into the law project that approves the aforementioned refinancing of the debt declares:

The National Government, for a better safeguard of financial stability, will discourage the use of cryptocurrencies in prevention of money laundering and informality, likewise the digitization of payments will have official incentives and additional protection will be given to the financial consumer.

According to some in the country, this hints at the establishment of regulations and measures which could slow the rise in the adoption of cryptocurrencies are seeing in the country.

The crypto community in Argentina is already trying to understand the possible repercussions of the agreement and how it will playout for the actors involved in the industry. Most concur that there is still not much information by which to examine the effects of this statement on actual crypto usage, which has reached record levels recently.

Bitcoin Argentina, a nonprofit organization directed at incentivizing the usage and knowledge of bitcoin, directed a letter to the government asking for all the data pertaining to the application of these new measures directed to slow the adoption of cryptocurrency in the country.

Others have directly criticized this part of the agreement indirectly, giving statements that support cryptocurrency adoption. This is the case with Franco Bianchi, CMO of Lemon, an Argentinian startup that offers cryptocurrency payments solutions. Bianchi told Criptonoticias that the best focus would be to “work in a context of clear rules that encourage the adoption of crypto assets as some countries are doing, which promoted positive laws on the use of cryptocurrencies.”

Franco Amati, another well-known bitcoin, stated he had suspicions this could be intended to stifle a possible attempt at bitcoin financing, such as the one that El Salvador is adopting.

After Elon Musk declares that he will not sell his cryptocurrency holdings, Dogecoin surges briefly.

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(Photo by Yuriko Nakao/Getty Images)

Dogecoin (DOGE) briefly jumped as much as 10% during Asian trading hours on Monday after Tesla CEO Elon Musk said in a tweet that he is not selling his crypto holdings, which includes DOGE.

  • DOGE exchanged hands at $0.111 on 4:10 UTC amid a largely flat crypto market. It surged following Musk’s tweet at 4:11 UTC, where he said he will continue to hold DOGE, ether, and bitcoin, and reached as high as $0.122 at 4:17 UTC.
  • The spike was likely driven by automated trading bots that track token mentions from popular accounts on social media sites like Twitter. Musk’s Twitter account, for instance, has a following of over 77.6 million.
  • Prices of DOGE slumped to $0.113 from the morning spike at the time of writing.
DOGE surged to over $0.12. (TradingView)
  • Musk has previously tweeted about DOGE on several occasions. In Feb. 2021, he posted a picture of a rocket next to the moon and followed that tweet with a one-word tweet that stated “Doge” – a play on the saying of “going to the moon,” a term for an asset-price surge.
  • In May. 2021, Musk stated he was working with dogecoin developers to improve system efficiency, which sent DOGE prices flying by 22%.
  • Musk’s Tesla started accepting DOGE payments on its merchandise store earlier this year, as reported. DOGE payments continue to remain active, with the “Giga Texas Belt Buckle” and other products priced in both U.S. dollars and DOGE.

Last-minute MiCA amendments revive the threat of an EU ban on Bitcoin, according to a new report.

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(Photo by Leon Neal/Getty Images)

Changes to the EU’s MiCA proposal to regulate crypto markets, announced just days before the package’s vote, suggest that a bitcoin ban is still a possibility. Despite the removal of language that would have prohibited coins with energy-intensive mining, some European Parliament members are now targeting “unsustainable” cryptocurrencies.

A section of Europe’s Markets in Crypto Assets (MiCA) draft legislation prohibiting the provision of services for cryptocurrencies based on the proof-of-work (PoW) mining method was recently removed. The contentious provision had elicited negative responses from the crypto community and industry.

However, attempts to effectively ban cryptocurrencies like bitcoin in the EU have continued. Amendments to MiCA proposed on Friday, days before the Committee on Economic and Monetary Affairs (ECON) votes on the package, aim to restrict cryptos classified as “unsustainable.”

The German crypto news outlet BTC Echo reported that PoW mining is not specifically mentioned this time, but the end result is likely to be the same, the German crypto news outlet said. The new provision reads: “Crypto assets shall be subject to minimum environmental sustainability standards with respect to their consensus mechanism used for validating transactions, before being issued, offered, or admitted to trading in the Union.”

Such cryptocurrencies, according to the authors of the amendments, shall be compliant with sustainability requirements. If the proposal is backed by ECON on Monday, when the committee is scheduled to vote on MiCA, bitcoin-related services will be de facto excluded from the scope of regulated activities. Patrick Hansen, head of strategy and growth at Unstoppable Finance, tweeted:

1/8 Bad news for #bitcoin & #cryptocurrency in the EU 🚨

The POW-ban has basically made its way back into the draft of the European Parliament that will be voted on in the committee on Monday.

I just read the latest draft. A quick update 👇@balajis @_pgauthier @BrianBrooksUS

— Patrick Hansen (@paddi_hansen) March 12, 2022

The consequences of a positive vote would be devastating, the report notes. A complete ban on cryptocurrencies based on the proof-of-work concept would paralyze the digital assets market in the EU and encourage the circumvention of laws, weaken consumer protections and ultimately force many businesses in the industry to move out of the Union.

In the past few months, officials and regulators from several member states, including Germany, have called for a European ban on power-hungry PoW mining, citing environmental reasons. Sweden insisted on such a measure, warning that the increasing use of renewable energy to mint bitcoin comes at the expense of climate neutrality goals in other sectors. Non-EU countries like Norway have been considering backing its stance.

As the EU Parliament prepares to vote on virtual currencies, limiting proof-of-work crypto is back on the table.

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Photo Courtesy: Unsplash.com

A provision in a draft of MiCA up for a parliamentary vote on Monday aims to force proof-of-work cryptocurrencies like bitcoin to switch to the more environmentally friendly proof-of-stake consensus mechanism.

The latest draft of the European Union’s (EU) proposed legislative framework for governing virtual currencies, Markets in Crypto Assets (MiCA), still contains a provision that could limit the use of proof-of-work cryptocurrencies.

Proof-of-work is the energy-intensive consensus mechanism that underlies popular cryptocurrencies like bitcoin and ether. The computing process has come under heavy scrutiny from lawmakers in the EU over energy concerns.

A previous draft of the MiCA framework contained a strongly worded provision that proposed a prohibition of crypto services that rely on environmentally unsustainable consensus mechanisms starting in January 2025. But the provision was later scrapped following industry backlash.

The EU parliamentarian in charge of the MiCA legislative framework, Dr. Stefan Berger, said at the time that the paragraph in question had been removed, but that a final decision had not yet been made.

One version of the new draft, reviewed by CoinDesk, has a similar provision though significantly toned down from the original. It says that crypto assets “shall be subject to minimum environmental sustainability standards with respect to their consensus mechanism used for validating transactions, before being issued, offered or admitted to trading in the Union.”

If a proof-of-work consensus mechanism is operating on a small scale, it is exempt from having to meet sustainability standards, according to the provision. What qualifies as a small-scale operation has yet to be determined.

It also says that energy-intensive crypto assets that are already in use in the EU before the legislation comes into effect, will have to “set up and maintain a phased rollout plan to ensure compliance with such requirements” as specified in another part of the framework.

Another version of the measure, also seen by CoinDesk, would soften the language even further. However, it’s believed the stronger version has a lot of support among parliamentarians.

Although there are plans to move Ethereum from proof-of-work to a less energy-consuming consensus mechanism called proof-of-stake, it is unclear how bitcoin, the largest global cryptocurrency by volume traded, could transition from proof-of-work. So while there’s been a huge push as of late to use renewable energy in bitcoin mining, the industry is still very much dependent on traditional energy sources, thus making the cryptocurrency potentially vulnerable under the stronger proposal.

The crypto community has been swift to react, with some calling on citizens in the EU to contact their parliamentarians to oppose the measure.

Ledger, a crypto hardware wallet provider, issued a statement saying: Individuals and organizations should be free to choose the technology most appropriate to their needs. Policymakers should neither impose nor discriminate in favor of a particular technology. This is deeply concerning and would have serious consequences for Europe.

In a crackdown on sanctions evasion, the Department of Justice’s ‘KleptoCapture’ task force will target cryptocurrency exchanges.

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KleptoCapture, a new task force established by the US Department of Justice (DOJ), will also target cryptocurrency exchanges. The investigation will target financial institutions, banks, money transmission services, and crypto exchanges that allow Russian oligarchs to move money.

According to reports, a new Department of Justice (DOJ) task force called KleptoCapture will enforce sanctions against Russian oligarchs as well as anyone who helps them hide their money, including crypto service providers.

The KleptoCapture task force was launched on March 2. It is “an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine,” the DOJ described.

Noting that the KleptoCapture task force will take a “broader view” of who it regards as a facilitator in sanctions evasions, the DOJ official stated:

Our goal is to bring any appropriate charge against any sanctioned Russian oligarch or entity, and those who would help them to evade economic sanctions.

In addition to those who willingly aid in money laundering, the official stressed that “actors who stick their heads in the sand, or blind themselves to moving dirty money may face money laundering charges for their role in concealing those proceeds.”

The DOJ official emphasized:

Financial institutions, banks, money transmission services, cryptocurrency exchanges who willfully fail to maintain adequate anti-money laundering policies and procedures and allow these oligarchs to move money, to allow for the flow of their money, will be in the crosshairs of this investigation.

Attorney General Merrick Garland said last week that the DOJ would “leave no stone unturned” in order to seize assets in violation of the new sanctions.

“The task force is going to bring together prosecutors, agents, analysts, translators from across the department and across the U.S. government to pursue the crimes and the assets of Russian oligarchs, and others who have enabled the Russian regime responsible for the invasion of Ukraine,” the senior DOJ official detailed, adding:

Those enablers have amassed huge wealth through corruption, extortion and the degradation of the rule of law. Success for this task force is defined by dismantling, disruption and discomfort for those enablers and their network.

The official clarified that just because oligarchs are subject to U.S. sanctions, it does not mean the Justice Department can simply seize their property, elaborating: “Simply being blocked, or simply belonging to a known oligarch is not in itself sufficient for the Department of Justice to forfeit that property or to obtain a seizure warrant.”

Kevin O’Leary Discusses His Crypto Investing Strategy: Crypto and Blockchain Now Make Up 20% of His Portfolio

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Kevin O’Leary, aka Mr. Wonderful, from Shark Tank, has revealed his cryptocurrency investment strategy. He revealed that cryptocurrencies and blockchain now account for 20% of his portfolio. “The whole point is you don’t know who is going to win.”

Kevin O’Leary, the chairman of O’Shares ETFs and a Shark Tank star, revealed his crypto investment strategy in an interview with CNBC on Friday.

To begin, he stated that one-fifth of his investment holdings are in cryptocurrencies or crypto-related companies. Mr. Wonderful said:

I have millions of dollars, 20% of my portfolio is now in cryptocurrencies and blockchain.

In November last year, he said that crypto accounted for 10% of his portfolio. His investments in cryptocurrency exceeded his gold investments for the first time in October last year.

O’Leary was asked whether some cryptocurrencies will be around in a decade. Noting that he factored that risk into his strategy, the Shark Tank star emphasized:

You have to be diversified. I own 32 different positions, including equity FTX itself.

O’Leary became a paid ambassador and spokesperson for FTX, the crypto exchange founded by 30-year-old billionaire Sam Bankman-Fried, in August last year.

The Shark Tank star elaborated:

The whole point is you don’t know who is going to win. Is Ethereum going to win? Is Solana going to win? Is it Helium or is it Avalanche? I own them all.

Commenting on the executive order on the regulation of cryptocurrency signed by President Joe Biden Wednesday, Mr. Wonderful said: “It wasn’t an all-out ban, so that’s good news.”

Many people in the crypto industry welcome Biden’s executive order. Some say it provides legitimacy to crypto while others are glad that it does not contain extremely restrictive measures they had anticipated.

However, O’Leary expressed concerns about the way Biden’s directive includes an emphasis on climate risks associated with cryptocurrency. He said he sold his positions in publicly traded bitcoin mining firms after Biden’s executive order.

Last week, the celebrity investor revealed that he had a meeting with a group of U.S. senators regarding cryptocurrency regulations, particularly how they apply to institutional investors. He has been saying for quite some time that the price of bitcoin will “appreciate dramatically” when institutions are able to invest in cryptocurrency. He expects that it would take two to three years.

The crypto industry could benefit from Biden’s executive order, according to a Cornell professor.

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Cornell University West Campus

In an interview with CNBC published Thursday, Eswar Prasad, professor of economics at Cornell University, shared his thoughts on U.S. President Joe Biden’s crypto executive order and what it means for the industry.

Prasad is the Nandlal P. Tolani senior professor of trade policy and professor of economics at the Charles H. Dyson School of Applied Economics and Management at Cornell University. He previously served as chief of the financial studies division in the International Monetary Fund (IMF)’s research department and head of the IMF’s China division.

The Cornell professor has repeatedly warned about the risks cryptocurrency poses to monetary and financial stability. In December last year, he said Bitcoin may not last much longer.

President Biden issued an executive order on the regulation of cryptocurrencies Wednesday. The professor explained that the executive order basically “tasks various U.S. agencies and institutions” to come up with a “comprehensive plan for the regulation of a broad set of digital assets, including decentralized cryptocurrencies such as bitcoin, but in addition, stablecoins. It also explores the prospect of launching a digital version of the U.S. dollar.

The professor added:

In all of these areas, I think regulation is certainly necessary because it is a bit of a Wild West right now. You have a lot of prospects for decentralization and the prospects of these new technologies potentially democratizing finance.

However, Prasad noted: “But, on the other hand, there is a risk that these technologies could be used for illicit financing. They could end up not providing the sort of investor protection that is necessary to make sure that retail investors understand the risks of what they’re getting into.”

Moreover, the professor detailed: “You have financial stability risk as well, including from stable coins, which might seem like the safest of instruments but are beginning to essentially function like unregulated money market mutual funds.”

Noting that “the idea behind the [executive] order is to start thinking about the functionality of these different assets and technologies and thereby regulate them,” the Cornell professor said:

Actually, it might end up benefiting the industry … Because ultimately what these sorts of regulations provide to the industry is legitimacy.

Prasad noted that when the specifics of the regulation come out, the crypto industry may not like some parts of it but overall he insisted that it should be positive for the industry.

Nonetheless, he concluded:

Overall, bringing some regulatory clarity certainly is going to help the industry and potentially could also help harness the benefits of these new technologies by mitigating the risks.

Many people in the crypto sector are encouraged by Biden’s crypto executive order. “This is an affirmation that crypto is here to stay,” a crypto company’s executive described.

Dubai Passes First Law Regulating Digital Assets and Establishes Crypto Sector Regulator

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Dubai has passed its first crypto asset regulation law and established a regulator to oversee crypto activities and regulate crypto service providers.

The first virtual assets law has been approved in Dubai, and the Dubai Virtual Assets Regulatory Authority (VARA) has been established, according to Sheikh Mohammed bin Rashid Al Maktoum’s official Twitter account.

Sheikh Mohammed commented:

The goal [is to] establish the UAE and Dubai’s position as a key player in designing the future of virtual assets globally.

Dubai Approves First Law to Regulate Digital Assets, Establishes Regulator to Oversee Crypto Sector

The ruler of Dubai, Sheikh Mohammed, is also the vice president and prime minister of the United Arab Emirates (UAE), a federation of seven emirates. He previously held the positions of head of Dubai Police and Public security, as well as the minister of defence.

Noting that this law is the first of its kind to regulate virtual assets, Sheikh Mohammed opined:

We established an independent authority to oversee the development of the best business environment in the world … in terms of regulation, licensing, [and] governance.

According to the announcement, the Dubai Virtual Asset Regulatory Authority is tasked with overseeing the trading and issuance of “virtual assets and virtual tokens.” It is also responsible for authorizing and regulating virtual asset service providers (VASPs).

In addition, the authority must ensure the “highest standards of protection for beneficiaries’ personal data.” It must also monitor virtual asset transactions to prevent price manipulation.

Crypto trading platforms offering the exchange between cryptocurrencies and fiat currencies and between one or more cryptocurrencies are subject to VARA authorization and regulation. Furthermore, companies offering crypto transfer, custody, and management services are regulated by the new law.

The new law will apply throughout Dubai except for the state-owned financial free zone DIFC. The Dubai Financial Services Authority (DFSA), DIFC’s regulator, is working on its own cryptocurrency regulation.

The UAE has been pushing to develop crypto regulations to attract new businesses. Its securities regulator, the Securities and Commodities Authority (SCA), said Tuesday that the UAE as a whole is getting closer to launching its own regulatory framework for crypto assets.

According to a regulator, the UAE is ‘closer to issuing the regulatory and supervisory framework’ for VASPs.

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The Securities and Commodities Authority (SCA) has stated that the United Arab Emirates (UAE) is getting closer to issuing a regulatory and supervisory framework that will govern the country’s virtual asset industry.

FATF Recommendations

A UAE securities regulator, the SCA has said it is getting closer to “issuing the regulatory and supervisory framework related to virtual assets issued for investment purposes.”

In addition, the regulator revealed in a statement that it had consulted the “concerned authorities” during the development of the regulatory framework that addresses the risks of money laundering and terrorist financing that relate “to virtual assets and virtual asset service providers.” Such consultations have been concluded the statement adds.

The regulator meanwhile said the development of this framework had been done in order to ensure the country’s crypto industry adheres to the Financial Action Task Force (FATF)’s recommendations. As a result, licensed exchanges “can apply for a license for virtual assets exchange subject to the approval and complying to all regulations and procedures of the Authority.”

This rule, however, excludes applicants from the two financial free zones, the Abu Dhabi Global Market (ADGM) and the Dubai International Financial Centre (DIFC).

Complying With Anti-Money Laundering Controls

Meanwhile, the statement also clarifies that persons intending to run a virtual asset service provider (VASP) business must obtain the initial approval from the SCA. Furthermore, the SCA said VASPs that have commercial licenses and are providing any virtual asset services, need “to apply to the Authority to obtain the necessary license to practice such activity.”

These persons are also required to “confirm” their obligation to comply with all legislation related to anti-money laundering controls, added the statement.

The SCA said while it looks forward to the cooperation and participation of all entities, it warned that breaching the aforementioned regulatory and supervisory framework will result in the authority taking the appropriate legal and supervisory actions.

The cryptocurrency industry applauds Biden’s executive order.

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(Photo by Win McNamee/Getty Images)

Many people in the crypto industry welcome President Joe Biden’s executive order on crypto. A crypto regulatory expert says, “It’s about as good as we could ask.” Another sees the order as the federal government viewing “cryptocurrency as a legitimate, serious, and important part of the economy and society.”

President Joe Biden of the United States signed an executive order (EO) on Wednesday that establishes a national policy for digital assets. According to the White House, the order is “the first-ever, whole-of-government approach to addressing the risks and leveraging the potential benefits of digital assets and their underlying technology.”

The Blockchain Association, which has 80 member companies, wrote that the order also calls on federal agencies to collaborate on the country’s crypto policy.

We welcome this approach and are ready to collaborate with agencies on behalf of the industry.

Jerry Brito, executive director of D.C.-based think tank Coin Center, sees the executive order as “a good signal to serious people who’ve been holding back from getting involved.” He wrote:

The message I take from this EO is that the federal government sees cryptocurrency as a legitimate, serious, and important part of the economy and society.

Jake Chervinsky, a well-known lawyer in the crypto space, agreed with Brito’s assessment, emphasizing: “Despite a few loud voices in government relentlessly attacking crypto in recent months, the EO is balanced & constructive.” He continued:

Anyone worried that President Biden’s executive order would spell doom & gloom for crypto can fully relax now. The main concern was that the EO might force rushed rulemaking or impose new & bad restrictions, but there’s nothing like that here. It’s about as good as we could ask.

Anderson Kill Hailey Lennon said: “Seeing a digital asset EO happened a lot faster than I expected. Actually some really positive comments in it.”

Core Scientific co-founder Darin Feinstein commented: “Bitcoin in the USA was de-risked by EO. The USA government endorsing innovation in and around Bitcoin is monumental. As capital continues to flow into this industry, it is up to the 50M USA bitcoin holders to make certain their representatives continue to protect this industry.”

FTX CEO Sam Bankman-Fried called it: “A constructive EO to discuss customer protection and economic competitiveness in digital assets.”

Coinbase’s Kathryn Haun said: “Today’s EO is a step in the right direction for some American leadership in web3 and could bring order to what’s become a sorely fragmented regulatory landscape. We’re especially encouraged it directs all agencies to partner [with] experts ‘outside’ govt as they work to define policy.”

Crypto Is Not Going Away, ‘It Could Be a Turning Point’

Some people see the executive order as evidence that cryptocurrency is not going to go away.

Binance CEO Changpeng Zhao (CZ), for example, tweeted: “I am guessing crypto is not going away.”

Ripple CEO Brad Garlinghouse, who has been in an ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC) over the sale of XRP, opined: “Like many of you, I thought the Biden Admin’s EO would acknowledge crypto, but not detail specifics on next steps for regulation.”

Garlinghouse continued, “However, I was pleasantly surprised & inspired by the EO acknowledging the *need* for evolution and alignment of the govt’s approach to crypto,” elaborating:

First and foremost, this is an affirmation that crypto is here to stay … I don’t want to mistake activity for progress, but this does feel like it could be a turning point.

Some People Are Skeptical

While some people are skeptical about Biden’s executive order, they are glad that it does not contain anything more damaging to their businesses or the industry.

Bitwage tweeted: “It doesn’t seem like there is anything damning in there, but we can’t help but feel suspicious. For the time being, we’re thankful that there were no serious regulations on companies like ours.”

Bitcoin skeptic and goldbug Peter Schiff opined: “The relief rally in bitcoin-based on Biden’s executive order on cryptocurrencies not being as onerous as it could have been won’t last. More regulation is coming that will only raise the cost and lessen the appeal of bitcoin. ” He tweeted to his son that the EO is a sell signal.

Chervinsky further noted:

One potential impact of the crypto EO: it may slow down members of Congress working on new draft legislation, especially Democrats, who won’t want to contradict the national strategy that @POTUS just announced or front-run the study & report process that the EO kicked off.

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