Sanctioned Russian banks trade on crypto exchanges, IMF offers guidance on developing effective crypto policies
Outlook money
Here are some important developments in the crypto world in the last few days
Two major crypto exchanges still allow customers from sanctioned Russian banks to transact on their platforms, digital asset analytics firm Inca Digital said.
Huobi and KuCoin enable people to trade crypto using debit cards issued by sanctioned Russian banks such as Sberbank, Hindustan Times reported, citing the Inca Digital report.
According to Inca Digital CEO Adam Zarazinski, this violates US and European sanctions, and many of these transactions involve Tether, a stablecoin, which has been under regulatory scrutiny.
“Tether is often used by Russians to move money out of the country,” he said. “It is used by these two exchanges specifically to provide crypto banking services to sanctioned Russian banks,” he added.
Huobi, KuCoin and Tether did not respond to the allegations.
The report also accuses Binance, the world’s largest cryptocurrency exchange, of offering Russians “multiple ways to convert local currency into cryptocurrency.” The report said these ways are offered on their over-the-counter trading desk and peer-to-peer marketplace.
IMF Board offers guidance on developing effective crypto policies
The International Monetary Fund (IMF) board provided guidance for member countries to develop effective crypto policies. According to Bitcoin.com, the board emphasized developing comprehensive crypto regulations to “better mitigate the risks posed by crypto-assets while leveraging the potential benefits of the technological innovation.”
On Thursday, the IMF informed that a regulatory framework was being developed that “can help members develop a comprehensive, consistent and coordinated policy response” to crypto assets.
“By adopting the framework, policymakers can better mitigate the risks posed by crypto-assets while harnessing the potential benefits of the technological innovation associated with it,” the IMF said.
The first element of the framework described by the IMF is to “ensure monetary sovereignty and stability by strengthening monetary policy frameworks and not giving crypto-assets the status of official currency or legal tender.”
It also involves guarding against “excessive capital flow volatility,” adopting “unambiguous tax treatment of crypto-assets” and enforcing “prudential, conduct and oversight requirements for all crypto market participants.”
To ensure monetary sovereignty and stability, IMF board members generally agreed that crypto-assets should not be recognized as official currency or legal tender.
Spotify looks at Web3 Wallet integration
The world’s largest music and audio streaming platform, Spotify, is partnering with various digital asset companies to test NFT-enabled playlists for token holders.
The feature could allow NFT holders to access music collections curated by blockchain-based companies, such as Overlord and Kingship, by connecting their wallet to the Spotify app. Android users in the US, UK, Germany, Australia and New Zealand can test the feature.
“At Spotify, we routinely conduct multiple tests to improve our user experience. Some end up paving the way for our broader user experience, and others just serve as important learnings. We have no more news to share about the plans at this time,” a spokesperson said for the application.
As a result of the announcement, the Web3 music tokens have seen a surge in demand. The token values of blockchain companies such as Viberate (VIB), Audius (AUDIO), and Rhythm (RHYTHM) have all risen since the pilot was announced.
