Schlagwort: crypto regulation

• Banco Bisa, the fourth-largest bank in Bolivia, has launched a USDT custody service.
• Cutstomers can buy, hold and send USDT from their bank accounts.

Banco Bisa, Bolivia’s fourth-largest bank, has introduced a stablecoin service aimed at bolstering security for holders as well as promoting their use in cross-border transfers.

The custody service will allow Banco Bisa’s customers to buy and sell Tether’s stablecoin USDT via their bank accounts. Bisa sees this as a scenario likely to significantly increase USDT adoption and use in the Latin American country.

Banco Bisa’s move

Per a local report, the initiative has received backing from the country’s financial watchdogs, with key benefits seen as the capacity to promote crypto within existing regulatory frameworks. More importantly, the program means users can interact with crypto at greatly reduced risks linked to the nascent crypto market.

According to Franco Urquidi, the vice president of business at Banco Bisa, the bank’s customers will have to complete a verification process. This is on the issues of know your customer and anti-money laundering, the latter among accusations Tether has vehemently denied.

Bisa’s move comes a few months after Bolivia lifted its ban on Bitcoin that lasted a decade – from 2014. The government’s crypto shift came in June 2024, with the country’s central bank noting this step as crucial to boosting the economy. The flip also means Bolivia joined many other Latin America countries in opening up the crypto space.

In a recent report, the Bolivia central bank said virtual asset trading spiked in the months after the ban was lifted. The market witnessed a 100% surge in trading, with an average $15.6 million in monthly volume between July and September.

Tether has seen steady traction in the Latin America region, with key programs and integrations including the $100 million investment in Agriculture company Adecoagro.

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• Netherlands has invited public comments on a new draft bill on crypto tax reporting expected to align local rules with European Union regulations.
• The public can share opinions and comments up to Nov. 21, 2024.
• Adoption will see crypto service providers share user details starting January 1, 2026.

The Dutch government has asked for public input on a new draft regulation for crypto tax monitoring and reporting, with a focus on aligning  local tax laws with broader crypto regulation within the European Union.

The Netherlands’ Ministry of Finance announced the public feedback program in a press release published on Oct. 24. The draft bill, if adopted into law, would mandate cryptocurrency exchanges and other digital asset service providers to submit customer data to the Dutch Tax Administration.

Per the announcement, the new law aims to create a more transparent environment in terms of crypto ownership to reign in potential tax avoidance or evasion.

As such, the public have Nov. 21 to submit their opinion, advice and comment. Thereafter, the government will look to bring the bill to the Dutch House of Representatives at the start of Q2, 2025. If adopted, the new law will take effect on January 1, 2026.

Aligning with EU regulations

The Netherlands’ proposed bill is part of the country’s effort to bring local crypto regulation in line with broader laws in the European Union. This effort is being implemented across the EU member states. In October 2023, the EU released the DAC8 directive, which provides that crypto exchanges adopt tax reporting measures in the countries they hold regulatory licenses.

Accordingly, the DAC8 eases the administrative burden on exchanges as reporting is only mandated in that one country and applies across the EU.

The Netherlands’ move sees it join Denmark, which this week outlined crypto tax standards for unrealized gains. The proposal also aligns with the DAC8 and is part of the broader effort to support EU’s Markets in Crypto-Assets (MiCA) regulation.

MiCA is a comprehensive regulatory framework that the European Parliament passed into law in June last year. The regulation provisions on stablecoins came into effect on June 30, 2024, while the full law takes effect as of December 30, 2024.

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• Coinbase seeks SEC documents on crypto regulations through a court ruling.
• The focus is on Ether’s security status and past closed investigations.
• SEC delays document release, citing a three-year review process.

Coinbase, a leading US cryptocurrency exchange, has intensified its legal efforts to access crucial documents from the US Securities and Exchange Commission (SEC).

The crypto exchange has asked the US District Court for the District of Columbia for permission to file a motion for partial summary judgment, seeking clarity on how securities laws apply to cryptocurrencies.

The move follows a Freedom of Information Act (FOIA) lawsuit filed in June against both the SEC and the Federal Deposit Insurance Corporation (FDIC).

Probing what the SEC has on crypto

The requested documents involve internal and external communications concerning the SEC’s investigations into whether specific digital assets, particularly Ether, should be classified as securities.

The classification of Ether (ETH) remains a contentious issue within the industry, with significant implications for the regulatory landscape.

This debate resurfaced when Consensys, a blockchain software firm, filed a lawsuit against the SEC in April, challenging an investigation into “Ethereum 2.0.” The investigation aimed to scrutinize activities involving ether trading, though it was subsequently closed.

Coinbase’s FOIA request also seeks records regarding two completed SEC investigations. One case involved the 2020 settlement with Enigma MPC, a data encryption startup accused of issuing unregistered securities.

The other case concerned Ether Delta, a trading platform established by Zachary Coburn, who reached a settlement with the SEC in 2018 after the platform was deemed to be operating as an unregistered exchange.

Speculation about the SEC concealing discrepancies

Coinbase alleges that the SEC has been uncooperative, first claiming FOIA exemptions and more recently suggesting it would need three years to review the documents. This timeline has been criticized by Coinbase and its consultant, History Associates Inc., for causing undue delays.

The SEC’s reluctance to release documents has fueled speculation about potential discrepancies in how it applies regulatory standards to different entities and projects.

Additionally, Coinbase’s FOIA requests target the FDIC’s “pause letters,” which were issued to financial institutions from March 2022 to May 2023, urging them to halt the expansion of crypto-related activities. The FDIC’s Office of Inspector General had noted these letters in a 2023 report, raising questions about possible coordinated regulatory pressure on the crypto industry, informally dubbed “Operation Choke Point 2.0.”

A judge’s decision on whether Coinbase can proceed with the motion is expected soon, with a ruling potentially coming by year’s end.

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• com has sued the SEC for overreaching its regulatory authority over crypto.
• The lawsuit challenges SEC rules categorizing most crypto transactions as securities.
• com seeks clarity on crypto derivatives through a petition with the CFTC.

Crypto.com has today filed a lawsuit against the US Securities and Exchange Commission (SEC) in response to a Wells notice received from the agency.

According to a communication from the exchange, the lawsuit aims to challenge what Crypto.com describes as the SEC’s overreach and misguided regulatory actions that threaten the future of the crypto sector in the United States.

The complaint asserts that the SEC has improperly expanded its jurisdiction, claiming that virtually all cryptocurrency transactions qualify as securities, except for those involving Bitcoin (BTC) and Ethereum (ETH).

This claim is based on the assertion that the SEC has established an unlawful rule without the necessary notice and comment period mandated by the Administrative Procedure Act.

According to Crypto.com, this arbitrary enforcement contradicts the fundamental principles of fair regulatory practices, particularly given that the characteristics and sales methods of various crypto assets are often indistinguishable from those of BTC and ETH.

Crypto.com emphasizes that it has always prioritized compliance and security, operating as a registered money services business with the Financial Crimes Enforcement Network (FinCEN) and holding over 40 state money transmitter licenses. The company views this lawsuit as a necessary step to halt the SEC’s actions, which they argue exceed its legal authority and violate federal law.

In addition to the lawsuit, Crypto.com’s subsidiary, Crypto.com | Derivatives North America, has filed a petition with the Commodity Futures Trading Commission (CFTC) and SEC. This petition seeks a joint interpretation confirming that certain cryptocurrency derivative products fall solely under the CFTC’s jurisdiction, further demonstrating Crypto.com’s commitment to clarifying regulatory frameworks for the industry.

As Crypto.com navigates this unprecedented legal challenge, the company remains steadfast in its operations, asserting that its commitment to regulatory compliance will ultimately benefit its customers and the broader crypto ecosystem.

This lawsuit not only underscores the growing tension between cryptocurrency businesses and regulatory agencies but also highlights the urgent need for clearer regulations in the rapidly evolving digital economy.

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• The UAE updated its tax laws to exempt crypto transactions from value-added tax.
• The change will take effect on November 15 but retroactively apply to transactions from January 1, 2018.

The UAE government amended its regulations around value-added tax laws to exclude digital assets and transactions involving them.

The document published by the Federal Tax Authority (FTA) of the UAE also exempted the activities of investment funds that manage digital assets, and the transfer of ownership of assets and their conversion to or from fiat from value-added tax.

This development is part of a wider streamlining of digital asset regulations by various regulatory authorities within the UAE. For example, the Securities Commodities Authorities (SCA), UAE’s premier financial regulatory authority, partnered with Dubai’s authority, the Dubai Virtual Asset Regulatory Authority (VARA), to jointly oversee digital asset service providers operating within both nations.

A wider push for legitimacy

The UAE’s amendment to its crypto tax laws lends more legitimacy to digital assets within the region as the same VAT exemption is also applied to traditional financial firms and transactions.

According to PwC, virtual assets within the UAE are considered as a “representation of value that can be digitally traded or converted and can be used for investment purposes.”

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