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Government Crypto News

The Bank of China, one of the largest state-owned commercial banks in China, is testing new technology through which citizens use their sim cards to pay in digital yuan, China&#8217;s central bank digital currency (CBDC), according to The Block Website. 



In a statement, the bank said it is collaborating with telecommunication operators China Telecom and China Unicom to develop this technology to test it this week. Users will be allowed to make payments by their phone after connecting its digital yuan app with what it calls “super SIM cards” that are equipped with a near-field communication function.



When the user pays at the merchant, there is no need to scan the code or call out the QR code. That means that the payment can be done even if the users&#8217; mobiles are off.



The new service will be launched in some pilot areas and will be promoted to other pilot areas in stages (currently only Android phones with NFC function support the use of SIM card hard wallets), the bank added.



China is trying to promote the use of the digital yuan in different ways. This month, the Jinan Public Transport in Shandong Province updated all its card readers and bus route software to allow passengers to pay for their tickets using CBDCs.



It is worth mentioning that the civil servants of the Chinese city of Changshu got their May salaries in digital yuan, according to a notice issued by financial authorities in the city.



The notice said that all civil servants, including those in state-owned units, public service, and public institutions at all levels, would be paid in digital yuan starting the next month.



In addition, civil servants have the option to opt for digital yuan settlements through self-service terminals.



During the Spring Festival holidays, Chinese cities, such as Lianyungang, Jinan, and Shenzhen, launched nearly 200 digital yuan activities worth more than 180 million yuan ($26.6 million) to promote its usage.

Digital Yuan

Blockchain

Bank of China Tests Technology To Allow Users Pay with Sim Cards in Digital Yuan

Oman&#8217;s Capital Market Authority (CMA), the regulator and developer of the financial markets, announced a plan to outline a regulatory framework for the virtual assets and virtual asset service providers in the Sultanate.



CMA&#8217;s plan came during a public stakeholders engagement session. <a href="https://cma.gov.om/" target="_blank" rel="noreferrer noopener">According to a press release</a>, the authority seeks to offer an alternative financing and investment platform for issuers and investors, while mitigating the risks associated with this asset class.



The regulations of the new plan will include covering all virtual assets activities, offering a licensing framework for all categories of virtual asset service providers, in addition to outlining a supervisory framework to identify, assess, and mitigate ongoing risks in order to establish a market regime for virtual assets that includes rules to prevent market abuse, including through surveillance and enforcement mechanisms.



The new regulatory framework will cover crypto assets, crypto exchanges, tokens, and initial coin offerings, among others in a move that targets providing a clear and secure framework in light of the growing importance of virtual assets in the region, currently and in line with Oman Vision 2040 of a digitally transformed economy and financial sector to lure foreign investments.



CMA started taking steps on the ground to prepare the framework by appointing XReg Consulting Limited, an international policy and regulatory consultancy specializing in virtual assets, and Said Al-Shahry and Partners, Advocates &amp; Legal Consultants (SASLO), an Omani law firm, to benefit from their expertise in expertise in policy, law, and technology to assist the authority in developing a comprehensive framework.



However, the Central Bank of Oman was cautious about cryptocurrencies. In October 2022, the bank called on Omani citizens to be cautious regarding investing in digital assets. According to Cointelegraph, nearly 65,000 residents in the Sultanate hold cryptocurrencies.

Oman

Crypto

Oman Plans To Set up Regulatory Framework for Virtual Assets

Rwanda&#8217;s government called on banks to stop facilitating crypto-related transactions, citing the status of high risk and unsafety, <a href="https://news.bitcoin.com/rwanda-government-orders-banks-to-stop-facilitating-crypto-related-transactions/" target="_blank" rel="noreferrer noopener">Bitcoin News reported</a>.&nbsp;



The National Bank of Rwanda (NBR) noted that the country&#8217;s financial services providers are prohibited from engaging in any crypto-related activities until the outlining of a regulatory framework, according to a letter sent by NBR to CEOs and managing directors of financial services providers.&nbsp;



In this regard, NBR Acting Governor Soraya Hakuziyaremye claimed that the prohibition would create safe and efficient financial services, pointing to the unregulated status of most crypto assets and how this leaves users without the guarantees and safeguards associated with regulated financial services.



In her letter, Hakuziyaremye justified the bank&#8217;s decision, saying: &#8220;Although crypto asset activities are still limited and therefore, do not pose substantial risks to [the] financial and monetary system of Rwanda, the NBR is concerned about the involvement of the financial institutions in crypto activities.&#8221;&nbsp;



The acting governor pointed out that there are some Rwandans who are still trading digital assets like bitcoin, although the bank warned against crypto-related activities, adding data showed that over $3 million were traded on the Rwandan market since January 2020.&nbsp;



Earlier in November, The International Monetary Fund (IMF) called for more regulation of the crypto industry and greater consumer production in African countries,<a target="_blank" href="https://www.imf.org/en/Blogs/Articles/2022/11/22/africas-growing-crypto-market-needs-better-regulations" rel="noreferrer noopener">&nbsp;according to a blog published by the global financial institution</a>.



IMF referred to policymakers’ concerns that cryptocurrencies could be used to illegally transfer funds out of Africa and get around local rules to prevent capital outflows. The blog said: “Widespread use of crypto could also undermine the effectiveness of the monetary policy, creating risks for financial and macroeconomic stability.”



Despite being one of the fastest-growing crypto markets in the world, Africa’s crypto market is still the smallest in terms of crypto transactions reaching $20 billion per month in mid-2021, according to Chainalysis. Africa’s crypto market increased in value by more than 1,200% between July 2020 and June 2021.

bitcoin-with-gold-crown-rwanda-flag-cryptocurrency-king-concept-d-rendering_601748-2350

Rwanda Urges To Stop Facilitating Crypto-related Transactions

The Australian government is expected to introduce new tools to the Australian Competition and Consumer Commission (ACCC), the country’s competition watchdog, to protect consumers from crypto-related scams, which resulted in losses in crypto payments worth $221 million in 2022.



The real-time data-sharing tool will help the ACCC to detect and prevent crypto scams, in addition to boosting consumer protection.



Consumer protection will be enhanced through a framework that will regulate the licensing and custody of digital assets. This framework is scheduled to be launched by mid-2023.



The government also announced new measures that aim to protect consumers while dealing with cryptocurrencies and ensure proper risk disclosures from crypto firms, <a href="https://cointelegraph.com/news/australia-bolsters-crypto-watchdogs-in-multi-stage-plan-to-fight-scams" target="_blank" rel="noreferrer noopener">Cointelegraph reported</a>.



Australian Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones elaborated that the new measures are part of a multi-stage approach, which will be based on three elements, including boosting customer protection, setting up a framework for its token mapping reform, and promoting enforcement.



They pointed out that the multi-stage approach would lead to an increase in the size of the Australian Securities &amp; Investments Commission (ASIC)’s digital assets team and upgrading enforcement measures. Both mentioned that ASIC&#8217;s team would concentrate on making sure of the disclosure of crypto products and service providers&#8217; risks to consumers.



&#8220;The previous government dabbled in crypto policy but never took the time to future‑proof our regulatory frameworks to protect consumers and guide this new and emerging class of assets,&#8221; the treasurers said, adding: We are acting swiftly and methodically to ensure that consumers are adequately protected and true innovation can flourish.&#8221;



The multi-stage approach plan was rapidly implemented after the collapse of FTX in November 2022 which harmed 132 Australian-based companies and more than 30,000 Aussies.

Australia

Australia Boosts Consumer Protection against Crypto Scams

The UK Treasury, the British finance ministry, and the Bank of England (BoE) believe that the UK is likely in need of the creation of its central bank digital currency (CBDC) by 2030, according to an unreleased government report.



A government source told <a href="https://www.telegraph.co.uk/business/2023/02/04/digital-pound-possible-2030-bid-combat-falling-use-cash/" target="_blank" rel="noreferrer noopener">The Telegraph Newspaper</a> that the digital currency&#8217;s roadmap will be launched by the next week as Deputy Governor Jon Cunliffe will give an update on the bank&#8217;s work on the CDBC on Tuesday.



&#8220;On the basis of our work to date, the Bank of England and HM Treasury judge that it is likely a digital pound will be needed in the future,&#8221; the Telegraph quoted BoE Governor Andrew Bailey and Chancellor of the Exchequer Jeremy Hunt as saying in the joint report.



Cointelegraph reported that the news came days after the UK economic and finance ministry announced on LinkedIn that it seeks to hire a head of the central bank digital currency, saying the role is “important, complex, and cross-cutting” in addition to requiring an “extensive engagement across and beyond the HM Treasury.



Moreover, in another place in the world, the National Bank of Kazakhstan (NBK) announced that its digital Tenge is in the pilot stage, which will be launched in cooperation with Binance, according to a joint report.



NBK Deputy Governor Berik Sholpankupov said the cooperation with traditional finance and DeFi will enhance financial inclusion and support international trade, noting the Digital Tenge can bridge the world of crypto with traditional fiat payments infrastructure.



Kazakhstan earlier announced the launch of its digital Tenge project in 2020 as the project is scheduled to be completed by the end of 2025. Currently, BNB Chain and NBK are testing CBDC integration with the [BNB] public decentralized blockchain to bridge the gap even further between traditional banking and the crypto ecosystem, the report added.

UK BoK

UK Tackles Launch of Its CBDC by 2030

South Korea is looking forward to introducing a crypto-tracking system to combat money laundering initiatives and recover funds linked to criminal activities in 2023, <a href="https://cointelegraph.com/news/south-korea-to-deploy-cryptocurrency-tracking-system-in-2023" target="_blank" rel="noreferrer noopener">Coin Telegraph reported</a>.



This came in an announcement made by the South Korean Ministry of Justice, which announced to launch “Virtual Currency Tracking System” soon to observe the transaction history, get information related to transactions and make sure of the funds&#8217; source before and after the remittance. The new tracking system is expected to be launched by the second half of 2023.



In a statement, the South Korean ministry noted: &#8220;In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).&#8221;



Related to this issue, the South Korean police inked five agreements with five local crypto exchanges in the last year to cooperate in stopping the exploitation of virtual assets and creating a safe trading environment through business agreements.



Recently, South Korea made remarkable progress in the Web3 world, topped by the foundation of its capital, Seoul, in the metaverse for public services for its residents and tourists.



Named “Metaverse Seoul,” the platform allows users to file public documents, tour tourist destinations in Seoul, ask for advice for starting a business, and seek help with taxes in addition to playing games. The Seoul government has a five-year roadmap for rolling out a full list of government services and activities covering the tourism, business, and cultural sectors. Citizens of Seoul on the platform’s first phase, which had been launched today, have access to official city paperwork, file complaints and get answers about local taxes.



The US Department of Justice also founded a department in September 2022 to address crimes related to the use of cryptocurrencies. The department includes 150 federal prosecutors.

Government Crypto News

Latest Government Crypto News