Crypto Initiative Positions Against EU Regulatory Course
Representatives of the European crypto industry began writing an open letter to European politicians last week. On the one hand, the background is the planned European crypto regulations Mica and especially the Funds transfer Regulation that could mean a ban on so-called “non-hosted wallets” and therefore also DeFi applications. “The damage caused by hasty attempts at regulation could not be greater,” the letter states. The authors also state that the planned obligation to disclose transaction data massively restricts the right to privacy and data sovereignty. On the other hand, they point out the advantages of Bitcoin and Co. Incidentally, it is not yet too late for such attempts at intervention by interest groups. Because MiCA and the remittance regulation still have to go through the trialogue of the European Commission, Parliament and Council.
US Financial Industry Wants Bitcoin Spot ETFs
The Bitcoin Spot ETF is the holy grail of crypto-based exchange products. But the United States Securities and Exchange Commission SECOND and their boss Gary Gensler have so far without exception refused to grant such funds, which are directly tied to the price of Bitcoin. Instead, only ETFs linked to Bitcoin Futures, which are only indirectly linked to the key cryptocurrency, are allowed in the United States. New York Stock Exchange survey shows demand for cash ETFs unabated Nasdaq from April 11. Of the 500 financial advisors surveyed, 72% named Spot ETFS as the medium of choice for investing in Bitcoin and Co. Respondents manage assets worth US$26 trillion. They indicated that the share of crypto in the wallet should ideally be around 6%. It remains to be seen how the investigation will affect the SEC. A number of BTC Spot ETF requests are still pending.
Republicans and Democrats jointly draft bitcoin legislation
Besides the SEC, there is a team of policymakers in the United States who are committed to respecting cryptocurrency. This was proven by the Bitcoin 2022 conference, which took place in Miami from April 6 to 9 with the participation of politicians. It has become apparent that not only market-savvy Republicans, but also Democrats are increasingly enthusiastic about cryptocurrencies. For example, Republican Senator Cynthia Lummis, known as a big bitcoin fan, is working with Democrat Kirsten Gillibrandt on a bill for the crypto space. During the conference, Lummis reported on the state of the so-called Responsible Financial Innovation Act. The law would contribute to both consumer protection and privacy protection, while encouraging innovation in the field of cryptography. According to Lummis, the project also includes an element of digital asset taxation. In the CBDC debate, on the other hand, Lummis argues – Republican style – for a private stablecoin and against a state digital currency.
Study Reveals Role of CBDCs in Financial Inclusion
Contrary to Senator Lummis’ ideas, central banks around the world are sticking to their plan to introduce a CBDC. The Bank for International Settlements released a study on April 12 that examines the influence of central bank digital currencies on inclusion in the banking system. The basis is formed, among other things, by interviews with representatives of nine central beacons from the second half of 2021. Two different positions on CBDCs can be read from these. Some of the interviewees see central bank digital currencies as a key tool for expanding access to digital payment infrastructure. Others, however, saw a CBDC more as one element among others in the movement towards greater financial inclusion. It should be noted here that the barriers to entry into the banking system in the countries studied vary greatly. The central beacons of China, Canada, Ukraine and the Bahamas were involved in the study.
Chinese associations warn against NFTs
Unlike CBDCs, the Middle Kingdom follows a very restrictive path when it comes to decentralized crypto products. After bitcoin was previously attacked, the China Banking Association, the Association for Finance and Internet, and the China Securities Association issued a statement on April 13. joint statement on NFTs. In it, they warn of the risks associated with investing in such tokens. In particular, the three associations require that NFTs do not reflect any securities or insurance company. Additionally, cryptocurrencies such as Bitcoin and Ether should not be used for NFT purchases. NFT exchanges are called upon to perform strict identity checks on their clients. For the moment, however, it seems unlikely that these demands will be the prelude to a general ban on NFTs in China. At least according to their own statements, the associations only call on consumers to maintain “correct consumer concepts”.
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