Recent legislative activities across the globe are ratcheting up the conversation around cryptocurrency regulation. In Hong Kong, regulator attention is focusing sharply on the city’s vibrant crypto market following allegations of fraud linked to an unlicensed exchange named JPEX. As a response, the government is ramping up efforts reminding investors to limit their dealings to platforms that have secured licenses from the Securities and Futures Commission. This move is seen as a pursuit to strengthen the crypto market’s boundaries and lower the risk of investor losses due to fraud.
On Thai soil, the Revenue department is making moves to tax overseas crypto profits. The new rule requires a person residing in Thailand for over 180 days to declare any income earned overseas, including from crypto trading, even if such funds are not deployed in the local economy. This legislation, more comprehensive than its predecessor, nullifies any prior loopholes and may be seen as a deterrent to prospective crypto traders in the country.
Switching to South America, Brazilian legislators are embarking on the opposite track, advocating for the inclusion of digital assets as part of personal financial assets and aiming to give them protection from seizure. Recognizing the changes in people’s investment habits, the lawmakers are seeking to modify a bill to protect private savings up to 40 minimum wages.
Meanwhile, the U.K’s House of Lords has thrown its weight behind a bill that targets illegal use of cryptocurrency and has forwarded it to the House of Commons for deliberation. The proposed bill expands the power of law enforcement agencies to seize stolen assets held in digital currencies. The House of Commons’ decision on this matter will be a significant determinant of the direction the U.K’s cryptocurrency regulations will take.
The regulatory frenzy is not confined to Asian and European nations. A U.S bill aimed at curbing the rise of Central Bank Digital Currencies (CBDCs) is gaining momentum. The CBDC Anti-Surveillance State Act, which seeks to prevent ‘unelected bureaucrats’ from issuing CBDCs is on the brink of a congressional vote. The bill seeks to barricade CBDCs from replacing individual currencies and block their use in implementing monetary policies.
Simultaneously, turbulence is hitting the crypto industry. The United States Securities and Exchange Commission has lambasted the restructuring plan for the Celsius Network, casting doubts on a possible deal with Coinbase. As the Celsius restructuring saga persists, Coinbase is grappling with the SEC’s lawsuit over accusations of offering unregistered securities.
The swiftly evolving regulatory panorama around digital currencies exposes both the potential and challenges inherent in the new frontier of finance, highlighting the delicate balancing act nations must exercise between encouraging financial innovation and shielding their citizens from financial harm.
Source: Cointelegraph
