Regulatory Dynamics

1. The Russian Ministry of Finance plans to ease the thresholds for cryptocurrency tax reporting.

The Russian Ministry of Finance recently proposed new amendments to the upcoming cryptocurrency asset law, which is expected to reduce the requirements for cryptocurrency taxpayers. The revised draft bill stipulates that individuals must declare their held assets when their annual cryptocurrency trading volume exceeds 600,000 rubles (approximately $7,800), significantly raising the threshold from the previous 100,000 rubles. The bill is scheduled to be passed next January, and the Ministry of Finance hopes that taxpayers can complete their initial asset disclosures by April 30, 2022. According to the draft, the declared value of cryptocurrencies will be calculated by tax authorities based on the market price at the time of the transaction.

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

The state of New Jersey in the United States is advancing a Senate bill called the "Digital Asset and Blockchain Technology Act," aimed at regulating cryptocurrency service providers in the state. The bill requires all entities engaged in digital asset trading, storage, purchasing, selling, trading, lending, or issuance services to obtain a license. In the future, these institutions and individuals must obtain the relevant licenses in New Jersey or other states if they wish to operate in New Jersey.

3. Beijing plans to build a legal digital currency pilot zone.

Beijing recently held a financial policy briefing, during which it was proposed to support the establishment of a legal digital currency pilot zone and a digital financial system in the Beijing Free Trade Zone. The related policies also mentioned that support would be given to the implementation of major fintech projects around payment clearing, registration and custody, and credit rating, while utilizing technological means to enhance the service level of financial infrastructure. Under the premise of controllable risks and protecting consumer rights, Beijing will steadily promote fintech innovation.

4. Spain approves the establishment of a fintech regulatory sandbox

The Spanish Senate unanimously approved a proposal to establish a new regulatory testing platform for fintech. This platform will allow companies to pilot blockchain, Bitcoin, and other crypto-related projects. This initiative aims to promote financial innovation while ensuring that risks are manageable.

5. Argentina's Congress Advances Digital Currency Legislation

Argentinian lawmakers are actively promoting a digital currency bill aimed at providing a legal framework for digital currencies and encouraging their use. If passed, the bill would allow banks and businesses to choose to use digital currencies. This initiative may be related to the country's severe inflation problem, with the Argentine peso depreciating by about 40% in 2019.

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

The governor of the Central Bank of Lebanon stated that the country plans to launch a digital currency in 2021 to rebuild public confidence in the banking sector and promote a cashless process. At the same time, he called for a restructuring of the banking industry, including a 20% capital restructuring plan.

Industry News

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

Recent data shows that the market capitalization of Bitcoin has approached $300 billion, making it the 20th largest asset in the world by market cap. Currently, Bitcoin's market cap has surpassed that of well-known American companies such as home improvement retailer Home Depot, telecommunications giant Verizon, and payment giant PayPal. This milestone signifies the ongoing growth and mainstream trend of the cryptocurrency market.