First US state where you can no longer mine crypto: Law Decoded, November 21-28

New York State has become the first in the United States to impose a moratorium on proof-of-work (PoW) mining, but only for two years. Last week, New York Governor Kathy Hochul signed the moratorium into a bill banning all new mining that doesn’t rely on 100% renewable energy. License renewals would also be frozen. In eight months, the anti-mine bill made its way from first passage through the state assembly to the pen of the governor.

The statewide development seems unlucky for New York City Mayor Eric Adams, who is focused on transforming the city into a crypto hub. Commenting on the enactment of the moratorium, Adams sounded more peaceful than he had in June when he promised to ask the state governor to veto the document. This time, Adams pledged to work with lawmakers “who are supportive and those who have concerns” and to come “to a great meeting place.”

Ultimately, New York State remains perhaps the least welcoming place for crypto due to its regulatory regime: not only do miners need to get a fully renewable source of energy now, but mining rigs trading have been struggling since the hard-to-get introduction of BitLicense in 2015. However, some officials believe national crypto laws should be more like those in New York.

US senators urge Fidelity to reconsider its Bitcoin offers

US Senators Elizabeth Warren, Tina Smith and Richard Durbin have renewed their calls for Fidelity Investments to reconsider offering a Bitcoin (BTC)-linked 401(k) retirement product. In a letter to Fidelity Investments CEO Abigail Johnson, the three senators said the recent fall of FTX is more than a reason for the $4.5 trillion asset management firm to reconsider its bitcoin offering. to retirement savers.

The senators also added that “charismatic prodigies, opportunistic fraudsters and self-proclaimed investment advisers” played a huge role in manipulating the price of Bitcoin, which in turn impacted holders of retirement savings. 401(k) who have invested in Fidelity’s Bitcoin product. .

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Reserve Bank of India to launch retail CBDC pilot in December

The Reserve Bank of India (RBI) is in the final stages of preparing to roll out the retail digital rupee pilot. Each bank participating in the trial will test the central bank digital currency (CBDC) with 10,000 to 50,000 users. To integrate the new payment option, banks will collaborate with the PayNearby and Bankit platforms.

The CBDC infrastructure will be owned by the National Payments Corporation of India (NPCI). Apparently, at some point, the pilot project will include all commercial banks in the country. Earlier, the RBI launched the wholesale segment pilot for digital rupee, with the main use case being the settlement of secondary market trades in government securities.

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Tornado Cash developer will remain detained until next year’s hearing

A Dutch court hearing has ruled that Tornado Cash developer Alexey Pertsev will be detained for another three months while the investigation continues. The prosecution presented a broad overview of its investigation, portraying Pertsev as a central figure in the Tornado Cash operation before attorney WK Cheng delivered his first defensive argument. The attorney confirmed that the first session was postponed to February 20, 2023 and reiterated his belief that the state presented a unilateral interpretation of Pertsev’s involvement with Tornado Cash.

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Turkey seizes FTX assets amid ongoing investigation

Turkey’s Financial Crimes Investigation Commission (MASAK) has seized assets belonging to Sam Bankman-Fried after opening an investigation into FTX’s business in the country. Turkey’s investigative body found that FTX TR failed to securely store user funds, misappropriated client funds through shady transactions, and manipulated supply and demand on the market. market by requiring customers to buy and sell listed cryptocurrencies that were not backed by actual cryptocurrency holdings.

As a result of these findings, MASAK seized the assets of Bankman-Fried and its affiliates after finding strong “criminal suspicions” on the aforementioned points. A LinkedIn post from FTX TR noted that the exchange has over 110,000 users and has been processing an average monthly trading volume of $500-600 million since launching its mobile app earlier in 2022.

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