Regulation
Russia Plans To Launch 2 Crypto Exchanges & BRICS Stablecoin
Russia is now planning to launch two crypto exchanges, one in Moscow and the other in St. Petersburg. This move underscores the need to boost foreign economic activity (FEA), Moreover, it aims to build an RMB-linked BRICS stablecoin.
The crypto exchange initiative is designed to provide a new platform for digital transactions. However, experts have expressed concerns over the potential limitations and risks associated with the project, particularly in light of international sanctions.
Russia’s Plans On Developing The Crypto Sector
One of the crypto exchanges will likely leverage the infrastructure of the St. Petersburg Currency Exchange (SPCE) to facilitate foreign economic activity, according to a report by Kommersant. Whilst, the other platform is expected to be based in Moscow. However, it remains unclear whether it will be developed on the foundation of the existing Moscow Exchange or as a separate entity within an experimental legal framework.
The primary focus of these exchanges will be the creation and use of stablecoins. For context, stablecoins are a type of crypto that is typically pegged to a reserve of assets, such as a national currency or a basket of currencies. In this case, the Russian government is reportedly considering the development of stablecoins linked to the Chinese Renminbi (RMB) Yuan and the BRICS currency basket.
Hence, this move is aimed at boosting economic cooperation among the BRICS nations (Brazil, Russia, India, China, and South Africa). Currently, BRICS is eyeing dedollarization via crypto and blockchain. However, the development and deployment of a BRICS stablecoin via newly-launched crypto exchanges present a number of challenges.
Oleg Ogienko, CEO of BitRiver, pointed out the technological difficulties in integrating stablecoins into Russia’s blockchain infrastructure. He noted that “stablecoins, due to their legal nature, are more like cryptocurrency.” This could complicate their convertibility, liquidity, and security. Moreover, the complexity of these issues could hinder the seamless adoption of stablecoins in Russia.
Current Regulatory Framework & Challenges For Crypto Exchanges
In terms of regulatory frameworks, Russia currently operates under Federal Law No. 259 “On Digital Financial Assets.” This regulation provides the legal basis for the issuance and circulation of digital assets. However, this legislation does not specifically address the creation or regulation of cryptocurrency exchanges.
Yaroslav Schitzle from law firm Rustam Kurmaev and Partners emphasized the lack of a “clear and unified legal mechanism for the creation and operation of crypto exchanges” under existing Russian regulation. The only relevant regulation available is the Experimental Legal Regime (EPR). This legislation was recently enacted and might serve as the legal foundation for these new cryptocurrency exchanges.
The introduction of these crypto exchanges is expected to be rolled out in stages. Initially, access will be restricted to a select group of users. These include subsidiaries of major exporters and importers, often referred to as “blue chips” in the business world.
Mikhail Uspensky, a member of the expert council on the legislative regulation of cryptocurrencies in the State Duma, weighed in on the matter. He noted it is unlikely that small and medium-sized businesses or individual users will be granted unrestricted access in the early phases. Moreover, he emphasized that “the contours of the future experiment are entirely at the mercy of the regulator.”
Implications Of Global Sanctions
Despite the potential benefits, the project is fraught with significant risks, particularly concerning sanctions. The transparency of blockchain technology could lead to severe consequences if transaction data were to be leaked.
Uspensky warned that if it becomes known that a cryptocurrency was purchased on a Russian exchange, this information could be tracked and flagged as suspicious. This could lead to the blocking of transactions. He cautioned that such a scenario could “significantly ruin the lives” of the participants in these transactions.
Furthermore, it could also affect future holders of these digital assets who may have no direct connection to Russia. Additionally, experts like Nikita Vassev, founder of TerraCrypto, expressed skepticism about the appeal of these domestic platforms.
He argued that “only those who have no other choice will use such an exchange.” Vassev suggested that established, internationally recognized trading platforms will remain the preferred choice for most users unless they are left with no alternatives.
Meanwhile, Russia’s BRICS peer, India, is looking forward to kickstart crypto regulatory efforts. The Indian government is seeking public opinion for better framework. Now, the DEA release is awaited in September-October period, which will lay the basis for digital asset regulation in the country.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
“Crypto Dad” Chris Giancarlo Emerges Top For White House Crypto Czar Role
Chris Giancarlo, widely known as “Crypto Dad,” has emerged as the leading candidate for a newly proposed role of crypto czar in the White House under President-elect Donald Trump’s administration. The potential appointment underscores a strategic effort to advance crypto regulations and foster blockchain innovation in the United States.
This proposed position would be the first of its kind in the White House, aiming to bring clarity to the growing $3 trillion digital asset market. Chris Giancarlo, the former Chair of the Commodity Futures Trading Commission (CFTC), is known for his progressive approach to digital currencies and blockchain technologies.
Chris Giancarlo Leads Race for White House Crypto Czar Role Under Donald Trump
According to a Fox Business report, Chris Giancarlo is the top contender for the position of White House crypto czar, a role being considered by the Trump transition team to streamline crypto regulations and foster blockchain development.
As CFTC Chair from 2017 to 2019, Chris Giancarlo oversaw critical advancements in the digital asset space. This includes the launch of the first Bitcoin futures. He later co-founded the Digital Dollar Project, a nonprofit initiative exploring the potential of a U.S. central bank digital currency (CBDC). Giancarlo’s regulatory expertise and understanding of digital innovation position him as a key figure in shaping the future of the crypto sector.
The Trump administration aims to utilize this position to address industry concerns over the Biden administration’s perceived heavy-handed enforcement. The crypto czar would also collaborate with federal agencies to establish a framework for the $180 billion stablecoin market and enhance the overall regulatory landscape for blockchain and digital currencies.
Trump’s Strategic Approach to Digital Asset Policy
President-elect Donald Trump has expressed plans to make the U.S. a global leader in cryptocurrency and blockchain innovation. Part of this strategy includes appointing a crypto czar to advance policies to support the industry’s growth.
Trump has also proposed the establishment of a presidential crypto advisory council to address ongoing regulatory challenges. This initiative aims to align federal policies with industry needs, fostering a competitive environment for blockchain businesses. The council will explore the creation of a Bitcoin reserve as part of the administration’s broader crypto policy agenda.
The transition comes as current SEC Chair Gary Gensler announced his resignation effective January 20, 2025, coinciding with Trump’s inauguration. Gensler faced criticism during his tenure for his enforcement-driven approach to crypto regulations.
Amid speculation, Chris Giancarlo clarified that he is not pursuing the SEC Chair role. Giancarlo said in a recent statement,
“I’ve already cleaned up earlier Gary Gensler mess at the CFTC and don’t want to have to do it again.”
His focus remains on advancing crypto-friendly policies through a potential new role. According to the report, the “Crypto Dad” stated,
“I would be honored to be considered for the role.”
The creation of the crypto czar position could mark a pivotal moment in the evolution of U.S. crypto policy. With Chris Giancarlo leading the race, the industry anticipates advancements in crypto regulations under the new administration.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
UK to unveil crypto and stablecoin regulatory framework early next year
- The UK will introduce unified crypto regulations, including stablecoins, in early 2025.
- New rules aim to simplify oversight and avoid restrictive staking classifications.
- Labour government aims to compete with EU’s MiCA rules and US pro-crypto policies.
The United Kingdom is set to introduce a comprehensive regulatory framework for cryptocurrencies, stablecoins, and crypto staking services in early 2025, marking a pivotal shift in its approach to digital assets.
The announcement was made by the Economic Secretary to the Treasury Tulip Siddiq at City & Financial Global’s Tokenisation Summit in London on November 21.
Initially slated for December 2024, the regulatory rollout was delayed due to the change in government following the election of Prime Minister Keir Starmer’s Labour administration in July 2024.
The upcoming UK crypto regulatory framework
The upcoming framework consolidates regulations for crypto assets into a single, overarching regime, a decision Siddiq described as “simpler and more logical.”
The framework aims to provide clarity in a rapidly growing sector that has faced uncertainty in the UK.
Stablecoins will receive distinct treatment under these regulations, as their functionality does not align with existing payment services rules.
Siddiq highlighted that staking services would also avoid being designated as “collective investment schemes,” a classification that could impose burdensome restrictions.
UK aims to align with the global crypto regulatory landscape
The UK government’s renewed focus on digital asset regulation comes as it seeks to align with global developments. The European Union’s Markets in Crypto-Assets (MiCA) regulations will be fully enforced by the end of 2024, offering regulatory certainty that has positioned Europe as an attractive market for the crypto industry.
Meanwhile, the US, under President Donald Trump’s administration, has adopted a markedly pro-crypto stance, including the establishment of a White House “crypto czar” and SEC Chair Gary Gensler’s planned departure in January 2024.
The Labour government has shown its intent to catch up with international competition. In September 2024, it introduced a bill recognizing NFTs, cryptocurrencies, and carbon credits as property.
The new regulatory push reflects the UK’s ambition to regain credibility as a crypto hub while addressing criticisms of the Financial Conduct Authority’s perceived stringent oversight.
By delivering a robust, streamlined framework, the Labour government aims to bolster the UK’s standing in the multibillion-dollar crypto industry.
Regulation
Gary Gensler To Step Down As US SEC Chair In January
In a recent development, the US Securities and Exchange Commission (SEC) announced that Gary Gensler will step down from his position next year. This follows calls for Gensler to resign since Donald Trump won the US presidential elections.
Gary Gensler To Step Down As US SEC Chair
The US SEC announced in a press release that Gary Gensler will depart the Agency on January 20, 2025. The US SEC Chair also confirmed this development in an X post. Interestingly, this comes on the same day that Donald Trump will be inaugurated as the 47th president of the United States.
Following the announcement, Gensler also used the opportunity to reflect on his time at the Commission. He remarked that it has been an “honor of a lifetime” to serve alongside those at the SEC. He also thanked President Biden for the opportunity to serve in the position. Gensler has been the US SEC Chair since April 2021. During his time, he has spearheaded several litigations against the crypto industry.
This includes the long-running legal battle with Ripple, which Gensler took over from his predecessor Jay Clayton, which bordered on whether XRP was a security. Up till now, the Agency continues to reiterate this ‘digital asset securities’ claim.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
-
Ethereum22 hours ago
Fundraising platform JustGiving accepts over 60 cryptocurrencies including Bitcoin, Ethereum
-
Market18 hours ago
South Korea Unveils North Korea’s Role in Upbit Hack
-
Market23 hours ago
Cardano’s Hoskinson Wants Brian Armstrong for US Crypto-Czar
-
Bitcoin13 hours ago
Marathon Digital Raises $1B to Expand Bitcoin Holdings
-
Market13 hours ago
ETH/BTC Ratio Plummets to 42-Month Low Amid Bitcoin Surge
-
Altcoin24 hours ago
SHIB Burn Rate Surges 2200%, Shiba Inu Eyes Parabolic Rally Ahead?
-
Altcoin16 hours ago
Sui Network Back Online After 2-Hour Outage, Price Slips
-
Market22 hours ago
Litecoin (LTC) at a Crossroads: Can It Rebound and Rally?
✓ Share: