A rate hike pause has reportedly helped the crypto market maintain its current levels, but according to Joe DiPasquale of BitBull Capital, rate cuts are what’s truly necessary to prevent it from struggling in the future. In this relatively stable environment, DiPasquale notes that Bitcoin and other major cryptocurrencies have held up well, making it a favorable accumulation period for mid to long-term investors. However, with no rate cuts predicted in the near-term, this could result in a lackluster market performance.
Focusing on the global market, Indonesia recently updated its list of approved digital assets for trading in the country. Many of these tokens would be considered securities in the U.S. and may not pass other countries’ stringent quality tests. Despite this, the inclusion of such tokens highlights the government’s primary concern to capture tax revenue from the growing middle class and expanding crypto market.
Tokens such as Solana (SOL), Cardano (ADA), and Decentraland (MANA) are just a few assets approved by the Indonesian Commodities Bureau (BAPPEBTI) that have been labeled as securities by the U.S. Securities and Exchange Commission (SEC). Tokens that would not fare well in Hong Kong’s requirements of high liquidity and a 12-month track record have also made the list.
One may argue that Indonesia is opening its doors to a wide variety of crypto trading, as long as the capital gains tax is captured. This is achieved with a light touch on the quality of traded assets and a focus on quantity. While Hong Kong tends to prioritize quality control, the Indonesian government’s main concern appears to be capturing much-needed tax revenue from its growing middle class and large informal economy.
Though several tokens on Indonesia’s approved list may not meet the standards set by regulators in Thailand, such as the banning of meme tokens like PEPE and Floki, the emphasis on free-market economy principles has its merits. It calls into question whether the government should be in the best position to dictate which digital assets are suitable for trading.
Ultimately, despite the skepticism surrounding Indonesia’s motivations for expanding its approved list of digital assets, the potential for increased tax revenue and a more inclusive crypto market may outweigh the cons for the nation. However, only time will tell if this approach will benefit the overall crypto landscape and its participants.
Source: Coindesk
