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As the market value of cryptocurrency transactions increases, regulatory discussions and measures on cryptocurrencies in other countries around the world are gradually taking shape.
In this article we will list the regulatory measures that have been proposed or discussed.
Australia Australian Taxation Office issues warning to untraceable cryptocurrency investors As cryptocurrency prices rise, Australian Taxation Office Assistant Commissioner Tim Loh has issued a warning to investors. The ATO matches cryptocurrencies to individuals' tax returns, which helps ensure investors pay the correct tax. Tim estimates that more than 600,000 taxpayers have invested in crypto assets in recent years. As with stock investors, people who buy and sell cryptocurrencies must pay capital gains tax if they make a profit, and must declare it on their tax return. Cryptocurrencies, like stocks, are also increasingly bought through trading platforms that provide data to the tax office. But peer-to-peer transactions between individuals are harder to trace unless the tax office obtains records from phone companies.
UK FCA: Binance “cannot be effectively regulated”
The UK Financial Conduct Authority (FCA): Binance trading platform "cannot be effectively regulated", Binance provides complex and high-risk financial products, poses significant risks to consumers, and Binance's response to some questions is equivalent to refusing to provide information.
The UK Treasury has launched a public consultation on the implementation of the FATF transfer rule. According to Golden Finance, the UK Treasury published a public consultation on July 23, which includes plans to implement the so-called cryptocurrency transaction transfer rule (Travel Rule) of the Financial Action Task Force (FATF). On July 22, the Treasury said that the consultation was a key step towards amending the UK's regulations on terrorist financing, money laundering and funds transfer. According to the government's report, the public consultation runs from now until October 14, with the aim of taking legislative action in the spring of 2022. The consultation report noted that the government has been aware of technological developments and believes that now is the time to start planning for the implementation of the transfer rule. The report goes on to state that the government's implementation approach follows the principle that the application of the transfer rule should be consistent across the financial services industry, regardless of the technology used to facilitate the transfer, unless there are compelling reasons to adopt a different approach. These requirements will apply to crypto asset exchange providers and custodial wallet providers as defined in the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 that do business in the UK.
UK FCA launches £11 million marketing campaign to warn of crypto risks
On July 15, the UK Financial Conduct Authority (FCA) launched an 11 million pound ($15 million) marketing campaign to warn young people about the risks of investing in cryptocurrencies. The move was announced by CEO Nikhil Rathi in a speech on Thursday as part of a webinar on the FCA's role as an active regulator. Citing recent research that found that nearly 2.5 million Britons hold crypto assets, Nikhil Rathi stressed that the FCA is concerned that cryptocurrency holders are more likely to be young people and behave "less rationally, more emotionally, and instigated by anonymous and irresponsible social media influencers."
The UK Financial Conduct Authority (FCA) has approved the crypto-registration of listed fintech company Mode Global Holdings, making it the fifth company to be included in the crypto asset register. Mode also announced that its subsidiary, Greyfoxx Limited, has been granted an electronic money institution license.
The UK Financial Conduct Authority issues a consumer warning to Binance The UK Financial Conduct Authority (FCA) has issued a warning to Binance Markets Limited and Binance Group, stating that none of the entities under the Binance Group holds any form of UK authorization, registration or license to carry out regulated activities in the UK, while Binance Group appears to provide a range of products and services to UK customers through the website Binance.com. The FCA said that it is wary of advertisements on websites and social media about investments in crypto assets or crypto-related products that are not authorized by the FCA.
Germany
Coinbase obtains German cryptocurrency custody license through Solarisbank's KYC system Golden Finance reported that cryptocurrency exchange Coinbase is using the KYC system of German fintech banking platform Solarisbank to become the first company to obtain a cryptocurrency custody license from the country's financial regulator BaFIN. Solarisbank also has a cryptocurrency custody license pending and holds a banking license in Germany, which makes this fintech company a perfect fit for cryptocurrency exchanges. (CoinDesk)
Germany's new Fund Positioning Act will take effect on July 1, allowing funds to invest in crypto assets Germany's new Fund Positioning Act (Fondsstandortgesetz) will take effect on July 1, 2021, when domestic special funds (Spezialfonds) will be allowed to invest 20% of their portfolios in crypto assets such as Bitcoin. Sven Hildebrandt, CEO of Germany-based Distributed Ledger Consulting (DLC), believes that the theoretical inflow potential of cryptocurrency assets is about 35 billion euros, which is one-fifth of the 1.87 trillion euros in assets (currently tied up in about 4,000 open domestic special funds).
South Korea's Financial Services Commission nominee refuses to consider cryptocurrencies as financial assets South Korea's financial regulator's nominee said on Wednesday that it may be difficult to consider cryptocurrencies as financial assets given international trends. Koh Seung-beom, nominee for South Korea's Financial Services Commission (FSC), said that the G20, the International Monetary Fund (IMF), other international institutions and a considerable number of experts find it difficult to consider virtual currencies as financial assets, arguing that they cannot play the role of currency.
South Korean regulator to suspend operations of at least 11 local cryptocurrency exchanges over allegations of illegal activities
On August 2, the Financial Services Commission (FSC) of South Korea will suspend the operations of at least 11 local cryptocurrency exchanges for suspected illegal activities. The names of these exchanges have not yet been disclosed, but they are unlikely to obtain FSC approval for operations. Darlbit and CPDAX exchanges have already issued notices to stop operations, according to The Korea Herald, citing industry sources.
South Korean lawmaker: 20 Korean exchanges delisted more than 200 cryptocurrencies in the first half of this year. South Korean lawmaker Kwon Eun-hee recently mentioned in a proposed bill that it is speculated that 20 virtual asset exchanges in South Korea will delist more than 200 cryptocurrencies in the first half of 2021. The bill states that the "rule of thumb" way exchanges list and delist cryptocurrencies is causing increasing social and economic damage to investors, and financial authorities have not yet managed to establish appropriate listing standards. The bill aims to clearly define virtual assets as investment assets so that they can be supervised and self-regulated by the market. The bill believes that the government's strict regulations on listing and delisting may "stifle the buds of start-ups."
South Korean regulators step up crackdown on cryptocurrency exchanges
On July 6, South Korea's financial authorities are stepping up their crackdown on certain cryptocurrency exchanges. According to the local banking industry, South Korea's financial authorities rejected local banks' request for the government to exempt them from liability when problems arise in exchanges. After being rejected, many exchanges that have not yet established partnerships with banks are facing the risk of closure in September, when they must verify users' real-name bank accounts in order to continue operating and using designated financial transaction information in accordance with the revised regulations.
Iran’s Temporary Ban on Cryptocurrency Mining to be Lifted on September 22
On August 22, the temporary ban on cryptocurrency mining introduced by Iran's Ministry of Industry, Mining and Trade earlier this year will be lifted on September 22. Tavanir, Iran's power generation, distribution and transmission company, announced this important news. Tavanir spokesman Mostafa Rajabi Mashhadi said that electricity consumption across Iran is expected to fall by the end of summer. He pointed out that the reduction in electricity demand when the temperature begins to drop will create conditions for the restart of legal digital currency miners. It is understood that Iran recognized cryptocurrency mining as a legal industrial activity in July 2019, and mining companies must obtain permission from the Ministry of Industry. However, in response to the power shortage this summer, then-Iranian President Hassan Rouhani announced temporary restrictive measures on cryptocurrency mining in May this year.
Iran’s National Tax Regulator Proposes Legislation to Legalize Crypto Exchanges
On August 17, the Iranian National Taxation Administration (INTA) proposed a new legal regime for cryptocurrency transactions after Iranian President Rouhani recently announced that he would take measures. The tax authority said that the legal framework should be drafted extensively and avoid strict restrictions on cryptocurrency exchanges that could fuel the growth of the black market. The proposal aims to collect more tax revenue from the sector. The INTA proposal covers three types of taxes: capital gains, fixed basis tax, and professional tax. The proposals do not propose a mechanism or tax rate that can be applied. It also covers decentralized finance (DeFi) and will introduce transaction caps through these types of platforms to comply with anti-money laundering rules. INTA is following up on similar efforts to regulate cryptocurrencies in the country led by the Iranian Parliament's Economic Committee, which has drafted a bill to restrict how digital currencies can be used.
Iran suspends electricity exports due to cryptocurrency mining and hot summer Iran's growing electricity consumption has reached new heights, causing the country to stop electricity exports. Abuzer Salihi, general manager of Iran's power distribution company Tevanir, announced on state television that it has reduced electricity exports to zero "to ensure that there are no problems with the country's electricity supply." He said that the power supply to Afghanistan's Herat province has been completely stopped to meet Iran's domestic needs. Herat province gets 70% of its electricity from Iran. According to data shared by Tevanir, Iran's daily electricity demand exceeds 65,000 megawatts, while production is about 54,000 megawatts. In addition to the hot summer, Bitcoin (BTC) and cryptocurrency mining activities have also been listed as one of the reasons for high electricity demand.
Iran Plans to Ban Crypto Payments Except National Crypto
On July 2, the Iranian parliament drafted a new bill that would establish new rules and regulations for the use of cryptocurrencies, including a plan to develop a national cryptocurrency. The bill was drafted under the supervision of the parliament's Economic Committee and is called a plan to "support cryptocurrency mining and organize a domestic trading market." According to the bill, the Central Bank of Iran will be the main body regulating the country's cryptocurrency exchange and will be responsible for handling the domestic cryptocurrency market within three months. The bill also prohibits the use of cryptocurrencies other than national cryptocurrencies as a means of payment in Iran's domestic or domestic trading systems. According to the new parliamentary bill, the Ministry of Industry, Mining and Trade will proceed to control the cryptocurrency mining industry and issue licenses to establish cryptocurrency mines. According to one of the provisions of the bill, Iranian cryptocurrency miners can apply to the Ministry of Energy for a license to open or participate in the construction of a power plant, and even sell the surplus electricity from their power plants.
Iran issues licenses to 30 crypto mining companies
On June 28, the Iranian Ministry of Industry, Mining and Trade has issued licenses to 30 crypto mining companies to allow them to continue operating in Iran. Previously, Iran ordered a ban on cryptocurrency mining activities due to power consumption issues. These regulated companies can now be exempted from the current comprehensive ban and continue to operate. In terms of geographical distribution, only one company in Tehran Province, where the Iranian capital is located, has obtained a license.
Japan's FSA Considers Stricter Cryptocurrency Regulations
On August 25, Japan's Financial Services Agency (FSA) recently began discussing stricter regulation of the cryptocurrency industry to protect its citizens from possible financial losses. According to a report from Jiji Press, the FSA set up a separate department in July to oversee digital and decentralized finance. A panel of experts was also appointed to track developments in the field of cryptocurrency and central bank digital currency (CBDC). By mid-2022, the FSA may develop and implement a series of stricter measures. Even if the agency wants to stabilize this emerging market, it can do so while ensuring that the development of the ecosystem is not hindered. This is not the first time the agency has attempted to regulate the industry, as it revised the law in 2019 to strengthen supervision of cryptocurrency transactions. These laws require operators to ensure the security of user assets and were introduced after the Bitpoint hacker caused losses worth $32 million.
Japan's Top Financial Regulator: Japan sees crypto traders as part of anti-money laundering planJapan's top financial regulator said its planned anti-money laundering platform could include cryptocurrency traders, who he said have the same obligations as traditional financial institutions to ensure they are not dealing with criminals.The Financial Services Agency (FSA) said it is planning to create a common industry-wide system that financial firms can use to determine whether their clients may be terrorists and whether there is a risk that customer accounts are being used for money laundering. "Crypto traders are the same as banks in the sense that they are prohibited from dealing with those who are subject to sanctions," FSA head Junichi Nakajima told The Wall Street Journal. (Wall Street Journal)
Vice Chairman of Japan Cryptocurrency Trade Association: Hope to shorten the process of listing crypto assets. Takeshi Chino, vice chairman of the Japan Cryptocurrency Trade Association and president of Payward Asia, the Japanese subsidiary of cryptocurrency exchange Kraken, recently pointed out that the inability to quickly list new currencies is not attractive to investors. As a director familiar with overseas conditions, he hopes to shorten the process of listing crypto assets.
South Africa to speed up regulation of cryptocurrencies to tackle scams South Africa is accelerating its pace of regulating crypto assets after two scams this year. Kuben Naidoo, CEO of the Prudential Authority, which oversees the country's banks and insurance companies, said the rules should be in place within three to six months. "We believe that cryptocurrencies are risky and we want to make sure that the financial sector is aware of those risks and prices them correctly," he said. In June, the Financial Sector Conduct Authority (FSCA), which oversees market behavior, said it would begin dealing with crypto assets "in a phased and structured approach."
Mexico Mexico's Finance Minister: The use of cryptocurrencies is prohibited in Mexico's financial system Mexico's Finance Minister: The use of cryptocurrencies is prohibited in Mexico's financial system. Mexico's Ministry of Finance, banking regulators and central banks have reiterated that there are inherent risks in using "virtual" assets as a medium of exchange, store of value or form of investment.
Brazil Brazilian police launch nationwide compliance operation to combat cryptocurrency money laundering Brazilian federal police have launched a nationwide compliance operation to combat cryptocurrency-related money laundering. The operation, which has mobilized 150 federal police officers in five cities, has executed 34 search and seizure warrants. In addition, the federal court has issued more than 30 orders to freeze bank accounts and cryptocurrency portfolios. The compliance operation grew out of an investigation launched in 2018, in which police targeted a series of cryptocurrency-related money laundering crimes on the Internet. Brazil has been stepping up its investigations, and last month, the country's police seized more than $33 million related to exchanges and shell companies. Earlier this month, the Brazilian Federal Court ordered the sale of seized bitcoins for the first time, worth $1.1 million, to repay some of investors' losses. (bitcoin.com)
Brazil's Central Bank President: Regulators need to pay better attention to investor demand for cryptocurrencies
On August 20, Roberto Campos Neto, president of the Central Bank of Brazil, said at an event organized by the Council of the Americas on Thursday that regulators need to pay better attention to investors' demand for cryptocurrencies because cryptocurrencies will not disappear, but will coexist with instant payment platforms. He said: "This is because people need very fast, open, secure and transparent payment methods." Campos Neto said the central bank is in dialogue with the Securities and Exchange Commission to adapt to the new environment where cryptocurrencies coexist with platforms such as Pix. Pix is an instant payment platform launched by the Central Bank of Brazil with more than 96 million users. It set a record of 40 million transactions in one day in early August. Campos Neto also expressed concerns among decision-makers because more growth in cryptocurrencies is concentrated in investment tools rather than general payment systems. He said: We need to pay attention to this. Financial markets have changed so much that everything has become data. We need to reshape the regulatory world. (Bloomberg)
India's Indian crypto bill is awaiting cabinet approval, and cryptocurrencies may be considered an asset class. Indian media reported that the country's Finance Minister Nirmala Sitharaman said the government is preparing to introduce a new cryptocurrency bill, which is currently awaiting cabinet approval. Under the bill, cryptocurrencies will not be considered legal tender, but will be considered a marketable, tradable asset class. The bill may also include a clause to provide exit options for individuals who have already invested in digital currencies. At present, Indian institutions seem to have different attitudes. The committee led by the Minister of Economic Affairs took a tougher stance on cryptocurrencies in its recent report, recommending a ban on all private cryptocurrencies, except for state-issued digital currencies. The Governor of the Reserve Bank of India said earlier that he had conveyed the bank's concerns about cryptocurrencies to the government and would await the cabinet's decision. (Central Bank Currencies)
Costa Rica Central Bank of Costa Rica: A "cautious and tolerant" attitude towards cryptocurrencies The Governor of the Central Bank of Costa Rica, Rodrigo Cubero, released a document titled "Some Considerations around Digital Currency and Crypto Assets", saying that the central bank is "cautious and tolerant" towards cryptocurrencies: "The central bank tolerates the existence and circulation of crypto assets in order to leave room for technological innovation, promote the development of the fintech industry, and introduce regulation when necessary." He also said that anyone who wants to obtain crypto assets needs to bear their own risks, and under the current legal system, the country's Ministry of Finance believes that it is not feasible to use cryptocurrencies to pay taxes. Cubero also mentioned that the country has studied the issue of CBDC and believes that there is no need to issue digital currency at present. He said that Costa Rica has achieved financial inclusion under the National Electronic Payment System (Sinpe) and has a secure, agile and low-cost digital payment system. He also said that he does not rule out the possibility of launching CBDC in the future, and currently has the technical platform to build this financial instrument. (Golden Finance) |
