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Crypto Regulation

US Senators Introduce New Bill That Seeks To Amend Crypto Provision in Newly Signed Infrastructure Package

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Two United States senators are introducing legislation to amend the crypto provision of the infrastructure bill that President Biden just signed into law.

Reaching across the aisle, Democrat Ron Wyden and Republican Cynthia Lummis seek to revise the new information-reporting rules imposed on the digital asset space.

The proposed amendment intends “to revise the rules of construction applicable to information reporting requirements imposed on brokers with respect to digital assets, and for other purposes.”

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As a press release from Sen. Lummis explains,

“Under current law, those who are involved in digital asset mining or staking, providing digital asset hardware or software wallets, or developing digital asset protocols may fall under the definition of ‘broker’ for tax purposes and would be subject to certain Internal Revenue Service (IRS) reporting requirements.

The senators’ bill would clarify that the ‘broker’ definition excludes miners and stakers, as well as wallet providers and developers, and would ensure that only those digital asset intermediaries that actually have access to material customer information are required to report to the IRS.”

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Senator Wyden says it is “critically important to protect innovation in the digital asset space.”

“Our bill makes clear that the new reporting requirements do not apply to individuals developing blockchain technology and wallets. This will protect American innovation while at the same time ensuring those who buy and sell cryptocurrency pay the taxes they already owe.”

Lummis, who has been a vocal advocate of cryptos as well as a buyer of Bitcoin (BTC), says digital assets are now a part of the financial system and today’s decisions will have long-term effects.

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“We need to be fostering innovation, not stifling it, if we are going to maintain America’s position as the global financial leader. I’m proud to introduce this bipartisan bill to ensure that our tax system reflects the realities of digital assets and distributed ledger technology.”

President Biden signed the Infrastructure Investment and Jobs Act/Bipartisan Infrastructure Framework (HR 3684) bill into law on Tuesday.

Currently, Section 80603 of the law says,

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“Return Requirement for Certain Transfers of Digital Assets Not Otherwise Subject to Reporting.

Any broker, with respect to any transfer (which is not part of a sale or exchange executed by such broker) during a calendar year of covered security which is a digital asset from an account maintained by such broker to an account which is not maintained by, or an address not associated with, a person that such broker knows or has reason to know is also a broker, shall make a return for such calendar year, in such form as determined by the Secretary, showing the information otherwise required to be furnished with respect to transfers subject to subsection (a).’”

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Crypto Regulation

Banks Must Meet These Conditions To Deal Crypto, US Regulator Says

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The mainstream adoption of digital assets has been one of the main targets that the crypto space set.

More and more moves are taking place in order to achieve this important goal and they continue.

Banks adopting crypto for their clients is one important step in this direction and you can check out the latest news about this below.

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US regulator details conditions for banks to deal crypto

It’s been just revealed that the U.S. Office of the Comptroller of the Currency (OCC) is outlining the conditions that national banks and federal savings associations have to mark before engaging in specified crypto activities.

The online publication the Daily Hodl says that according to the regulator, national banks and federal thrift institutions must do the following:

“demonstrate that they have adequate controls in place before they can engage in certain cryptocurrency, distributed ledger and stablecoin activities.”

The OCC also addressed some matters regarding interpretive letters issued in 2020 and early 2021.

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The regulator noted that banks can do the following:

“provide crypto custody services, hold dollar deposits that back stablecoins, act as nodes for distributed ledgers to verify payments and engage in particular stablecoin activities to facilitate payments on blockchain networks after notifying their supervisory office.

The same regulator also notes that the bank should not engage in the activity until “it receives a non-objection from its supervisory office.”

The Acting Comptroller of the Currency, Michael J. Hsu stated the following issues:

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“Because many of these technologies and products present novel risks, banks must be able to demonstrate that they have appropriate risk management systems and controls in place to conduct them safely.”

The regulator also said that this will “provide assurance that crypto-asset activities taking place inside of the federal regulatory perimeter are being conducted responsibly.”

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Breaking: India Likely to Table Cryptocurrency Bill Before Parliament Session

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India is reportedly working to table the much-talked cryptocurrency bill before or during the upcoming parliament session. The bill will be reportedly tabled during the upcoming union cabinet meeting while the winter session is set to start from November 29.

The said cryptocurrency bill comprises new regulations on crypto assets, their classification, and intended tax earnings from them. If the bill gets the cabinet nod, it might get approved during the upcoming parliament session. Earlier, inside sources indicated that the government might regulate cryptocurrencies as an asset class and will prohibit their use as a payment.

A top government official indicated that the new regulations would incorporate taxes on crypto gains based on the current rules of capital gains.  Tarun Bajaj, Revenue Secretary shed some light on the taxation on crypto assets and explained,

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“We will take a call. I understand that people are already paying taxes on it. Now that it has really grown a lot, we will see whether we can actually bring in some changes in the law or not. But that would be a Budget activity. We are already nearing the Budget; we have to look into it at that point in time,”

The Indian crypto ecosystem has strived despite the uncertainty around regulations for nearly four years. According to one report, the Indian crypto ecosystem has become a $6 billion industry with several new unicorns. Now with the government looking set to clear crypto regulations, the Indian crypto ecosystem could reach new highs.

Indian Central Bank Still Sceptic of Cryptocurrency

The Reserve Bank of India (RBI), the Indian central bank is still quite a sceptic about digital assets use and has warned about its potential harm to the financial system. RBI governor Shaktikanta Das has recently warned about the disastrous impact that digital assets could pose on macroeconomic and financial stability.

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The infamous banking ban was also imposed by the RBI in 2017 that choked the crypto ecosystem and created many misconceptions among the mainstream. The banking ban was later overturned by the Supreme court of India in 2019.

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Crypto Regulation

Popular Chinese Crypto Websites Shuts Down Amid Beijing’s Zero Tolerance Policy

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Beijing’s no-tolerance policy against cryptocurrency is back in full swing again as two of the most popular crypto media outlets in China ChainNews and Odaily have vanished from the internet. ChainNews had earlier tweeted that its website would be down for 10 hours due to maintenance on Monday, however, it remained inaccessible inside as well as outside mainland China until Wednesday.

Similarly, Odaily is another popular crypto news and education platform that has gone dark in the past couple of days. This is not the first time when crypto-related platforms have become inaccessible due to pressure from Beijing. Earlier, In July Bishijie, or Coin World in English also terminated its services in mainland China.

The first major crypto crackdown in China came in May that resulted in a total shutdown of mining operations in the country as China’s Bitcoin mining share fell from over 60% to near zero. China later announced a well-laid-out plan in September to crack down on everything crypto-related. Many thought it was the strictest policy against crypto to date. Beijing also issued a warning against foreign crypto platforms offering their services to mainland China, resulting in several crypto exchanges including Huobi, OKEx, and Binance severing any form of operation in the country.

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China Faces Third Wave of Crypto Crackdown

The severe crackdown in May and September made many believe that China has finally managed to eradicate crypto completely, however, the recent series of actions suggests it’s going to be a continuous process. This is mainly because it’s near impossible to ban crypto due to its decentralized nature, and it was evident when from the surge in Defi activities post-ban on foreign crypto exchanges.

The Chinese authorities recently arrested a senior government official found to be illegally mining Bitcoin and defying Beijing’s orders. This triggered the third and ongoing wave of crackdowns in the country which many believe also resulted in the recent crypto market correction.

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