T U B E

• The draft law introduces harsh penalties for miners failing to report digital assets to the state.
• It threatens to punish those who organize illegal trading of cryptocurrencies with imprisonment and hefty fines.
• If miners fail to report their income twice in the course of three years, they will face up to two years of imprisonment, a fine of up to 300,000 rubles, and even forced labor for up to two years.

Russian Crypto Miners Facing Harsh Penalties

A draft law designed to regulate crypto mining in Russia introduces harsh penalties for miners failing to report digital assets to the state. In its latest revision, the bill also threatens to punish those who organize illegal trading of cryptocurrencies with imprisonment and hefty fines.

Penalties For Tax Evasion

Russian crypto miners will have to report their income and provide tax authorities with detailed information about their digital assets, including wallet addresses, in order to avoid being prosecuted by the state. This includes fines in the millions of rubles and prison time if miners fail to report their income twice in the course of three years and the value is over 15 million rubles (close to $200,000). Even harsher punishments await those who evade declaring an amount exceeding 45 million rubles (almost $600,000) – up to four years in prison, a fine that can reach 2 million rubles, and forced labor for up 4 years.

Stricter Stance On Crypto Trading

The Russian Ministry of Finance has proposed amendments which would force crypto mining enterprises sell extracted cryptocurrency either on foreign exchanges or on Russian trading platforms established under “experimental legal regimes” which are yet be established. Exchange operators, banks or other legal entities will be added into a special register; any activities outside this framework will be viewed as violations punishable by law.

Rise Of Illegal Mining

The new regulations come as illegal crypto mining is becoming increasingly common across Russia due its lucrative nature – electricity costs are relatively low compared with other regions around the world. By making it harder for miners operating outside legal frameworks – such as not declaring taxes or using illegitimate sources of electricity – authorities hope that more people would move towards legitimate businesses instead.

Conclusion

The adoption of stricter laws regulating crypto mining in Russia is aimed at preventing tax evasion while providing greater assurance that miner’s activities remain within legal boundaries. By introducing severe punishment for those who don’t comply with regulations along with options for legitimate trading platforms where they can sell their coins safely – authorities hope that more people would move towards legitimate businesses instead

• The Reserve Bank of India (RBI) is exploring the offline functionality of its central bank digital currency (CBDC) and has begun piloting it in both the wholesale and retail sectors.
• An RBI official says that the digital rupee will act as an alternative to cryptocurrencies and possess all the attributes of physical currency, including anonymity.
• RBI Governor Shaktikanta Das has warned against cryptocurrencies, citing potential risks to financial stability, monetary system, and cyber security.

India’s Central Bank Digital Currency

The Reserve Bank of India (RBI) is exploring the offline functionality of its central bank digital currency (CBDC). The Indian central bank is piloting its CBDC in both the wholesale and retail sectors. An RBI official recently said that the digital rupee will act as an alternative to cryptocurrencies and possess all the attributes of physical currency, including anonymity.

Digital Rupee Piloting

The RBI began piloting its digital rupee in November 2020 in the wholesale sector and December 2020 in the retail sector. Reliance Retail became the first retailer to accept digital rupees. As per RBI Deputy Governor T. Rabi Sankar, over 50,000 users are now using India’s CBDC with 5,000 merchants accepting it.

Features of Digital Rupee

RBI Executive Director Ajay Kumar Choudhary said during a CNBC-TV18 interview that India’s CBDC must possess all features of physical currency, including anonymity. He also stressed that it should be least disruptive and not replace physical currency or current financial system. Meanwhile, RBI Governor Shaktikanta Das clarified that a CBDC functions more like physical currency notes with an automated sweep in and out feature unlike UPI which relies on banks as intermediaries for real-time payments.

Warning against Cryptocurrencies

Das further cautioned against cryptocurrencies such as bitcoin and ether due to their associated risks like undermining authority of central banks. He highlighted potential risks to India’s financial stability, monetary system and cyber security from crypto investments or trading activities by general public or institutions operating within India’s jurisdiction or abroad but having some economic exposure in India..

Conclusion

India’s CBDC aims to provide citizens with a digital form of money while mitigating potential risks posed by crypto investments or trading activities by individuals or institutions within/outside India’s jurisdiction with economic exposure here.

• U.S. Representative Tom Emmer has introduced the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act to protect Americans‘ right to financial privacy.
• The bill prohibits the Federal Reserve from issuing a CBDC directly to anyone, and bars it from using a CBDC to implement monetary policy and control the economy.
• The bill is supported by nine other Congressmen who believe that any digital version of the dollar must uphold American values of privacy, individual sovereignty, and free market competitiveness.

U.S. Lawmaker Introduces CBDC Anti-Surveillance State Act

U.S. Congressman Tom Emmer has introduced the Central Bank Digital Currency (CBDC) Anti-Surveillance State Act „to halt efforts of unelected bureaucrats“ from „stripping Americans of their right to financial privacy.“ The bill also prohibits the Federal Reserve „from issuing a CBDC directly to anyone.“

Purpose of Bill

The recently elected House Majority Whip tweeted: Today, I introduced the CBDC Anti-Surveillance State Act to halt efforts of unelected bureaucrats in Washington, DC from stripping Americans of their right to financial privacy. Emmer elaborated in a follow-up tweet that the bill „does three things“ by amending the Federal Reserve Act:

• Prohibits the Fed from issuing a CBDC directly to anyone.
• Bars the Fed from using a CBDC to implement monetary policy and control the economy.
• Requires the Fed’s CBDC projects to be transparent to Congress and the American people.

Support for Bill

The bill is supported by Representatives French Hill, Warren Davidson, Andy Biggs, Mike Flood, Byron Donalds, Pete Sessions, Barry Loudermilk, Young Kim, and Ralph Norman. Congressman Emmer stressed that any digital version of the dollar must uphold our American values of privacy, individual sovereignty, and free market competitiveness or else opens up opportunities for surveillance tools.

Previous Similar Legislation

Conclusion

• The U.S. Trustee requested the appointment of an independent examiner for the FTX bankruptcy case, which was denied by Judge John Dorsey.
• The judge cited concerns that the appointment could cost creditors tens of millions of dollars and that existing management is highly qualified to handle proceedings independently.
• The Delaware bankruptcy court’s authority overruled the government’s request, which had been supported by a letter from four bipartisan U.S. senators.

FTX Bankruptcy Case

The FTX bankruptcy case has been ongoing in the Delaware bankruptcy court since December 1st, 2022 and is currently being presided over by Judge John Dorsey.

U.S Trustee Requests an Independent Examiner

The U.S Trustee, an arm of the Department of Justice (DOJ), requested that an independent examiner be appointed to oversee proceedings in the FTX case; this request was supported by a letter from four bipartisan U.S senators who insisted on such an appointment.

Judge Denies Request Based on Cost Concerns

Judge Dorsey ultimately denied this request due to his belief that appointing an independent examiner would be too costly for creditors at up to $100 million and because he felt that current management is sufficiently qualified to handle proceedings independently without additional oversight or cost.

Government’s Request Overruled by Court Authority

Despite the government’s insistence on an independent examiner, the judge presiding over the FTX bankruptcy case ruled that his court’s authority had superseded any requests made by Congress or other governing bodies when it came to making decisions about how best to proceed with this particular case moving forward.

Conclusion

In conclusion, Judge John Dorsey denied the U.S Trustee’s request for an independent examiner in order to save creditors money and keep costs as low as possible while allowing current management sufficient autonomy when handling proceedings in this ongoing bankruptcy case

• Judge John Dorsey has delayed his decision on whether to appoint an independent examiner in the FTX case due to cost concerns.
• At the latest hearing, FTX’s lawyers argued that the endeavor could be costly, with expenses estimated to reach between $90 million and $100 million.
• The U.S. Trustee emphasized that the appointment of an examiner was mandated by Congress and urged the court to do so in order to uncover any wrongdoing by specific FTX employees.

FTX Bankruptcy: Judge Delays Decision on Appointing Independent Examiner

Judge John Dorsey has delayed his decision on whether to appoint an independent examiner in the FTX case amid cost concerns for debtors reaching tens of millions of dollars. Currently, Dorsey is hopeful a mutually agreed upon solution between both parties can be reached, however a representative for the U.S. Department of Justice’s Trustee contended that it is mandated by Congress and no longer within Dorsey’s authority.

FTX Bankruptcy Hearing Highlights Cost Concerns

At the latest hearing, FTX’s lawyers from Sullivan & Cromwell argued that the endeavor could be costly, with expenses estimated to reach between $90 million and $100 million according to new CEO John J. Ray III. James Bromley of Sullivan & Cromwell stated that there is “no evidence” that outside professionals would be more impartial than FTX’s current experts working on the case including a cybersecurity firm Sygnia and criminal investigators alongside top government regulators.

Calls for Impartiality

Juliet Sarkessian representing U.S Trustee described the situation as a “dumpster fire” and emphasized that appointing an examiner was mandated by Congress in these circumstances; aligning with a letter sent by senators Cynthia Lummis (R-WY), Thom Tillis (R-NC), Elizabeth Warren (D-MA) and John Hickenlooper (D-CO). The senators urged for an independent examiner which they believe may uncover information not otherwise revealed or any wrongdoings conducted by specific FTX employees .

FTX CEO Testimony

During his testimony, Ray expressed that this experience has been “pure hell” listing expenses from legal fees, professional services fees for consultants working overtime during Christmas season , accommodations costs for out-of-town meetings , travel fees etc., all amounting up to roughly $690k last year .

Conclusion

The U.S Trustee appears determined in their efforts to have an independent examiner appointed while FTX team are concerned about potential costs associated with such decision . It remains unclear what path Judge Dorsey will ultimately take but he hopes both parties will come to some sort of agreement before any further action is taken .

• Ethereum Classic’s hashrate saw a significant increase just before the Ethereum network transitioned from proof-of-work (PoW) to proof-of-stake (PoS).
• Since the transition, however, the network’s hashrate has decreased significantly by 44.33%.
• Additionally, Ethereum Classic’s price has decreased 35.82% and its total value locked (TVL) in decentralized finance (defi) protocols has dropped 56.84%.

Ethereum Classic Hashrate

Just before the Ethereum network transitioned from a proof-of-work (PoW) blockchain to proof-of-stake (PoS), Ethereum Classic’s hashrate saw a significant increase. On Jan. 17, 2022, ETC had 23.87 terahash per second (TH/s) of hashrate and as of Jan. 30, 2023 it had 119.32 TH/s of hashrate – a 399% increase in 12 months since The Merge. However, 134 days ago ETC’s computational power was more than 44% higher than it is today at 214.37 TH/s of hash rate at its peak before ETH PoW to PoS Transition.. F2pool is currently the largest Ethereum Classic mining pool with 26.91 TH/s or 22.55% of the total hash rate followed by Ethermine with 16.48 TH/s accounting for 13.81%. The other top ten pools add up to 95.11 TH/s which combined makes up 79 % of the total Ethereum classic hash rate .

Ethereum Classic Price

On Sept 15th 2022 ,the day of The Merge ,ETC was valued at around $35 .81 per coin after reaching $39 per unit previously . As of Jan 30th 2023 it is trading at $22 .98 per unit – a decrease of 35 . 82 % from its value after transition .

Total Value Locked in Decentralized Finance Protocols

As of Sept 15th 2022 , Ethereum classic had approximately 873 , 161 USD in Total Value Locked (TVL) in decentralized finance protocols while as on Jan 30th 2023 this number decreased by 56 . 84 % to 376 , 803 USD TVL . Hebeswap dominates with 58 . 74 % of this TVL making it one of the most popular DEX platform on ETC network right now .

Conclusion

Since ETH switched from PoW to PoS , ETC has seen an impressive increase in its Hash Rate but also lossed much luster as well as 44 % drop in Hash Rate when compared 134 days ago . Also ETC price has declined 35 % and TVL on Defi protocols have dropped drastically by 57 % during same time period giving us mixed signals about future performance & trends that we need to look out for carefully moving forward ..

Next Steps

It will be interesting to see if there are any new developments that can help boost both price &hash rate again for long term investors looking for investments opportunities in cryptocurrency market sometime soon..

• Bitget recently held their Hero Trader Awards 2022, a competition to select the best 15 copy traders with high moral standards and professional qualities.
• 75 Star Traders participated in the contest, and the event parsed winners into five categories with prize pools ranging from 8,000 to 3,000 USDT.
• Winners of the competition will receive additional benefits such as invitations to a series of AMAs and seminars on Twitter, and eligibility to join the Bitget Hero Traders Foundation.

Bitget, a leading cryptocurrency derivatives exchange, recently held their Hero Trader Awards 2022 competition, aiming to select the best 15 copy traders with high moral standards and professional qualities through community voting. The event was organized to commemorate the advancement of copy trading based on transaction data from Bitget’s One-Click Copy Trade in 2022, which was used to select 75 Star Traders to participate in the contest.

One-Click Copy Trade is Bitget’s flagship offering of crypto copy trade, and since its launch in Jan 19th, 2023, the product has amassed more than 80,000 traders and over 380,000 followers, along with 42,000,000 profitable copy trades. Recently, Bitget has become the first cryptocurrency exchange to launch copy trading in the spot market.

The contest parsed winners into five categories – Grand Champion Award, Robin Hood Award, Mansa Award, Hermes Award, and Genghis Award, as users voted for their favorite candidates based on a range of trading variables, helping Bitget select the 15 finalists among the best copy traders. The prize pools range from 8,000 to 3,000 USDT, and other prizes include poker themed NFTs, copy trading follower count increases, and various exclusives.

In addition to the prizes, Bitget will also give additional benefits to the Hero Trader Award candidates, including invitations to a series of AMAs and seminars on Twitter, as well as eligibility to join the Bitget Hero Traders Foundation with the opportunity to participate in follow-up activities and training for the foundation.

Bitget strives to improve products through innovation and is a pioneer in crypto copy trading. The company hopes that this event will help to further promote copy trading, while also recognizing and rewarding the hard work and dedication of the best copy traders in the industry.

• The U.S. Federal Reserve Board has rejected the attempt of Custodia Bank to become member of the Federal Reserve System.
• The decision was announced Friday, and the application submitted by the digital asset bank was inconsistent with legal requirements.
• The Federal Reserve Board argued that the firm’s novel business model and proposed focus on crypto-assets presented significant safety and soundness risks.

The United States Federal Reserve Board has announced its rejection of Custodia Bank’s application for membership in the Federal Reserve System. The announcement, which was made on Friday, highlighted the application’s inconsistentcy with legal requirements.

The Federal Reserve Board argued that the business model proposed by Custodia presented significant safety and soundness risks. Custodia is a special purpose depository institution which does not have federal deposit insurance and wanted to engage in „untested crypto activities,“ such as issuing a crypto asset. The Board noted that such activities are highly likely to be inconsistent with safe and sound banking practices, and that the risk management framework proposed by the bank was insufficient to address relevant concerns.

In light of these and other concerns, the Federal Reserve Board determined that Custodia’s application was inconsistent with the factors the Board is required to evaluate by law. The order will be released following a review for confidential information.

Membership in the Federal Reserve System would have allowed Custodia, a bank chartered by the state of Wyoming, to offer a range of banking services, such as checking and savings accounts and loans. It would also have allowed the bank to access to the Fed’s payments system and access to liquidity facilities. However, the Federal Reserve Board concluded that the risks associated with the business model proposed by the company were too great to take on at this time.

The decision from the Federal Reserve Board underscores the need for banks and financial institutions to ensure that their business models are in line with regulations, and that their risk management frameworks are able to address money laundering and terrorism financing risks. It also highlights the importance of banks being able to demonstrate that they have the capacity to manage the risks associated with emerging technologies.

• The Bank of Ghana has opened an application process for innovators to be included in its regulatory sandbox.
• The sandbox will support innovations that attempt to solve the financial exclusion challenge and new digital business models not covered by existing regulation.
• Applications for admission into the sandbox will close on March 14th 2023.

The Bank of Ghana is offering a unique opportunity for financial innovators to be included in its regulatory sandbox. The application process for innovators to participate in the sandbox opened on Feb. 13th, 2023 and will close on March 14th, 2023.

The regulatory sandbox is an important step forward in the Bank of Ghana’s commitment to providing the enabling environment for innovation to promote financial inclusion, and facilitate Ghana’s digitization and cash-lite agenda. The sandbox will support innovations that include new digital business models not currently covered explicitly or implicitly under any regulation. It will also support innovations that attempt to solve the financial exclusion challenge as well as any new and immature digital financial service technology.

In order to apply for admission to the sandbox, interested participants are required to submit a complete form which can be accessed via a link. Prospective participants will be informed of the outcome of their respective applications within 21 working days after the closure of the application window.

The Bank of Ghana believes that the sandbox is an important step in deepening financial inclusion and promoting innovative solutions in the financial sector. The Bank is inviting financial institutions and unlicensed fintech startups to apply for admission into the sandbox. It is hoped that the sandbox will encourage the development of new products and services that can benefit all Ghanaian citizens.

The Bank of Ghana is confident that the regulatory sandbox will contribute to the growth of the financial sector in Ghana and ultimately lead to improved financial inclusion for all.