The governments of Argentina, India and Kazakhstan have taken new steps on cryptocurrency regulation. Kazakhstan is starting to implement a new licensing system for crypto mining.
Cryptocurrency exchanges may have to complete proof of payment procedures in Argentina
The Argentine government is preparing to introduce a set of strict regulations that crypto companies must comply with in order to operate in the country. According to reports from Bloomberg, the national securities regulator (CNV) is considering introducing proof of solvency requirements for institutions that process cryptocurrency deposits for third parties.
According to CNV head Sebastian Negri’s statements, the regulation currently being worked on will focus less on the classification of crypto and tokens, and more on the activities of exchanges. Negri also announced that this regulatory framework will be implemented gradually, but did not confirm the inclusion of proof of solvency requirements.
The solvency proof report records whether an exchange or crypto company owns the amount of cryptocurrency it claims to own, while looking directly at its funds on the Blockchain, confirming that the funds are sufficient to meet the obligations the company is making to its clients. Cryptocurrency exchanges now have to comply with this obligation in Argentina. We can say that the decision was fruitful given the FTX crash in November.
Law enacted in Kazakhstan limiting electricity consumption by crypto miners
The law “On Cryptocurrencies in the Republic of Kazakhstan” signed by President Kassym-Jomart Tokayev on Monday entered into force. The main purpose of the new legislation, which was approved together with the changes made in other legal regulations such as the Tax Law, was to regulate the activities related to the export and circulation of these assets, especially mining.
According to local sources, the changes are also aimed at creating conditions for the development of the crypto industry and fair competition among market participants. The cryptocurrency law, passed by Parliament in late January, defines the powers of government bodies overseeing the industry and replaces the existing registration system, introducing licensing for crypto miners and exchanges.
Mining licenses will be issued to two groups of applicants for three-year periods. Organizations with mining infrastructure such as data centers that meet certain standards in terms of equipment, location and security will fall into the first category. The second is for those who own mining equipment but rent mining facilities space and do not directly apply for an energy quota.
As a result, the legislation introduces a licensing regime for mining with two different categories of licenses that companies will have to renew periodically.
India works with G20 countries to regulate cryptocurrencies
Indian Finance Minister Nirmala Sitharaman said at a press conference following a meeting on Feb. 11 that she is in talks with other G20 countries to plan a common regulatory framework for India’s crypto regulation:
Crypto contains a lot of technology, 99% technology. We are talking to all countries if all countries can achieve a standard operating procedure that will be effective while following a regulatory framework. Negotiating with G20 countries.
As Kriptokoin.com, we have included the statements made by Sitharaman last week in this article. The Government of India has announced that it will impose penalties for unpaid cryptocurrency taxes in the 2023 Union Budget parliament.
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