Regulatory Dynamics

1. The Russian Ministry of Finance plans to relax the tax reporting standards for crypto assets.

The Russian Ministry of Finance recently proposed new amendments to the country's upcoming cryptocurrency law, which may reduce the requirements for cryptocurrency taxpayers. According to the latest draft bill, individuals will need to declare their holdings when their annual cryptocurrency transaction amount exceeds 600,000 Russian rubles (approximately $7,800), a significant increase from the previous proposal of 100,000 rubles (approximately $1,300). The law is planned to be implemented in January of next year, and the Ministry of Finance hopes that taxpayers will complete the asset disclosure for the next tax year by April 30, 2022. The bill also stipulates that the declared value of cryptocurrencies will be calculated by the national tax authority based on market prices at the time of the transaction.

2. New Jersey, USA plans to introduce a regulatory bill for cryptocurrency service providers.

New Jersey in the United States is advancing a cryptocurrency licensing system. Recently, the "Digital Assets and Blockchain Technology Act" (Bill No. 3132) initiated by Senator Nellie Pou has been submitted for Senate review. The purpose of this bill is to implement regulation on cryptocurrency service providers, requiring entities that offer digital asset trading, storage, purchasing, selling, trading, lending, or issuance services to obtain licenses under the supervision of the New Jersey Department of Banking and Insurance. According to the proposed bill, these entities will not be allowed to engage in any related business activities before obtaining a New Jersey license or an equivalent license from another state.

3. Beijing plans to establish a pilot zone for legal digital currency.

Beijing is actively promoting innovative development in the field of digital currency. According to the "Overall Plan for the China (Beijing) Pilot Free Trade Zone", Beijing will support the establishment of a financial technology center by the Digital Currency Research Institute of the People's Bank of China, and will begin the construction of a legal digital currency pilot zone and digital financial system. In addition, Beijing will support the implementation of major financial technology projects around payment clearing, registration and custody, credit rating, asset trading, data management, and other areas, and enhance the service level of financial infrastructure through technological means. Under the premise of controllable risks and protection of consumers' legitimate rights and interests, Beijing will steadily promote financial technology innovation.

4. Spain approves the establishment of a fintech regulatory sandbox

The Spanish Senate recently unanimously passed a resolution to establish a new regulatory fintech testing platform. This platform will allow companies to launch blockchain, Bitcoin, and other cryptocurrency-related projects, providing a more flexible regulatory environment for fintech innovation.

5. Argentina's Congress Advances Digital Currency Legislation

Argentine legislators are actively promoting a digital currency bill aimed at providing a legal framework for digital currencies and encouraging their adoption. If the bill is passed, banks and businesses will have the option to use digital currencies. The background of this initiative is that Argentina's legal tender, the peso, depreciated by about 40% in 2019 due to inflation, and digital currencies may offer a new option for the country's monetary system.

6. The Central Bank of Lebanon plans to launch a digital currency in 2021.

The Governor of the Central Bank of Lebanon, Riad Salameh, recently stated that Lebanon plans to launch a digital currency in 2021. This move aims to restore public confidence in the banking sector and promote the country's transition to a cashless system. At the same time, Salameh also called for the banking sector to begin restructuring, including a capital restructuring plan of 20%.

Industry News

Bitcoin's market value ranks among the top 20 assets globally.

Recent data shows that Bitcoin's market capitalization has approached $300 billion, making it the twentieth largest asset in the world by market cap. This achievement has seen Bitcoin surpass several well-known companies, including a major U.S. home improvement retail giant, a large telecommunications company, and a leading online payment service provider. The growth in Bitcoin's market cap not only reflects the recognition of its value as a digital asset but also highlights the increasingly important role of cryptocurrencies in the global financial market.