News updates March 17, 2022

1. Ukrainian President Zelensky Signs Law Legalizing Bitcoin

The President of Ukraine signed the “On Virtual Currency” bill into law on March 16, 2022.
The document outlines regulatory agencies, fines for violations, and investor protections allowing an open cryptocurrency market.
The law was passed by parliament in September, to later be vetoed by President Zelensky as he expressed concerns of funding for a new regulatory agency, and the now amended bill addresses these issues.

 

2. FED Announcement Pushes Bitcoin Price Up, Will BTC Sustain Momentum?

Market expectations were met as the U.S. Federal Reserve (FED) announced an interest rate hike of 25 bps pushing Bitcoin into the green. The cryptocurrency was hinting at bullish price action during the week, as today’s Federal Open Market Committee (FOMC) closed in.

 

3. Canada's central bank and MIT to collaborate on CBDC research

The Bank of Canada, the country's central bank, and the Massachusetts Institute of Technology (MIT) have agreed to collaborate on Central Bank Digital Currency (CBDC) research.

CBDCs are digital forms of a country's fiat currency that are regulated by a nation's centralized monetary authority. 

The agreement, announced via a press release, will see the Bank of Canada work with MIT's Digital Currency Initiative to build on its ongoing research into CBDCs on a twelve-month basis. After this period, The Bank of Canada says it will provide an update on the findings and outcomes of the research project.

 

4. LSG Group Says Crypto Exchanges Dealing in Russia Could See Setbacks

The head of the London Stock Exchange Group said that cryptocurrency exchanges engaging with Russia could see negative consequences as Western governments look for ways to tackle Moscow’s invasion of Ukraine.

Crypto exchanges have turned a blind eye to orders for a cut off of all Russian users, which has given rise to concerns that Russia could use cryptocurrencies as a loophole to navigate around sanctions that have been put upon the country by the United States and Europe.

David Schwimmer, LSEG’s chief executive officer, said that crypto exchanges are stuck in between either abiding by the philosophy of independence from regulation or supporting the centralised system of global finance - which calls for the requirement of regulation and transparent frameworks.

 

5. The Russia-Ukraine War Might Accelerate CBDC Issuance, Former BOJ Official Says

The sanctions slapped on Russia based on its invasion of Ukraine might prompt more nations to adopt central bank digital currencies (CBDCs) as a shield against the U.S. dollar’s supremacy in the global financial system, according to the former Bank of Japan (BOJ) executive Hiromi Yamaoka.

China has already set the ball rolling with its digital yuan.

With U.S. allies like Japan joining the sanctions, Yamaoka believes a situation that pushed Russia into default was intentionally developed.

 

6. Crypto Tax: Majority of Investors Are Paying Taxes, Contrary To Claims:

Crypto tax: What a fun subject. But here’s the good news. According to a recent survey, American cryptocurrency investors are actually trying their hardest to pay their taxes on their crypto gains.

With Tax Day 2022 a little more than a month away in the USA, CoinLedger has released its ‘State of Crypto Tax Reporting’ survey for 2022. It was conducted in partnership with YouGov.

Crypto Tax: It’s complicated:

While most people who worked out how to pay taxes on their crypto did so, not everyone worked it out. According to the survey, some American crypto investors are still confused when it came to reporting taxes.

Investors sent the clear message that they wanted to pay taxes. But, they ‘didn’t know that crypto was taxable’ (25 percent). 20% said they ‘didn’t know how to report crypto on their tax returns.’

The popular belief that crypto investors are looking to avoid paying taxes is an outdated thought. 50% actually happily paid taxes on their crypto. In comparison, only 15% claimed to intentionally avoid paying taxes. They gave reasons like ‘the government doesn’t know about my cryptocurrency’ or ‘I do not want to pay taxes.’

Other reasons for not paying taxes on crypto included ‘not having the software tools to properly account for their crypto transactions.’ Almost 30 percent reported simply ‘having trouble keeping track of their capital gains and losses.’

 

7. S.Korean crypto industry calls for local language white papers:

South Korean digital asset experts gathered at the National Assembly on Thursday to discuss president-elect Yoon Suk-yeol’s crypto campaign promises, which included his plan to bring back initial coin offerings (ICOs).

* The head of crypto exchange Upbit’s investor protection center Lee Hae-boong suggested the government provide white paper templates for ICOs to protect investors from scam tokens. 

* Kim Kab-lae, research fellow at the Korea Capital Market Institute, insisted that white papers be written in Korean and cover sufficient information for investors to make informed decisions.

* Yoon pledged in his campaign to lift a standing 2017 ban on ICOs and allow them to be supervised by licensed crypto exchanges in the form of initial exchange offerings (IEOs).

* Kim added that a company should be obliged to reveal large-scale investments in crypto or changes to its digital asset portfolio to investors, which has previously resulted in companies influencing token prices. 

Meanwhile, Lee Su-hwan, a researcher at the National Assembly Research Service (NARS), pointed out that new policies for digital assets will need to embody environmental, social and governance (ESG) elements, especially with rising environmental concerns surrounding crypto mining.
8. THE U.S. TREASURY CONFIRMS THAT WE CAN REMOVE “ILLICIT ACTIVITY” FROM THE BITCOIN FUD DICE;

With the U.S. Treasury recently indicating that bitcoin and altcoins aren’t used for significant illicit activity, it’s time to change the narrative.

It’s time to take “illicit activity” off the FUD dice. Earlier this month, the U.S. Department of the Treasury published reports that indicated that the use of bitcoin and other cryptocurrencies for illicit activity is far outstripped by the use of traditional assets. Critics can no longer credibly present the specter of illicit activity to beat back bitcoin; now the foremost experts in the world say it is not a major threat.

The Treasury Department published three reports that identified key concerns for money laundering, terrorist financing and weapons proliferation financing. Here’s what each said about the use of cryptocurrencies: