Crisis in Ukraine Displays US Power Over Payment Systems
Ukraine has returned to the top of the news agenda, with pro-Russian separatists occupying government buildings in the east of the country. But using the levers of global finance, the conflict, with Europe and the US on one side and Russia on the other, is as much an economic battle as a physical one. And with Russia now set on creating a new national payment system (NPS) to replace Visa and MasterCard, this fight is a reminder of the fundamental difference between the new world of decentralized digital currencies and the old world, where governments use payment systems as weapons of war.....
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The National Bank of Ukraine (NBU) has come forth with a statement on bitcoin, and they're telling citizens of the usual risks echoed a good number of times now from central banks around the world - warning that the bank shall not be responsible for the loss of any digital currency holdings. But perhaps more interesting is a call for bitcoin businesses that work as payments systems to register with the NBU: In accordance with Article 9 of payment organizations payment systems, payment systems participants and payment infrastructure service operators have the right to perform activities in....
The virtual currency Bitcoin cannot be used in Ukraine as a means of payment. The above was announced in a post on the official website of the National Bank of Ukraine (NBU). According to the regulator, Bitcoin and other cryptocurrencies represent "money substitutes.” It should be clarified, however, that the announcement does not officially ban Bitcoin as no actual law was passed to date. The NBU simply reiterated its previous position, warning citizens to be vigilant of potential scams with Bitcoin, which is “often used for illegal activities.” "In order to protect consumers' rights and....
The government of Moldova has decided to suspend crypto mining activities in the country as it’s facing a major energy crisis. The move is part of emergency measures to reduce power consumption with energy supplies dwindling due to the escalating conflict in neighboring Ukraine. Authorities in Moldova Prohibit Bitcoin Minting and Mining Hardware Imports to Save Power Cryptocurrency mining in Moldova has been targeted amid a deepening energy crisis as the winter approaches. The country’s government took steps this week to limit electricity consumption, including imposing a complete ban on....
Finally, some clarity from the Eastern Europe side, as businesses in Ukraine that have something to do with Bitcoin would have to be registered and follow the general law. The initiative to make the statement took the National Bank of Ukraine (NBU) that proclaimed the necessary registration for payment systems and operators of infrastructure for payment systems. In case the named group is not registered with the NBU, its activities are utterly illegal. NBU, which is the central bank of Ukraine, also points out that no other bank or financial institution can provide legal registration for....
While Bitcoin adoption has globally increased during the past two years, seven cities have stood out to be leading the way. The cities that are leading the world's Bitcoin adoption are San Francisco, Vancouver, Amsterdam, Makati, Zurich, Tel Aviv and London. The National Bank of Ukraine (NBU) held a meeting in April to discuss ways of "[improving] the performance of international payment systems in Ukraine" and easing up regulatory constraints for new market entrants. "San Francisco is home to over 68 rapidly growing Bitcoin startups, including Coinbase, Kraken, Purse, Changecoin and....