Crypto regulation in the world: weekly digest #100

The USA

Donald Trump has undergone a significant shift in his stance towards cryptocurrencies, transitioning from a vocal critic to a strong supporter. This change was evident in his recent week’s meeting with US bitcoin miners at Mar-a-Lago, where he expressed his support for the industry and its potential to address America's energy deficit and create jobs in rural areas.

Prior to this shift, Trump had expressed skepticism about cryptocurrencies. In 2019, he tweeted that Bitcoin was based «on thin air» and that it was «not a real currency». He also criticized the use of cryptocurrencies for illegal activities, such as money laundering and drug trafficking.

However, during last months of his election campaign, Trump has taken a more positive stance on cryptocurrencies. He has emphasized Bitcoin and other digital assets during his campaign trail speeches as a means to attract new voters. He has also sought counsel on the subject from Elon Musk and publicly pledged to commute the sentence of Ross Ulbricht, the founder of the Silk Road online marketplace. Trump's campaign now accepts crypto donations.

The meeting at Mar-a-Lago brought together a coalition of prominent American bitcoin miners, including representatives from Riot Platforms, Marathon Digital Holdings, and CleanSpark. Trump told attendees that he «loves and understands cryptocurrency» and that Bitcoin miners help to stabilize the energy supply from the grid. He also stated that he would be an advocate for miners in the White House if elected.

The meeting was seen as a welcome change from the status quo, with attendees describing Trump as «very knowledgeable on the subject» of bitcoin mining and understanding the significance of job creation. The crypto sector is making efforts to support politicians perceived as friendly to digital assets, including increased donations to the Fairshake political action committee.

Earlier Donald Trump promised to ban the creation of the central bank digital currency in the USA.

India

The Supreme Court of India has ruled on the legality of cryptocurrency dealing in the country. The court declared that the Reserve Bank of India (RBI) circular issued in April 2018, prohibiting banks from dealing with cryptocurrency exchanges, was invalid. The circular was seen as a form of indirect ban on cryptocurrency trading.

The court found that the RBI did not demonstrate any harm caused to banks or regulated entities due to virtual currency trading. It also concluded that no defect was pointed out in the functioning of virtual currency exchanges. The judgement held that virtual currency trading itself was not banned. The court recognized that the banking system was a lifeline for virtual currency exchanges.

The ruling is seen as a significant victory for the Indian cryptocurrency industry, with many calling it a historic moment for the sector, while Indian government is still in the process of creation of legal framework for crypto. The judgement may lead to the unfreezing of banking accounts of Indian cryptocurrency exchanges that were previously frozen by the RBI. This could potentially revive the operations of exchanges that had to shut down due to the RBI circular.

Uzbekistan

A student in Tashkentm the capital of Uzbekistan, was arrested and charged with selling Notcoin, a cryptocurrency, using Telegram. The student received 800,000 soums (~60 USD) for the transaction and claimed he did not know it was illegal. The court found the student guilty of violating Uzbekistan's legislation regulating crypto assets and sentenced him to 10 days of administrative arrest.

The student was arrested after a resident of Tashkent filed a complaint with the internal affairs bodies. He admitted guilt but claimed he was the sole breadwinner in his family and requested leniency. All the tools of the offense, including a bank card and a Samsung mobile phone, were ordered to be destroyed.

This is not the first case of Uzbekistan's National Agency for Advanced Projects (NAPP) taking legal action against individuals involved in illegal activities in the cryptocurrency market. NAPP has also sued Binance, a major cryptocurrency exchange, for operating without a license in Uzbekistan and failing to comply with regulatory requirements.

Uzbekistan has a comprehensive regulatory framework for the crypto sector, which includes licensing and permitting for exchanges, depositories, and other service providers. The student's sentence serves as a warning to others involved in illegal crypto activities in the country.

News from other countries:

• Ripple has launched a stablecoin pegged 1:1 to the US dollar, which is backed by USD deposits, short-term US government treasuries, and other cash equivalents. The stablecoin was launched on Ripple and Ethereum blockchains.

• Turkey has revealed plans to introduce a tax on cryptocurrency transactions. The tax will be a 0.03% transaction tax on all trades, aiming to generate additional revenue for the government. This move is part of a broader fiscal overhaul aimed at bolstering public finances.

• Terraform Labs and its former CEO Do Kwon have agreed to pay the SEC a combined $4.5 billion to settle the agency's civil fraud charges related to the collapse of the Terra ecosystem in 2022.

We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!