Sanctioned Russian Banks Transact On Crypto Exchanges, IMF Offers Guidance On Developing Effective Crypto Policies
Outlook money
Here are some major developments in the crypto world over the past few days
Two major crypto exchanges still allow customers of sanctioned Russian banks to conduct transactions on their platforms, digital asset data analytics firm Inca Digital said.
Huobi and KuCoin enable people to trade crypto with debit cards issued by sanctioned Russian banks like Sberbank, Hindustan Times reported, citing Inca Digital’s report.
According to Adam Zarazinski, Chief Executive Officer of Inca Digital, this violates US and European sanctions, and many of these transactions involve Tether, a stablecoin that has come under regulatory scrutiny.
“Tether is commonly used by Russians to take money out of the country,” he said. “It is notably used by these two exchanges to offer crypto banking services to sanctioned Russian banks,” he added.
Huobi, KuCoin and Tether did not respond to the allegations.
The report also accuses Binance, the world’s largest cryptocurrency exchange, of offering Russians “multiple ways to exchange local currency for cryptocurrency.” According to the report, these opportunities are offered on their over-the-counter trading desk and peer-to-peer marketplace.
IMF Board Offers Guidance on Developing Effective Crypto Policies
The Board of Directors of the International Monetary Fund (IMF) provided guidance to member countries on how to develop effective crypto policies. According to Bitcoin.com, the board emphasized the development of comprehensive crypto regulations to “better mitigate the risks posed by crypto assets while reaping the potential benefits of technological innovation.”
On Thursday, the IMF said it was developing a regulatory framework that can “help members develop a comprehensive, consistent, and coordinated policy response” to crypto assets.
“By adopting the framework, policymakers can better mitigate the risks posed by crypto assets while reaping the potential benefits of associated technological innovation,” the IMF said.
The first element of the framework outlined by the IMF is to “maintain monetary sovereignty and stability by strengthening the monetary policy framework and not granting crypto assets official currency or legal tender status.”
It also includes protections against “excessive capital flow volatility”, adopting a “clear tax treatment of crypto assets” and enforcing “prudential, conduct and oversight requirements for all crypto market participants”.
In order to maintain monetary sovereignty and stability, the Directors of the IMF Executive Board generally agreed that crypto assets should not be recognized as official currency or legal tender.
Spotify is investigating Web3 wallet integration
The world’s largest music and audio streaming platform, Spotify is working with various digital asset companies to test NFT-enabled playlists for token holders.
The feature could allow NFT holders to access music collections curated by blockchain-based companies like Overlord and Kingship by connecting their wallets to the Spotify app. Android users in the United States, United Kingdom, Germany, Australia, and New Zealand can try the feature.
“At Spotify, we routinely run multiple tests to improve our user experience. Some end up paving the way for our broader user experience, others just serve as key insights. We have no further news on plans at this time,” a spokesperson for the application said.
As a result of the announcement, demand for Web3 music tokens has increased. Blockchain companies like Viberate (VIB), Audius (AUDIO), and Rhythm (RHYTHM) have all seen their token values surge since the pilot was announced.