Cryptocurrencies Lose ‚Battle‘ to Fiat Currencies, Says BIS GM

• Agustin Carstens, the head of the Bank for International Settlements (BIS), believes that cryptocurrencies have lost the battle against fiat currencies issued by central banks.
• Carstens argued that stablecoins are not reliable due to their lack of „institutional arrangements and social conventions.“
• The BIS general manager stated that stablecoins rely on the credibility of fiat with fewer regulatory protections and cannot ensure the unity of money.

Agustin Carstens on Cryptocurrencies

Agustin Carstens, the general manager of the Bank for International Settlements (BIS), has recently spoken out about cryptocurrencies and their comparison to fiat currencies. According to Carstens, cryptocurrencies have lost the „battle“ against fiat currencies issued by world’s central banks. He claimed that stablecoins are not reliable because they lack the necessary „institutional arrangements and social conventions“ needed for them to function properly as a form of currency.

Stablecoins Do Not Benefit from Regulations

Carstens noted that technology alone does not make for „trusted money“. He also pointed out in his speech at the Monetary Authority of Singapore that there will always be different visions for what a future monetary system should look like, but he disagrees with some cryptocurrency proponents who believe stablecoins will be the future of money. He believes these proponents forget what sustains fiat currencies and insisted that it is only through legal, historical infrastructure behind central banks can give great credibility to money.

Stablecoins Cannot Guarantee Singleness of Money

Carstens continued by noting how events from this past year have raised serious concerns about whether or not stablecoins can actually function as money. He explained how these tokens rely on the credibility of fiat currency but with fewer regulatory protections which means they cannot guarantee singleness of money or lender-of-last-resort support.

Central Bank Digital Currencies May Be More Reliable

The BIS general manager suggested that perhaps central bank digital currencies may be more reliable than other forms such as stablecoins due to having more robust institutional backing systems in place to support them. This would provide greater assurance in terms of ensuring singleness across multiple digital assets and providing lender-of-last resort support if necessary.


Overall, Agustin Carstens‘ opinion on cryptocurrencies is clear – while technology may play a role in providing an alternative vision for a monetary system, it cannot replace legal and historical infrastructure provided by central banks which give greater reliability and trustworthiness to money itself. Stablecoins do not benefit from this type of institutional backing or protection making them less reliable compared to other forms such as central bank digital currencies.

SEC Chief Proposes Federal Crypto Custody Rules: Cover All Assets

• U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has proposed amending federal custody rules to cover „all crypto assets.“
• The proposal would help ensure that customer assets are properly segregated, require advisers and qualified custodians to enter into written agreements with each other, and enhance requirements for foreign financial institutions.
• Gensler also warned investors not to rely on crypto trading and lending platforms as qualified custodians.

SEC Proposes Amending Federal Custody Rules

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has proposed amending federal custody rules to cover „all crypto assets.“ This expanded custody rule will help ensure customer assets are properly segregated, require advisers and qualified custodians to enter into written agreements with each other, and enhance requirements for foreign financial institutions.

Custodian Regulations Apply to Discretionary Trading

Under the proposal, the regulations would apply to discretionary trading — when an adviser would seek to buy or sell an investor’s assets on behalf of an investor. Current regulations already cover „a significant amount of crypto assets,“ Gensler pointed out, noting that most crypto assets „are likely to be funds or crypto asset securities covered by the current rule.“

Crypto Trading Platforms Not Qualified Custodians

Gensler warned investors not to rely on crypto trading and lending platforms as qualified custodians, emphasizing: “Though some crypto trading and lending platforms may claim to custody investors’ crypto, that does not mean they are qualified custodians.“ He further elaborated: “Based upon how crypto platforms generally operate, investment advisers cannot rely on them as qualified custodians.“

Proposal Requires Annual Evaluations & Account Statements

The proposal also sets out certain requirements for those offering crypto custody services such as requiring annual evaluations from public accountants; providing account statements; and providing records upon request.

Proposal Aims To Protect Investors‘ Assets

The SEC chairman emphasized that this proposal is aimed at protecting investors‘ assets: “Today’s proposal in covering all asset classes, would cover all crypto assets … [It] would help ensure that customer assets are properly segregated … [and] make explicit that the custody rule’s safeguards apply to discretionary trading.“

Bitzlato Co-Founder Arrested in Russia, May Face Extradition to France

• Bitzlato Co-Founder Anton Shkurenko has been arrested in Russia by the request of Interpol.
• The arrest was due to suspicions of extortion, data theft, and money laundering from French investigators.
• Bitzlato is a Hong Kong-registered exchange that processed over $700 million in illicit funds.

Bitzlato Co-Founder Arrested

Russian authorities have reportedly arrested the second co-founder of seized cryptocurrency exchange Bitzlato, Anton Shkurenko. The man was detained at the request of Interpol and may face extradition to France due to suspicions of extortion, data theft, and money laundering.

Background Information on Bitzlato

Bitzlato is a Hong Kong-registered exchange which was established in 2017 by Shkurenko and his partner Anatoly Legkodymov. Before launching as an exchange it operated as a trading bot called BTC Banker which facilitated peer-to-peer transactions. It is said to have processed over $700 million in illicit funds received from criminal entities like Hydra and Finiko darknet market and Russian crypto pyramid respectively.

Arrests Related To Bitzlato

Legkodymov was arrested by U.S authorities in Miami last month while other three executives — CEO, financial director, marketing director — and a system administrator were detained in Spain and Cyprus by Europol authorities last month. Moreover, French law enforcement authority took control of its website and servers following further investigations into allegations that criminal proceeds from ransomware attacks, hacks scams, extortions passed through Bitzlato with Binance transferring cryptocurrency worth nearly $346 million for the platform according to Chainalysis blockchain analytics firm data.

Shkurenko Plans To Relaunch Exchange In Russia

The news of his arrest comes after last week he said in an interview with a crypto Youtube channel that Bitzlato’s remaining team intends to relocate the business to Russia and relaunch operations including withdrawals. Although there are no details available yet regarding how this plan will unfold if it does at all given current circumstances or whether any part of it can be implemented without being monitored closely by Russian authorities remains unclear yet as well as what regulations will be set forth for such an endeavour if any at all.

Extradition Decision Pending

It is yet unknown whether Russian authorities decide to extradite Anton Shkurenko or not but it appears inevitable at this point since they already cooperated with Interpol’s arrest request instead of blocking it off entirely or attempting to investigate further domestically only.

Bitzlato to Relaunch, Permit Partial Withdrawals in Russia: Co-founder

• Bitzlato, a Russia-linked cryptocurrency exchange seized by Western law enforcement, plans to relaunch and permit partial withdrawals.
• The company intends to relocate its business operations to the Russian Federation.
• Co-founder Anton Shkurenko has assured customers that the platform will provide access to their funds soon.

Bitzlato Cryptocurrency Exchange Shut Down by Law Enforcement

Cryptocurrency exchange Bitzlato was shut down in January as part of an international law enforcement action described by U.S. authorities as a „blow to crypto crime.“ It allegedly processed $700 million of illicit funds received from criminal entities such as the darknet market Hydra and the Russian crypto Ponzi scheme Finiko. Its other co-founder, Anatoly Legkodymov, who is a Russian national residing in China, was arrested in Miami and several other team members were detained in Europe. The service was disrupted with the participation of French authorities who took control of its servers and took down its website.

Co-Founder Vows to Restore Operations & Allow Partial Withdrawals

In an interview with Satoshkin Live, a Youtube channel devoted to crypto investment and trading, Bitzlato’s co-founder Anton Shkurenko vowed to restore operations and immediately permit customers to withdraw bitcoin. He said that French officers had been able to seize Bitzlato’s hot wallet which at the time stored around 35% of user funds in various cryptocurrencies however he did not specify the exact amount but denied reports claiming that the total exceeds $1 billion. Shkurenko also denied accusations that the company has evaded taxation and assured it has always complied with know-your-customer and anti-money laundering regulations under European laws while cooperating with law enforcement to prevent illegal activities.

Four Team Members Arrested

Four team members have been arrested with the participation of Europol – Executive Director Mikhail Lunev, Marketing Manager Alexander Goncharenko, contractor Pavel Lerner (working on Monolithos DAO) and system administrator Konstantin (who was later released on bail in Cyprus). The company is currently auditing its losses due to this incident according ot Shkurenko’s statement during his interview with Dmitry Stepanin from Satoshkin Live Youtube channel.

Reopening Plans Include Moving Operations To Russian Federation

The co-founder also expressed hope that soon all charges would be dropped against all arrested people and added that they intend to relocate their business operations into Russia while still providing access for users‘ funds when they reopen again soon.


Bitzlato is taking steps towards restoring its services soon while allowing customers partial withdrawals of their holdings from before being shut down due to western law enforcement actions earlier this year as well as relocating their operations within Russia for future protection against any similar occurences again in future times ahead .