cryptocurrency

Bank of Russia considers limited crypto trading for select investors

The Bank of Russia has proposed allowing select investors to trade cryptocurrencies under a three-year experimental legal regime.

The initiative, aimed at increasing market transparency, would permit only investors with at least $1.1 million in securities and deposits to participate. The Central bank also suggested introducing penalties for violations of the proposed framework.

Despite this move, the Bank of Russia reiterated its strict stance on cryptocurrency payments within the country. Bitcoin and other digital assets for transactions remain banned under Russia’s existing crypto regulations.

However, the government continues exploring the use of crypto for cross-border payments, with ongoing trials in foreign trade.

The central bank’s proposal could also open the door for regulated corporate investments in crypto. If implemented, this could pave the way for Russian firms to follow the strategy of companies like Strategy, which has amassed a significant Bitcoin portfolio.

The plan includes regulatory measures to mitigate the risks associated with crypto investments while expanding financial opportunities for experienced investors.

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Indian police arrest Garantex administrator wanted by US

Indian authorities have arrested Aleksej Besciokov, an administrator of the Russian cryptocurrency exchange Garantex, at the request of the US.

Besciokov, a Russian resident and Lithuanian national, was taken into custody in Kerala on charges of money laundering and violating sanctions. The Central Bureau of Investigation (CBI) said he was planning to flee India, and Washington is expected to seek his extradition.

The arrest follows a joint operation by the US, Germany, and Finland to dismantle Garantex’s online infrastructure.

The exchange, under US sanctions since 2022, has processed at least $96 billion in cryptocurrency transactions since 2019. The US Justice Department recently charged two administrators, including Besciokov, with operating an unlicensed money-transmitting business.

Experts warn that sanctioned exchanges often attempt to bypass restrictions by setting up new entities. Blockchain research firm TRM Labs called the Garantex takedown a significant step in combating illicit finance but emphasised the need for continued vigilance against evasion tactics.

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Crypto to play a key role in Bolivia’s fuel payments

Bolivia’s state-owned energy firm YPFB will begin using cryptocurrency to pay for fuel imports as the country struggles with a severe shortage of US dollars.

The government recently approved the use of digital assets for energy purchases, aiming to maintain fuel subsidies despite dwindling foreign reserves. Long queues at petrol stations and scattered protests highlight the deepening crisis.

Once an energy exporter, Bolivia is now facing a decline in natural gas production due to a lack of discoveries.

Increased reliance on imports has led to supply disruptions. Santa Cruz recently experienced a severe diesel shortage, sparking roadblocks and strike threats from farmers and transport operators, who warned of prolonged protests unless immediate action was taken.

In response, Bolivia’s Ministry of Hydrocarbons and Energy has announced plans to expand the national electricity system, focusing on renewable sources such as wind, solar, hydroelectric, and geothermal power.

The government aims to strengthen energy security and sustainability while positioning Bolivia as a leader in renewable energy.

While YPFB has not yet completed any transactions using digital assets, officials confirmed that plans are in place to begin soon. The move underscores Bolivia’s urgency in securing essential resources and adapting to economic challenges through alternative financial solutions.

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South Korea to release institutional crypto investment guidelines by Q3

South Korea’s financial regulator is set to release new guidelines for institutional cryptocurrency investment by the third quarter.

The Financial Services Commission (FSC) confirmed the plan during a meeting with industry experts, marking a significant shift in its approach to digital assets.

Guidelines for non-profits and crypto exchanges are expected as early as April, with broader rules for public companies and professional investors following later.

The FSC had previously hinted at loosening restrictions, beginning with plans to allow charities and universities to sell their crypto holdings in the second quarter.

However, this move signals a departure from South Korea’s previous hardline stance on crypto investment, aligning with global trends favouring greater institutional participation.

The upcoming guidelines will detail best practices for trading, disclosure and reporting, helping to shape a more structured market.

With nearly a third of South Korea’s population engaged in crypto trading, institutional involvement could further boost market liquidity and growth. FSC Vice Chairman Kim So-young acknowledged the increasing pace of international crypto adoption, particularly in response to policy shifts in the US.

He also emphasised the need for stricter anti-money laundering measures and enhanced cybersecurity to protect investors.

Meanwhile, the FSC is also working on the second phase of its crypto regulatory framework, which will focus on stablecoins and stricter oversight of crypto businesses.

The regulator’s evolving stance highlights a broader effort to integrate digital assets into the financial system while maintaining security and compliance.

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Texas bill aims to limit crypto investments in state fund

A new bill introduced in Texas by Representative Ron Reynolds aims to restrict how much local and state authorities can invest in cryptocurrencies.

Filed on 10 March, the legislation proposes that the state’s comptroller be prohibited from investin more than $250 million of the Economic Stabilisation Fund, also known as the ‘rainy day’ fund, in Bitcoin or other digital currencies.

Additionally, the bill seeks to cap investments by municipalities and counties at $10 million.

The proposal follows the Texas Senate’s passing of a bill on 6 March to establish a strategic Bitcoin reserve, which could allow the state’s comptroller to invest an unlimited amount in Bitcoin.

The push for a state Bitcoin reserve aligns with wider efforts in US state legislatures, particularly following the 2024 political shifts under President Trump’s administration.

While the bill proposed by Reynolds is not directly tied to the Bitcoin reserve bill introduced by Republican State Senator Charles Schwertner, its introduction adds a layer of debate over cryptocurrency regulations at both state and federal levels. If the bill passes, it could be enacted on 1 September.

Despite recent federal actions, including an executive order from Trump to establish a ‘Strategic Bitcoin Reserve,’ questions about the president’s authority to implement such policies through executive orders remain.

Meanwhile, Wyoming Senator Cynthia Lummis has reintroduced legislation to codify the federal Bitcoin reserve proposal into law.

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Coinbase secures approval to operate in India

Coinbase has officially registered with India’s Financial Intelligence Unit (FIU), allowing it to offer crypto trading services in the country, the company announced on Tuesday. The US-based exchange plans to launch its initial retail services later this year, followed by further investments and product rollouts. While a specific timeline has not been disclosed, Coinbase sees India as a key market with strong growth potential.

Interest in cryptocurrency has surged in India, particularly among young investors looking to supplement their incomes. Despite a 30% tax on crypto trading gains—one of the highest globally—the sector remains largely unregulated. Other major exchanges operating in the country include CoinDCX, Binance, and KuCoin.

India requires virtual asset service providers to register with the FIU and comply with anti-money laundering regulations. The government is currently reviewing its stance on crypto, influenced by global regulatory trends and recent policy shifts in the US. As the regulatory landscape evolves, Coinbase aims to establish a strong foothold in the Indian market while adhering to local compliance standards.

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US Senate to vote on updated stablecoin bill

The US Senate Banking Committee is set to vote on the updated GENIUS Act, a Republican-led stablecoin bill, on 13 March.

The bill, which aims to regulate US dollar stablecoin issuers with market caps over $10 billion, was updated following bipartisan discussions with Democrats.

The revised version includes significant improvements in areas such as consumer protection, risk mitigation, and transparency.

The bill, co-sponsored by Republican Senators Bill Hagerty, Cynthia Lummis, and Tim Scott, alongside Democrats Kirsten Gillibrand and Angela Alsobrooks, introduces higher standards for foreign stablecoin issuers, including stricter reserve requirements and anti-money laundering checks.

The changes are expected to give US-based stablecoins, such as Circle’s USDC, a competitive edge.

Although the bill has made significant progress, it still needs to pass the Senate Banking Committee vote before moving to the full Senate and then the House.

If it clears these hurdles, the bill will head to President Trump for approval or veto.

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US regulator backs away from stricter crypto oversight

The acting head of the US Securities and Exchange Commission (SEC) has directed staff to explore scrapping a plan that would have imposed stricter rules on cryptocurrency firms.

The proposal, introduced in 2022, aimed to classify certain crypto firms as alternative trading systems, subjecting them to increased oversight.

However, SEC Acting Chairman Mark Uyeda now considers this move a mistake, particularly as it was tied to Treasury market regulations.

Uyeda argued that linking government securities regulation with the crypto sector created unnecessary burdens. Speaking to bankers, he stressed the importance of separating the two and has asked SEC staff to revisit discussions with financial regulators about the original Treasury market plans.

The shift comes amid a broader change in the SEC’s approach to crypto under Republican leadership. In January, the agency formed a dedicated crypto task force and has begun pausing or dropping lawsuits against crypto firms, signalling a major policy shift towards a more industry-friendly stance.

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ECB plans digital euro launch by 2028

Christine Lagarde, President of the European Central Bank (ECB), has confirmed the bank’s target to finalise preparations for the digital euro by October 2025. However, the project’s actual launch remains uncertain, as it hinges on legislative approvals and cooperation from various stakeholders. Despite the urgency, the ECB is facing delays due to the complexity of the legislative process.

The digital euro will consist of two components: a retail version for public use and a wholesale version for financial institutions. The retail version promises privacy protections, free transactions, and offline functionality, while the wholesale arm aims to streamline interbank settlements and cross-border payments. Although preparations are underway, experts predict that a full launch may not occur until 2028.

Privacy concerns and potential impacts on commercial banks are among the challenges the ECB is addressing. To reassure the public, the ECB has committed to strong privacy standards and is exploring blockchain technologies like Ethereum to underpin the digital euro. The project comes as global competitors, such as China’s digital yuan and the rise of US stablecoins, intensify the pressure on Europe to maintain its monetary sovereignty.

While the ECB is making significant strides, the final approval and launch of the digital euro will depend on future legislative decisions and overcoming technical hurdles. The timeline remains uncertain, but the ECB’s preparations signal that the eurozone is keen to remain competitive in the digital currency space.

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Mark Carney criticises Bitcoin as Canada’s new prime minister

Mark Carney has been elected as Canada’s new prime minister, succeeding Justin Trudeau. Carney, a former central banker and long-time critic of Bitcoin, made headlines in 2018 when he called the digital currency’s fixed supply a ‘serious deficiency.’ He argued that recreating a global gold standard like Bitcoin would be a ‘criminal act of monetary amnesia,’ highlighting the speculative risks of the cryptocurrency market.

Carney’s stance on Bitcoin is at odds with some political figures, including former Prime Minister Trudeau, who also expressed scepticism about the crypto market. Carney has instead championed central bank digital currencies, seeing them as a tool to increase financial inclusion and combat economic crime. He also served as a board member for Stripe, a payments company that embraced crypto solutions between 2022 and 2024.

In his victory speech on 9 March, Carney also focused on addressing US tariffs, condemning President Donald Trump’s trade policies. Carney vowed that Canada would continue to retaliate with tariffs, asserting that the country would never be part of the US, no matter the circumstances.

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