Schlagwort: blockchain regulation

Regulating the decentralised finance (DeFi) space and the broader crypto market remains tough for regulators, and Sam Bankman-Fried has now warned against locking in decisions that could impact the space.

Sam Bankman-Fried, the CEO of FTX crypto exchange, has warned policymakers from making permanent decisions that could impact the DeFi space.

He mentioned this in FTX’s 3,800-word “industry norms manual,” published yesterday. SBF wrote that;

“Above all else: figuring out how and where DeFi and things tangentially related to DeFi do and don’t fit into regulatory contexts is a hard problem and one on which there is not yet firmly settled thought. We should be careful about locking in decisions absent working out a sound and responsible basis for doing so.”

The FTX boss pointed out that maintaining the presumptive freedom of peer-to-peer transfers and decentralised blockchains (unless there is specific evidence of a scam, illicit finance, etc.) is absolutely necessary.

SBF said he hopes a cryptocurrency industry group will look into the issues mentioned in his draft and eventually come up with an appropriate set of community norms.

In the post, the cryptocurrency billionaire also discussed the potential for blockchains to improve the current traditional financial markets. He wrote;

“Tokenising stocks could help simplify securities settlement, providing a stronger and more equitable market structure for retail.”

Earlier this week, the Texas State Securities Board revealed that it is investigating FTX US over allegations that it offers unregistered securities products in the United States via its yield-bearing product.

Regarding the listing of securities on its platform, SBF wrote that FTX analyses various coins and tokens before listing them. He said;

“First, our legal team will do an analysis of the asset according to the Howey Test and other relevant case law and guidance. If that analysis finds it to be a security, we will treat it as such. If the first test does not find it to be a security, we will generally treat it as a non-security commodity, unless the asset is found by the SEC and/or an appropriate court of jurisdiction to be a security. If we do find an asset to potentially be a security, we will not list it in the US unless/until there is a process for properly registering it.’
This latest development comes after SBF revealed earlier this month that FTX could move its headquarters to the United States after SEC registration.

FTX has been spending on acquisitions and bailouts since the start of the year. The company revealed last month that it still has $1 billion to spend on acquisitions. 

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An official report released by the Portuguese government shows that the country is working on a new cryptocurrency tax legislation scheduled for enacting in 2023.

The new legislation intends to levy a 28% capital gains tax on crypto profits, a 4%, and stamp duties on any free cryptocurrency transactions.

28% capital gains tax

If the proposed crypto legislation sees the light of day, the Portuguese government will levy a 28% capital gains tax on crypto profits made within a year. However, gains made for holding cryptocurrency assets for a year will not be subjected to the capital gains tax.

According to the 450-page report, gains made from crypto issuing and crypto mining would be subject to the capital gains tax.

4% tax on crypto transactions

In addition to the capital gains tax, the Portuguese government also seeks to introduce a 4% tax and if necessary stamp duties on free crypto transactions.

The idea is to provide a flawless framework for crypto taxes and treat the industry equally with other businesses within the country.

Portuguese parliament stand on cryptocurrencies

In May this year, the Portuguese finance minister said that the country was preparing to start taxing cryptocurrencies, stating that work would begin on working on the legal framework. 

The minister had however declined to provide the legal timeframe at the time.

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Binance received a licence to operate its crypto exchange in Kazakhstan a few days after signing a Memorandum of Understanding with the country’s financial regulator.

The world’s leading cryptocurrency exchange, Binance, announced via a blog post on Thursday, October 6th, that it has received a licence from the AIFC Financial Services Authority ( AFSA )

Thanks to this latest development, Binance can now operate a digital asset platform and provide custodial services at the Astana International Financial Centre.

The crypto exchange said it could provide its services as a digital asset platform site operator and custodial service provider at the Astana International Financial Center. 

Binance Asia Director Gleb Kostarev said;

“We welcome the intention of Kazakhstan to become a leading player in the field of new digital technologies and the cryptocurrency ecosystem. The government has made significant changes to the legislation and the regulatory environment, thereby setting the highest compliance standards for cryptocurrency platforms in the republic. We are proud to announce that Binance has taken another step in its quest to be a compliance-focused exchange.” 

Binance said the permanent licence means that it is now a regulated platform in Kazakhstan. The crypto exchange can offer exchange and conversion services, deposit and withdrawal of fiat currencies, storage of cryptocurrency assets and exchange trading. 

Users would be required to register an account with Binance before they can enjoy the services provided by the exchange. The range of services and services of the exchange will constantly be expanding, Binance added. 

This latest development comes barely a week after Binance announced that it had signed a Memorandum of Understanding with the Financial Monitoring Agency of the Republic of Kazakhstan.

Per the terms of the agreement, Binance will work with the authorities to identify and block virtual assets obtained by criminal means in addition to those intended for the legalization (laundering) of proceeds from crime and the financing of terrorism.

Binance also gained regulatory approval to operate in New Zealand roughly a week ago. 

Binance remains the leading cryptocurrency exchange in the world, and currently processes over $12 billion in daily trading volume. 

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EU regulators have announced new cross-border crypto sanctions against Russia, banning crypto wallet accounts and custody services.

The European Commission has announced a new wave of sanctions against Russia – the eighth package since Russia’s invasion of Ukraine – and included another ban on cryptocurrency related cross-border transactions.

The latest round of sanctions, according to a press release the EU published today, is a response to the recent Russia-led “sham” referenda and continued escalation of the war via nuclear threats.

EU’s new crypto sanctions against Russia

The Commission, in its move to tighten further its sanctions against Russia’s financial and IT consultancy among other services, also introduced a fresh ban on EU-Russia (cross-border) crypto transactions.

“The existing prohibitions on crypto assets have been tightened by banning all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet,” read part of the press statement.

Previously, the prohibitions were of amounts exceeding €10,000.

The EU’s sanctions on crypto related transactions across all sectors of cross-border business comes a few weeks after Russia started allowing transaction settlements in crypto.  

In August, as CoinJournal reported, Russian Prime Minister Mikhail Mishustin had touted cryptocurrencies as an alternative for cross-border settlements. The option to use crypto was thus very much among Russia’s cards.

But as per the European Commission, the crypto ban and other measures like new import bans will further dent the Kremlin’s financial muscle.

“This package introduces new EU import bans worth €7 billion to curb Russia’s revenues, as well as export restrictions, which will further deprive the Kremlin’s military and industrial complex of key components and technologies and Russia’s economy of European services and expertise,” the Commission noted in the release.

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In a report released earlier today, the Official Monetary and Financial Institutions Forum (OMFIF) has put forward that using blockchain technology to develop a public finance management system could be extremely beneficial for countries.

The organisation is an independent global think tank for central banking and economic policy that has previously worked extensively with blockchain and digital assets via its Digital Monetary Institute.

The OMFIF report discussing the modernizing of public finance management through blockchain technology explains that such a system could offer government officials the necessary information to formulate and design fiscal policy.  

The report particularly highlighted how blockchain technology can help prevent embezzlement and misuse of funds. This could be a particularly game-changing feature considering the rise in cases of fraud, ransomware and cybersecurity attacks worldwide.

Further, with the increasing interest in central bank digital currencies across the globe, a blockchain-led public finance system could, according to the report, clarify “the government’s financial position.”

However, while a digital currency would work effectively with the system, it is not a necessity the report stated:

“Many of the benefits can be achieved without changing payments rails, simply by improving the [public finance management] architecture. Governments would also be more effective at efficiently managing their cash and forecasting their future cash position.”

Explaining how blockchain can facilitate fraud prevention, the think tank stated that the system could combat invoice fraud by allowing users to complete payments with the click of a button without using personal information. It would also enable transparency and traceability for government spending.

Commenting within the report, multinational professional services partnership Ernst & Young Global stated that blockchain can reduce the administrative effort associated with financial reconciliations, tracking and reporting public financial obligations. 

“Business terms or eligibility and compliance rules can be embedded into the system to automate transaction controls via smart contracts. Automated tracking and reporting can significantly reduce the cost for partners interacting with government,” the consulting, assurance, tax and transaction services provider concluded.

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