In the past week a lot has happened around the globe in terms of regulation. In the series “Regulation in the Week in Review” we look back at the end of the week and summarize what was said, thought or decided, when, where and by whom.
Japan: Minister of Finance is considering a change in crypto trader taxation
The Japanese finance minister is thinking about changing the way crypto trader currencies are taxed in Japan. However, he doubts that the Japanese public will respond favourably to this crypto trader news, as the new taxation could be seen as unfair. The current tax rate for crypto transactions is a maximum of 55 percent. A change in category would result in a tax rate of 20 percent, similar to that for equities or foreign exchange transactions.
Urkaine: No regulation of cryptomining
The regulatory authorities in Ukraine do not plan to regulate the mining of crypto currencies in the near future. A Russian news portal reports that cryptomining is not seen as an activity requiring licensing. Igor Samokhodski of the crypto-friendly NGO BRDO welcomes the decision.
Australia: No own crypto currency planned
At a briefing of the Australian Business Economists, the Head of Payments Policy Department of the Central Bank of Australia commented on a possible crypto currency of its own. This would be fascinating as an idea, but inefficient for real use. In addition, the issue would not be a priority for the central bank, but work would continue on possible solutions.
Canada: regulatory working group formed
The Investment Industry Regulatory Organization of Canada, an NGO that focuses on self-regulation of the cryptoscene, has formed a working group. In the future, the working group will work on a set of rules for the regulation of blockchain applications. In a document, they set out the organization’s priorities for 2019.
South Korea: Bank control over Exchanges to be extended
The South Korean Financial Supervisory Authority has changed the rules for combating money laundering. In the future, domestic banks will be obliged to tighten the monitoring of bank accounts linked to crypto currencies. According to an announcement by the Financial Services Commission (FSC), the change, which will initially apply for one year, means that domestic banks serving crypto exchanges will now have to monitor all accounts on that exchange.
Hong Kong: Securities regulators closely monitor crypto sector
In its Annual Report 2017/18, the Securities and Futures Commission (SFC) of the Hong Kong Special Administrative Region announces that it will continue to monitor crypto currencies and ICOs closely in the future. Thus, new technologies often come in combination with risks that occasionally require the intervention of regulators. On the other hand, high-quality projects are something one would like to support.
Malta: Three draft laws on the blockchain in parliament
The Parliament of the island state of Malta has passed three bills on crypto currencies, blockchain and distributed ledger technology (DLT). These are intended to help the Maltese government better understand blockchain and turn the site into an international crypto hub. The initiatives were introduced into parliament by Silvio Schembri, Parliamentary State Secretary for Financial Services.
UK: Bank of England warns again of risks of crypto currencies
Sam Woods, CEO of the Prudential Regulation Authority (PRA), announced in a letter that banks, insurance companies and investment firms should take measures to protect themselves against market volatility and potentially risky investments in crypto. In doing so, he supports the stance of central bank chief Mark Carney, who has repeatedly spoken out in favour of stronger control of the crypto sector.