BTC Coalition: summary of works 2022-2023

28 November 2023 | Author: Editorial office

1. Building True Change Coalition and Its Mission

The Building True Change Coalition (BTC Coalition) is a global network of freedom fighters united by the mission of harnessing the power of Bitcoin to protect fundamental rights and promote financial inclusion. Its members include human rights defenders, political activists, Bitcoin entreprenuers and industry experts. The coalition is organised and coordinated by the Open Dialogue Foundation (ODF).

The BTC Coalition aims to (1) combat the AML/CFT abuse within the wider range of transnational repression mechanisms; (2) promote financial inclusion in non-democratic and developing countries; (3) promote Bitcoin and stablecoins as tools to support human rights efforts and provide humanitarian aid worldwide; (4) educate on the role of Bitcoin mining as an instrument to facilitate the adoption of renewable energy sources.

2. Coalition’s Origins and Achievements

United by the shared experience of transnational repression or financial exclusion via the abuse of the AML/CFT laws, we began shedding light on the problem in 2018. Supported in this mission by the much-appreciated financial contributions of Obi Nwosu, Jack Dorsey, Mike Brock, and the Ukrainian Blockchain Association, the BTC Coalition conducted over 200 face-to-face and online meetings with regulators and legislators in the EU, UK, USA and Canada as well as in the Council of Europe and the Organization for Security and Co-operation in Europe (OSCE).

Now, in this critical time when crypto-assets face increased regulatory scrutiny and widespread misconceptions, we are ever more committed to actively participating in the legislative process and influencing its direction. Our list of achievements to date features:

1) We have succeeded in having our recommendations included in the upcoming EU Regulations, including:

Provisions for banks of last resort: legitimate credit and financial institutions shall provide measures to prevent unwarranted de-risking, ensuring non-discrimination and financial inclusion for customers, including those associated with higher-risk categories such as refugees, human rights defenders, individual users of crypto-assets, NGOs, and their representatives and associates.
Establishment of additional security measures for processing special categories of personal data and personal data related to criminal convictions and offences.
Prevention of the prohibition of self-hosted cryptocurrency wallets being provided and stored by crypto-asset service providers, as they are used for legitimate purposes such as humanitarian fundraising or fund custody.
Setting exceptions for certain crowdfunding providers and introducing more flexible criteria for risk assessment.
Providing clarity on additional sources of information used to determine risk, which should be reliable and credible. This includes information from civil society organizations, the media, and commercial entities, such as risk reports.
Contributing to the dismissal of the Proof of Work (PoW) ban.

2) Through our advocacy, we’ve influenced the agendas of international organizations such as the Parliamentary Assembly of the Council of Europe (PACE) and the Parliamentary Assembly of the Organization for Security and Co-operation in Europe (OSCE PA), responsible for regulatory frameworks in 46 and 57 countries respectively, spanning Europe, North America, and Asia.

In particular, through numerous high-level meetings, hearings, and the submission of dozens of written documents, we have ensured the organizations have adopted resolutions and special reports that recommend to reflect in relevant regulations the use of crypto-assets, such as Bitcoin and stablecoins, for securing fundamental rights, delivering humanitarian aid and addressing instances of AML/CFT law abuse as a form of transnational repression. The examples include:

The July 2023 OSCE PA Vancouver Declaration (amendment 161);
The PACE special report of June 2023, as well as the PACE Resolutions adopted in January 2023 and October 2023, addressing the issue of transnational repression (with resolutions acknowledging the role of Bitcoin and stablecoins to counteract financial exclusion and for humanitarian and emergency response);
October 2023 PACE written declaration (acknowledging the use of the Bitcoin blockchain to enhance security, transparency and integrity of Guatemala’s elections, and condemning the political attacks on the software developers).

3) Our efforts have contributed to the implementation of Belgium’s law on basic banking services, which became operational in January 2023. This legislation ensures that any entity, whether an individual or a legal entity, based in Belgium (including non-government organizations, NGOs), has access to essential banking services, including the use of a payment account.

4) We have engaged in a high-level discussion with the Financial Action Task Force’s (FAFT), setting global standards for financial regulations. In particular:

In August 2023, the BTC Coalition submitted amendments to the Financial Action Task Force’s (FATF) 8 Recommendation (Combating the Abuse of Non-Profit Organisations). The amendments include the recognition of crypto-assets as a financial tool used by activists to mitigate the consequences of arbitrary restrictions imposed by the financial institutions on legitimate NGOs and their associates, allowing them to access financial services, including without limitation, crypto-asset services.

In September 2023, members of the BTC Coalition took part in a high-level, global consultation called ‘Risk and Consequence: The Future of FATF Rec 8 for Financial Integrity and Civil Society.’ This event, organized in Bonn, Germany, by the European Union Global AML/CFT Facility in partnership with the Global Program on Combating Illicit Financial Flows (GP IFF) and the Global NPO Coalition on FATF, provided a unique platform for engaging with key stakeholders, including representatives from the FATF, FATF-style Regional Bodies, Financial Intelligence Units (FIUs), the EU, Member States, as well as experts, regulators, and financial institutions specializing in anti-money laundering and counter-terrorist financing efforts. Importantly, this marked the first time pro-bitcoin activists were involved in such discussions, challenging the common misconception that bitcoin and stablecoins are primarily associated with illicit financial activities.

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For a more in-depth look at our activities, we invite you to review and explore the updated reports in the news section below: