The Policy Pulse: May 13th 2023

Binance Withdraws from Canadian Market

Yesterday, Binance announced its decision to withdraw from the Canadian marketplace. The move comes as a response to new guidance concerning stablecoins and investor limits provided to crypto exchanges. In a press release, the world’s biggest crypto exchange said that this would make the Canadian market untenable for Binance at this time.

Binance also said that it had taken some time to come to a decision, as it was exploring other viable options. However, it was ultimately decided that it had no choice but to pull out of the Canadian market.

Binance signed off the statement by saying: “While we do not agree with the new guidance, we hope to continue to engage with Canadian regulators aimed at a thoughtful, comprehensive regulatory framework. We are confident that we will someday return to the market when Canadian users once again have the freedom to access a broader suite of digital assets.”

Florida Governor Bans Central Bank Digital Currency (CBDC) Usage in the State

Florida Governor Ron DeSantis signed a bill on Friday that prohibits the use of a centralized digital dollar or CBDC, within the state. DeSantis has been vocal in his opposition to CBDCs, criticizing them as part of what he perceives as “woke politics”. 

The updated Florida law now explicitly excludes CBDCs from its definition of money.

See Also

Coinbase CEO: US Lagging Behind as Hong Kong Legalizes Crypto Trading

During a press conference, Governor DeSantis suggested that the Biden administration’s interest in studying CBDCs stems from a desire to suppress and eliminate other forms of digital assets, including cryptocurrencies. This action by Florida reflects a stance against the potential implementation of CBDCs and their perceived impact on digital asset markets.

This is the latest in an increasing amount of opposition to the digital dollar in the US.

Standard Chartered to Offer Crypto Custody in Dubai

• Standard Chartered and Dubai International Financial Centre (DIFC) have signed an MoU to collaborate on digital assets and digital asset custody services.
• Standard Chartered plans to launch digital asset custody services through its subsidiary Zodia Custody, catering to institutional clients worldwide.
• The collaboration aligns with Dubai’s vision to be a leader in the future of finance.
• The UAE’s balanced approach to digital asset adoption and financial regulation makes it an ideal market for Standard Chartered’s digital asset custody proposition.
• The partnership includes initiatives to promote a thriving digital assets ecosystem in Dubai and the UAE, with collaboration through the DIFC Innovation Hub.

White House takes aim at crypto miners with tax proposal

• Earlier this week the White House proposed the Digital Asset Mining Energy (DAME) excise tax, which would impose a 30% tax on the electricity used by crypto-mining firms.
• The tax aims to address the economic and environmental costs of crypto-mining, including pollution, higher energy prices, and greenhouse gas emissions.
• The White House maintains that the DAME tax ensures crypto-mining firms pay their fair share and estimates it will raise $3.5 billion in revenue over 10 years.

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