CAPITAL MARKETS BOARD OF TURKIYE ANNOUNCES FIRST LIST OF CRYPTO ASSET SERVICE PROVIDERS APPLICATIONS

Pursuant to the Provisional Article 11 of the 'Law Amending the Capital Markets Law' numbered 7518, which entered into force after being published in the Official Gazette on 2 July 2024 and numbered 32590, crypto asset service providers were obliged to submit their declarations to the Capital Markets Board ('Board') within one month as to whether they will continue their activities or liquidate. In this regard, the Board published the "List of Operating Service Providers" and the "List of Liquidation Declarants" on its website on 5 August 2024.

According to the published notice, 47 crypto asset service providers have declared that they will operate. These included some major banks and financial institutions such as Garanti BBVA Crypto and QNB Digital Assets AŞ. A total of 3 companies were included in the list of those that declared liquidation. According to the regulation, companies that declare liquidation are obliged to take a decision on liquidation within three months without affecting the rights and interests of customers, not to accept new customers during the liquidation process, to publish the announcement of their liquidation on their websites and to inform their customers by e-mail, SMS, telephone and similar means of communication.

Finally, the Notice stated that inclusion on the 'List of Operators' does not imply authorisation by the CMB in accordance with the legislation, and that an application for authorisation to operate will have to be submitted to the Board once the secondary legislation comes into force. In this respect, the Board published the conditions for the establishment of platforms with the decision in the Bulletin published on 08.08.2024.

CONDITIONS FOR THE ESTABLISHMENT OF CRYPTO ASSET PLATFORMS DEFINED

The conditions for the establishment of platforms have been established in accordance with the decision of the Capital Markets Board of dated 8 August 2002, number 42/1259.

Accordingly, the platforms must be established as a joint stock company, all its shares must be registered, its shares must be issued in cash, its minimum capital of TRY 50.000.000. The Articles of Association must comply with the Capital Markets Law and the relevant legislation, the founders must meet the conditions set out in the Capital Markets Law and the relevant regulations, and the trade names must include the phrase "crypto asset trading platform", The articles of association must specify that the object of the business is exclusively to carry out one or more of the transactions required for the purchase and sale, initial sale or distribution, clearing, transfer and custody of cryptoassets, the board of directors must consist of at least three members, and the shareholding structure must be transparent and open.

According to the Resolution, platforms that meet the above conditions should apply to the Board with the information and documents attached to the decision in order to obtain authorisation for establishment. These documents include documents such as the decision of the authorising body, documents relating to the shareholders, documents relating to the general operations of the company and explanations of the balance sheets of previous periods.

Finally, the decision also states that platforms that have been granted a licence to establish themselves must also apply for a licence to operate, in accordance with the principles and rules to be established by the Board.

TURKIYE IS RANKED 7TH IN THE GLOBAL WEB3 INDEX

Coincub published the Global Web3 Index, which evaluates and scores countries on issues such as regulations, investments and technological developments related to the crypto sector. According to the index, Türkiye ranked 7th with a score of 5.2, ahead of European countries. While Switzerland ranked 1st in the index, the countries ahead of Türkiye were Singapore, United Arab Emirates, United States of America, El Salvador and Canada.

The Index also assessed countries' performance in terms of regulatory developments. In this regard, Türkiye ranked 10th in the ranking of countries that provide a favourable regulatory environment for crypto, web3 and blockchain technologies. The index also stated that Türkiye provides a more secure and structured environment for the sector thanks to the new regulations on crypto assets.

Finally, the report published on the index also includes separate assessments of the countries, including Türkiye, that are considered pioneers in the crypto sector.

BINANCE PUBLISHES REPORT FOR THE FIRST HALF OF 2024

Binance has released its 2024 Mid-Year Report, which includes an analysis of the cryptocurrency market. According to the report, the 109% increase in market capitalisation in 2023 continued in 2024, increasing by 37.3% in the first half of 2024. On a quarterly basis, the market value increased by approximately 60% in the first quarter, while it decreased by approximately 14% in the second quarter.

In the same report, Binance also presented various analyses for the first 6 months of 2024. In this context, the report includes assessments of other crypto assets, in particular bitcoin, but also touches on the fundamental situation and investments in various sectors, such as decentralised finance, stablecoins, the gaming industry and artificial intelligence.

BITCOIN MINING AND CRYPTO PAYMENTS LEGALISED IN RUSSIA

Russia has passed a draft law legalising bitcoin mining and cryptocurrency payments for international trade. The law is expected to come into force on 1 September, subject to final approval.

With this new regulation, bitcoin mining will be officially recognised. This will make it possible to monitor, tax and prevent illegal mining activities. In addition, although payment with crypto assets is prohibited domestically, the regulation allows the use of crypto assets in international trade transactions. Finally, in order to control the spread of the use of crypto assets, the approved bill also includes a ban on advertising.

ITALY PUBLISHES NEW MICA GUIDELINES

Italy is preparing to publish comprehensive regulatory guidelines on cryptocurrencies in the context of Markets in Crypto Assets (MiCA). The guidelines, which will be published by the Bank of Italy, will aim to better implement MiCA while maintaining the stability of the Italian financial system, promoting innovation and ensuring consumer protection.

On the other hand, in a speech to the Italian Banking Association, Fabio Panetta, Governor of the Bank of Italy, highlighted the role of electronic money tokens (EMTs) and asset reference tokens (ARTs) in MiCA, stating that "the only payment instruments that can fully maintain public confidence are electronic money tokens, which can only be issued by banks or electronic money institutions".

TRUMP'S STATEMENTS ON BITCOIN

US presidential candidate Donald Trump made comments about crypto assets at the Bitcoin conference in Nashville. Declaring that he wants the US to be the leading country in the sector, Trump stated that the US wants to be the "crypto capital of the planet and the bitcoin superpower of the world". Promising to use bitcoin as a strategic reserve asset if he wins the election, Trump added that he would fire SEC Chairman Gary Gensler, who is sceptical of crypto.

Finally, Trump insisted that bitcoin is not a threat to the dollar, saying that crypto assets will rise rapidly and advising "don't sell your bitcoins".

MORGAN STANLEY TO RECOMMEND BITCOIN ETFs TO INVESTORS

Morgan Stanley, one of America's largest investment banks, has authorised its advisors to recommend Bitcon Spot ETFs to their clients. This makes Morgan Stanley the first bank in the US to offer this service.

The bank, which has around 15,000 investment advisors, will only offer the service to clients with a net worth of $1.5 million, a high risk profile and an interest in such investments.

On the other hand, other major banks such as Goldman, JPMorgan, Bank of America and Wells Fargo have not yet taken this step and do not allow Bitcon ETFs to be recommended.

SPONSORSHIP AGREEMENT SIGNED BETWEEN GALATASARAY AND ARKHAM

Galatasaray signed a sponsorship agreement with Arkham (ARKM), an on-chain data analysis platform. At the press conference announcing the agreement, Galatasaray President Dursun Özbek said that bitcoin and digital assets have gained an important place in today's world and stressed that Galatasaray is actively working to adapt to developments in the digital world and that the cooperation with Arkham is part of this effort. Explaining that they want to be in the digital world, Özbek said: "We will announce this soon, maybe with a launch".

Arkham CEO Miguel Morel said that they see Turkey as a great market, they want to grow in Turkey and that is why they are working with strong brands.  

AMENDMENTS IN THE CAPITAL MARKET LAW REGARDING CRYPTO ASSETS

With the entry into force of the Law No. 7518 “Law Amending the Capital Markets Law” published in the Official Gazette dated 02.07.2024 and numbered 32590, the long-awaited regulation on crypto assets in Türkiye became law. Along with the amendments, definitions of the crypto asset sector such as wallet, crypto asset, crypto asset service provider, crypto asset custody service and platform were added to the Capital Markets Law (“Law”).

In addition to the definitions, obligations regarding crypto asset service providers were also introduced. Accordingly, crypto asset service providers will be required to comply with the principles and principles determined by the Capital Markets Board (“Board”), while issues such as the principles regarding the activities of crypto asset service providers and the transfer and custody of crypto assets, the measures to be applied in the activities of crypto asset service providers, the supervision of crypto asset service providers and the sanctions to be imposed are among the new regulations introduced to the Law.

In addition, pursuant to the provisions of Provisional Article 11, crypto asset service providers are obliged to make a declaration that they will apply for an operating license or take a liquidation decision together with the documents determined by the Board until 02.08.2024.

According to the list published by the Board, there is no crypto asset service provider that has made a declaration to operate or taken a liquidation decision at this stage.

STATEMENTS FROM SERVICE PROVIDERS IN TURKIYE AFTER CRYPTO ASSETS REGULATIONS

On July 2, 2024, as the legal regulations on crypto assets entered into force under the Capital Markets Law No. 6362, statements came from the officials of crypto asset service providers operating in Türkiye.

In his speech at an event organized in Çeşme, Mücahit Dönmez, the General Manager of Binance Turkey, stated that Turkey is one of the largest markets with legal regulations on crypto assets. Indicating that this law is an important “milestone” for the Turkish market, Dönmez said, “We aim to fully comply with all legal obligations.” On the other hand, according to the announcement published on the Binance website, Binance will continue to be accessible by complying with the regulation, stop marketing activities for Turkish users and gradually discontinue the Turkish language feature.

On the other side, Salim Karaman, CEO of BtcTurk, Turkey's first crypto asset service provider, stated that the arrival of legal regulations made them satisfied and said, “We are pleased that the standards in our country have been determined and appropriate competition conditions have been established. We will comply with the detailed obligations to be introduced with the secondary regulations to be issued by the Capital Markets Board as soon as possible.” Continuing his statements by mentioning that the interest in crypto assets in our country is quite high, Karaman stated that legal regulations will raise the standards of crypto asset service providers and may increase the interest and investments of institutional investors in the sector.

CRYPTO ASSET SERVICE PROVIDERS SUSPICIOUS TRANSACTION REPORTING GUIDELINE UPDATED

The Financial Crimes Investigation Board (“MASAK”) updated the Suspicious Transaction Reporting Guidelines and Form, which regulates the procedures and principles regarding Suspicious Transaction Reports specifically for the Crypto Asset Service Providers sector.

As a result of the update, issues such as developing a suspicious transaction notification form in accordance with the operating systematics of crypto asset service providers and the transaction systematics of crypto assets, adding new suspicious transaction types by taking into account the sector-specific transaction and account types and developing and changing crime typologies, adding new suspicion categories and making the selection of suspicion category mandatory have been added to the Suspicious Transaction Notification Form and Guide. 

In addition, The Financial Crimes Investigation Board (“MASAK”) announced that crypto asset service providers operating in accordance with the Capital Markets Law No. 6362 will be required to send suspicious transaction notifications in accordance with the updated procedures and principles as of 26/07/2024.

INDIA'S RAIPUR CITY MOVES PROPERTY RECORDS TO BLOCKCHAIN

Raipur, the capital city of the Indian state of Chhattisgarh, has decided to transfer its real estate records to the blockchain. Abinash Mishra, one of the municipal administrators, mentioned that the Raipur Municipality, which issues over 8,000 documents annually such as construction permits, has faced many issues like document forgery. Therefore, they want to keep these records on the blockchain.

To achieve this, the municipality will collaborate with the company Airchains. This collaboration aims to increase the security of documents and reduce the long processing times in real estate processes.

ISTANBUL BLOCKCHAIN WEEK WILL BE HELD ON 13-14 AUGUST THIS YEAR

Founded in 2020 and organized every year in Istanbul, Istanbul Blockchain Week will be hosted at Hilton Bomonti Hotel on August 13-14 this year. 

The event, which is expected to attract more than 7,500 participants from Turkey and around the world, will feature many local and foreign speakers from the sector. Among the topics to be discussed at the event are global regulations, anti-money laundering, artificial intelligence and the evolution of smart contracts, digital transformation of the business world in Web 3, and the open finance ecosystem. In addition, the event will also provide an opportunity for industry stakeholders to network with each other.

FERRARI TO ACCEPT PAYMENTS WITH CRYPTO ASSETS IN EUROPE

 Italian luxury car manufacturer Ferrari is planning to adopt a system where it will accept payments with crypto-assets in Europe, as it has already started to implement in the United States. Ferrari, which launched a similar system in the US late last year, announced that it will accept payments with crypto assets in Europe to support dealers to better meet the evolving needs of their customers. Ferrari, which plans to implement this system starting from the end of July 2024, plans to expand this system to other countries where possible by the end of 2024.

ARTIFICIAL INTELLIGENCE STRIKE IN HOLLYWOOD

A new strike has broken out in Hollywood, this time over the use of artificial intelligence in the video game industry. Artists who add their vocal talents to video games have decided to strike after discussions with studios broke down over the use of artificial intelligence in productions. The Screen Actors Guild (SAG) and the American Federation of Television and Radio Artists (AFTRA), which represent more than 2500 artists, reported that video game performers decided to go on strike after negotiations on artificial intelligence failed.

In the statement, it was stated that the game companies refuse to protect artists against artificial intelligence, despite the fact that many agreements were reached in negotiations with game giants such as Activision, Warner Bros. and Walt Disney, which started nearly 2 years ago. Artists and the union are concerned that game companies can use generative AI to imitate an actor's voice and create a digital likeness without consent or fair compensation.

ARGENTINIAN CITIZENS' INTEREST IN CRYPTO ASSETS IS GROWING

The adoption rate of crypto assets is on the rise in Argentina, which has been struggling with high inflation for some time. According to Forbes, 2.5 million of the 130 million visitors to crypto asset service providers are from Argentina. In addition, 6.9 percent of Binance's visitors are Argentine citizens. 

On the other side, despite the high interest in crypto assets in the country, a legal framework for the sector has not yet been fully established. In fact, many major crypto asset service providers have yet to register with the Comisión Nacional de Valores (CNV), the industry's regulator. 

INSTITUTIONAL INVESTORS IN JAPAN PLAN TO INVEST IN CRYPTO ASSETS

Nomura Holdings and Laser Digital Holdings AG published a survey on the propensity of institutional investors in Japan to invest in digital assets. The survey, entitled “Institutional Investor Survey on Digital Asset Investment Trends”, aims to measure Japanese investment managers' investment trends and future investment intentions in digital assets. According to a survey of more than 500 institutional investors of varying company size, 54% of the investors are planning to invest in crypto assets in the next 3 years. 62% of respondents stated that they see crypto assets as a means of diversifying their investments.

CHAINALYSIS RESEARCH ON CRYPTO ASSET USAGE

The research conducted by Chainalysis includes statistics on the use of stable coins. According to the data published by Chainalysis, stable coin purchases in Turkey will account for 4.3 percent of Turkey's gross domestic product between April 2023 and March 2024. Based on the information from Chainalysis, Turkey has the highest stable coin holdings in the world based on the size of stable coin holdings in Turkey in relation to the country's GDP. Accordingly, it is stated that Turkey's GDP is $907 billion as of 2022 and the total stable coin purchases have reached $38 billion, and it is stated that the situation of the Turkish Lira is effective in this high ratio. In the USA, which has the highest amount of stable coin assets, this rate is 5 per thousand, while the rates in other similar countries are as follows: Thailand and Georgia have stable coin rates of 1.3 per cent and seven per thousand in the same period, while the ratio of stable coins to GDP in the European Union as a whole is three per thousand.

FBI WARNS FOR UNREGISTERED CRYPTO ASSET TRANSFERS

In the US, the Federal Bureau of Investigation (FBI) has warned against the use of intermediary platforms that offer unregistered crypto asset transfer services that do not comply with anti-money laundering (AML) obligations. In particular, the FBI recommended avoiding platforms that do not comply with know-your-customer (KYC) principles and do not perform customer identification. According to the FBI, it would be appropriate to check whether the platform is registered as a Money Service Provider (MSB) with the US Treasury Department's Financial Crimes Enforcement Network (FinCEN) before using a money transfer service by conducting transactions on the platform.

REGULATION ON CRYPTO ASSETS IN THE PHILIPPINES

In a statement made by Emilio Aquino, Chairman of the Securities and Exchange Commission of the Philippines, it was announced that the Philippines plans to enact a legal regulation on crypto assets in the second half of 2024. It is stated that the regulation to be implemented will aim to protect the rights of Philippine citizens involved in transactions related to crypto assets. Prior to this announcement, decisions were made in the Philippines to remove Binance's applications from the Apple Store and Google Play Store. In this context, it is predicted that the regulation may impose relatively strict obligations on service providers.

CRYPTO REGULATION IN THE UNITED KINGDOM

In the United Kingdom, the Regulation on the enforcement of measures relating to crypto assets has come into force. In a statement issued by the UK government, it was announced that the regulation, which gives law enforcement officers additional powers to seize crypto assets used by criminals or suspects, has come into force. In particular, the ability to seize crypto-assets used as proceeds of crime, impose measures on them, destroy them and, where appropriate, subject them to confiscation are among the powers introduced by the Regulation.

CRYPTO ASSET ANNOUNCEMENT BY SWISS CENTRAL BANK

The President of the Swiss Central Bank, Thomas Jordan, has expressed reservations about the inclusion of bitcoin in the Swiss Central Bank's foreign exchange reserves. He stated that the central bank had not yet made a decision to include bitcoin in its reserves and said that the availability of international payments with them should be taken into account while making the decision. He stressed that foreign exchange reserves should be liquid, sustainable and easily tradable. He also stated that the addition of bitcoin to the central bank's reserve assets could lead to increased carbon emissions and other potential environmental negatives, and that the energy consumption associated with bitcoin mining and transactions should be sustainable.

CLASS ACTION LAWSUIT AGAINST COIBASE IN THE USA

Last week, a new class action lawsuit was filed by users of the platform against Coinbase, a crypto asset service provider based in San Francisco in the United States. The lawsuit alleges that Coinbase intentionally traded in securities that were not registered with any regulatory authority and that Coinbase acted as an unregistered securities broker. The lawsuit claims that Coinbase marketed crypto assets as an investment instrument and that Coinbase should compensate the plaintiffs for the losses they suffered investing in crypto assets as a result of Coinbase's misleadings. 

CRYPTO ASSET RESEARCH BY PARIBU

The "Cryptocurrency Awareness and Perception Index Tracking Research-2024" report, prepared in collaboration with Paribu and FutureBright Group, has been released. The research, which claims to be the most comprehensive research in the sector, was conducted between December 2023 and February 2024. According to the researchers, awareness of the blockchain concept increased from 25 per cent in September 2023 to 26 per cent in February 2024. Notably, the report states that the awareness of cryptocurrencies was determined to be 99 percent. In addition, it was determined that the rate of those who know that cryptocurrencies use blockchain technology among those who trade in crypto assets increased from 83 percent to 93 percent.

CRYPTO TRAVEL REGULATION FROM SOUTH AFRICA

In the Republic of South Africa, the Financial Intelligence Centre (FIC) recently published a draft regulation on the implementation of the Financial Action Task Force (FATF) Travel Rule by crypto asset service providers operating in the country. The FIC's draft regulation lists the obligations of crypto asset service providers and crypto asset transferees, as well as the policies and procedures to be followed for transactions on unregistered crypto asset wallets. In addition, as required by the country's FIC Act, the draft regulation states that the obligations and procedures introduced by the draft travel rule will also be incorporated into companies' risk management and compliance programmes.

LEGISLATION ON IRIS SCANS IN ARGENTINA

A draft legislation has been introduced in Buenos Aires, the capital of Argentina, to regulate biometric eye scanning from companies such as Worldcoin. The draft legislation, which proposes to regulate the use of biometric data obtained in projects such as Worldcoin, a crypto asset service provider's wallet project that performs identification through iris scanning of the eye, and to ensure the rights of data subjects using these applications, has been submitted to the provincial parliament and will apply for now only in the province of Buenos Aires.  The regulation stipulates that data subjects shall give their free, explicit and informed consent to the use of biometric data derived from their sensitive personal data, and that the providers of such projects shall not, under any circumstances, use such biometric data without the consent of the data subjects. To this extent, the project must offer a real alternative that allows data subjects to enter the application and identify themselves without the processing of biometric data. In addition, if the draft legislation is approved, companies engaged in these activities will be required to register their activities and the details of the biometric data they process in a registry in Buenos Aires.

BILLIONTH TRANSACTION ON THE BITCOIN NETWORK

On the 15th anniversary of the launch of the Bitcoin network, the one billionth transaction was executed on the network. The one millionth transaction, which took place on block 842,241 at 9:34 UTC on 5 May, took place 15 years, four months and four days after the network's first block was activated. In this context, it is noted that in the 5,603 days that bitcoin has been actively used, an average of 178,475 transactions have taken place per day. It is also noted that since its launch in July 2015, more than 2 billion transactions have been carried out on the Ethereum network, currently Bitcoin's main rival.

POSTAL STAMP BASED ON CRYPTO-ASSET FROM GHANA

Ghana's national postal service has for the first time issued a postal stamp based on a crypto asset to commemorate the 25th anniversary of the country's reign. According to the General Manager of the Ghana Postal Company, the stamps created as part of the project will serve as a bridge between the older and younger generations of Ghanaians. The General Manager, who reported that the stamp will be traded as a crypto asset in the form of a non-fungible token (NFT), explained that the images of the Asantehene, the ruler of the Ashanti people, are currently featured on the stamps issued as crypto assets.

GERMAN BANK LBBW TO OFFER CRYPTO CUSTODY SERVICE

Landesbank Baden-Württemberg (LBBW), one of Germany's largest banks, is preparing to offer crypto asset custody services to its customers. In order to offer this service, a strategic partnership has been formed with Austrian crypto asset service provider Bitpanda. Stefanie Münz, member of the board of directors of LBBW and responsible for financial services, said in a statement that the custody service will be offered to corporate customers, "With this service we will offer the highest security standards and add new value", while Bitpanda will provide the necessary technical infrastructure. Jürgen Harengel, COO of LBBW, noted that corporate clients are increasingly demanding the provision of custody services and continued: "We believe that crypto assets will be one of the building blocks for future business models, for which we are laying the foundations by providing our clients with the best possible support at an early stage". The custody service, which will initially only be available to institutional clients, is expected to launch in the second half of 2024.

CRYPTOASSET FRAUD DECLINES IN FIRST QUARTER OF 2024

According to a report published by Immunefi, a blockchain security initiative, crypto asset losses due to fraud and hacking decreased by approximately 23% in the first quarter of 2024 compared to the first quarter of 2023. According to the report, a total of 61 cases of fraud were detected by Immunefi and these cases were investigated. As a result of the investigation, it was announced that a loss of $336,311,217 was detected in the first quarter of 2024. The report stated that $321,645,400 of these losses were caused by 46 hacking incidents and $14,665,817 were caused by 15 fraud incidents. It was noted that the majority of the total loss occurred in two cases. According to the report, the loss of $81,680,000 due to the attack on Orbit Bridge, the bridging company of Orbit Chain, and the loss of $62,800,000 suffered by Munchables, the Web3 project, accounted for most of the losses in the first quarter of this year. Losses from fraud and hacking fell by 23 per cent in the first quarter of 2024, Immunefi said in its report for the same period last year, with losses totalling $437,483,543,543.

3-YEAR JAIL TERM FOR CZ, FORMER BINANCE CEO

Changpeng Zhao, the founder and former CEO of crypto asset service provider Binance, has been sentenced to 36 months in prison for violating money laundering regulations, according to a motion filed by US prosecutors in federal court in Seattle. Prosecutors said the money laundering violation took the form of Binance's failure to report more than 100,000 suspicious transactions from terrorist groups. It also said the sentence would promote respect for the law and act as a sufficient deterrent. Zhao's lawyers, on the other hand, objected to the prosecutor's request on the grounds that Zhao had made Binance number one in the industry in terms of compliance with money laundering obligations, had accepted full responsibility as a first-time offender, had paid a fine in the matter, and that people found guilty in similar cases did not serve jail time. The decision is expected after a hearing in Seattle Federal Court on 30 April.

BINANCE BREAKS TRADING VOLUME RECORD IN MARCH

Following the recent rise of bitcoin and ethereum, the volume of transactions on spot markets for crypto assets has also increased. According to a report published by CCData on 4 April 2024, the volume of transactions on Binance increased by 121% in March, reaching the highest value since May 2021. It is stated that this situation is indicative of the stock market's recovery after the lawsuits in the US. The report also stated that Binance increased its market dominance by 2.3 percent compared to February.

COOPERATION BETWEEN CENTRAL BANKS OF 7 COUNTRIES

The Bank for International Settlements (BIS) has announced that it will explore how tokenisation can improve the functioning of the monetary system through a joint project with the central banks of 7 different countries. The project, called the Agora Project, will bring together the central banks of France, Japan, Korea, Mexico, Switzerland, England and New York. The research will explore how tokenised commercial bank deposits can be seamlessly integrated with tokenised central bank money. The BIS will also issue a call for private financial institutions to participate in the project.

VENEZUELA TO INCREASE USE OF DIGITAL ASSETS IN FUEL EXPORTS

Venezuela, one of the countries with the world's largest oil reserves, plans to increase the use of digital currencies for oil exports due to sanctions imposed by the United States. Venezuela, which has been using USDT, a digital currency, in sales since last year, received the advance payment in USDT in its contracts. Venezuelan Oil Minister Pedro Tellechea said in a statement that "there are different currencies specified in the contracts" regarding payment methods. Accordingly, he added that digital currencies can also be used as a payment method in some contracts.

ANGOLA BANS CRYPTO ASSET MINING

Angola's law banning crypto asset mining came into effect on 10 April. According to the law, crypto asset mining activities can result in prison sentences of between 1 and 12 years. The main reason for the enactment of the law is said to be the impact of mining activities on electricity consumption. It states that 9.6 MV of electricity is consumed daily by mining activities, which is equivalent to the electricity needs of approximately 3000 households.

BITMART ENTERS INTO A STRATEGIC PARTNERSHIP WITH KYRGYZSTAN

At the Hong Kong Web 3.0 Spring Summit in Hong Kong on 5 April, Jessica Yang, co-founder of BitMart, signed a strategic partnership agreement with the Central Bank of the Kyrgyz Republic, which includes a commitment to cooperate in the field of Web 3.0. Representative Murzataeva Ainura attended the meeting on behalf of the Central Bank of Kyrgyzstan. The memorandum signed between the parties aims to develop Web 3.0 technology in the region. "This cooperation will improve our exchange and cooperation with BitMart and contribute to the modernisation and development of the financial market of the Kyrgyz Republic," said Ainura.

MİDAS' STATEMENT ON THE INVESTMENT TOUR

Midas, a platform that facilitates both domestic and foreign stock trading, announced that it has raised $45,000,000 in its latest investment round. Foreign companies stand out among the investors. Midas CEO Egem Eraslan, who made a statement regarding the investment round, stated that Midas' goal of providing all investment needs from a single point continues, while explaining that this investment round will contribute to this goal, and stated that crypto asset trading transactions can be conducted through Midas in the coming days. Eraslan concluded by saying, "With the support of this investment, we will accelerate the transformation of the Turkish investment ecosystem".

THE SCOPE OF EU’S CRYPTO ASSETS REGULATION “MICA”

The Markets in Cyrpto Assets Regulation ("MiCA"), which was adopted in the European Union last year and includes rules on crypto assets, crypto asset issuers and crypto asset service providers, will gradually come into force in 2024. The provisions of MiCA relating to stable coins will enter into force on 30 June 2024, and the remaining provisions will enter into force on 30 December 2024. The provisions of MiCA that will enter into force in the first phase relate to asset-based tokens and e-money tokens. In MiCA, (i) asset-referenced tokens are defined as a type of cryptoasset, other than an electronic money token, that aims to maintain a stable value by reference to another value or right, or a combination thereof, including one or more official currencies, and (ii) electronic money tokens are defined as a type of cryptoasset that aims to maintain a stable value by reference to the value of an official currency. Apart from the regulation of these two types of tokens, MiCA will be implemented in the second phase with respect to service tokens. However, many NFTs are excluded from the scope of the regulation. (Güngör Law Firm)

INVESTIGATION INTO WORLDCOIN IN SOUTH KOREA

In South Korea, an investigation was launched into Worldcoin, the crypto asset service provider's wallet project that can identify users by scanning their irises. Worldcoin, which relies on biometric verification in identification and application login processes and ultimately creates a digital identity, creates a unique identity for each user by scanning the iris information in the eyes of its users. According to a statement issued by the Personal Data Protection Commission ("PIPC"), the data protection authority in South Korea, about WorldCoin, which is known to have more than two million users in total, WorldCoin currently recognises faces and irises in more than 10 locations in South Korea, the data they collected is classified as biometric data, which is one of the special categories of personal data, and that a detailed investigation will be carried out if any illegality is found in the collection and processing of this sensitive information and the transfer of personal data abroad. The data protection authorities of France, Germany and the United Kingdom had previously announced that they had opened an investigation into the legality of Worldcoin's biometric data processing practices. (IAPP)

CDBC ANTI-SURVEILLANCE ACT IN THE USA

In the US, the CBDC Anti-Surveillance Act, first introduced in 2022, was reintroduced in the Senate with the support of 5 Senators. One of the senators supporting the bill stated that "ensuring financial privacy is very important" and stressed that the central bank's digital currency "will allow the federal government to monitor and control the spending habits of all Americans". The proposal, which has been reintroduced in opposition to the Biden administration's approach to CDBC, includes provisions to prevent the Federal Treasury from issuing CBDCs directly or through a partnership, and to prevent people from tracking their financial habits through such tools. (Kitco)

TAX INVESTIGATION INTO CRYPTO ASSETS IN INDONESIA

In Indonesia, the Commercial Futures Supervisory Authority (CFTSA) has requested the Ministry of Finance to investigate transactions related to the taxation of crypto assets. It is estimated that approximately $2.5 million in revenue is generated from activities related to crypto assets in the country, while approximately $2 million is generated from other fintech businesses. Based on this difference, the CFTSA believes that crypto assets are also a serious financial sector; therefore, it calls on the country's Ministry of Finance to regulate and review the existing taxes regarding the taxation of crypto assets. (Finance Yahoo)

INVESTIGATION ON BINANCE FROM NIGERIA

Two senior executives of Binance have been arrested in Nigeria. Prior to this incident, Binance was investigated by the Nigerian authorities; it is alleged that Binance caused the rapid depreciation of the Nigerian Naira and Binance is alleged to have engaged in currency manipulation. It is also stated that a decision has been made to block access to the websites of Binance, Coinbase and Kraken in the country. The Governor of the Central Bank of Nigeria stated that in 2023, they found that approximately $26 billion in unidentified crypto assets were transferred to crypto asset service providers. (FT)

DIGITAL RUBLE PROJECT IS EXPANDING IN RUSSIA

Elvira Nabiullina, Governor of the Bank of Russia, announced that the ongoing pilot project of the Digital Ruble, the Russian Central Banks Digital Currency, is on track and that various operations are being tested under the pilot project, including the opening of wallets and the execution of several transactions using smart contracts. So far, more than 25 thousand transactions have been carried out using the Russian Digital Ruble, and it is planned to expand the pilot project later this year, President Nabiullina said. At the current stage of the pilot project, twelve credit organisations, about 600 individuals and thirty commercial and service companies from eleven cities took part in the project tests. (TASS)

CRYPTO ASSET TRANSACTION FEES ON THE RISE

After a period of decline in the network fees required for on-blockchain transfers in bitcoin, the cost of bitcoin transfers has started to rise again, reaching US$11.48 per transaction on a weekly basis. In February, the cost of an average transaction on the bitcoin network was below the US$5 threshold, and the cost of an average-sized transaction did not exceed US$2. Following the rise in the bitcoin price, the total number of transactions on the network increased as daily transfers increased. Bitcoin miners also averaged 430,000 transaction verifications per day in February, roughly the same as in January 2024. (CryptoMeter)

CRYPTOASSET LEGISLATION WEAKNESSES IN RUSSIA

Russia's FATF compliance level has been reduced due to weaknesses in crypto legislation. The Financial Action Task Force for the Prevention of Money Laundering (FATF) has lowered Russia's compliance level due to weaknesses in crypto asset legislation in Russia. In the assessment at the last General Assembly, following the freezing of Russia's FATF membership, Russia's status, which was at the highest level of compliance in terms of monitoring and combating suspicious transactions involving virtual assets, was downgraded to 'partially compliant'. The reason for the rating is thought to be Russia's law on digital financial assets. (FATF)

BITCOIN FLAG TO BE PLACED ON EVEREST AGAINST INEQUALITY

A 23-year-old crypto asset owner plans to raise awareness about financial literacy in the world by climbing Mount Everest and planting an orange flag with the bitcoin logo at the top of the mountain. He announced in a tweet that he plans to climb the mountain in April and May this year and plant a bitcoin flag at the peak before returning to Everest's base camp. The crypto owner explained that the purpose of his climb was to highlight "global inequality in access to financial education". It is known that Yousuf bought around $340 worth of bitcoin in 2011, and his current net worth as of January 2022 is more than $300 million. (CoinTelegraph)

EL SALVADOR WILL NOT SELL THEIR BITCOIN

El Salvador's President, Nayib Bukele, spoke about the status of El Salvador's own bitcoins following the rise in the price of bitcoin. In September 2021, in the country where bitcoin has been accepted as official currency alongside the US dollar, Bukele announced that crypto assets belonging to El Salvador will not be sold. "At the end of the day, 1 BTC is equal to 1 BTC," Bukele said, referring to the recent increase in the price of bitcoin, explaining that the market price of bitcoin is now very high, that if the country were to sell the bitcoins in its hands, it would make more than 40% profit, and that the citizenship programme implemented in exchange for bitcoin provides resources to the country. (Twitter)

CRYPTO ASSET PONZI-SCHEME FOUNDERS CAUGHT IN ARGENTINA

In Argentina, two founders of Braiscompany have been arrested and charged with fraud for setting up a Ponzi scheme in Brazil with crypto assets worth a total of more than $400 million. The founders were arrested in a joint operation by the Argentine Federal Police and Interpol, despite using false identities. The founders, who have been the subject of an active Interpol search since March last year, were sentenced in Brazil in February 2024 to 88 years and more than 61 years in prison for crimes against the financial system, money laundering and capital market offences. It is understood that the founders were located and arrested in Argentina after their transactions were traced using false identities. (FinanceFeeds)