Policy and Regulation
Russia officials fail to reach a compromise over crypto regulation
Discussions held on Tuesday between the Russian Finance Ministry and Central Bank officials on crypto regulation bore no fruit President Putin has urged deliberations between the central bank and the government to reach a common ground Russia President Vladimir Putin recently chipped on the cryptocurrency conversation – a matter that has brought forth divided opinion in the country. While one facet has strongly pushed for a blanket ban on these digital assets, the other has appeared to lean towards regulating them. Putin urged both sides of the aisle to have a sit-down to reach a resolution. Bloomberg reported that senior government personnel held a meeting regarding the matter on Tuesday, citing individuals who requested not to be identified as the meeting had not been disclosed to the pu...
US SEC is investigating two of Binance.US trading affiliates
The regulator wants to establish the relationship between Binance.US and two affiliate firms associated with Changpeng Zhao Several US authorities have in the past, on more than one occasion, probed Binance over other compliance matters The US Securities and Exchange Commission (SEC) is looking into two trading firms associated with crypto exchange Binance’s US arm. The financial markets regulator is said to be investigating the relationship between Binance.US and these firms which hold ties with Binance CEO and founder Changpeng Zhao. According to a report published by The Wall Street Journal on Tuesday, Merit Peak Ltd and Sigma Chain AG are the entities in question. The two firms trade on Binance.US as market makers. The WSJ detailed that the unnamed sources said that the regulator is se...
Canada enforces restrictions on crowdfunding and crypto payment platforms
Prime Minister Justin Trudeau has invoked the Emergencies Act to stop funding to the ongoing protests against COVID-19 mandates in the country Crowdfunding platforms and crypto payment providers associated with them will be required to register with FITRAC They are also to flag unusual transactions and report them to the regulator. Canadian Prime Minister Justin Trudeau has invoked the country’s Emergencies Act for the first time. The Act is a set of regulations coined in 1988 that temporarily gives the federal government leeway to exercise additional powers for the good of the public. Assistant Prime Minister Chrystia Freeland, who also serves as the Minister for Finance, confirmed yesterday that following the invocation of the Act, the government has expanded the scope of anti-terr...
Legislation for a Digital Euro is imminent, EU commissioner sets timeline for early next year
Commissioner Mairead McGuinness has said the EU plans to table legislation on a CBDC early next year There is concern that the EU could get left behind if it does not work on a digital euro soon As first reported by Politico, the European Commission has resolved to coin legislation around a digital asset, leading to a bill set to be proposed in early 2023. The EU’s Commissioner for Financial Stability, Financial Services, and the Capital Markets Union Mairead McGuinness said at a recent fintech event that the commission would establish “a targeted legislative consultation” over the next few weeks. The European Central Bank (ECB) has started conducting internal trials on the digital euro designs, with a prototype expected to come towards the end of 2023. However, the consent of Eu...
Russia set to recognise crypto as a form of currency, but with a catch
Authorities in the country have agreed to recognise crypto assets as currency though their use and trading will be regulated The decision comes less than a month after Russian authorities proposed outlawing cryptocurrencies in the country In what can best be described as a U-turn move, Russian authorities have formally agreed to treat cryptocurrencies as currency. News reports emerging from the local outlets in the country detail that the government will collaborate with the Bank of Russia to draw up draft legislation defining these assets’ use. Several parties were reportedly involved in the discussion that birthed the decision. Some of them are the Ministry of Finance, the Federal Tax Service, the Federal Security Service, and the Ministry of Internal Affairs. Russia’s centra...
India announces a 30% tax on gains obtained from digital assets
India’s Finance Minister has announced a 30% tax on profits from crypto and other digital assets She also disclosed plans to roll out a CBDC (digital rupee) in the 2022-23 fiscal year In a move indicating India is unlikely to ban cryptocurrencies as initially suggested, Finance Minister Nirmala Sitharaman has announced that tax will apply to transactions involving virtual digital assets. As she delivered the Union Budget 2022-23 speech yesterday, the minister explained that cryptocurrencies and other digital assets such as NFTs would be liable to a 30% tax. Gifts would also be taxed at reception, and a Tax Deduction at Source (TDS) established when certain conditions are met during the transfer of a digital asset. She further explained that bar the cost of purchase, the tax would be ...
Backlash pushes Thailand to cancel a planned 15% levy on crypto gains
Thailand has cancelled proposed plans to implement a tax on cryptocurrencies The proposal had seen pushback from both industry stakeholders and the public. Thailand has halted plans to enforce a 15% withholding tax on cryptocurrency transactions. According to a Financial Times report published yesterday, the government resorted to dropping the plan altogether following sustained disapproval from members of the public. Stakeholders in the industry had also become anxious over the potential impact of excessive taxation on a still-growing crypto sector. However, the government seems to have found a middle-ground as the new rules would allow investors to offset their losses against gains annually. Crypto traders will report their proceeds from mining or trading crypto assets as capital ga...
Putin is not entirely against crypto mining in Russia, cites ‘competitive advantages’
Russia’s central bank last week released a report proposing a blanket ban on cryptocurrencies Some members of the political class are opposed to the idea President Putin has established that Russia has competitive advantages in this sector He asked for a ‘unanimous opinion’ by the government and the central bank In a move that sparks hope for digital assets in Russia and the world, President Vladimir Putin has spoken in favour of cryptocurrencies. During a recent video conference meeting with members of the government, Putin explained that Russia holds certain advantages that have it better-placed to support crypto mining. The Russian President pointed to an abundance of skilled hands and electricity as the boons that put the country in the box seat. “Of course, we ...
IMF asks El Salvador to reconsider Bitcoin decision amid risk concerns
IMF directors want the scope of the Bitcoin law constricted to strip legal tender status off the digital asset Last year on September 7th, El Salvador, led by a Bitcoin optimistic president, Nayib Bukele, officially adopted the king cryptocurrency Bitcoin as legal currency. Several financial institutions, including the World Bank and the International Monetary Fund (IMF), advised against the move, but El Salvador went ahead nonetheless. The IMF board has now, once again, asked the nation to renounce its position on the matter. The Latin American country has been in discussion with the monetary body to over a $1.3 billion loan. As part of the consultation, the IMF wants it to change the legal currency status of Bitcoin in the country. The IMF has long held a stance against the idea of using...
Bank of America strategists report that the US will eventually adopt a CBDC
The Fed Chair has previously emphasised that it is not important to be the first to develop a sovereign digital currency The US will deploy a central bank-backed digital currency by 2030, in the opinion of the Bank of America. The bank views the issuance of a central bank digital currency in the US as ‘inevitable’ even as financial authorities and lawmakers continue debating about its feasibility. Bloomberg reported yesterday that the investment and financial services banking firm believes the CBDC will be different from existing digital currencies. It will be primarily under the Federal Reserve and won’t be managed by other commercial banking institutions. Many countries worldwide are currently entertaining the idea of central bank...
Bithumb users have less than 48 hours to whitelist private wallet
The South Korean digital assets trading platform will block withdrawals to wallets that are not verified starting Thursday In an announcement shared yesterday, Bithumb exchange detailed that it is taking more steps towards managing crypto withdrawal services to third-party and private wallets. The exchange noted that starting January 27th, unverified private wallet owners will no longer be able to authorise crypto withdrawals to their wallets successfully. The affected wallets include MetaMask and MyEtherWallet. Bithumb follows Coinone, more set to conform Bithumb is one of the most popular crypto exchanges in the region and one of four approved to offer crypto trading services. The affected users are required to validate their wallets with their Bithumb accounts, so they are ‘allowl...
Here is why Russia wants to ban cryptocurrency mining and trading
Russia has previously outlawed payments via crypto and investment in crypto by mutual fund Last week Thursday, Russia’s central bank released a report proposing a blanket ban on the use and mining of crypto in the country. Russian authorities are worried that the increasingly strong position that crypto is taking could well pose a risk to the stability of the country’s financial and monetary systems. “Potential financial stability risks associated with cryptocurrencies are much higher for emerging markets, including in Russia,” the report said. Crypto is a ‘bubble’ and leads to serious environmental effects The report further suggested that cryptocurrencies carry the characteristics of a financial pyramid scheme. It detailed that with the burgeoning grow...
