Daily Archives: January 5, 2022

Canaan Expands Mining Operations in Kazakhstan Amid Power Deficit, Protests

Canaan Expands Mining Operations in Kazakhstan Amid Power Deficit, Protests

Hardware manufacturer Canaan is expanding its crypto mining operations in Kazakhstan. The company is now cooperating with a number of mining firms there and has already deployed over 10,000 pieces of hardware despite the country’s challenges with electricity supply. Increased energy prices have also provoked protests that could potentially affect the industry.

Canaan Secures Mining Agreements With Companies in Kazakhstan

China-rooted producer of coin minting equipment, Canaan, has announced it has entered into collaboration agreements with multiple crypto mining companies in Kazakhstan. Amid an ongoing crackdown on the crypto mining industry in the People’s Republic, the Central Asian country has become a magnet for miners with its low electricity rates and generally friendly attitude.

In a press release published on Tuesday, the company revealed it had successfully installed the last batch of mining machines for the first phase of its deployment to Kazakhstan. Noting that it continues to deploy additional computing power in accordance with its mining business expansion plan, Canaan detailed:

As of December 31, 2021, the Company had an aggregate of 10,300 AvalonMiner units in mining operations in the country.

“The deployment of over 10,000 mining machines not only deepens our collaboration with leading local mining farms, but also marks our great strikes in our cultivation of the Bitcoin mining business,” Canaan CEO Nangeng Zhang commented. “Joining hands with mining firms, we are excited to leverage each of our respective strengths and resources to maximize profits and capitalize on the growth of the digital assets industry,” the executive added.

Canaan is among numerous mining companies that sought to relocate their equipment to more favorable jurisdictions after the Chinese government launched a nationwide offensive against the mining sector in May of last year. The list includes names like Bitfufu, a mining entity backed by another major manufacturer of application-specific integrated circuit (ASIC) rigs, Bitmain.

Some Crypto Miners Leave Kazakhstan as Rising Energy Prices Spark Protests

Kazakhstan, which maintains capped electricity tariffs and has taken steps to regulate the sector, initially welcomed miners and became an obvious choice for many of them. However, last year’s influx of mining companies has caused a growing power deficit that exceeded 7% in the first three quarters of 2021.

A recent report revealed that some mining firms are already moving out of the country in search of destinations with a more stable power supply such as the U.S. Meanwhile, the government of Kazakhstan has been exploring ways to deal with the electricity shortages, including by reviving a decade-old project to build a nuclear power plant.

The country, which is normally rich in energy resources, saw the eruption of anti-government protests in the first days of the new year, following an increase in the prices of natural gas. The unrest could potentially affect the energy-intensive mining industry and members of the international crypto community are already warning miners to take care of their safety.

In an attempt to bring the situation under control, President Kassym-Jomart Tokayev issued an order to limit gas, fuel, and food prices, blaming the government for the protests. The cabinet of ministers has resigned. In November, Tokayev called for “urgent” regulation of the country’s expanding crypto mining sector, emphasizing the need to ensure an uninterrupted electricity supply for both businesses and households.

Do you think more companies will follow Canaan’s example or will we see an exodus of crypto miners from Kazakhstan? Tell us in the comments section below.

Dacxi Announces Global Tokenized Crowdfunding Solution – the Dacxi Chain

PRESS RELEASE. Dacxi has announced the Dacxi Chain – the worlds first tokenized crowdfunding system that demonstrates the revolutionary commercial potential of blockchain. Tokenization of digital assets will change how the world does business – in particular how new ventures are funded.

Introducing the world’s first tokenized crowdfunding system – the unique trillion use-case of the Dacxi Chain – the latest crypto-based wealth building innovation from Dacxi Coin.

A share of a $24 trillion market

IBM estimates that the digital assets market will be worth $24 trillion USD by 2027.

Of that amount they estimate $1 trillion will be ‘unlisted equities.’ In other words that is the expected value of the tokenized venture capital market. That shows the immense potential of the Dacxi Chain and its ecosystem, powered by the Dacxi Coin.

Dacxi Coin powers the Dacxi Chain

The Dacxi Coin is the native currency to the Dacxi Chain, allowing investments to be transported globally, instantly, and cheaply.

  • Tokens are accountable, trackable, and impossible to counterfeit.
  • Tokens are backed by the global Dacxi network, ensuring education and security of the deals offered.
  • Transaction costs are lower (close to zero).
  • Liquidity is (subject to the token restrictions) far greater. Equity investments in startups are illiquid for years.
  • Given the above, there is likely to be a dramatically larger pool of potential investors.

The Dacxi Chain connects a whole new world of innovation and success

The Dacxi Chain is poised to unlock the true potential of global venture capital investment, and will turn crowdfunding into a trillion dollar sector. The Dacxi Chain will make acquiring funding and finding opportunities to invest easier and cheaper than ever before. Millions of people and billions of dollars will flow into the market, bringing countless new projects to life all over the world.

Ian Lowe, the CEO of Dacxi says “The current equity crowdfunding sector is valued at $10 billion. Its a tiny amount compared to the true demand for funding thats out there – in every corner of the world. With systems like the Dacxi Chain in place, we believe that the tokenized crowdfunding sector alone could hit a $1 trillion valuation by 2027.”

Other applications of Crypto 4.0 that are showing us the future of tokenization in finance and investing are Chiliz fan tokens, NFTs and the vast Facebook Diem payment system that brings safe, affordable financial services to people around the world, especially the billions who don’t have an effective bank account.

Dacxi Chain will change the world

Dacxi Chief Product Officer Fernando Pacheco says “Dacxi Chain tokenized crowdfunding is a perfect use case for Crypto 4.0. It will help countless new innovations to come to life – and literally change the lives of millions of people all over the world. Its part of a revolution in the technological infrastructure in financial markets led by blockchain focussed fintech companies like Dacxi.”

Contact:

Felipe Machado

Dacxi Coin Marketing Manager

E: [email protected]

dacxicoin.io

 

 


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Bitcoin Dips Below $44K, Crypto Economy Drops 4.5%, Traders Rush to Stablecoins

Bitcoin Dips Below $44K, Crypto Economy Drops 4.5%, Traders Rush to Stablecoins

The price of bitcoin dropped below the $44K zone on Wednesday to $43,678 per unit as the entire crypto-economy has shed billions in value. At the time of writing, the overall crypto economy is down 4.5% as it dipped to $2.25 trillion in value.

Bitcoin and Crypto Economy Sheds Billions, Crypto Fear & Greed Index Indicates ‘Extreme Fear’ Is in the Air

  • Bitcoin (BTC) slid in value today, roughly 5.4%% during the last 24 hours. Just after 3:00 p.m. (EST) prices dipped from $46K to $43,678 per unit. BTC’s price is just below the $44K price range against the U.S. dollar.
  • The entire crypto-economy of more than 12,000 crypto assets is down 4.5% and around $2.25 trillion in value. Leading assets like ethereum (ETH) dipped 5.9% and solana (SOL) shed 7.8%.
  • At the time of writing BTC has $25.9 billion in global trade volume and tether (USDT) commands $53 billion in global swaps. The biggest loser in the top-ten crypto markets was terra (LUNA) as it shed 9.2%.
  • Crypto assets that didn’t get affected by BTC’s downward slide include chainlink (LINK), olympus (OHM), and leo token (LEO). Convex finance (CVX), spell token (SPELL), and axie infinity (AXS) suffered the biggest losses during the market rout.
  • The stablecoin market captures $58.8 billion of today’s $98.5 billion in trades. Out of the $2.25 trillion today, stablecoins represent $166.4 billion of the value.
  • Currently, BTC’s market cap is around $836.2 billion in value while ethereum’s (ETH) is $427.7 billion. BTC dominance has dropped significantly and to the lowest point in more than three and half years.
  • BTC dominance today is 37.5% the lowest its been since June 2018, while ETH dominance is 19.2%.
  • At press time, BTC is holding above $44K per unit but has a $ 24-hour range of $46K to $43.7K on Wednesday. Stablecoins have also been feeling the brunt as many are trading a cent or two under the $1 peg.
  • The stablecoin USDC and its market valuation of around $42.6 billion is now the sixth-largest market cap today. USDC has seen $2.6 billion in global trade volume during the last 24 hours and is trading for $0.99 per unit.
  • Metrics from the Crypto Fear & Greed Index show “extreme fear” is the sentiment for today with a score of 24 at the time of writing.

What do you think about today’s market action? Let us know what you think about this subject in the comments section below.

Defi Lending Startup Aave Launches Permissioned Platform to Entice Financial Institutions

On January 5, the open-source non-custodial decentralized finance (defi) lending platform Aave launched a permissioned version of the protocol aimed at institutions. The platform dubbed Aave Arc will leverage Fireblocks as the first whitelister as the platform aims to help bridge traditional financial institutions with defi.

KYC-Centric Defi Liquidity: Aave Launches Aave Arc Permissioned Protocol for Financial Institutions

Aave has launched a permissioned platform called Aave Arc on Wednesday, a new protocol dedicated to financial institutions that want to particpitate in defi in a compliant manner. Aave is a popular defi lending platform and the defi protocol has the third-largest total-value locked (TVL) today. Metrics show that Aave has a $14.52 billion TVL spread across three blockchains including Ethereum, Avalanche, and Polygon.

The crypto custody firm Fireblocks has approved 30 financial entities to join Aave Arc. The list includes firms like Ribbit Capital, Coinshares, Hidden Road, Wintermute, and Celsius. Aave revealed the Aave Arc concept in July 2021, and in mid-November it was disclosed that Fireblocks was the first whitelister. The defi startup also described how Aave Arc would work after explaining that defi was “inaccessible to traditional financial institutions.”

“Aave Arc is a permissioned market based on the Aave V2 market,” Aave said at the time. “In the spirit of innovation and experimentation, Aave Arc creates a Web3-native experience for financial institutions to harness the power of defi in a permissioned sandbox environment.” The defi startup added:

True to the values of defi, Aave Arc is designed to be fully decentralized and governed by Aave Governance. ‘Whitelisters’ that KYC and onboard institutions and corporations onto Aave Arc can be appointed or removed by Aave protocol governance.

Whitelister Fireblocks Envisions ‘Institutional Interest in Cryptocurrency Accelerating in 2022’

Essentially, the new platform allows traditional finance companies to participate with the Aave system but leverage a permissioned liquidity pool. The crypto custody firm Fireblocks believes that more institutions will embrace cryptocurrency and the belief is the company’s top prediction for 2022. “Institutional interest in crypto will accelerate in 2022,” Fireblocks says in a blog post.

“This adoption will gain more momentum from developments in post-trade infrastructure that are currently being implemented across the marketplace,” Fireblocks 2022 prediction post adds.

Aave’s native crypto asset, aave (AAVE) has a market valuation of around $3.47 billion on January 5, 2022, and $294 million in global trade volume. Weekly stats show AAVE is up over a percent, two-week metrics indicate the asset has gained 38.1% and year to date, AAVE has gained 135%.

What do you think about the permissioned defi platform Aave Arc? Let us know what you think about this subject in the comments section below.

Airbnb Explores Crypto Payments — CEO Sees ‘a Revolution Happening in Crypto’

Airbnb Explores Crypto Payments — CEO Sees 'a Revolution Happening in Crypto'

Popular travel website Airbnb could soon accept cryptocurrencies for payments, CEO Brian Chesky has hinted. “Like the revolution in travel, there is clearly a revolution happening in crypto,” he added.

Airbnb’s CEO Says ‘There Is Clearly a Revolution Happening in Crypto’

The CEO of Airbnb, Brian Chesky, asked on Twitter earlier this week, “If Airbnb could launch anything in 2022, what would it be?”

On Tuesday, he revealed that he received 4,000 suggestions, noting that the most popular one is for his company to accept crypto payments. He added, “Our existing payments volume = $336 billion processed since 2013,” noting:

Crypto payments is inclusive of a variety of token ideas.

Other top suggestions include clear pricing displays, a guest loyalty program, updated cleaning fees, more long-term stays and discounts, better customer service, and “commercial spaces (kitchens, co-working).” While specifically confirming that Airbnb is looking into commercial spaces, the CEO noted:

Already working on most, will look into others now.

Airbnb operates an online marketplace in the travel industry. According to its website, there are currently more than 5.6 million listings worldwide. Since its launch in 2007, Airbnb has served more than 1 billion customers and more than 4 million hosts have listed their properties on the platform.

The current payment options Airbnb offers in most countries are Visa, Mastercard, Amex, JCB, and “debit cards that can be processed as credit cards.” Apple Pay, Google Pay, and Paypal are also accepted. Cryptocurrency is currently not a payment option on Airbnb.

Chesky was asked in November last year whether Airbnb is considering accepting cryptocurrency. He replied:

We are definitely looking into it. Absolutely. Like the revolution in travel, there is clearly a revolution happening in crypto.

Noting that “The founder of Coinbase was an early employee of ours,” Chesky revealed, “We have been following the space for quite a long time.”

The executive further opined: “The key is when regular people understand how the new technology improved their lives, beyond the initial excitement. I’m really excited about certain applications that regular people could use to live a better daily life.”

Do you think Airbnb will soon accept cryptocurrency? Let us know in the comments section below.

The Sandbox Partners With a Myriad of Hong Kong Luminaries, Plans to Launch Metaverse ‘Mega City’

The Animoca Brands subsidiary and blockchain-based virtual world, The Sandbox, has announced the firm has made multiple partnerships in Hong Kong, and has plans to create a “Mega City” in the metaverse. Partners who acquired land in The Sandbox to build Mega City include Hong Kong tycoon Adrian Cheng, professional services firm PWC Hong Kong, and the Hong Kong actress and model Shu Qi.

The Sandbox Announces Mega City Launch

Blockchain projects like Decentraland and The Sandbox have been seeing significant demand as Web3, NFTs, and metaverse hype has grown exponentially in recent times. On Wednesday, The Sandbox — an Animoca Brands subsidiary and blockchain metaverse that leverages non-fungible token (NFT) technology — announced the launch of a “Mega City.” The firm has made various partnerships in Hong Kong and the metaverse region will become “a new cultural hub,” according to the announcement.

The Sandbox details that it partnered with the renowned Hong Kong businessman Adrian Cheng, CEO of New World Development, founder of the K11 brand, and Chow Tai Fook jewelry company’s executive director. The blockchain virtual world will feature Cheng’s XL Estate (24 x 24 LANDs) that aims to be an “innovation hub of Mega City.” A landmark will be the GBA Pavilion that showcases “creativity and tech wonders.” Cheng’s GBA Companies will also provide special experiences like “entertainment [and] exclusive NFTs.”

Award-winning entertainment stars like director Stephen Fung and actress Shu Qi plan to showcase exclusive NFTs. “The Sandbox [plans] to create an exciting district of Mega City that will showcase their talents and love for art and culture,” the announcement details. Furthermore, metaverse fans and The Sandbox users will be able to acquire land next to Mega City. The Sandbox has announced a land sale of property located adjacent to the Mega City region. The blockchain virtual world startup’s Mega City announcement explains:

To celebrate the new partners, The Sandbox will launch a new LAND sale on January 13, 2022, that will allow players to purchase choice spots near the LANDs of the partners announced today.

Blockchain Firm Collaborates With 165 Partners

Meanwhile, the project’s native token sandbox (SAND) has shed more than 7% in value this week but during the last two weeks, SAND has gained 6%. Year-to-date metrics show SAND has increased 13,785% against the U.S. dollar. SAND has a market valuation of around $5 billion today and $672 million in global trade volume. Statistics indicate that out of the top NFT marketplaces, The Sandbox Marketplace ranks 25 worldwide with $15.94 million in all-time sales.

According to the upcoming land sale details, the company’s new estates can be seen on The Sandbox virtual world map. The Sandbox says premium land will also be available with exclusive NFTs and the ability to host events on the property. Following the announcement, The Sandbox claims that it has acquired 165 partners to date including the South China Morning Post, PWC Hong Hong, The Smurfs, Care Bears, Atari, Cryptokitties, Adidas, Snoop Dogg, and The Walking Dead.

What do you think about The Sandbox Mega City and the recent Hong Kong partnerships? Let us know what you think about this subject in the comments section below.

Leading NFT Marketplace Opensea Raises $300 Million, Firm’s Post-Money Valuation Taps $13.3 Billion

Leading NFT Marketplace Opensea Raises $300 Million, Firm's Post-Money Valuation Taps $13.3 Billion

Leading non-fungible token (NFT) marketplace Opensea announced the firm has raised $300 million in a Series C funding round led by Paradigm and Coatue. Opensea’s latest capital raise has propelled the company to a $13.3 billion post-money valuation.

Opensea Raises $300 Million, Commands Post-Money Valuation of $13.3 Billion

In mid-November, a report authored by theinformation.com’s Kate Clark and Berber Jin explained that Opensea was fielding new investments after investors were allegedly chomping at the bit to fund the project. At the time, Opensea’s estimated valuation was $10 billion and two sources said: “investors are clamoring for a piece of the startup.”

48 days later, Opensea has revealed it raised $300 million in a Series C finance round. The team says that the new funding will go toward “accelerating product development,” “significantly improve customer support,” “investing in the wider NFT and Web3 community,” and expanding the Opensea team. The funding round was led by Paradigm and Coatue, and a number of other strategic investors joined.

Opensea All-Time NFT Sales Near $15 Billion, Eclipsing Competitors, Firm Plans to Launch Grant Program

According to Opensea, the new funding gives the company a $13.3 billion post-money valuation. Opensea is also the largest NFT marketplace, in terms of all-time sales, as the company has recorded $14.68 billion in sales across 1,387,357 traders worldwide. Sales are up more than 25% during the last 30 days with a recorded $2.91 billion in volume. The $14.68 billion in sales is a lot larger than any other NFT project or market.

For example, the second-largest market, Axie Infinity, has $3.94 billion in all-time sales which is 73.16% lower than Opensea’s sales. Devin Finzer, co-founder and CEO of Opensea, explained in the funding announcement that the team is creating a grant program to help expand the “entire NFT ecosystem.” At press time, the Opensea platform supports NFTs based on the Ethereum (ETH) and Polygon (MATIC) networks.

“This quarter, we are launching a grant program to give us the opportunity to directly support the developers, builders, and creators shaping the future of the NFT space,” Finzer said in a statement. “Our ambition is to foster the scale and growth of the broader NFT ecosystem including raising the profile of emerging creators and investing in the people who shape the NFT space for the better today.”

What do you think about Opensea raising $300 million and the firm’s $13.3 billion post-money valuation? Let us know what you think about this subject in the comments section below.

Decentralized Protocol Launch: Panther DAO Votes to Launch Private DeFi Protocol End of January

PRESS RELEASE. Blockchain history was made earlier this week. Thanks to more than 2,560 DAO votes in a Snapshot proposal, the Panther Protocol was voted to be launched in a private, decentralized manner. This constitutes the very first event of its kind, a feature that sets Panther a step towards its mission to infuse the DeFi ecosystem with native privacy. It is also the very first Private Governance System ever deployed in the crypto industry.

Panther’s decentralized, private launch

To achieve a fully decentralized, private launch, Panther Protocol’s strong community of enthusiasts used a unique, state-of-the-art tech stack. Panther deployed LaunchDAO, a system allowing every user that had completed Know-Your-Customer identity verification for its Public and Private token sales to issue a zero-knowledge proof anonymously verifying their participation. Using this proof, individually-verified users could privately vote on whether or not to launch the protocol on the Ethereum and Polygon blockchains.

With over 99% of the votes in favor of launching the protocol, Panther has set what the team expects will be a positive precedent throughout the industry. Launching in a private, decentralized manner allows the protocol to be governed by a DAO from Day 0, in turn protecting the team from any concerns by lawmakers of the crypto community regarding the control of the project.

LaunchDAO as a system could be used and implemented by any blockchain or crypto-related project pursuing decentralization from Day 0. About this achievement and its impact upon the blockchain ecosystem, Panther’s CEO and Co-Founder, Oliver Gale, has said:

LaunchDAO represents the first time in crypto history a fully verified user base has been able to vote on the future existence or non-existence of a protocol. The Panther protocol will be deployed and launched privately and trustlessly by the LaunchDAO. Furthermore, decentralized voting systems have applications across both legacy and Web3 systems.

In turn, Anish Mohammed, CTO and co-Founder, as well as former advisor to the Ethereum Foundation and Ripple Labs, adds:

“LaunchDAO also represents the official debut of Panther ZK Reveals. ZK Reveals protect the identity of each voter, yet use zero-knowledge proofs to validate that they are both qualified to vote whilst also enabling them to do so without leaking confidential information, such as their selected outcome.”

It is also worth pointing out that the vote to release the Panther Protocol hasn’t been the only decision of the DAO. The Panther community has also elected to postpone the Token Generation Event for the project’s native token, $ZKP, until January 31st, to allow the team to extend its preparation stage. Upon this date, a third vote by the community will take place to trigger this event. This is made possible at zero cost to users thanks to Panther relayers that cover all gas fees and off-chain voting using the zero-knowledge proofs, known as Panther (ZK) Reveals.

What is Panther Protocol

Panther Protocol is an end-to-end privacy protocol connecting blockchains to restore privacy in Web3 and DeFi while providing financial institutions with a clear path to compliantly participate in digital asset markets. Panther provides DeFi users with fully collateralized privacy-enhancing digital assets, leveraging crypto-economic incentives and zkSNARKs technology.

Users can mint zero-knowledge zAssets by depositing digital assets from any blockchain into Panther vaults. zAssets flow across blockchains via a privacy-first interchain DEX and a private metastrate. Panther envisions that zAssets will become an ever-expanding asset class for users who want their transactions and strategies the way they should always have been: private.

Be sure to check out the project’s Website.

Stay connected: Telegram | Twitter | LinkedIn | Medium

 


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Kosovo Halts Cryptocurrency Mining Amid Energy Crisis

Kosovo Halts Cryptocurrency Mining Amid Energy Crisis

The government of Kosovo has decided to suspend crypto mining activities in the country as part of measures to deal with power shortages this winter. The move has been proposed by a special parliamentary committee tasked with bridging the gap between electricity demand and supply.

Kosovo Authorities Ban Crypto Mining to Save Needed Energy

The executive power in Pristina has moved to stop the energy-intensive minting of digital coins in Kosovo, a partially recognized republic in Southeast Europe. The country is facing electricity shortages during the cold winter months, local media reported.

The halting of crypto mining operations was announced on Tuesday by Artane Rizvanolli, Kosovo’s minister of economy. According to her statement quoted by Gazeta Express, the decision was taken at the recommendation of the Technical Committee on “Emergency Measures for Energy Supply” set up by the nation’s legislature.

The restrictions were agreed upon in the parliament of Kosovo last week, DTT Net reported. Kosovo has been experiencing power cuts amid increased demand for electricity during the cold winter months and authorities are trying to find solutions that will mitigate the energy crisis.

Minister Rizvanolli added that Kosovo’s law enforcement institutions will join the efforts to locate crypto mining facilities and halt the mining of digital currencies. “These actions are aimed at addressing potential unexpected or long term lack of electricity production capacities, capacities of transmission or distribution of energy in order to overcome the energy crisis without further burdening the citizens of the Republic of Kosovo,” she elaborated.

In order to deal with the power deficit, the government declared a 60-day state of emergency in December which will allow it to allocate funds for energy imports and impose power cuts. Kosovo’s energy needs are mostly satisfied by its coal-fired power plants.

During winter, however, demand surpasses supply and the Kosovo Energy Distribution Systems company is forced to compensate for the shortages with imports. At the same time, Gazeta Express notes, the global energy crisis has resulted in an enormous increase in electricity prices on the international market.

Kosovo has seen the popularity of mining grow with crypto prices, especially in its predominantly Serb northern part where consumers in several municipalities have not paid anything for electricity in over 20 years. Earlier this year, Balkan Insight reported that the Albanian-controlled government in Pristina had ordered the country’s public utility to cover these bills for another six months while authorities are trying to find a permanent solution.

Do you think Kosovo will allow crypto miners to resume activities once it overcomes its problems with electricity shortages? Tell us in the comments section below.

Cryptocurrency Draft Law Presented in Peru

peru

A draft of a new cryptocurrency asset law was introduced in Peru in December, seeking to regulate the cryptocurrency interactions that are already happening in the country. The draft law, besides defining what a crypto asset is and establishing the duties of virtual asset service providers (VASPs), also seeks to legalize the use of assets to incorporate and be held by companies.

Peru Launches First Cryptocurrency Regulation Attempt

A new piece of draft legislation called “Cryptoasset Marketing Framework” has been introduced in the Peruvian Congress under the number N° 1042/2021-CR, in the first attempt of the country to regulate cryptocurrency interactions. The project, which was presented December 10 by Jose Luis Elias Avalos, a member of the “Podemos Peru” parliamentary group, defines several key concepts in the cryptocurrency world, including crypto assets, virtual asset service providers (VASPs), blockchain, and cryptography.

The law also proposes the creation of a public registry for VASPs, that users can consult anytime to find out if an exchange or platform is registered to do business on Peruvian soil. In addition, it establishes the conditions that each VASP must follow to operate lawfully in the country.

The draft compels these companies to inform, in their contract of services to the user, that Peru does not consider cryptocurrencies legal tender, and that the supervision of these assets by the government constitutes no guarantee against the risks that operating with cryptocurrencies can bring to users.

Crypto as a Tool to Found Companies

The law further considers that crypto assets could be used to create and incorporate companies, and gives a legal base for these companies to hold crypto in Peru. In the first case, the proposal states that the value of the cryptocurrencies should be recorded at the moment of the constitution of the company. In the second case, the draft explains that if the company intends to sell them, cryptocurrencies should be considered inventory assets. In other considerations, they should be considered property or intangible assets.

Peru is yet another Latam country that has jumped on the cryptocurrency regulation bandwagon, behind countries like Brazil, Paraguay, Venezuela, and El Salvador, which are working on — or have already established — cryptocurrency-specific laws. However, the proposed draft does not consider bitcoin legal tender, as El Salvador’s “Bitcoin law” does. The law went into effect last year, pushed by El Salvador’s president Nayib Bukele, who also predicted that two new countries would make bitcoin legal tender this year.

What do you think about the newly proposed law to regulate crypto assets in Peru? Tell us in the comments section below.