Palau Halts Crypto Activities

Palau Temporarily Freezes Crypto Activities in Jurisdiction

Cryptocurrency is a buzzword nowadays that every 3rd person would be aware of at least a bit of it. What started with bitcoin in 2009, is now being adopted everywhere in the world.

However, there are some countries which haven’t given a green signal to cryptocurrency by far, but they might give the signal anytime soon.

Well, that’s the case of adoption. Many cases have been seen of cryptocurrencies being halted in some of the countries either temporarily or permanently. One such case that recently came into light was of Palau.

According to the reports, Palau has temporarily put a stop on cryptocurrency activities in their jurisdiction unless the regulatory and legal concerns are addressed perfectly.

The Palau Financial Institution Commission initiated the moratorium that would influence startups which are in search of opportunities to get engaged in cryptocurrency activities. The commission adopted a resolution inducting the moratorium on March 19, as indicated by a report from Palau-based Pacific Note.

As per the Financial Institution Commission of Palau, the resolution covers any new applicant who’s willing to engage in financial activities incorporating digital assets, crypto-assets, virtual currency service provision and digital currencies.

As indicated by the Pacific Note, the resolution stemmed from a claim which was made by Palau Coin, an online digital currency company, that its venture is backed by the Palau government.

Palau Coin articulated itself in such a way –

“Palau Coin is a blockchain technology-based decentralized digital currency of the Palau Tourism Environmental Protection Fund led by the government of the Republic of Palau.”

The commission’s governing board stated –

“The moratorium will remain in place until Palau has adopted a legal framework governing cryptocurrency activities.”