Crypto Moves — Bitcoin, Ether up; Binance registers with Italy’s regulator; Russia to allow crypto for international payments

RIYADH: Bitcoin, the leading cryptocurrency internationally, traded higher on Sunday, down 0.60 percent to $29,016 as of 10:04 a.m. Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $1,781, up 0.88 percent, according to data from Coindesk.

India’s central bank takes a tiered approach to launching digital currency

India’s central bank, the Reserve Bank of India, know as RBI, has proposed adopting a tiered approach to launch the country’s central bank digital currency, Bitcoin.com reported. 

“The Reserve Bank proposes to adopt a graded approach to introduction of CBDC, going step by step through stages of proof of concept, pilots and the launch,” RBI said.  

“The design of CBDC needs to be in conformity monetary policy, financial stability and efficient operations of currency and payment systems.” 

The RBI added that: “the appropriate design elements of CBDCs that could be implemented with little, or no disruption are under examination.”

Meanwhile, the Indian government has not made a decision on the country’s crypto policy, but crypto income is currently taxed at 30 percent, according to Bitcoin.com

The 1 percent tax deducted at source, or TDS, will also come into effect soon in India.

Binance registers with Italy’s regulator 

Binance said on Friday its legal entity in Italy had registered with the regulator in the country, as the major cryptocurrency exchange seeks to gain traction in Europe.

The registration of Binance Italy, which was established in recent months, could potentially make the company more accountable and reduce the prospects for money laundering.

Binance said it could now open offices in Italy and expand the local team. The company is one of the 14 virtual asset operators to be registered with the Organismo degli Agenti e dei Mediatori, also known as the OAM, which regulates the crypto industry in Italy.

The move comes almost a year after Binance was forced to dial back on its product offerings across Europe after coming under scrutiny from regulators. In Italy, the company had to wind down its futures and derivatives business.

Earlier this month, Binance’s Chief Executive Officer Changpeng Zhao said the company had also registered with France’s market regulator. Binance is also seeking registration in Switzerland, Sweden, Spain, Netherlands, Portugal and Austria.

Russia mulls allowing cryptocurrency for international payments

Russia is considering allowing cryptocurrency to be used for international payments, Interfax news agency quoted a government official as saying on Friday.

“The idea of using digital currencies in transactions for international settlements is being actively discussed,” Ivan Chebeskov, head of the finance ministry’s financial policy department, was quoted as saying.

Russian officials are wrestling with how to regulate the country’s crypto market and use of digital currencies, with the finance ministry opposed to the central bank’s calls for a blanket ban.

Discussions have been ongoing for months and though the government expects cryptocurrencies to be legalized as a means of payment sooner or later, no consensus has yet been reached.

The finance ministry is discussing adding the latest proposal on international payments to an updated version of a draft law, the Vedomosti newspaper reported on Friday, citing government officials.

Allowing crypto as a means of settlement for international trade would help counter the impact of Western sanctions, which has seen Russia’s access to traditional cross-border payment mechanisms “limited,” Chebeskov said.

(With input from Reuters)