Regulation in the Week in Review #11 – Hard Headwind from Asia?

In the past week, a lot has happened around the globe in terms of regulation. In the series „Regulation in the Week in Review“ we look back at the end of the week and summarize what was said, thought or decided where, when and by whom.

China: Are national blockchain standards coming?

The Chinese government is apparently working on introducing uniform national standards for blockchain technology. As the Chinese government announced, they want to advance the blockchain and generally distributed ledger technologies in China. To this end, the Ministry of Industry and Information Technology has already initiated measures, such as a seminar with representatives from business and society.

ECB: Bitcoin not responding to cashless society
A statement by Benoît Cœuré and Jacqueline Loh states that Bitcoin is a „challenge“ because banks fail to provide appropriate international credit transfer options for consumers. The Bitcoin reveals an old weakness in our current system: cross-border retail payments. Nevertheless, crypto currencies cannot replace central bank money. Cœuré is a member of the Executive Board of the ECB and Chairman of the Payment and Market Infrastructure Committee of the Bank for International Settlements (BIS). Loh is chairman of the BIS Market Committee.

Thailand’s former finance minister: crypto-regulation necessary

In his role as chairman of the Thai Fintech Association, Korn Chatikavanij advocates the regulation of crypto currencies. The former finance minister supports the proposal of the Thai financial market supervisory authority SEC to issue a set of rules.

Malaysian Central Bank: Illegal ICO punished
The Central Bank of Malaysia made a special announcement. Bank Negara Malaysia (BNM) took steps against the Blockchain project Coinzer, which had recently launched an ICO. The coin’s logo included the BNM’s logo, the Malaysian coat of arms and the 14-pointed star of Malaysia, thus erroneously establishing a link with the Malaysian state.

Legal Status of Crypto Mining: No Ban Possible
The comparatively high energy consumption of crypto currency mining has not passed the EU Commission by either. As Mariya Gabriel, the Commissioner for the Digital Economy and Society, notes, mining is not prohibited by any EU law. However, it falls under EU legislation on energy efficiency and climate protection.

Genesis Mining must cease activities in South Carolina
Cloud mining service Genesis Mining has been ordered to cease operations in South Carolina following an injunction issued on 9 March. The order mentions Genesis and a second company, Swiss Gold Global Inc. The mining contracts entered into are classified as securities by the Securities Commission of South Carolina, but Swiss Gold Global, which acted as broker-dealer for Genesis, were not registered in the state to offer these securities.

Putin advisor brings crypto currency into play for Eurasian Union
Putin consultant Sergey Glazyev doubts the security of Russian deposits in Western banks. This is why he is bringing a blockchain-based digital currency into play for the countries of the Eurasian Economic Union. This would make it possible to circumvent the sanctions directed against Russia, which would greatly unsettle the global banking sector.