Whether in Iran, China or the USA – at the moment the regulatory signs of the times are by no means pointing to opening. Contrary to what is often hoped for, the law enforcement officers are more resolute in control – and targeting crypto companies.
US authorities are targeting crypto space
With combined forces, the US authorities want to target the regulation of the crypto sector in the future. This emerges from the recent Senate hearing of the new OCC boss Michael Hsu. When questioned before the US Senators, the head of the credit authority announced that there were already discussions between the Federal Reserve, the Treasury and the public deposit insurance fund, the Federal Deposit Insurance Corporation (FDIC). The aim of the cooperation is a joint “Policy Sprint Team” that is solely to regulate the crypto sector.
The day before, the new head of the agency had at one survey Already announced in the House of Representatives that all existing regulations of his house with regard to the fintech and crypto sector will be carefully examined and, if necessary, tightened.
US Treasury Department reaffirms tax liability for crypto businesses
The US Treasury last week, meanwhile, reaffirmed the tax liability for crypto transactions. In a report In this context, the Biden administration emphasizes corresponding requirements for companies to report payments received worth more than 10,000 US dollars to the tax inspectorate (IRS). The requirements are intended to address the “significant problems” in terms of tax evasion. Only a few companies are currently subject to this reporting requirement. According to officials, however, the importance of crypto transactions will increase in the coming years.
Consumer protection first – SEC boss Gary Gensler calls for decisive regulation
The new one was valid for a long time SEC chief Gary Gensler as the hope of the crypto sector. But it is slowly becoming apparent that one thing above all is important to the head of the authority in relation to business-friendly regulation: the well-being of the consumer. The former MIT professor and Goldman Sachs banker confirmed this position last week. At an annual meeting of US regulators, he called on the authorities to take decisive action against nebulous companies in the crypto, fintech and cyber sectors.
“We must do everything to ensure that fraudulent companies do not play with the savings of working families and that existing rules are aggressively and consistently enforced”,
so his appeal.
SEC litigation – US court throws down Ripple’s application
Meanwhile, the Gensler authority remains tough in the legal dispute with the financial services provider Ripple. Here, too, observers had hoped for a rethink. But the SEC is sticking to its allegations against the company. In the past week, Ripple had to take another setback. The responsible New York District Judge Sarah Netburn denied a motion by the company, which had asked the SEC to stop investigations into the case abroad and to disclose previous results.
FUD Made in China – New Bitcoin Ban for Financial Service Providers
Hardly any news caused as much attention in the past few weeks as the speculation that China could loosen its tough hand on the domestic crypto industry. But not because of the opening – in the past week it became increasingly apparent that Beijing is not planning to loosen the reins. An internal Bitcoin ban now prohibits Chinese banks and financial service providers from doing business with cryptocurrencies. This emerges from a statement by three large financial associations that are subordinate to the central bank PBoC. This warns of the risks of virtual currencies and prohibits association members from doing crypto transactions.
In view of the strict course towards the domestic mining industry, however, the first companies seem to be turning their backs on the Middle Kingdom. Recently, for example, the Chinese mining company BIT Mining surprised with millions in investments in the US state of Texas.
Iranian miners face hefty fines
And in Iran, too, prospectors are threatened with the decisive hand of the law. Private miners who use household electricity for their computers will have to be prepared for hefty penalties in the future. This is evident from recent statements by the Department of Energy, of which the Tehran Times reported. With the new catalog of penalties, the government wants to take action against the electricity shortage in the country.
Crypto regulation on the horizon? Indian law still unclear
In India, the legal situation for crypto companies and investors remains opaque. For a long time, speculation about a presumably pending Bitcoin ban smoldered here. Now the resident reports Economic Times of plans by the Indian central government to set up a new panel of experts to investigate the possible handling of cryptocurrencies in India. This delayed the legislators’ final answer for one more time.
Digital monetary system – why we need a digital euro
Whether e-rubles, digital pounds, rubles or US dollars – in one form or another, all the major monetary authorities of the world economy are currently focusing their eyes on the potential of digital central bank currencies. But very few have decided to develop them. According to the Frankfurt School Blockchain Center, this should change soon. In their guest contribution for BTC-ECHO, Jonas Groß, Manuel Klein and Prof. Dr. Philipp Sandner with the question of why there is no way around CBDCs like the digital euro in the future.