An overview of current news in the crypto space

In our digest, we have reviewed several important crypto industry news over the past week:

1. Vladimir Putin approved the use of CFA in international settlements;
2. BRICS plans to create a blockchain-based payment system;
3. Poland discusses law to block crypto accounts;
4. Wyoming gives DAO legal status with new law;
5. Montenegro Supreme Court decides to extradite Terraform Labs co-founder to South Korea;
6. Hong Kong launches Project Ensemble to test central bank’s ‘wholesale’ digital currency;
7. Tether helps Uzbekistan create digital national currency;
8. Brave adds BTC support and cryptocurrency exchange features to its wallet.

Now for more details. Reading time: 9 minutes.

1. Vladimir Putin approved the use of digital financial assets (DFAs) in international settlementsThe President of Russia, Vladimir Putin, has officially approved the use of digital financial assets (DFAs) in international settlements. The new law, which allows the use of DFAs as a means of payment in foreign trade transactions, came into force from the moment of its official publication. CFA are digital rights that include monetary claims, the possibility of exercising rights under equity securities, and rights to participate in the capital of a non-public joint stock company. The Bank of Russia has been authorized to regulate transactions involving CFAs. Issuers of CFA are now required to provide information on the beneficiaries of assets. All transactions with CFA will be tracked and recorded in a special information system. The head of the Duma Committee on Financial Market, Anatoly Aksakov, emphasized that the new law will help Russian companies to work more actively with friendly countries and mitigate the impact of sanctions on Russia.
2. Poland discusses the law on blocking cryptocurrency accountsPoland is discussing a bill expanding the powers of the market regulator (KNF) in the field of cryptocurrencies. Approval of the document by parliament will give the KNF the ability to independently block cryptocurrency accounts for up to four days if criminal activity is suspected. The period can be increased to six months with the authorization of the prosecutor’s office. The bill has sparked lively discussions, especially given the recent introduction of a 19% tax on cryptocurrency transactions. Arkadiusz Jóźwiak, editor-in-chief of financial portal Comparic, expressed fears that preliminary blocking of accounts based on suspicion could become an excessive measure. Meanwhile, Polish authorities plan to present a regulatory framework for cryptocurrency regulation by 2024. This will allow for the application of the European Union’s Cryptocurrency Regulation Act (MiCA) in the country. In case of violations, the regulator will be able to impose financial sanctions on companies operating in the cryptocurrency market and hold them accountable through the courts.
3. Poland discusses the law on blocking cryptocurrency accountsPoland is discussing a bill expanding the powers of the market regulator (KNF) in the field of cryptocurrencies. Approval of the document by parliament will give the KNF the ability to independently block cryptocurrency accounts for up to four days if criminal activity is suspected. The period can be increased to six months with the authorization of the prosecutor’s office. The bill has sparked lively discussions, especially given the recent introduction of a 19% tax on cryptocurrency transactions. Arkadiusz Jóźwiak, editor-in-chief of financial portal Comparic, expressed fears that preliminary blocking of accounts based on suspicion could become an excessive measure. Meanwhile, Polish authorities plan to present a regulatory framework for cryptocurrency regulation by 2024. This will allow for the application of the European Union’s Cryptocurrency Regulation Act (MiCA) in the country. In case of violations, the regulator will be able to impose financial sanctions on companies operating in the cryptocurrency market and hold them accountable through the courts.
4. Wyoming gives DAOs legal status with new lawWyoming, a state known for being cryptocurrency friendly, has introduced a new law that empowers decentralized autonomous organizations (DAOs). Wyoming’s governor, Mark Gordon, signed into law the DUNA Act, giving DAOs legal status. It allows DAOs to enter into contracts with third parties, open bank accounts, appear in court, and pay taxes. The law was proposed by the state’s Ad Hoc Blockchain Committee, which is chaired by Senator Chris Rothfuss. He argues that passing DUNA will enhance Wyoming’s reputation as a cryptocurrency-friendly place and help attract blockchain companies. Legal counsel Miles Jennings called the law a major breakthrough in DAO regulation. He emphasized that the law will protect DAOs and keep blockchains open. The law will take effect on July 1, 2024.
5. The Supreme Court of Montenegro decided to extradite Terraform Labs co-founder to South KoreaThe Supreme Court of Montenegro has decided to extradite Do Kwon, co-founder of Terraform Labs, to South Korea. This decision was made after the Court of Appeal in Podgorica canceled the plans for his extradition to the US. The reason for the reversal was the finding of serious procedural irregularities in the original decision. Kwon and his business partner were arrested at Podgorica airport in March last year. The couple used fake Costa Rican passports, which complicated their case. The Supreme Court ordered Kwon’s extradition to South Korea, where he must answer charges of financial fraud. U.S. authorities, including the Securities and Exchange Commission (SEC) and federal prosecutors, accuse Kwon and his company of fraud resulting in significant losses to investors. The situation is complicated by the US authorities’ attempts to challenge the decision to extradite him to South Korea.
6. Hong Kong launches Project Ensemble to test ‘wholesale’ central bank digital currencyThe Hong Kong Monetary Authority (HKMA) announced the launch of Project Ensemble, a sandbox program for a “wholesale” central bank digital currency (wCBDC). The initiative is designed to explore the benefits of using tokenized deposits with wCBDC and optimizing interbank settlement. The project also involves testing wCBDC in various scenarios, including the settlement of real-world tokenized assets such as green bonds and carbon credits. As part of this new program, the HKMA will establish an “wCBDC Architecture Community” that will include representatives from public and private organizations. The move is part of a broader effort to upgrade Hong Kong’s financial market infrastructure and bridge the gap between tokenized assets and transactional money.
7. Tether helps Uzbekistan create a digital national currencyTether, known for issuing the largest stablecoin USDT, is entering into cooperation with the National Agency for Advanced Projects (NAPP) of Uzbekistan. The joint work will be aimed at developing blockchain technologies in the country and creating a digital national currency — the Uzbek sum. According to Tether CEO Paolo Ardoino, the company will help improve the local legal framework for cryptocurrency circulation and support educational initiatives to educate the public on how to work with stablecoins. This cooperation is part of Uzbekistan’s commitment to explore new technologies to stimulate economic growth and innovation.
8. Brave adds BTC support and cryptocurrency exchange features to its walletPrivate web browser Brave, which serves more than 60 million users, has introduced a new feature that expands the capabilities of its built-in wallet. The version 1.63 update introduces support for Native SegWit bitcoin accounts, which provides lower transaction fees and better error detection. Brave Wallet also supports sending and receiving funds from all types of bitcoin addresses, ensuring compatibility with third-party wallets. In addition, Brave introduced a feature that allows you to buy and sell cryptocurrency for fiat currencies including US dollars, euros and British pound directly from Brave Wallet. The feature is backed by startup Ramp Network. The company plans to further expand the functionality to enhance the privacy of Brave Wallet. Users are expected to be able to store BRC-20 and Ordinals tokens in the wallet, and these features will be available in all versions of the browser later this year.