Biggest news last week was India reversing the ban on cryptocurrency trading. That and Facebook looking to change its strategy to get the blessings of regulators are all in news this week. Let’s see what we have in store for the last week update.
India’s ban on cryptocurrency trading is lifted by the Supreme Court
Supreme Court of India has squashed RBIs restrictions on cryptocurrency trading. As readers may remember, Reserve Bank of India (RBI) has imposed restrictions on any financial institution that caters to individuals or businesses dealing in cryptocurrencies. This forced a lot of up and coming businesses in the crypto space to shut their doors. Some popular exchanges had to leave India to find a new home in Malta while others had to simply shut their doors. The ruling from Supreme Court comes as much needed relief for India’s crypto scene. We could see new exchanges sprout in India in the coming years and bring a new layer of liquidity to the space from the world’s second most populated country.
South Korea makes Crypto fully legal
Asian media outlets have reported that “The passing of the amendment signifies the official entry of cryptocurrency trading and holding into the legal system for the South Korean government.” As long as the financial institutes comply with the reporting requirements – they will now have the blessing of the government to offer crypto trading to its customers. The law is set to be in full effect by September 2021 and “Exchanges, trusts, wallet companies, and ICO are now required by law to have a real-name verification partnership with an approved Korean bank.”
France recognizes Bitcoin as legal currency
In a rare court decision coming out of France, Bitcoin has been given the status of “legal currency.” LesEchos reported that “Once judges have considered bitcoin as a fungible asset, that is, as money, bitcoin lending falls under the “consumer loan” (not to be confused with consumer credit), which transfers ownership property loaned to the borrower during the term of the loan. And so, the bitcoins Cash belongs to the borrower, like the dividend to the shareholder, believes the Court.”
Facebook to change its strategy
In an effort to woo the regulators to approve its operations, Facebook’s Libra is changing its strategy to include government issued digital currency to its ‘basket of assets’. The question on how the asset pegged currency will be looked at by the SEC is not clear. Bloomberg reported “Facebook Inc. and its partners are considering redesigning the Libra cryptocurrency project so that the network accepts multiple coins, including those issued by central banks, in an effort to woo reluctant global regulators and rebuild momentum for the plan.” With China’s economy taking a beating with coronavirus – Facebook’s Libra could be the medium that takes a digital US dollar to the global masses through Facebook’s messenger and Whatsapp platforms.
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