Spree Of Regulatory Action Against Crypto In China, Iran, UK, Canada

Ripple Succeeds In Latest Legal Challenge
Ripple Succeeds In Latest Legal Challenge

Several countries around the world have started imposing some form of regulatory action concerning crypto assets, with varying degrees of severity.

Mining in China can lower Social Credit Score

Last week, China announced a crackdown against cryptocurrency mining. Now, more information has come to light, which hints at the consequences miners can be facing. 

Companies that are involved in mining might have their trade license revoked, or their business shut down entirely. In the Inner Mongolia region, authorities will also target individuals that are caught mining crypto. 

There, offenders face being put on a blacklist through China’s infamous social credit system, which can prevent them from getting bank loan or using public transportation, among other things. The region has also opened a 24/7 telephone hotline, encouraging citizens to report suspicious activities that resemble crypto mining. 

After China, which used to contribute up to 75% towards Bitcoin’s total hashrate, Iran, which is also one of the leading list of Bitcoin mining countries, temporarily banned all mining until September 2021, to combat the country’s growing problem with energy shortages. Citizens of Iran are incentivized to report mining activities with a reward that equals more than four times the country’s median income. 

Bitcoin Ad to disappear from UK Subway Station

The British Advertising Standards Agency has halted an advertising campaign by the crypto exchange Luno. Posters that read “If you’re seeing Bitcoin on the Underground, it’s time to buy” were being shown inside London’s subway stations. 

According to the ASA, the self-regulating ad organization had received several complaints, stressing that the ads can be regarded as a clear call to action, not disclosing the risks associated with crypto investments. Luno has accepted the decision and apologized, promising to show risk warnings in all of their future advertising campaigns. 

Poloniex accused of breaking Securities Laws in Canada

The Ontario Securities Commission has openly excused the crypto exchange Poloniex of illegal conduct. According to the OSC, Poloniex has failed to comply with a new regulation, which required exchanges to register their activities at the commission by April 19, 2021.  

Poloniex now faces being shut out of Ontario’s legal crypto exchange framework, forcing the exchange to stop serving Canadian customers, as well as a fine of up to one million CAD for each infraction of securities law. 

Nebraska authorizes Banks to custody digital Assets

Save the good news for last. The US State of Nebraska has approved a bill that will allow financial institutions to operate crypto deposit accounts, taking their customer’s digital assets into custody. 

The bill was introduced by the Republican state senator Mike Flood in January and was now brought to voting, passing 46-2. One of the parties involved in drafting the bill was the telecommunications-centric blockchain project Telcoin.