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Prime Minister Mikhail Mishustin and the Russian Ministry of Economic Development have backed efforts to regulate cryptocurrencies and integrate them into the country’s economy. The support comes amid mounting sanctions over the war in Ukraine which restrict Russia’s access to global finances. Finance Ministry’s Push to Legalize Russian Crypto Space Gains Traction Russian authorities are […]
U.S. Treasury Secretary Janet Yellen has admitted that there are benefits to cryptocurrency. Crypto has grown by leaps and bounds and is now “playing a significant role” in the investment decisions of lots of Americans, Yellen said, adding that the Treasury Department is working on regulatory recommendations for healthy innovation. Treasury Secretary Yellen Sees Benefits […]
The U.S. Department of Justice (DOJ) has charged two people allegedly behind a million-dollar non-fungible token (NFT) “rug pull” scheme. They abandoned the NFT project within hours after selling out, deactivated the website, and transferred over $1 million in crypto to the wallets they controlled, the justice department explained. NFT Purchasers Defrauded in a Rug […]
Malaysia’s deputy finance minister has clarified that the government will not adopt cryptocurrency as legal tender. “Cryptocurrencies like bitcoin are not suitable for use as a payment instrument due to various limitations,” he said. Bitcoin Will Not Be Legal Tender in Malaysia, Says Deputy Finance Minister Following reports that a high-ranking government official has proposed […]
A Nevada man has admitted his role in laundering funds solicited for the Bitclub Network, a $722 million fraudulent cryptocurrency scheme. He also pleaded guilty to tax offenses. Bitclub Network Investor Pleads Guilty The U.S. Department of Justice (DOJ) announced Thursday that Gordon Brad Beckstead, a 57-year-old from Henderson, Nevada, has pleaded guilty in connection […]
The Moroccan central bank is currently holding talks with multilateral lending institutions and other central banks, centered on establishing cryptocurrency regulation best practices. Inevitable Adoption of Cryptocurrencies The Moroccan central bank governor, Abdul Latif Al Jawhari, has said his institution is currently in discussion with the International Monetary Fund (IMF) and the World Bank, about […]
Under the framework, those conducting crypto transactions will be subject to a 30% tax starting on April 1, while the 1% TDS requirement will take effect on July 1.
A tax framework on cryptocurrencies introduced by India’s Finance Minister Nirmala Sitharaman will become law in the country after being passed as an amendment to the Finance Bill.
On Friday, India’s lower house of parliament, the Lok Sabha, passed the 2022 Finance Bill, which included 39 amendments proposed by Sitharaman. The amendment on crypto established a 30% tax targeting digital asset and nonfungible token transactions and did not allow for deductions from trading losses while calculating income. In addition, taxpayers in India will have an additional 1% tax deducted at source, or TDS.
As per the new amendment proposed in the Finance bill 2022 to sections of crypto tax.
Loss cant be set off against any profit. Similar to betting tax rules. #reducecryptotax
— Aditya Singh (@CryptooAdy) March 25, 2022
Under the framework, those conducting crypto transactions will be subject to a 30% tax starting on April 1, while the 1% tax deducted at source requirement will take effect on July 1. The proposed framework received pushback from many Indian lawmakers in parliament as well as local industry leaders who claimed that the legislation would likely “kill crypto” in the country.
“What does a 1% TDS do to the business of the blockchain?” asked Member of Parliament Ritesh Pandey. “It is critical to understand that what the finance minister has done by introducing this 1% TDS on the blockchain industry — it is going to hamper the way this business is done.”
Pinaki Misra, another member of the Lok Sabha, added:
“Today to ban cryptocurrency is the equivalent of banning the internet. It is an idea whose time has come […] the government has gone on to a 30% [tax] on the basis that it must be at a higher [capital gains tax] because it is some kind of sin.”
#India
Finance bill 2022 passed.(For now) settled #crypto Law :
30% tax on crypto, #NFT gains
1% TDS
No inter crypto set off, carry forward
No expense deductions, mining expense claim(No clarity yet on foreign holding / DeFi / ICO launched in India, banking support)
— Varun | Blockchain Lawyer (@Blockchainlaw91) March 25, 2022
With the addition of the tax policy on crypto, India has one of its first regulatory frameworks on digital assets following a 2020 decision from the country’s Supreme Court, which lifted a ban from the Reserve Bank of India on banks’ dealing with crypto firms. Appealing to the highest court would likely be one of the few legal paths available for opponents of the newly passed framework to seek a reversal.
“We firmly believe that there is a need to regulate and tax crypto but in its current form, it is poised to do more harm than good,” said WazirX founder and CEO Nischal Shetty. “It can result in cascading participation on Indian exchanges that adhere to the KYC norms and lead to a rise in capital outflow to foreign exchanges or to the ones that aren’t KYC compliant. This is not conducive for the government or the crypto ecosystem of India.”
Related: India’s crypto tax provides little legal clarity for traders and exchanges
A bill that proposed banning “private cryptocurrencies” in India had previously been mentioned in the parliamentary business. However, the government body is not scheduled to hear a discussion on the legislation during its current session, which ends April 8.
The Senate bill to mitigate the risks from El Salvador adopting bitcoin as legal tender has advanced in the U.S. “As El Salvador has adopted bitcoin as legal tender, it’s critical we mitigate risks to our financial system,” said one of the U.S. lawmakers who introduced the bill. Bill to Mitigate Risks From Bitcoin Being […]
The Bank of England has revealed that it is working on sketching a regulatory framework for crypto assets, according to statements stemming from the central bank’s Financial Policy Committee on Thursday. BOE Stresses Crypto Assets Need Effective Public Policy Frameworks On Thursday, the Bank of England (BOE) told the press that it is sketching out […]
“Once crypto exchanges are compliant, the SEC’s primary reason for denying spot Bitcoin ETFs would no longer be valid, likely clearing the way for approval,” said the analysts.
Eric Balchunas and James Seyffart, exchange-traded fund analysts for Bloomberg, said that a proposed rule change with the United States Securities and Exchange Commission could be the catalyst for the regulatory body approving a spot Bitcoin ETF in mid-2023.
In a Thursday tweet, Balchunas said crypto platforms could fall under the SEC’s regulatory framework if the commission were to approve an amendment to change the definition of “exchange” proposed in January. The rule change would amend the Exchange Act to include platforms “that make available for trading any type of security” — seemingly including cryptocurrencies, making their investment vehicles more palatable for the regulator.
“Once crypto exchanges are compliant, the SEC’s primary reason for denying spot Bitcoin ETFs would no longer be valid, likely clearing the way for approval,” said the analysts.
Balchunas and Seyffart said under this amended definition of “exchanges”, which could be finalized between November 2022 and May 2023, the SEC could approve spot crypto ETFs including those with exposure to Bitcoin (BTC). The regulatory body has so far rejected all rule changes allowing listings of spot BTC ETFs on exchanges, despite approving some investment vehicles linked to Bitcoin futures in 2021.
New note out on why we think spot bitcoin ETFs will get approved in early Summer 2023. The SEC is proposing to expand the definition of “exchange” which would bring crypto platforms under SEC reg. After that (which could take a year) look for ETFs to get green light via @JSeyff pic.twitter.com/TtFgFXrJ8h
— Eric Balchunas (@EricBalchunas) March 24, 2022
Related: Is Bitcoin price mimicking the 2017 bull run?
Many U.S. lawmakers and industry leaders have pushed back against the SEC’s seeming reticence to approve a spot Bitcoin ETF. In November, Representatives Tom Emmer and Darren Soto sent a letter to SEC chair Gary Gensler challenging the reasons the regulator has denied listing shares of a spot Bitcoin ETF. Bitfury CEO and former Acting Comptroller of the Currency Brian Brooks also said during a December hearing that the United States was “unquestionably” behind the curve on approving crypto ETFs.