Venezuela Welcomes Mining, Blockchain as Governments’ Priority, The Uncertain Future of Digital Dollar, Gemini Launches in the UK
In this edition:
- New Mining Regulation in Venezuela
- Russia Prioritises Blockchain While Colombia Calls for Test Crypto Transactions
- The Fed on Digital Dollar Details
- Gemini Exchange Now Fully Legal in the UK
Another week… gone! For my fellow Anchorians in the Northern hemisphere, the summer has officially passed and we couldn’t be more excited to see what this autumn has to offer for the crypto community. Others, enjoy your spring!
By now, you are probably used to the fact our Roundups are pretty much international, and this 59th edition is no exception. Venezuela, Colombia, Russia, the US, the UK – we covered it all! From new mining regulations, over blockchain strategies, to CBDCs and crypto exchanges.
Whatever is your cup of tea, I’m sure we have something for you – so, buckle up because we’re diving straight into this week’s Crypto Roundup without further ado!
New Mining Regulation in Venezuela
Some good news is coming from a well-known country when it comes to cryptocurrencies – Venezuela. Venezuela’s National Superintendency of Crypto Assets and Related Activities (SUNACRIP) has officially declared crypto mining a legal activity.
Nonetheless, since it’s legal, mining will now be regulated as well. What’s the first thing you need to do to become a licensed miner? Well, you have to apply for the ‘’national mining pool’’. According to the legal framework, crypto enthusiasts will have to disclose the details of their mining activities to comply with the law.
The official decree says that this national pool (El Pool de Minería Digital Nacional) will: record transactions on the network, convey information and communicate with the miners, and monitor and control all the activities.
So, not great, not terrible? Regulation and monitoring is a good way to promote mining activities and invite citizens to participate in them, offering additional help in terms of equipment.
However, extended centralization might slow down that growth and disable miners from reaping their awards. Be that as it may, I won’t meddle with a sovereign country’s inner policy. Certainly not with Venezuela’s.
We shall see how this story unfolds, but for now, we can say it’s good to see some progress nevertheless!
Russia Prioritises Blockchain While Colombia Calls for Test Crypto Transactions
It comes as no surprise that the Russian government is keen on blockchain technology. On Wednesday, Russian First Deputy Prime Minister Andrey Belousov disclosed that blockchain development will be one of the country’s top priorities in the future.
Along with the blockchain technology, Mr. Belusov called for development in artificial intelligence, quantum computing, IoT, 5G, and quantum communications. If you are having deja vu, it’s because we talked about a similar bill in the US Congress.
Russians will utilize blockchain in many ways, no doubt, since they already tested the online voting system on blockchain in the recent parliamentary elections.
On the other side of the globe, Colombia is taking additional steps in its crypto-blockchain journey. In the 54th edition of our Weekly Crypto Roundup, we mentioned the Colombian national initiative to support blockchain adoption. Here comes the second part of this story, as we promised.
The government of Colombia launched a pilot program to test crypto transactions within the country’s private sector. Companies willing to participate in this regulatory sandbox can apply until December 31st since the pilot is due to run in 2021.
The Ministry of Finance and Public Credit (the SFC) commented on the creation of this sandbox: “This space allows the SFC to maintain a balance between adequate regulation aimed at carrying out comprehensive supervision of the entities under surveillance, the prevention of crisis situations, the illegal exercise of financial activity and the promotion and support of new technological advances applied to financial services.”
Well, go, Colombia! It’s always lovely to see positive developments in the crypto policies and rest assured that we’ll continue to inform you about them.
The Fed on Digital Dollar Details
Now and then, we crypto enthusiasts get some interesting details about the digital dollar developments. This time, Loretta Mester, The President and CEO of the Federal Reserve Bank of Cleveland, talked about the Fed’s recent research concerning the potential issuance of a CBDC.
She revealed that the Fed’s Board of Directors was considering and testing distributed ledger solutions for the digital dollar even before the COVID-19 pandemic. Mrs. Mester reflected on the partnerships with MIT and Bank for International Settlements.
‘’The Federal Reserve has been researching issues raised by central bank digital currency for some time. The Board of Governors has a technology lab that has been building and testing a range of distributed ledger platforms to understand their potential benefits and tradeoffs.’’
However, while this still is a considerable option and the research is ongoing, Mester says there is no signal that the issuance of a digital dollar will happen in the near future. The idea is to reach a better understanding of the concept and apply the most desirable solution after.
‘’Experimentation like this is an important ingredient in assessing the benefits and costs of a central bank digital currency but does not signal any decision by the Federal Reserve to adopt such a currency. Issues raised by central bank digital currency-related to financial stability, market structure, security, privacy, and monetary policy all need to be better understood.’’
The US still hasn’t officially entered the global race in CBDC development. While countries like China and Sweden have stepped out of the theoretical framework, the US remains cautious and a bit secretive.
The pandemic disturbed many national economies and therefore the global economy as a whole, and digitization of assets and currencies may come sooner than expected. We can only wait and see who will be prepared better when it does.
Gemini Exchange Now Fully Legal in the UK
Gemini Exchange launches in the UK after successfully obtaining an EMI license. Next stop – full expansion. According to a press statement emailed to CoinDesk, the citizens of the United Kingdom will now be able to ‘’make GBP crypto purchases with their debit card or make GBP deposits to fund their account using wire transfers’’.
Electronic Money Institution (or EMI) license is issued by the UK’s Financial Conduct Authority and it was granted to Gemini in August. Along with this, Gemini was approved and registered under the Fifth Money Laundering Directive (5MLD).
Well, if you are from the land of football, this could be very good news for you. While the regulation of crypto exchanges vary from country to country and changes via ever coming new laws, the landscape in the UK is very promising.
‘’The UK is a global center of financial innovation with the astringent and progressive regulatory regime. We’re proud to help usher the crypto revolution into this historic market and become a part of its rich tradition. We look forward to welcoming consumers and institutional customers to our platform,” said Tyler Winklevoss, Gemini CEO.
After another swift journey around the world, we are anchoring our ship once more! I sincerely hope you enjoyed this 59th edition of our Crypto Roundup and learned something new.
Crypto is a very progressive industry, both in private and public sectors, and it’s only natural to see private companies and sovereign countries wanting to understand and utilize it. In just over a decade, we have seen some major changes in the way traditional finances work, and we can only imagine the progress in the next 10 years!
Well, we shall see each other much sooner than that, fortunately. Until next week, I wish you fair winds and the following seas, my fellow Anchorians!
Disclaimer: The information provided in this post is not legal, accounting, or financial advice. I am not a lawyer, accountant, or financial advisor. I am not registered as an investment adviser with any federal or state regulatory agency. The Information should not be construed as investment or trading advice and is not meant to be a solicitation or recommendation to buy, sell, or hold any cryptocurrencies.