The Russian invasion of Ukraine was the biggest event in February. In response, stocks and cryptocurrency prices fell while the Russian ruble crashed to a record low. As an agency specialising in financial marketing, our team has rounded up the top regulation changes in February, and now we’re looking at what’s coming up in March 2022.
India cryptocurrency tax
For months, India has been in the spotlight when it comes to cryptocurrency regulations. At some point, the country was set to announce a total ban of cryptocurrencies. In February, the government sounded optimistic about the industry. In a statement, the government said that it will impose a 30% tax on all cryptocurrency gains. These gains will include funds from capital gains, mining, and NFT sales. The date to file these taxes was extended to March 15 2022.
Christine Lagarde calls for more crypto regulations
After Russia moved its troops to Ukraine, many western governments announced major sanctions on Russia. The most severe sanctions were barring Russia from using SWIFT. Prior to this, only one country had been cut off from SWIFT and that was Iran. SWIFT is a messaging network that financial institutions use to securely transmit information and instructions through a standardised system of codes. In a statement, Christine Lagarde of the ECB said that the EU should move quickly to approve regulations that prevents Russia from evading sanctions. She said;
“There are always criminal ways to try to circumvent a prohibition, which is why its so critically important that MiCA is pushed through as quickly as possible so we have a regulatory framework.”
BlockFi and SEC settle
Another key regulatory event that happened in February was the decision by the Securities and Exchange Commission to settle with BlockFi for $100 million. The SEC had accused BlockFi of offering lending products without following the law. By agreeing to settle, the company avoided a long period of litigation that is often expensive. The SEC is also investigating Gemini, Voyager Digital, and Celcius.
Bank of Russia reserves sanctioned
As the Russian invasion of Ukraine continues, western governments announced fresh sanctions on the Bank of Russia. The new sanctions mean that more than half of the bank’s reserves will now be blocked. These measures are intended to put maximum pressure on Russia as it faces strong resistance from the locals. It is the first time that a major central bank has been sanctioned by western countries.
ESMA warns about market corrections
In February, the European Securities Market Authority (ESMA) warned investors to prepare for several market corrections. The report attributed this to the ongoing war in Ukraine and the fact that the Evergrande crisis is still around. It said:
“All investors should consider that the risk of market corrections remains acute. This was demonstrated last year in two episodes of sell-offs largely driven by news first related to Evergrande and then to the resurgence of Covid-19. The markets remain highly volatile and ESMA sees growing uncertainty for investors going forward.”
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