Crypto Corner - July 20, 2018
India's Supreme Court Sets Final Hearing for Crypto for September, South Korea Creates Department for Blockchain, Fintech, Vietnam Bans Import of Crypto Mining Hardware and Quebec to Charge Miners More for Electricity
India's Supreme Court has set September 11 as the date of final disposal for petitions seeking state regulation of cryptocurrencies, according to Indian legal news outlet Bar & Bench. The Reserve Bank of India (RBI), who banned all banks and financial institutions from participating in crypto transactions, maintained that crypto could "encourage illegal activities" in the hearing today.
South Korea's Financial Services Commission (FSC) will create a department specifically aimed at cryptocurrency and blockchain, according to a report in the Korea Times today. Dubbed the Financial Innovation Bureau, the new department is meant to exist for just two years in order to nurture the country's fintech industry. An official from blockchain tech firm FANTOM Foundation praised the move from the FSC:
"I think Korea can be an ideal incubator to test drive new virtual coins and their blockchain systems. High-speed internet infrastructure is already here, unparalleled to any other country in the world. And the Korean people are very adoptive of technology. Now it is the government's role to establish a favourable environment for virtual coins and their blockchains."
The State Bank of Vietnam (SBV), the country's central bank, has agreed to a proposal by the Ministry of Industry and Trade (MoIT) to suspend the import of crypto mining technology, according to a report in Viet Nam News. The rationale for the ban, which is allegedly temporary, is to protect consumers from scams and fraud, and that cryptocurrencies are illegal as a form of payment in the country.
Crypto mining also just got harder, though not as much, in Quebec. According to the Montreal Gazette, authorities have allowed Hydro-Québec, who provide electricity in the province, to charge 15 cents per kilowatt hour (kWh) to crypto miners. This is double what residential clients pay. Requests from miners reportedly amounted to 40 percent of Hydro-Québec's generating capacity. The decision from the authorities reads:
"The Régie considers that the rates and conditions ... will ensure the security of electricity supply in the particular context of massive, sudden, unexpected and simultaneous demands for the use of blockchain technology, including mining cryptocurrencies."
Sam Mowers, Investorideas
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