Indian Central Bank: Developing Global Crypto Regulation Is a Priority for G20 Under India’s Presidency

Indian Central Bank: Developing Global Crypto Regulation Is a Priority for G20 Under India's PresidencyThe Reserve Bank of India (RBI) says one of the priorities for the G20 under India’s presidency is to “develop a framework for global regulation, including the possibility of prohibition, of unbacked crypto assets, stablecoins, and defi.” The Indian central bank warned that “turmoil in crypto assets market” is among “the major risks that can […]
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Bank of India report calls for regulatory coordination on crypto market challenges

The RBI’s latest financial stability report accentuated the negative about cryptocurrency and reminds the world that India is looking for global action on crypto regulation.

The Reserve Bank of India (RBI) has again expressed concerns about the burgeoning crypto ecosystem and suggested parts of it could be banned. In its latest financial stability report, released Dec. 29, the central bank said it would use its rotating presidency of the G20 group of the world’s largest economies to call for the development of a global regulatory framework of crypto assets.

The report was generally upbeat about current conditions in the country, despite “strong global headwinds,” saying, “the Indian economy and domestic financial system remain resilient.” The tone changed drastically in its discussion of crypto, however, as it highlighted a familiar laundry list of crises that struck the cryptoverse in 2022. It noted crypto’s volatility, high correlation with equities and its inadequacy as a hedge against inflation, as well as issues with governance, and added:

“Leverage is a constant theme running across the crypto ecosystem, making failures rapid and losses huge and sudden.”

Be that as it may, rising prices in that ecosystem drive crypto’s popularity, especially in the “younger segment of the population.” The report concluded:

“To address potential future financial stability risks and to protect consumers and investors, it is important to arrive at a common approach to crypto assets.”

The report saw three options for crypto regulation. The first was “the same-risk-same-regulatory-outcome principle.” Second, it suggested the possibility of a prohibition of crypto assets “since their real-life use cases are next to negligible.” This option would be complicated by “different legal systems and individual rights vis-à-vis state powers” globally. A third option, “let it implode” without regulatory action, was considered too risky for mainstream finance to pursue. The report noted that:

“Under India’s G20 presidency, one of the priorities is to develop a framework for global regulation, including the possibility of prohibition, of unbacked crypto assets, stablecoins and DeFi.”

Related: Crypto could spark the next financial crisis, says India’s RBI head

Crypto regulation was a G20 priority for India from the beginning of its presidency. Despite the government’s generally negative position on cryptocurrency, there are an estimated 115 million users in India. The RBI is more bullish on central bank digital currency. India also has one of the world’s largest Web 3 workforces.

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Turkey’s central bank completes first CBDC test with more to come in 2023

After recently completing its first payment transactions using a central bank digital currency, the Turkish central bank is pushing ahead with more tests over 2023.

The Central Bank of the Republic of Turkey (CBRT) has completed the first trial of its central bank digital currency (CBDC), the Digital Turkish Lira, and has signaled plans to continue testing throughout 2023. 

According to a statement released by the CBRT on Dec. 29, the central bank authority said it successfully executed its “first payment transactions” using the digital lira.

It said it will continue to run limited, closed circuit pilot tests with technology stakeholders in the first quarter of 2023, before expanding it to include selected banks and financial technology companies in the rest of the year.

It said the results of these tests will be shared with the public through a “comprehensive evaluation report,” before unveiling more the next phases of the study which will further widen participation.

The Turkish central bank first announced it was looking into the benefits of introducing a digital Turkish Lira in September 2021 in a research project called “Central Bank Digital Turkish Lira Research and Development.”

At the time, the government made no commitment to the ultimate digitalization of the country’s currency, noting it had “made no final decision regarding the issuance of the digital Turkish lira.”

In its most recent statement, the CBRT said it will continue testing the use of distributed ledger technologies in payment systems and their “integration” with instant payment systems.

It will also prioritize studying the legal aspects around the digital Turkish Lira, such as the “economic” and “legal framework” around digital identification, along with its technological requirements.

Related: CBDCs are no threat to crypto — Binance CEO

Several countries, including the United Kingdom and Kazakhstan, have recently begun piloting central bank digital currencies.

The Bank of England has opened applications for a proof of concept for a CBDC wallet, while the Kazakhstan central bank has recommended the introduction of an in-house CBDC as early as 2023 with a phased implementation over three years.

The Reserve Bank of Australia (RBA) recently expressed hesitation about its own CBDC plans, with assistant governor Brad Jones warning in a speech on Dec. 8 that a CBDC could displace the Australian dollar and lead to people avoiding commercial banks entirely.

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Turkey’s Financial Intelligence Unit Launches Investigation Into FTX Collapse

Turkey’s Financial Intelligence Unit Launches Investigation Into FTX CollapseThe Turkish agency responsible for tackling money-related crime has initiated an investigation against troubled crypto exchange FTX. Days after the trading platform filed for bankruptcy in the United States, the department revealed it has been tracking its activities in Turkey. Turkish Financial Watchdog Sets Out to Dig Deeper Into FTX Case Turkey’s Financial Crimes Investigation […]
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Report: Turkey’s September Gold Imports up by 1,700% as Individuals Swap Falling Lira With the Precious Metal

Turkey’s gold imports of just over 39,000 kilograms in September 2022 are more than 16 times the quantity that was brought into the country in September 2021. The surge in Turkey’s gold imports is reportedly being spurred by the rise in demand for the precious metal by individuals and entities using it in foreign currency […]
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Turkish crypto exchange joins COPA to fight against 'patent trolls'

Turkish crypto exchange joins COPA to fight against ‘patent trolls’

Özgür Güneri, the CEO of BtcTurk, said that the firm joined COPA to protect technologies within crypto, especially Bitcoin.

Major Turkish crypto exchange BtcTurk has joined the crypto patent alliance (COPA) to team up with prominent firms in their mission to provide open access to patents and empower the adoption of crypto technologies. 

COPA aims to abolish patents as it’s perceived as an obstacle to innovations within the sector. The nonprofit favors a more communal approach when it comes to intellectual property. Its members include prominent crypto firms like prominent firms like Coinbase, Block and Aquarius.

Apart from crypto-native companies, firms like MicroStrategy and Meta have also joined COPA. The firms pledged to keep public patents on crypto and blockchain tech to stay accessible to the public.

According to Özgür Güneri, the CEO of BtcTurk, as a way to improve the crypto ecosystem, the firm decided to join COPA and donate some funds to the nonprofit to help with its work. Güneri explained that the nonprofit plays a significant role in protecting technologies within crypto, especially with Bitcoin (BTC).

Additionally, the exchange CEO also noted that BtcTurk will be cooperating with COPA in other aspects of their initiatives. This includes involvement in their judicial processes and being open to requests from the nonprofit.

Ayça Aktolga Öztürk, the chief legal counsel for BtcTurk, also commented on the topic, saying that the exchange will support COPA in standing against “patent trolls,” or those who use trademark-patent laws maliciously and legislative protection as leverage. The executive expressed excitement about working with COPA and supporting the ecosystem as a whole.

Related: Crypto patent-sharing marks a step in democratizing knowledge ownership

In 2020, Block, Inc. launched COPA to pool blockchain and crypto patents into one library to ensure open access to the technologies developed by its member firms. The alliance recognized that crypto adoption is in its early stages and that its success depends on the community’s efforts to develop on top of existing technologies.

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