Last week, the United States Federal Reserve Board set its sights on banks and cryptocurrencies, making (or promising to make) several clarifications, one of them long-awaited. He announced that the final version of the guidelines for reserve banks to access the main accounts and services of the Reserve Bank is ready.
For cryptocurrencies, these guidelines assume a “strictest review” perspective, to which non-federally insured institutions that do not have a holding company subject to Fed oversight would be exposed. It is not yet clear whether crypto banks will ultimately have access to the main accounts under the new guidelines and how long they will have to wait for it.
At the same time, The Fed made it clear that traditional banks seeking to trade crypto assets will not be able to do so without closer consultation with regulators.. Before making such a decision, it is recommended to check state and federal laws and notify Fed supervisory contacts in advance.
The European Central Bank takes a step forward in the debate on cryptocurrency licenses
Not only the US financial regulator had a very busy week. The ECB laid the groundwork for the criteria it will take into account when harmonizing licensing requirements for cryptocurrencies in Europe. Specifically, it will take into account the business models of crypto companies, internal governance, and “fit and proper” assessments that apply to licensing other companies. In addition, it will rely on the national anti-money laundering (AML) authorities and the financial intelligence units of the respective countries to provide the necessary data to assess potential risks.
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A cease and desist letter for FTX
The Federal Deposit Insurance Corporation has issued cease and desist letters to five companies—FTX US, SmartAssets, FDICCrypto, Cryptonews, and Cryptosec—for allegedly making false representations about cryptocurrency-related deposit insurance. The agency alleges that these organizations misled the public about certain cryptocurrency-related products that were FDIC-insured and urges them to “take immediate corrective action to address these false or misleading claims.”
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Colombia hopes to avoid tax evasion with a national digital currency
The head of the Colombian National Tax and Customs Directorate, Luis Carlos Reyes, stated that the government will seek to create a digital currency to prevent illicit financial activities such as tax evasion. However, the official did not specify exactly what type of digital currency the Colombian government will seek to launch, a central bank digital currency (CBDC) or rather an asset-backed national currency similar to Venezuela’s Petro digital currency project.
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CBDCs are “the only solution”
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The introduction of digital cash in the form of CBDC appears to be the “only solution” that will ensure a “smooth continuation” of the current monetary system. At least, that is what the ECB experts believe, who collect the conclusions of 150 academic papers on the subject. The importance of central banks reaching the appropriate level of “uptake” of CBDCs is underscored, and the authors also examined potential regulatory measures that could help CBDCs achieve their goals.. Previously, the central bank compared the cross-border payment potential of CBDC, Bitcoin, and stablecoin, ruling in favor of CBDCs.
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