Summary

Summary

"Policy Trends":

- US Treasury Confirms Crypto Miners, Wallet Providers Exempt from IRS Tax Reports

- US SEC fines crypto lending firm BlockFi a record $100 million

-Russian Ministry of Economy Proposes to Legalize Crypto Mining

-Binance Joins Russian Expert Center for Digital Financial Assets and Digital Currencies

-The President of Belarus signed a decree supporting the free circulation of cryptocurrencies

- U.S. lawmakers propose government-backed stablecoin insurance bill

- Marshall Islands officially recognizes DAO as a legal entity

-Colorado is expected to accept cryptocurrency tax payments by summer

-Top crypto firms join forces to improve industry compliance

- Encryption regulation in the UAE is about to be implemented nationwide

-FBI Forms New Cryptocurrency Unit to Fight Crime

-Senior Federal Reserve officials will ban trading stocks, securities and cryptocurrencies

"Frontier Events":

-Super Bowl 2022: Advertisements of multiple encryption companies collectively appear

-Singapore's DBS Bank is working to expand bitcoin transactions to retail customers

- Binance Chain and Binance Smart Chain merged into "BNB Chain"

- Central Bank of Russia begins CBDC testing

-Mastercard to expand crypto-specific advisory services

-Twitter integrates Ethereum payment tip service

-Sequoia Capital launches crypto fund worth up to $600 million

- JP Morgan becomes the first bank in the Metaverse

U.S. Treasury Confirms Crypto Miners, Wallet Providers Are Exempt from IRS Tax Reports

U.S. President Joe Biden signed the $1 trillion infrastructure bill in mid-November 2021, requiring crypto market participants to report all cryptocurrency transactions worth more than $10,000 to the Internal Revenue Service (IRS).

In a letter to the Senate last week, the U.S. Treasury Department said it planned to exempt crypto miners, staking, and wallet providers from the reporting rules: “Ancillary parties that do not have access to information useful to the IRS will not be included in the reporting requirements.” Medium”, such as entities providing crypto wallet-related services “do not engage in brokerage activities”. The letter also states that Treasury will also consider the extent to which other parties in the crypto market, such as centralized exchanges, decentralized exchanges, and peer-to-peer exchanges, should be considered brokers.

2022 Super Bowl: Advertisements of Multiple Encrypted Enterprises Appeared Collectively

Super Bowl advertising has always been an integral part of the NFL’s annual championship game, however the 2022 Super Bowl marks a new milestone for the crypto community as FTX, eToro, Crypto.com, and Coinbase debut crypto ads . In addition, ads for TurboTax and Budweiser have hidden encryption elements.

Singapore's DBS Bank is working to expand Bitcoin transactions to retail customers

DBS’s cryptocurrency exchange, launched in late 2020, allows only professional investors to trade.

DBS CEO Piyush Gupta spoke about the cryptocurrency business during its fourth-quarter 2021 earnings call on Monday, saying the company will focus on measures to further expand its cryptocurrency trading business in 2022. When Gupta was asked if DBS was willing to introduce cryptocurrency trading to retail investors, he said that DBS has indeed done some work to expand its current investor base:

"We've already started doing some work to see how we can go in in a smart way and expand that beyond the current investor base. That includes making sure we've thought about things like how we're dealing with fraud."

In addition, he also expects to significantly upgrade its encryption trading platform in the first half or first three quarters of this year.

SEC fines crypto lending firm BlockFi record-breaking $100 million

Since September last year, crypto lending products have come under increased scrutiny from regulators. Launched in March 2019, BlockFi’s interest account allows investors to lend their cryptocurrencies to the platform and earn up to 9.5% interest.

Last week, the U.S. Securities and Exchange Commission (SEC) announced penalties against crypto lending firm BlockFi for failing to register crypto lending products. BlockFi will pay the SEC a $50 million settlement and $50 million to 32 U.S. states that have filed similar charges. The company also agreed to stop directing new customers to the product and is filing with the SEC to register a crypto savings product called BlockFi Yield.

Founded in 2017, BlockFi has raised more than $500 million in venture capital to date and was last valued at $3 billion, according to CB Insights.

Additionally, the SEC is investigating products offered by Gemini, Celsius Network, and Voyager Digital similar to BlockFi's interest accounts to determine whether they constitute securities.

Russian Economy Ministry Proposes Legalization of Crypto Mining

The Russian Ministry of Finance has officially started work on the country’s cryptocurrency regulation bill and submitted two notifications. The first notification, titled “On Digital Currencies,” notifies the government to launch a public consultation on digital asset trading rules, inviting financial market participants to , citizens and legal entities to make recommendations. The second notice details the process for making amendments to other federal laws that may be required for “digital currencies.” According to the notice, the department expects to complete the public consultation on crypto regulatory rules by March 18.

According to local Russian news agency Izvestia, while the Finance Ministry is pushing for crypto regulation, the Economy Ministry has presented its specific proposals for regulation. The Ministry of Economy believes that cryptocurrency mining should be considered a business activity and, like Japan and Germany, impose taxes on the conversion of cryptocurrencies into rubles. Mining should be allowed in areas where there is a persistent surplus of power generation. To reduce mining costs for companies, the department proposes lower rates for connecting mines and data processing centers to energy sources and setting low tariffs for grid companies. Therefore, mining The cost of mining equipment and electricity will become very cheap. For this proposal, the Russian Ministry of Energy expressed its support.

It is worth noting that although the Russian Central Bank’s proposal to “adopt a comprehensive ban on the cryptocurrency field” was rejected by other government agencies, it still maintains a prohibitive attitude.

Some of Russia’s leading financial institutions have also recently floated support for the idea of ​​regulating cryptocurrencies in the country. Anatoly Popov, vice-chairman of the executive board of Russian banking giant Sberbank, agreed with the government’s stance on the “need to regulate rather than ban cryptocurrencies in Russia,” and called for proper regulatory measures to be taken as soon as possible: all the necessary infrastructure for the crypto market already exists , including brokerage accounts and digital financial asset platforms. Mining is the "right" high-tech industry because it involves highly qualified specialists.

Binance Joins Russian Center of Expertise in Digital Financial Assets and Digital Currencies

The Russian director of Binance, the world’s largest cryptocurrency exchange, announced that he has joined the Russian Banking Association’s newly established Center of Experts on Digital Financial Assets and Digital Currencies, which aims to facilitate dialogue with local authorities, lawmakers and crypto industry experts. The task of the Expert Center is to provide professional reviews of the circulation of cryptocurrencies in Russia and to provide the Association of Banks with expert data on the topic as well as reports on international experience in dealing with cryptocurrencies.

Belarusian President Signs Decree Supporting Free Circulation of Cryptocurrencies

According to an announcement from the Press Office of the President of Belarus, President Aleksandr Lukashenko has signed a decree entitled "On the registration of virtual wallet addresses and the circulation of cryptocurrencies." The document provides the legal basis for the Belarusian high-tech park to establish and manage a registry of crypto wallet addresses used for illegal activities. The decree details the government’s process and criteria for confiscating cryptocurrencies from criminals and aims to protect crypto investors from potential losses.

The announcement states that Belarus has a friendly stance towards cryptocurrencies: “Belarus has been developing the legal field regulating activities related to digital assets and, unlike many other countries, it allows the free circulation of digital currencies.”

It is worth mentioning that Lukashenko has always expressed support for cryptocurrencies. Legalized cryptocurrencies and ICOs back in 2017. In 2020, Belarusian Bank, the largest financial institution in Belarus, launched a cryptocurrency exchange service. In September 2021, Lukashenko called for the use of backup electricity infrastructure to mine cryptocurrencies.

Binance Chain and Binance Smart Chain merged into "BNB Chain"

Decentralized blockchain Binance Smart Chain (BSC) has announced that Binance Chain and Binance Smart Chain have merged into a new name, BNB Chain. BNB, formerly represented as "Binance Coin," now stands for "Build and Build."

The BNB Chain will consist of two parts: the BNB Beacon Chain, formerly known as Binance Chain; and the BNB Smart Chain, formerly known as BSC.

BSC is compatible with the Ethereum Virtual Machine (EVM) that executes smart contracts and acts as a cross-chain hub with other blockchains. The BNB chain also increased the number of validators on BSC from 21 to 41. By expanding validators and improving scalability, the BNB chain will "embrace" the large-scale applications of GameFi, SocialFi, and Metaverse, while BNB supports Next, the BNB chain will focus on building Web3 infrastructure.

Central Bank of Russia Begins CBDC Tests

The Central Bank of Russia has announced that it has officially launched a digital ruble trial, successfully completing the first central bank digital currency (CBDC) transfer between citizens.

Three banks out of the 12 financial institutions in the digital ruble pilot group have integrated the CBDC platform, and two of them have completed "using the bank's application to allow customers to perform digital ruble transfers." In the first phase of testing, users can open wallets on the platform through the application and convert non-cash fiat currency into CBDC for transactions. During the second phase, the digital ruble will be tested as a payment method for goods and services, among other potential use cases. In the future, the central bank also plans to introduce digital ruble payments offline and provide non-resident customers with the opportunity to conduct transactions.

Mastercard to Expand Crypto-Dedicated Advisory Services

Payments giant Mastercard has gained a foothold in the crypto space.

Currently, the company's data and services division has more than 2,000 employees, including engineers, consultants, and data scientists. However, it will hire 500 professionals in 2022 to further develop the consulting division. Consulting work for banks and merchants who need assistance in adopting cryptocurrencies, including helping them create crypto cards and develop strategies for integrating crypto payments and NFTs. In addition to this, Mastercard will leverage its partnerships with crypto-native businesses to provide crypto solutions and help businesses enter the crypto market.

US Lawmakers Propose Government-Backed Stablecoin Insurance Bill

Josh Gottheimer, a member of the House Financial Services Committee, has introduced a bill that would require the Federal Deposit Insurance Corporation (FDIC) to back stablecoins in a manner similar to fiat deposits, labeling stablecoins issued by institutions or non-bank issuers that are insured " qualified". The FDIC should establish a qualified stablecoin insurance fund to ensure that stablecoin holders can convert them into U.S. dollars as needed. In addition to insurance requirements, the OCC will largely have the authority to set the standards and rules governing stablecoin issuers.

Crypto lobbying groups including the Blockchain Association and the Chamber of Digital Commerce have expressed support for the legislation.

Teana Baker Taylor, chief policy officer at the Chamber of Digital Commerce, praised the bill for leveling the playing field between “stablecoins that have been created and those that are newly created,” in addition to setting the U.S. on the path to The path to a clearer regulatory framework for digital assets. SBF, CEO of cryptocurrency exchange FTX, said that it is exciting to regulate stablecoins by ensuring that they are 1:1 funded, and that regulation and transparency can provide investors with the trust and security they need.

Marshall Islands Officially Recognizes The DAO as a Legal Entity

The Marshall Islands, an independent island nation, has been actively exploring use cases for cryptocurrencies since 2018, with the government creating a new cryptocurrency called SOV (SOV), which is considered legal alongside the U.S. dollar currency.

After passing the amendment to the Non-Profit Entity Act, the Marshall Islands officially recognizes decentralized autonomous organizations (DAOs) as legal entities, and hopes to become a "hotbed of DAOs", allowing any DAO to register and conduct business in the Marshall Islands, and incorporated DAOs do not have to register as separate limited liability companies. This move makes the DAO officially recognized by a sovereign state for the first time.

Colorado Expects to Accept Cryptocurrency Taxes by Summer

Colorado Governor Jared Polis said in an interview that cryptocurrency holders in the state are expected to have the option to pay their taxes in cryptocurrency as early as summer, which the state will then convert back to fiat currency. The governor added that he is not concerned about the price volatility of cryptocurrencies such as bitcoin because the state has no plans to hoard them and convert funds immediately. Polis believes that the state’s decision to adopt crypto payments not only reduces transaction costs, but also promotes the prospect of this new asset class.

Top Crypto Firms Team Up to Boost Industry Compliance

The Financial Action Task Force (FATF) recommended last year that virtual asset service providers (VASPs) adopt certain rules related to anti-money laundering (AML) and counter-terrorist financing (ATF), known by many as the “travel rule,” designed to prevent crypto Users of companies and exchanges that use cryptocurrencies for illicit purposes are advised to provide regulators with information on transactions of $1,000 or more.

According to a blog post from crypto service provider Paxos, Paxos has announced the launch of a “travel rule” universal solution called “TRUST,” whose members include Coinbase, BlockFi, Gemini, Kraken, Robinhood, Circle, Fidelity, and more. These crypto companies, exchanges or service providers will ensure that crypto companies comply with the Travel Rule while meeting security and privacy requirements and not centrally storing users’ personal data. Additionally, they are focused on adding new members so that TRUST can provide comprehensive compliance across the entire crypto industry.

Twitter integrates Ethereum payment tip service

Last year, the social media platform Twitter enabled bitcoin payment as a tipping method, and tried to connect some users to Ethereum encrypted wallets to display NFT as a profile picture. This week, the platform added Ethereum as a payment method for tipping. Users wishing to receive Ethereum tips simply need to enable tipping and add an Ethereum address to their profile. However, adding an ENS domain name in place of a full address is currently not valid.

Crypto regulation in the UAE is about to go nationwide

As early as 2018, the Abu Dhabi Global Market in the United Arab Emirates was the first to introduce cryptocurrency regulations, and last year, the Dubai World Trade Center joined it. After considering the ongoing encryption policies of France, the United States, the United Kingdom, Singapore, etc., the country’s regulators decided to formulate nationwide encryption licensing legislation to help the UAE achieve its goal of becoming a leading encryption-friendly jurisdiction. Currently in the final stages, crypto licenses for virtual asset service providers (VASPs) are expected to be issued by the end of the first quarter.

Sequoia Capital Launches Crypto Fund Worth Up to $600 Million

American venture capital firm Sequoia Capital has launched a new $600 million cryptocurrency fund to invest in blockchain and crypto-focused startups. Sequoia Capital partner Sean Maguire has described cryptocurrencies as "the megatrend of the next 20 years," calling it "the future of money."

Sequoia Capital is no stranger to the crypto community as it has provided financing to dozens of projects in the crypto industry. Last week, Layer 2 scaling solution (Layer 2) Polygon received a new round of financing with a total amount of 450 million US dollars, led by Sequoia Capital India, followed by more than 40 venture capital funds.

FBI Forms New Cryptocurrency Unit to Fight Crime

While the encryption industry is booming, black industries still exist, such as ransomware, money laundering, and fraud. Last year, the U.S. Department of Justice created the National Cryptocurrency Enforcement Team specifically to go after platforms that “help criminals launder money or hide their proceeds of crime,” such as darknet-based bitcoin obfuscation service Helix.

In an effort to increase law enforcement capabilities in the crypto market, Deputy Attorney General Lisa Monaco said the FBI is creating a "specialized team dedicated to cryptocurrencies," called the Virtual Asset Development Unit, which will include crypto experts. , and has the means of blockchain analysis that could eventually be used to track and seize illicit funds.

JPMorgan becomes the first bank in the Metaverse

JPMorgan Chase, the largest bank in the United States, says it has become the first banking institution in the metaverse to open a virtual lounge in the Metajuku shopping district in the virtual world of Decentraland: visitors can see a portrait of chairman Jamie Dimon And the tiger that has been roaming around, going upstairs, visitors will see a speech by an executive on the cryptocurrency economy. The lounge is named after Onyx, JPMorgan's internal blockchain payment system.

At the same time, J.P. Morgan published a Metaverse report stating: “The Metaverse is likely to infiltrate all sectors in some fashion over the next few years, with a market opportunity estimated to exceed $1 trillion in annual revenue.”

Top Fed official to ban trading in stocks, securities, cryptocurrencies

The FOMC adopted comprehensive rules for the investing and trading activities of senior officials, designed to prevent the appearance of any conflict of interest and increase public confidence in the impartiality and integrity of the Committee's work.

Senior Federal Reserve officials, including the Reserve Bank's first deputy governor and director of research, Federal Open Market Committee staff, systemic open market account managers and deputy managers, directors of board divisions who regularly attend committee meetings, individuals designated by the Fed chair, and their spouses and children under 18:

risk warning:

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risk warning:

According to the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Participate in any illegal financial practice.