News updates March 4, 2022

1. Crypto Allows Ukraine to ‘Operate Internationally,’ Official Says

Amid ongoing hostilities with advancing Russian forces, Ukraine has been increasingly relying on cryptocurrency donations to solve humanitarian problems and finance its defense efforts. Crypto helps the country to receive and quickly distribute money and operate internationally, a high-ranking government official has indicated.

2. UK Regulator FCA Places 50 Crypto Firms Under Investigation

The Financial Conduct Authority (FCA), the United Kingdom’s apex market regulator,  is taking a proactive approach to curbing scams as they are inherent in the fast-growing crypto world.

Per a report published by the regulator, as many as 16,400 inquiries were received on its ScamSmart website in the six months leading to September 2021. 

Of these received reports, a total of 4,300 were explicitly related to cryptocurrency-focused scams, with as many as 300 specifically linked to crypto-focused firms. The FCA has reportedly opened active investigations into these indicted companies, re-enacting the regulatory crackdown at a time when it seems the world is distracted by the ongoing war between Russia and Ukraine.

3. Ukraine Cancels Crypto Airdrop, Says It Plans to Issue NFTs Instead

Ukraine has canceled a much-talked-about "airdrop" to people who have donated crypto to the country, with non-fungible tokens (NFTs) that support Ukraine’s Armed Forces now being planned instead, the country’s Minister of Digital Transformation, Mykhailo Fedorov, said on Twitter.

“After careful consideration we decided to cancel airdrop. Every day there are more and more people willing to help Ukraine to fight back the aggression. Instead, we will announce NFTs to support Ukrainian Armed Forces soon. We DO NOT HAVE any plans to issue any fungible tokens,” Fedorov wrote on Twitter today.

4. US Treasury Monitoring Crypto Use to Evade Sanctions, Says Treasury Secretary Yellen

U.S. Treasury Secretary Janet Yellen says the Treasury Department is monitoring Russian efforts to evade sanctions using cryptocurrency. Four U.S. senators have written to Yellen raising concerns about Russia using cryptocurrency as a channel to circumvent sanctions.

5. Russian crypto volume across major exchanges plunges by 50%

Data from blockchain-analysis firms show that Russian denominated crypto purchasing and trading on major exchanges have faltered, debunking theories that the country will pivot to digital assets to circumvent sanctions. 

When Bitcoin rallied over 15% last week, some industry experts attributed the surge to Russians buying cryptocurrency in the face of increasing economic sanctions. This theory seems to be proved false, however, as data from Chainalysis showed that ruble-denominated crypto trading volume was just $34.1 million on March 3, around half of a recent peak of $70.7 million a week ago on Feb. 24.

6. Malaysia’s Deputy Finance Minister: Crypto Not Suitable as Means of Payment or Store of Value

Malaysia’s deputy finance minister says that cryptocurrencies, such as bitcoin and ethereum, are not suitable as a means of payment or a store of value. While digital assets are not recognized as legal tender in Malaysia, the finance ministry official said that they are an asset class that can be invested in.

7. New York Bitcoin mining moratorium bill garners more support

A New York State proposal to suspend fossil fuel-powered proof-of-work mining for three years across the state has gained support from two more Assembly members.

Members Amy Paulin and Ken Zebrowski have thrown their names in along with 43 other cosponsors for bill A7389B.

In addition to the three-year suspension of mining at former fossil fuel power plants, the bill would require the New York State Department of Environmental Conservation (NYSDEC) to assess the state’s crypto mining industry. The assessment would determine the impact on water and air quality and greenhouse gas emissions.