Crypto Regulations Watch 2022
This week, Russia and Portugal joined the list of countries that are enacting laws that promote the adoption and legalization of Cryptocurrencies. Here’s what we know so far;
Russia: The Russian Government is finalizing bill to legalize crypto as a form of payment.
Earlier this year, the Russian Central Bank had called for a ban on crypto currency mining within the Russian federation. This made the u-turn that followed the announcement of a new “Crypto Payments” bill this week, come as a surprise to many.
Russia’s Ministry of Finance has now amended the nation’s “Digital currency bill” to include cryptocurrency mining provisions, the agency announced Friday.
The ministry presented the original draft cryptocurrency law, which focused on digital assets as investment vehicles, to the Russian Parliament in February. The updated version of the bill, the ministry said, details rules around trading and mining cryptocurrencies.
The pending legislation, named “On Digital Currency,” comes as interest in the Russian government’s use of cryptocurrencies continues to increase amid the ongoing war in Ukraine, which started on Feb. 24 when Russia invaded the country.
In January, Russia’s central bank called for a ban of cryptocurrency mining, citing concerns that digital assets could undermine financial stability.
Reports that Russia was considering a state-sponsored digital ruble, its own central bank digital currency, swirled in early February.
In March, Sberbank, Russia’s top lender, was granted a license by the country’s central bank to begin issuing digital assets in response to US economic sanctions. Assets issued on the bank’s digital platform will be recorded and circulated via a distributed ledger technology system, ensuring “data security” and data immutability, Sberbank said.
The license will allow companies in Russia to issue their own digital assets, providing they prove they have the cash requirements, and use digital assets issued through the bank’s information system. The news came as concern over how Russian entities may be using cryptocurrencies to evade sanctions heightened.
Portugal: Central Bank of Portugal Grants Country’s First Crypto License to a Bank.
On April 13th 2022, it was announced that the Central bank of Portugal has authorized Bison Bank to offer crypto custodian and trading services in Portugal.
Bison Bank, a Portugal-based financial institution, has received a license from the Portuguese central bank (Banco de Portugal) to operate as a virtual asset service provider (VASP), Banco de Portugal announced Thursday.
Following the announcement, Bison Bank is now expected to create a special business division, Bison Digital Assets, to operate as a virtual asset exchange, according to Portuguese media outlet Sapo.
The division is the first entity in Portugal owned by a bank to be authorized by Banco de Portugal to offer custodian and crypto trading services.
Bison Bank provides wealth management, depositary and investment banking services to individuals and institutional clients, according to its website. It is owned by a Hong Kong-based Chinese private capital group.
Cryptocurrency analysts expect this to me a major towards the mainstream acceptance of cryptocurrencies across the European union.
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