Home Technology Weekly Crypto Roundup: UK Crackdown, Iran CBDC and Crypto Carbon Credits

Weekly Crypto Roundup: UK Crackdown, Iran CBDC and Crypto Carbon Credits

0
Weekly Crypto Roundup: UK Crackdown, Iran CBDC and Crypto Carbon Credits

The week following the Ethereum merger event, macro factors drove prices lower, although many Ether investors were hoping for an upside.

The week following the Ethereum merger event, macro factors drove prices lower, although many Ether investors were hoping for an upside.

On Friday, Bitcoin was poised to fall below the $19,000 level while Ether hovered above the $1,300 level.

UK tackles money laundering

Law enforcement around the world is concerned about the role cryptocurrency plays in money laundering. Sanctioned platforms like Tornado Cash even offer ways to “mix” legitimate and stolen crypto funds to make it harder to trace them. The UK introduced the Economic Crime and Corporate Transparency Bill to Parliament on Thursday to address these challenges.

(For an overview of emerging themes at the intersection of technology, business and politics, subscribe to our Today’s Cache tech newsletter.)

According to a UK government announcement, the bill gives law enforcement more powers to obtain data from companies to combat money laundering and terrorist financing.

The reforms come after the UK’s Metropolitan Police reported a spike in cryptocurrency seizures in 2021. The new law would allow law enforcement across the country to seize, freeze and recover cryptoassets.

The statement noted that crypto has helped launder funds related to fraud, drugs, and cybercrime.

The Iranian CBDC Pilot

Iran grabs headlines as protesters rage against death of Mahsa Amini, 22 years old, who died while in the custody of the country’s vice squad. The sanctions-hit country, however, announced on Wednesday that it is starting a pilot launch of the central bank digital currency “crypto-rial” (CBDC).

A statement from the Iranian Chamber of Commerce, Industries, Mines and Agriculture said that the idea behind digital currency is to turn banknotes into programmable entities. The Central Bank of Iran announced that it would carry out the pilot launch this week.

Rights activists fear Iran’s digital currency could be used to monitor or cut spending power of protesters like those who fight for Mahsa Amini.

Going green vs greenwashing

The fintech sector has explored the concept of buying carbon credits to offset greenhouse gas emissions in the industry. Now, crypto entrepreneurs have introduced or are adopting carbon credits through cryptocurrencies. Proponents claim this leads to greater transparency and accountability as the credits turn into crypto tokens.

A Reuters report pointed out that Brazilian crypto firm Moss, which boasted about helping companies offset their carbon footprint, bought carbon credits it said were not up to its standards and sold those assets to profit.

Experts have debated whether ethical climate finance should involve investors and companies that see significant returns in the carbon crypto market.

The news comes as several environmental groups, including the non-profit organization Earthjustice, have reported that the US Bitcoin industry’s carbon footprint is close to the emissions of six million cars per year.

LEAVE A REPLY

Please enter your comment!
Please enter your name here