The possibility of a stablecoin, a cryptographic asset designed to realize price stability, as a future payment method is being discussed in various countries. Although the introduction of stablecoins in the United States is being discussed, the lack of transparency as a currency and the inconsistency of the redemption process are being questioned. Therefore, the U.S. Senate Banking Committee sent an information gathering letter to stablecoin issuers and exchanges through a public hearing in 2022. turned out
In a report on Stablecoins released by the U.S. Department of the Treasury on October 28, 2021, Bank of America said that it is urgent to regulate stablecoins as of November 23, regarding the possibility that stablecoins will become a future payment method. . Stablecoins are growing so rapidly that the total issuance will reach $141 billion in 2021. However, according to Bank of America, it is pointed out that stablecoin issuers are not regulated in a comprehensive framework because they have not reached a sufficient level of transparency about the composition of reserves that underpin stablecoins.
As such, attention on stablecoins is growing in the United States, and on November 24, 2021, the Senate Banking Committee sent an inquiry letter to major stablecoin issuers and exchanges to gather detailed information for a public hearing in 2022.
A letter to digital currency company Circle CEO Jeremy Allaire was published online, among which Senator Brown, chairman of the Senate Banking Committee, raised concerns about the lack of stablecoin transparency and questioned the consistency of the redemption process. are doing He requested an answer by December 3 in clear and easy to understand words.
On November 24, Allaire tweeted that he expects to work together to ensure consumers are adequately protected, in the form of a response to Senator Brown. Senator Brown sent a similar letter to the stablecoin issuer, Tether. Tether is being investigated by the judiciary for allegedly illegally hiding cryptocurrency-related transactions from banks in July 2021. Related information can be found here.
The Indian government has announced that a bill to ban all private crypto assets in India will be submitted for review by Parliament. Recently, there are countries such as El Salvador that make cryptocurrency bitcoin a legal currency, but it is reported that cryptocurrency trading is illegal in China, and there is a possibility that crypto assets will be strictly cracked in India.
It has also been reported that the Indian government has taken a stance to strictly crack down on crypto assets and is considering a complete ban on crypto assets in March 2021. However, as the government’s stance on crypto assets has softened over the past few months, there was hope that the final bill would be more loosely regulated.
However, in the outline of The Cryptocurrency and Regulation of Official Digital Currency Bill (2021), which was on the list of bills that Congress will be addressing in its winter session, the bill aims to ban all private crypto assets in India. It has been found that it is stated that
The bill outline states that it is intended to create an official digital currency creation framework issued by the Reserve Bank of India, and the regulation marks the government’s preparations to launch an official digital currency. The Reserve Bank of India, the central bank of India, is known to have a conservative view on crypto assets, and Governor Shaktikanta Das said in November that blockchain technology has been around for 10 years and can grow without crypto assets, and the central bank can’t support macroeconomic conditions. and from a financial stability point of view, they have serious concerns about crypto assets. In a speech in November, Prime Minister Modi also expressed his view that a crackdown on crypto assets is necessary, arguing that it is important for all democracies to work together to prevent crypto assets from falling into the wrong hands and ruining young people.
As the name and outline of the bill were announced, Bitcoin plummeted by more than 13% and Dogecoin by more than 15% in Indian cryptocurrency exchanges, but the impact was said to be limited to Indian crypto asset exchanges.
Currently, only the name and outline of the bill have been revealed, so it is unknown what the actual content will be, and it is unknown whether it will be the same as the draft announced in March. Summary: Neither can it be considered that the legislation seeks to ban all private crypto assets in India, but leaves room for recognition of existing crypto assets as it states that there are certain exceptions to promote crypto asset underlying technology and use. Also, the private crypto assets described here are ambiguous terms, and depending on the interpretation, some crypto assets may be exempt from regulation.
In addition, a government security department source said that there are concerns that cryptographic assets could serve as illicit trades and terrorist financing, and the main purpose of the regulation under the bill is to prevent the misuse of cryptoassets. In addition, the Prime Minister’s meeting on this issue said that the measures taken by the government in this area are progressive and positive. It was discussed not to make unregulated crypto markets a tool for money laundering or terrorist financing.
According to the report, crypto asset trading is likely to continue even under the new law, where users buy from crypto asset exchanges that meet certain requirements. The bill is aimed at protecting investors, he says, and may focus on restrictions, such as permits, when issuing new crypto assets.
There is also an opinion that the regulation by this bill will not be very strict, given that the government knows more about crypto assets than it did in March. It is difficult to ban all crypto assets because the digital asset ecosystem in India is already growing, individual investors pour large amounts of money into crypto assets and NFTs, and the crypto asset industry directly or indirectly creates more than 50,000 jobs.
A CEO of an Indian crypto-asset exchange claims that the bill is a step forward in the field of crypto-assets in India. Also, the operator of a YouTube channel related to crypto assets says the new bill will be more progressive than the previous one, but it is worth keeping an eye on how far it progresses. Related information can be found here.