Regulatory Dynamics and Latest Developments in Crypto Assets

Regulatory Dynamics

The Central Bank of Nigeria has completely banned digital assets and required local banks to close customer accounts associated with Crypto Assets exchanges. This move may be related to the protests against police brutality in 2020, during which young people primarily relied on Bitcoin donations to support the protests.

The Estonian Ministry of Finance is tightening the regulation of crypto licenses. Under the new regulations, the Finantsinspektsioon will be responsible for the supervision of Crypto Assets businesses, replacing the previous financial intelligence department. The existing 381 licensed companies will need to reapply for operating licenses, and it is expected that only 50 to 100 will be able to meet the new requirements.

The Indian government clarified its position on Crypto Assets and the digital rupee, emphasizing that it will not consider Crypto Assets as legal tender but will actively explore applications of blockchain technology. The government's main focus is on curbing illegal activities and payment systems.

The South African Revenue Service has added questions related to Crypto Assets transactions in its new audit requirements. Taxpayers must disclose the purpose of purchasing digital assets and the transaction timeline. Failure to report or false reporting may face a maximum of two years imprisonment.

The Spanish tax authorities have issued guidelines aimed at reducing the risk of tax evasion related to Crypto Assets. Measures include requiring local exchanges to provide holder information, analyzing transaction data, and strengthening international cooperation.

The province of Córdoba in Argentina has passed a new bill imposing a tax of 4% to 6.5% on encryption-related transactions. Individuals or companies accepting payment in Crypto Assets are required to pay a tax of 0.25%.

Beijing will distribute 50,000 red packets of 200 yuan in digital renminbi as part of the activities related to the Winter Olympics. This is another pilot application of digital renminbi.

Crypto Assets Trends

PayPal is investing in its new digital currency division, planning to launch a feature by the end of this quarter that allows users to fund their accounts using Crypto Assets.

Tesla CEO Elon Musk expressed support for Bitcoin, believing it to be a good thing. Executives from SpaceX attended MicroStrategy's Bitcoin summit to discuss the possibility of adding Bitcoin to the company's assets.

Forbes released the 2021 Global Blockchain Top 50, with 7 Chinese companies making the list. Ant Group is the only company in China to be listed for three consecutive years.

The Canadian fintech company Accelerate has submitted a prospectus for a Bitcoin ETF, planning to list on the Toronto Stock Exchange.

The Filecoin network will soon upgrade to version v1.5.0, which includes two important proposals aimed at improving network performance and security.

In January, Google's search volume for "buying Crypto Assets" hit a new high, reflecting the public's ongoing interest in Crypto Assets.