Digital Currency and Blockchain Weekly Round-Up – November 8th, 2019
Fri, 08 Nov 2019, 12:07 pm UTC
European Union to create encompassing law for Libra, other stablecoins
Recent reports suggested that the European Union may be looking to create its own central bank digital currency (CBDC). But it appears that the union isn’t preparing for such a thing as it just clarified that the recent draft penned by the Finnish EU presidency is geared towards the regulation of stablecoins. The regulators are trying to create a regulatory framework that would encompass existing stablecoins and its other kin that will be surfacing in the future.
U.K. releases extensive crypto tax guidelines; Rules subject to changes depending on market evolution
Last year, the United Kingdom’s tax agency promised it will provide extensive guidelines for the nascent crypto industry to offer clarity for businesses and corporations dealing with this particular market. Now, Her Majesty’s Revenue & Customs (HMRC) has released the said guidelines for cryptoasset exchange tokens. The explains how crypto businesses should pay for corporate tax, capital gains tax, income tax, national insurance contributions, stamp taxes or VAT.
FCA issues key instructions for crypto businesses ahead of EU’s 5AMLD deadline
UK’s Financial Conduct Authority (FCA) has published key information for cryptoasset-related businesses ahead of the implementation of the European Union’s Fifth Money Laundering Directive (5AMLD) in early 2020, Finextra reported. “From 10 January 2020, we will be the anti-money laundering and counter terrorist financing (AML/CTF) supervisor of UK cryptoasset businesses under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (MLRs),” it said.
People’s Bank of China, Shanghai regulators highlight blockchain’s importance in shipping, financial industry
The People’s Bank of China (PBoC) and the Shanghai commerce commission have just released a statement that supports the development of blockchain technology in the country. The statement highlighted blockchain’s importance in solving problems regarding information asymmetry in trade finance. It also underscores blockchain’s role in addressing the proof of trade authenticity, a problem that the technology can solve through its transparent nature and immutable ledger.
Hong Kong partners with China, Thailand to explore AI, DLT, CBDC initiatives
The Hong Kong Monetary Authority (HKMA) launched a five-day program yesterday, Nov. 6, gathering thousands of people in a bid to push the financial industry forward. Among the projects that have been mentioned is a Proof-of-Concept (PoC) trial that will be connecting the eTradeConnect and the People’s Bank of China Trade Finance Platform. Hong Kong will also be collaborating with Thailand to research the development of a central bank digital currency (CBDC) for cross-border payments.
Hong Kong-based crypto exchanges offering security token trading now required to acquire SFC license
Hong Kong’s watchdog released a position paper on Nov. 6, explaining that crypto trading platforms will be treated similar to traditional brokers if these platforms offer trading in security tokens. Any businesses that fall within this category will be governed by the authority of the Securities and Futures Commission (SFC).
Russia seeks to create legislation that would force cybercriminals to give up stolen crypto assets
Russia’s Ministry of Internal Affairs is looking to create legislation that will allow authorities to force criminals to give up stolen digital assets. The agency has mandated that the proposal on this front should be completed by Dec. 2021, CoinDesk reported citing RBC.
Ukraine government signs MOU with Binance for cryptocurrency regulation
Ukraine is trying to establish rules for cryptocurrencies and has teamed up leading cryptocurrency exchange Binance to achieve this goal. In a press release, Binance announced that it has signed a Memorandum of Understanding (MOU) with Ukraine’s Ministry of Digital Transformation. The aim of the collaboration is to help the country create a regulatory framework that would oversee the evolution of digital assets.
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