Weekly Crypto Policy News Roundup, February 25 2022

Ukrainian central bank suspends electronic payments

Given the rapidly deteriorating situation in Ukraine the country’s central bank, on 24 February 2022, ordered electronic money issuers to suspend the issuance of e-money prompting many Ukrainians to rely on cryptocurrencies to make payments and transfer value.

Brazilian Senate Committee Approves Crypto Bill

On Wednesday, the Brazilian Senate’s Economic Affairs Committee approved a cryptocurrency bill, which would formally regulate digital assets. Before the bill is formally signed into law by the President, it will have to be approved by the entire Senate, and then by the National Congress.

Brazilian Senator Irajá Abreu said that the bill’s passage into national law would pave the way for wider adoption of cryptocurrencies in Brazil, including “in the supermarket, in commerce” and “in a car dealership”.

The proposed law would:

• Provide a clear definition of “virtual assets”,
• Set out the responsibilities of cryptocurrency service providers, and
• Assign repsonsibilty to a government agency to oversee the regulation of crypto.

Italian Crypto Companies Register

A Decree and a Notice from the Italian Ministry of Economy and Finance has clarified that persons providing crypto services to Italians must establish a presence in Italy (even if their services are only offered online) and register on a special section of the general register of financial mediators.

Crypto service providers of Italian clients can register from 18 May 2022 until 60 days after that date, with an approval time frame of 15 days from receipt of the application to register.

Failure to register can lead to a fine of between EUR 2,065 to EUR 10,329.

Spain’s crypto ad rules go live

We reported on Spain’s crypto advertising rules previously which have since gone live from 17 February 2022. The advertising rules are contained in Circular 1/2022 of 10 January and the CNMV (National Securities Market Commission) will be responsible for assessing prior notifications of crypto ads designed to reach 100,000 or more people in Spain, or where an ad could have a ‘particular impact’ (undefined) on a lesser number of people.

Indian Crypto Ad Guidelines

On 23 February 2022, India’s self-governing advertising rules body, the Advertising Standards Council of India (ASCI), has published guidelines on crypto and NFT ads which apply from 1 April 2022.

Sweden’s CBDC trials for the ‘e-krona’ continues apace

On 22 February the central bank for Sweden, the Riksbank, announced the end of phase 2 and the commencement of phase 3 of its trails on the viability of its proposed central bank digital currency the ‘e-krona’, with a report on the outcome of phase 2 expected in spring 2022.

DNB on cross border payments

On 22 February 2022, Klass Knott, President of the Netherlands Bank, gave a speech in which he highlighted improved digital identity and customer due diligence infrastructures, and new types of payment infrastructures and arrangements, like central bank digital currencies and well-regulated “global stablecoins” as instrumental to the improvement of cross-border payments.

IMF on pros and cons of Nigeria’s CBDC, the ‘eNaira’

We previously reported on the launch of Nigeria’s new central bank digital currency, the ‘eNaira’ here. Now the International Monetary Fund has published a deep-dive report on the Nigerian economy including a summary of what it sees as the pros and cons of – see Box 2 on page 33 of this IMF report.

State Street on a ‘token’ economy

State Street has published a primer containing high-level thoughts on the tokenization of assets including cash.