After another FUD by China, that the officials pulled the plug for facilitating crypto miners in China, leading to a complete ban on mining cryptocurrencies in China, Kazakhstan and Russia are not established themselves as a New Home for crypto miners. The rulers there are now thinking about appropriate regulations for Bitcoin Schüfen. Representatives from the SEC and the EU also commented on the current status of crypto regulation.
Russia: Parliament establishes Bitcoin mining group
According to the latest data from the Cambridge Center for Alternative Finance, Russia accounted for 11 percent of the global Bitcoin hash rate in August 2021. At least since China’s mining ban, the Bitcoin mining business has been booming in the largest country in the world in terms of area, while a uniform legal basis has been a long time coming. Other times will soon dawn here are proven by the renewed formation of a separate working group in the State Duma, the Russian parliament. On Thursday, November 11, Duma spokesman Vyacheslav Volodin initiated the establishment of such a body for crypto mining. MP Andrei Lugovoi had previously stated that Russia’s miners generated $ 2 billion in untaxed income
Kazakhstan does not turn off electricity to miners
In addition to Russia, the neighboring state of Kazakhstan also benefits from the Chinese ban on Bitcoin mining. Because the Central Asian country fought its way to second place in the global hashrate ranking. However, the energy supply has not always been able to keep up with the growth of the industry. The state energy provider KEGOC has therefore been reducing the power supply to the mining farms since September. A legislative proposal is also being discussed that should limit the power supply for new prospecting operations to 100 megawatts. On November 10, Kazakhstan’s Energy Minister Magzum Mirzagaliyev said at a meeting with representatives from the IT and blockchain industries that mining companies would not have to fear any more far-reaching restrictions in the future. The minister said:
Given the great potential of the blockchain industry, it is necessary to join forces to develop it further. I favor the dialogue and therefore encourage the “white” miners to work together to find solutions to ensure the reliability of the shared power grid.
In return, the Bitcoin mining facilities are obliged not to endanger energy security in the country. The Kazakh Blockchain Association also agreed to consider importing energy. There was also agreement on unregistered mining facilities, so these “gray” miners would have to register as a matter of urgency.
EU Commission calls for agreement on crypto regulation.
In the course of a web forum, the EU Commission called on the member states to agree on the jointly developed Markets in Crypto Assets (MiCA) guidelines. According to media reports, Commissioner Mairead McGuinness said that politicians have a responsibility to secure the fast-growing crypto sector with reliable rules. Part of the proposed law is an EU-wide licensing system. For Bitcoin companies already approved in an EU country, expansion into other member states should be simplified. In the center of MICA still is the regulation of Stablecoins.
SEC officer confirms DeFi has potential
The Securities and Exchange Commission SEC is generally regarded as the bad cop of the crypto-Space. For years, the authority kept waiting for Bitcoin ETFs to be approved, and it is also known ostensibly as a warning voice for stablecoins and co. It may come as a surprise when SEC commissioner Caroline A. Crenshaw made a name for herself in a thoroughly DeFi-friendly tone. In a statement on November 9, the Democratic Party member stated that the world of decentralized financial services offered an “abundance of opportunities.” At the same time, danger lurked here. This applies – not surprisingly – with more powers for the SECto oppose. Crenshaw recalled that some of the DeFi products are under the control of the SEC. After all, they are securities.
Zimbabwe: CBDC instead of Bitcoin
Is Zimbabwe following in El Salvador’s footsteps? A statement by State Secretary Charles Wekwete, responsible for technical issues, gave reason to believe that Zimbabwe will soon take a leading role in terms of bitcoin adaptation in Africa. Because Wekwete recently announced at an industry summit that his government is considering the introduction of cryptocurrencies. However, the information minister Monica Mutsvangwa took the wind out of the sails of the rumor mill, which was seething. As a result, only a short time later. At a cabinet meeting on November 9, she clarified that the Zimbabwean dollar (ZWL) would remain the only national currency for the foreseeable future. If anything, your country is interested in a digital central bank currency rather than a decentralized offer such as BTC.