News updates January 24, 2022
1. Bank of Korea completes first phase of digital currency pilot
The Bank of Korea has successfully completed the first phase of its central bank digital currency mock testing started in August 2021.
The South Korean central bank said that the first phase of its CBDC mock testing was completed in December while the second phase is currently underway, reported YNA news. The first phase of the mock test involved some of the basic functions of the sovereign digital currency such as distribution and issuance.
The second phase of the central bank digital currency (CBDC) pilot would test real-world functionalities such as cross-border remittance, retail payments and offline payments.
2. Biden's Administration to Release Crypto Strategy on Digital Assets Next Month
U.S. President Joe Biden's administration is working on an initial government-wide strategy on digital assets for release next month, Bloomberg reported last Friday.
The administration is also asking federal agencies to assess the risks and opportunities posed by the digital assets, people familiar with the matter have said. In addition, adding that senior officials have held several meetings on the plan which is being drafted as an executive order.
According to Bloomberg, the directive would place the White House in a central role overseeing efforts to set policies and regulate digital assets.
The administration's focus has increased as the volatile crypto market has soared in value and popularity.
3. Bulgaria to Introduce Crypto Payment Options
For a country currently not in the Eurozone, Bulgaria plans to introduce a government-backed digital currency payment initiative “in short to medium term.”
According to a Bloomberg report, citing Assen Vassilev, Bulgaria’s deputy prime minister for EU Funds and minister of Finance, the government is currently in discussion with industry stakeholders and the Bulgarian National Bank concerning the crypto payment initiative.
4. Low Volumes Across Crypto Spot Markets and Derivatives Indicate Bearish Conditions
Digital currency markets have slipped significantly in value during the last two weeks and the lower prices have not sparked higher trade volumes. Data shows cryptocurrency spot market volume has slipped from $1.4 trillion in November 2021, to this month’s $593 billion in volume. Bitcoin futures open interest and volumes have dropped considerably over the last two months as well.
Crypto Volumes Slide Month-Over-Month Since November
When crypto markets shed significant value, traders typically look to see if trade volume increases in order to support the current prices. Since a number of coins tapped all-time high prices during the second week of November, crypto spot market volume has continued to slide.
5. Decommissioned Power Plant in Armenia to Host Crypto Mining Farms
Armenia is going to invite cryptocurrency miners to install their coin minting hardware in an old thermal power plant. The TPP will be decommissioned and the government intends to rent it out to industrial companies including mining enterprises..
Miners Welcome to Set Up Data Centers at Old TPP in Armenia
The equipment at the Hrazdan TPP has been deemed obsolete and inefficient, producing expensive electricity, and authorities in Armenia have decided to shut down the old power plant in the near future. Its premises and infrastructure, including power lines, water and gas pipelines, will be offered to other, more profitable businesses.
6. Zimbabwe Signs Agreement Enabling Collection of Taxes From Crypto and E-Commerce Entities
The Government of Zimbabwe has confirmed signing an agreement with Daedalus World Limited which enables the latter to collect taxes from crypto and other content providers.
Zimbabwe’s Stance on
The Zimbabwean government recently said it had entered into an agreement with the British Virgin Islands-based Daedalus World Limited wherein the latter is expected to collect taxes from companies that offer “betting, gaming and cryptocurrency services to persons and organisations within the territory of the Republic of Zimbabwe.”
7. Lawyer Accuses Huobi of Operating a Cryptocurrency Exchange That's 'Held Accountable Nowhere'
Houbi Global, which is based in Seychelles, has been accused by lawyer Jonathan Levy of operating without accountability to any jurisdiction. The lawyer adds that the exchange’s physical address in the island nation is for mailing purposes only.
Accountability Issues
U.S.-based lawyer Jonathan Levy has accused Huobi cryptocurrency exchange of running a decentralized global operation that “operates everywhere but is held accountable nowhere.” Levy’s accusation follows the Seychelles registered cryptocurrency exchange’s alleged intransigence which eventually led to a French national losing their funds to a Chinese fraudster.
Before the Chinese national’s disappearance along with the stolen funds, the unnamed victim had — with the aid of Ciphertrace — successfully located the fraudster’s account with Huobi. Based on the victim’s efforts, the French National police had opened an investigation as well as requested the cryptocurrency exchange’s assistance in recovering the funds.
.
