Cryptocurrencies arrive in the Persian Gulf, the United States Congress moves aside, Australia studies regulating DAOs.
Last week got off to an uneasy start when a clause that many interpreted as a direct path to banning proof-of-work (PoW)-based cryptocurrencies suddenly returned to the draft of a major European Union directive that would apply to digital assets.
Many in the crypto policy space had immediate memories of other instances of damaging last-minute additions to legislation due to discussion and approval or dismissal days and hours before the vote. All ended well, however, as the Committee on Economic and Monetary Affairs voted against the hostile language bill.
In the United States, monetary policy continued to become politicized, as evidenced by the fact that Sarah Bloom Raskin, chosen by President Joe Biden to occupy the vice presidency of the Federal Reserve in terms of supervision, had to withdraw her appointment due to the refusal of the Senate.
Separately, Ukrainian President Volodymyr Zelenskyy put aside pressing matters of national defense to sign a bill granting digital assets legal status.
Other highlights of the week included the expansion of cryptocurrency platforms in the Gulf region, a number of crypto-related statements and actions by members of the US Congress, and some favorable political developments in Australia.
The Gulf of Crypto
Several Middle Eastern jurisdictions have welcomed major players in the global cryptocurrency industry to their turf in the past week. The streak began with Binance, the world’s largest cryptocurrency exchange by volume, getting clearance from the Central Bank of Bahrain on March 14. The license covers services such as trading, custody, and portfolio management.
Less than a day later, in a historic first, FTX obtained a license from the newly created Dubai Virtual Assets Regulatory Authority. However, Binance was hot on the heels of FTX, announcing that it had obtained a virtual asset exchange license from Dubai on March 16. With crypto powerhouses lining up to establish themselves in Dubai, the emirate appears poised to become the region’s crypto hub thanks to forward-thinking political initiatives by its leaders.
Much Ado at the Capitol
Digital assets remain high on the agendas of many US federal lawmakers, with another congressional hearing, this time from a national security and illicit finance standpoint, taking place at the Banking Commission. , Housing and Urban Affairs of the Senate. Hot topics like sanctions, regulatory compliance, and ransomware facilitation inevitably received a lot of attention. However, industry representatives were also able to spend some time calling on Congress to speed up its work to provide regulatory clarity for US-based crypto firms.
Meanwhile, cryptocurrency advocates and detractors in Washington, D.C. continued to make mischief. A bipartisan group of congressional representatives, led by Minnesota Rep. Tom Emmer, has denounced Securities and Exchange Commission chief Gary Gensler for subjecting crypto firms to unnecessary scrutiny. The eternal critics of cryptocurrencies: Representative Brad Sherman and Senator Elizabeth Warren, for their part, announced bills that would authorize the US government to limit the ability of digital asset service providers to deal with people and entities based in Russia.
Big News from Australia
Australian Senator Andrew Bragg, a longtime advocate for the cryptocurrency industry, has announced a far-reaching legislative package called the Digital Services Act. In addition to familiar issues such as setting standards for licensing of service providers, custody, and taxation, the initiative emphasizes the need to regulate decentralized autonomous organizations or DAOs. Bragg argues that these entities represent a “threat to the tax base” and therefore urgently need both acknowledgment and regulation. The senator from New South Wales unveiled the proposed framework at a Blockchain conference. The document is not part of the Australian legislature yet.
By Audy Castaneda
