cryptocurrencies
IRS introduces broader ‘Digital Assets’ category ahead of 2022 tax year
American taxpayers will find a broader, more defined category encompassing cryptocurrencies and nonfungible tokens (NFTs) in their 2022 IRS tax forms. The draft bill released by the Internal Revenue Service features a well-defined Digital Assets section that outlines if and how taxpayers will account for the use of cryptocurrencies, stablecoins and NFTs. Page 16 of the draft defines Digital Assets as any digital representations of the value recorded on a ‘cryptographically secured distributed ledger or any similar technology.’ 2021’s tax form required taxpayers to indicate whether they had received, sold or exchanged in ‘virtual currency’ – with this term changing in the yet-to-issued 1040 tax form for 2022. Taxpayers are required to answer the Digital Assets s...
Users upset that Binance’s wrong crypto network retrieval fees have soared to 500 BUSD
On Oct. 18, the product team at cryptocurrency exchange Binance held an ask-me-anything session with users on Reddit. Of particular interest was a discussion that arose regarding retrieval fees for crypto sent on different networks than the recipient’s wallet address on Binance. According to user Maxx3141, who brought up the issue: “I accidentally send WETH [wrapped Ether] to my Polygon address two months ago. Your exchange supports Polygon, but just for MATIC. It was only like 100$ in value. I found out you previously could recover this for a 30$ fee, and I thought that was fine. But when I contacted you, I found out you just raised the fee to 500 BUSD.” Another user, Superb_Dragonfruit63, also raised the issue of having to pay 500 BUSD for crypto retrievals on unmatched...
Interpol reportedly creates dedicated unit to fight crypto crimes
The International Criminal Police Organization is reportedly planning to strengthen its crackdown on cryptocurrency-related crimes by forming a dedicated division. Interpol, the world’s largest global police organization, has set up a special team in Singapore to help governments fight crimes involving virtual assets, the Indian news agency Business Standard reported on Oct. 17. Interpol made the announcement at a press conference ahead of its 90th general assembly in Delhi, which is to be attended by high-profile police officials from its 195 members from Oct. 18 until Oct. 21. According to Interpol secretary general Jürgen Stock, the absence of a legal framework for cryptocurrencies like Bitcoin (BTC) and Ether (ETH) poses major challenges to law enforcement agencies. “Because very often...
New allegations arise regarding Binance’s regulatory framework
On Oct. 17, a new report published by Reuters alleged that cryptocurrency exchange Binance “swerved scrutiny” from regulators in the United Kingdom and the United States. The main spearhead of the allegations arises from two supposed incidents in its operating history. First, Reuters wrote of Binance strategy executive Zoe Wei’s proposal to backdate a service agreement relating to various operations between Binance’s U.K. unit and Binance’s Cayman Islands holding company on March 11, 2020. The move allegedly allowed Binance to exempt itself from registration with the country’s Financial Conduct Authority for one year, as any firm operating before January 10, 2020, could do so before new regulations came into place. Second, Reuters reported that Harry Zhou, a Binance-affiliated entrep...
Germany leaves the US behind in top crypto economies in Q3: Report
Germany has become the most favorable crypto economy in the world in the third quarter of 2022, according to a new report. The United States, the joint top-rank holder from last quarter, fell six places to rank seventh on the top crypto economy. The crypto economy rankings compiled by Coincub looked into various factors such as favorable crypto outlook, clear crypto tax rules, more transparent regulatory communications and more to rank countries. Germany although not a tax haven, is considered one of the strongest all-around ‘traditional-tax’ crypto economies that reward long-term crypto holders. German law charges zero tax on crypto holdings of over a year. Switzerland ranked second with its positive crypto regulatory stance and is home to some of the top crypto organizations in the ...
The state of crypto in Western Europe: Swiss powerhouse and French unicorns
Despite the turbulence that broke out in the crypto market this summer, there is an important long-term marker that should be considered in any complex assessment — the combination of adoption and regulation. The latest report by EUBlockchain Observatory, named “EU Blockchain Ecosystem Developments,” tries to measure this combination within the European Union, combining the data on each and every member country from Portugal to Slovakia. As the original report counts more than 200 pages, Cointelegraph prepared a summary with the intent to capture the most vital information about the state of crypto and blockchain in Europe. We started from a group of countries that are usually labeled as “Western European.” Austria Numbers: 50 blockchain solution providers, $48.72 million (50 m...
US lawmaker says crypto regulation from SEC is ‘needed now’
John Hickenlooper, a United States Senator representing Colorado, has penned a letter to Gary Gensler urging the Securities and Exchange Commission chair to establish “clear rules” for the crypto market. In an Oct. 13 letter, Hickenlooper called on the SEC to take action on regulatory issues including identifying the cryptocurrencies that will be considered sasecurities, establishing registration guidelines for trading platforms, and “determining what disclosures are necessary for investors to be properly informed.” According to the senator, the lack of a coordinated regulatory framework from the government has led to uneven enforcement, while the SEC is the agency “well positioned to offer regulatory guidance.” “Given the complexity of these issues, and recognizing that some digital asset...
EU regulators ban cross-border payments from Russian crypto accounts
In a statement released on Oct. 6, the European Union introduced another set of sanctions against Russia due to the prolonged and recently escalated conflict in Ukraine. The new sanctions include a complete ban on cross-border crypto payments between Russians and the EU. This statement includes the prohibition of, “all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet.” New sanctions were installed as a response to Russia’s annexation of Ukrainian territory as the result of what the EU calls a “sham” referendum, along with troop mobilization and threats of nuclear escalation. The previous sanctions capped crypto payments from Russian to EU wallets at 10,000 euros (approximately $9,900). However, this new total ban on cross-border crypto...
EU Council approves MiCA text, proposal moves to Parliament for a vote
Representatives from a committee with the European Council have moved forward with regulating digital assets in the European Union through the Markets in Crypto-Assets, or MiCA, framework, sending the finalized text to parliament for a vote. According to an information note on Oct. 5, the European Council’s Permanent Representatives Committee approved the MiCA text and sent it to the chair of the European Parliament Committee on Economic and Monetary Affairs. Edita Hrdá, chair of the Permanent Representatives Committee, confirmed that the crypto framework proposal would be enacted “should the European Parliament adopt its position at first reading” in the same wording. The MiCA proposal, first introduced to the European Commission in September 2020, aims to create a consistent regulatory f...
Nasdaq needs clear regulations to launch crypto exchange, says VP
Nasdaq, the American stock exchange, has no immediate plans of launching a crypto exchange until there’s better regulatory clarity from policymakers, said Tal Cohen, the company’s executive vice president. In an interview with Bloomberg, Cohen said that the retail side of the crypto market is fairly saturated and there are enough crypto exchanges catering to the needs of retail investors. He added that his firm would continue its focus on crypto custody services that were launched on Sept. 20. Cohen also shed some light on other crypto-related services that the exchange is working on, namely building execution capabilities on the platform to move and transfer assets. The world’s second-largest stock exchange might be hesitant to launch a crypto exchange in the United States, but the f...
Middle East and North Africa are fastest-growing crypto markets: Data
Emerging markets continue to forge their way into the crypto scene finding a plethora of use cases, especially in the combined Middle East and North Africa (MENA) region. A new report from Chainalysis reveals that the crypto market in the MENA region is the fastest growing in the world. Transaction volume in the MENA region reveals users received $566 billion in crypto in the time frame of July 2021 to June 2022. This is 48% more than the previous year. MENA is followed by Latin America and North America with a growth of 40% and 36%, respectively. This region is made up of approximately 22 countries which include emerging markets such as Morocco, Egypt and Turkey. In these countries, the usage of cryptocurrencies finds practical use cases in savings preservation and remittance payments. In...
European Parliament members vote in favor of crypto and blockchain tax policies
Members of the Parliament of the European Union voted in favor of a non-binding resolution aimed at using blockchain to fight tax evasion and coordinate tax policy on cryptocurrencies. In an Oct. 4 notice, the European Parliament said 566 out of 705 members voted in favor of the resolution originally drafted by member Lídia Pereira. According to the legislative body, the resolution recommended authorities in its 27 member states consider a “simplified tax treatment” for crypto users involved in occasional or small transactions and have national tax administrations use blockchain technology “to facilitate efficient tax collection.” For cryptocurrencies, the resolution called on the European Commission to assess whether converting crypto to fiat would constitute a taxable event, depending on...
