Connect with us

Regulation

Binance Card still on its way to Russia despite local crypto payments ban

Published

on



International cryptocurrency giant Binance is not going to give up launching the Binance Card in Russia despite the upcoming ban on crypto payments.

Binance, the world’s largest crypto exchange by daily trading volume, is working on the rollout of its crypto debit card in Russia, a senior executive told Cointelegraph on Sept. 7.

Gleb Kostarev, Binance’s head of operations for Russia and the CIS, says that the plan to introduce Binance Card in Russia comes in line with Binance’s mission to provide all users with the “same experience that is fully compliant with local regulations.”

However, Binance is not ready to either announce the anticipated launch date or provide any legal comment on the issue so far, Kostarev noted, stating:

“We strive to provide all Binance users with the same experience that is fully compliant with local regulations. Russia for us is an important market. We are working on the launch of the Binance card in Russia, but so far we cannot designate the exact date launch or give any legal opinion on this issue at the moment.”

Announced in April 2020, Binance Card is a crypto debit card that is designed to enable payments in cryptocurrencies like Bitcoin (BTC). “With the Binance Card, you can keep HODLing, and spend only what you need to make a payment,” Binance Card’s initial announcement reads.

Anticipated to be accepted in 200 regions around the world, Binance Card officially debuted in countries of the European Economic Area in July 2020. The new product will purportedly soon become available in the United States.

As the Binance Card represents a crypto payment tool by design, the product’s rollout in Russia raises some questions. In July 2020, Russia’s President Vladimir Putin signed the country’s first crypto-related law, officially prohibiting Russian residents from making payments in cryptos like Bitcoin starting from January 2021.

The newly passed law seems to have no impact on Binance’s business so far, according to Kostarev. “The adopted version of the law did not affect Binance’s business in any way,” the executive said. The law “On Digital Financial Assets,” is “fairly neutral” and does not prohibit the crypto assets turnover, Kostarev explained.

The executive also outlined that the adopted version of the law “does not fully cover all aspects of cryptocurrency regulation.” However, Binance is still expecting additional threats to the industry as Russian regulators are planning to introduce another crypto-related bill and can amend passed legislation, Kostarev noted.

After passing the law “On Digital Financial Assets,” in July 2020, Russia is preparing to pass another law, “On Digital Currency,” by late 2020. On Sept. 3, Russia’s Ministry of Finance proposed a set of amendments that would ban all crypto transactions except through inheritance, bankruptcy and enforcement proceedings.



Source link

Regulation

New York authorizes first Yen stablecoin operator in the US

Published

on

By



New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.