Crypto Policy News Roundup, April 29th, 2022

Kraken gets the green light from ADGM to operate in Abu Dhabi

Earlier this week, the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM), granted full approval to Kraken to operate as a Virtual Asset Multilateral Trading Facility (MTF) and Custodian in Abu Dhabi and the rest of the UAE.

This means that Kraken will be the first global crypto exchange in the UAE that will “offer investors the ability to invest, trade, withdraw and deposit virtual assets directly in local AED currency“.

The UAE is one of the most financially innovative jurisdictions in the world, with region-leading crypto participation rates by both consumer and professional investors. The ADGM and its financial regulator have been true pioneers for global crypto regulation.

Curtis Ting, Managing Director of EMEA at Kraken

The UAE has been particularly progressive in respect of digital assets and cryptocurrencies. In 2018, it was the first country in the world to establish a comprehensive regulatory framework for digital assets.

Binance, the world’s largest cryptocurrency exchange (by volume) was also granted an “in-principle” approval from the FSRA earlier this month.

Panama passes new crypto bill

On Thursday, Panama’s National Assembly passed a bill that would allow the public and private use of cryptocurrencies.

While the bill still has to be officially signed into law by Panama’s president, it would enable Panamanian citizens to use crypto to pay for goods and services. Panamanians would also be able to pay their taxes using cryptocurrencies if they wish to do so.

Blackrock Launches Blockchain ETF

A few weeks ago we reported that Blackrock, the world’s largest fund manager, had filed its intention to launch a blockchain and digital assets ETF. The fund, the “iShares Blockchain and Tech ETF”, officially launched earlier this week.

The ETF gives investors exposure to a host of blockchain companies including Coinbase Global, NVIDIA, Galaxy Digital Holdings, Block, SBI Holdings, Robinhood, and Hive Blockchain Technologies.

The ETF does not invest directly in cryptocurrencies.

European Central Bank Board Member Says Crypto Resembles Subprime Mortage Crisis

On Monday, April 25th, ECB Board Member Fabio Panetta speaking at Columbia University in New York likened cryptocurrencies to a Ponzi scheme, while calling for stricter regulation of the industry.

Crypto evangelists promise heaven on earth, using an illusory narrative of ever-rising crypto asset prices to maintain inflows and thus the momentum fueling the crypto bubble,

Fabio Panetta, European Central Bank

Panetta also told the audience at Columbia that the crypto bears a striking resemblance to the subprime mortgage crisis of 2008. This echoes the sentiments of economist Paul Krugman, which we previously reported on.

Nepal issues warning about the use of Crypto

Also on Monday, the Nepal Telecommunications Authority (NTA), the technology sector regulator, issued a warning regarding the use of cryptocurrency. It told the public that buying and trading bitcoin and crypto are illegal activities and if anyone is found doing so “action will be taken according to the prevailing law”.

Earlier this year, the Nepalese Central bank issued a directive that made the buying and selling of cryptocurrencies illegal in Nepal. The apparent reason for the ban was to combat fraud and illicit activities.