- The United States is stepping up regulatory efforts against crimes involving cryptocurrencies and related assets.
- Warren Buffett’s longtime partner, Charlie Munger, compared Bitcoin to a venereal disease.
- This week Ukraine’s parliament approved a bill to legalize digital assets in the country, with strong majority support.
Here are the main cryptocurrency headlines you may have missed this week:
U.S. authorities crack down on crypto crime
U.S. Deputy Attorney General Lisa Monaco said on Thursday at the Munich Cyber Security Conference that the FBI is forming a new team, the Virtual Asset Exploitation Unit. The division will include investigators and cryptocurrency experts focused on blockchain analysis and the seizure of digital assets. It will provide training and innovative tools to better prepare for potential future threats.
At the same time, the Department of Justice announced the creation of the National Cryptocurrency Enforcement Team (NCET), which will be led by experienced prosecutor Eun Young Choi, who has also served as a senior advisor to the DAG.
Choi brings extensive experience in investigating and prosecuting cybercrime. She led the probe into a hacking incident that targeted several financial institutions, including JPMorgan & Chase, and that prosecution resulted in sentencing last year.
The NCET will work jointly with the FBI’s virtual assets team. Its role will center on handling incidents involving digital assets in criminal activity, particularly when exchanges and infrastructure companies are involved.
The announcement comes just a week after the Department of Justice arrested two individuals for conspiring to launder $3.6 billion in stolen cryptocurrency from a 2016 incident that affected the Bitfinex exchange.
Charlie Munger says Bitcoin is like a venereal disease
Charlie Munger, longtime investing partner of billionaire Warren Buffett and vice chairman of Berkshire Hathaway since 1978, once again disparaged cryptocurrencies. Speaking at the Daily Journal Corp.’s recent annual meeting on Wednesday, Munger promoted the view that Bitcoin should be banned.
Never one to hide his disapproval of digital assets, he said he was glad to have avoided this “venereal disease,” calling cryptocurrencies “the worst of the worst.” He also praised China for banning these digital assets and said the U.S. should not support what he sees as a scheme to enrich others through cryptocurrencies.
Munger’s negative stance toward the crypto ecosystem is longstanding; he has previously described Bitcoin with phrases such as “rat poison” and “noxious poison.”
The Berkshire Hathaway executive is known for cautious investing—like his friend Warren Buffett—and tends to put money into areas where he feels comfortable. His recent remarks contrast sharply with reports that Berkshire Hathaway invested $1 billion in Brazilian Nubank, a bank with crypto-friendly ties.
UAE plans licensing for crypto issuers
The United Arab Emirates is preparing to issue crypto licenses to virtual asset service providers (VASPs) operating in the country. The licensing initiative is part of a push to become a global cryptocurrency hub.
Federal licenses are expected to be issued within the first quarter of this year, according to a government official who confirmed the plans to Bloomberg. The official also said the Securities and Commodities Authority is in the final stages of reviewing regulations to permit VASPs to operate legally in the UAE.
The UAE’s ambition to become an industry center has been developing for some time. In December, Binance—the world’s largest exchange by trading volume—reached an agreement with the Dubai World Trade Centre Authority (DWTCA) to help accelerate the development of such a crypto hub.
Binance has also supported companies and exchanges in Dubai’s growing blockchain scene. The Gulf nation is aiming to narrow the gap with regional leaders such as Singapore, which is currently ahead on cryptocurrency regulation and adoption.
Ukraine parliament approves crypto bill; awaiting presidential signature
On Thursday, Ukraine’s parliament, the Verkhovna Rada, approved a bill to legalize cryptocurrencies and virtual assets, with the vote passing nearly unanimously: 300 in favor and 2 against.
The bill establishes a legal framework for these assets and creates a foundation for integrating cryptocurrencies into the country’s financial and regulatory structure. Part of the legislation defines the rights of all participants in the crypto industry and confirms Ukrainians’ legal right to own and use cryptocurrencies.
This is not the first time a crypto bill has been considered by the 7th Verkhovna Rada. Last September the parliament approved a regulatory measure that was later sent back by President Volodymyr Zelenskyy in October, who cited specific concerns. He explained that budget constraints prevented the government from supporting a requirement to create a new regulator, and he therefore withheld approval at that time.
Apparently the bill has been revised and now specifies that the National Securities and Stock Market Commission of Ukraine will serve as the principal regulator for virtual assets, rather than dividing regulatory authority among the Commission, the Ministry of Digital Transformation, and the National Bank of Ukraine as in the earlier version.
Intel CEO says upcoming mining chip could ease Bitcoin’s pollution concerns
Intel CEO Patrick Gelsinger revealed that the company plans to introduce a new cryptocurrency-mining chip designed to deliver better energy efficiency than current miners.
In a recent interview with Bloomberg, Gelsinger reiterated comments he made in 2019 calling Bitcoin harmful to the climate, poorly designed, and extreme. He noted ongoing concerns—such as the high energy consumption associated with a single Bitcoin transaction, which he compared to a household’s daily usage—but said the situation could improve with Intel’s forthcoming blockchain chip.
Gelsinger referenced an announcement by Raja Koduri, Intel’s senior vice president and general manager of Accelerated Computing Systems and Graphics (AXG), who said the chip would offer “1,000 times better performance per watt than conventional GPUs for SHA-256-based mining.”
Koduri added that more details about the blockchain accelerator would be revealed during the virtual ISSCC 2022 conference starting February 20. He also said Argo Blockchain and Jack Dorsey’s Block are among the initial customers for the new chip, with shipments planned later this year.