The Fifth Minute Regulating Cryptography: India, Canada, Israel, and the United States

mark this monthly articleIn this article, we will provide an overview of new legislative projects or regulatory trends related to Bitcoin and cryptocurrencies. In this Fifth Composition of the Minutes Slate, we will travel to India, Canada, and Israel before ending in the United States.

India: The Mystery of a New Crypto Tax

At the beginning of February, India’s Finance Minister A 30% tax It applies to all income from the transfer of digital assets, as well as a 1% withholding tax (TDS) by exchanges (For all transactions over INR 10,000, or $133). The exchanges will be even April 1 To comply with these new regulations. However, these proposals carry some mystery For crypto operators operating in India.

In fact, the Indian government has insisted that in no way should these bills be considered as Indirect recognition of the cryptocurrency market. Moreover, the Central Bank of India It looks like he wants to ban encryption completely, fearing that this might happen Destruction of the country’s monetary system.

After that, these tax procedures, given the complexity and uncertainty Which they hold can be obstacle to development In the cryptocurrency market in India. Founder of blockchain data analytics company CrepacoSiddharth Sujani said:

“Such a financial framework indirectly discourages anyone from entering into cryptocurrencies (…). This becomes cumbersome and difficult to comply with, because in crypto, there are thousands of transactions per user every month. (…) I received a call from One of the three major cryptocurrency exchanges in the world that is considering setting up in India, but after this announcement it seems to have returned to the idea, and only because of the complexity of crypto taxes.”

Moreover, taking into account demographic scale From this country, India represents a huge market potential for crypto companies. Thus, tax procedures that are too complex, even stifling, can harm the establishment of these companies.

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Canada: “Emergency Law” to Control Cryptocurrency Transactions

During the month of February, Canadian Prime Minister Justin Trudeau summoned the “law of emergency”In particular, the emergency law was enacted to combat terrorism in order to be able to monitor everyone Cryptocurrency Transactions. In addition, this law gives the government the power to freeze bank accounts without the intervention of the judge.

The Canadian prime minister insisted that this emergency law would be “implemented temporarily and in a very specific way”. However, according to the Canadian Civil Liberties Association Trudeau had overstepped his authority By invoking the emergency law:

“The federal government has not reached the threshold needed to enforce emergency law. This law cannot be easily invoked for good reason: it allows the government to circumvent normal democratic processes. This threshold is not met.”

However, the government continued to implement this emergency law Request from many banking institutions Cooperation in order to achieve the freezing of accounts. Thus, only time will tell whether the application of this law to cryptocurrency transactions is conditional and temporary.

Israel: Binance in the eyes of the regulator

According to the Israeli media, Globus, Capital Markets Authority From Israel who is responsible for Issuance of licenses for exchanges Working in the country, I asked Binance to explain their activities in the country. In fact, the regulator has ordered Binance to detail the activities it offers to Israeli investors, as well as Licenses under which the platform Works.

Binance Israel temporarily halts operations under regulatory pressure.

Based on these requests from the regulator, Binance has stopped offering its services in the region until the completion of CMA checks. Moreover, Binance will also have Hebrew support has been removed And the Israeli currency is the shekel of its platform.

US: Securities and Exchange Commission attacks Terraform Labs

For the first time in November 2021, Securities and Exchange Commission (dry) feet requiring information opposite Terraform factor and its CEO, Do Kwonas part of an investigation into mirror protocol Terra (Luna). However, last December The company has submitted a petition, in order to oppose the request of the Supreme Education Council. In this petition, Terraform CEO Do Kwon argues that The Saudi Electricity Company was not respecting the procedural rules Enacted under the United States Constitution.

Thus, the case was seized New York District Court Judge Established. Command Terraform CEO Compliance to a subpoena of the Securities and Exchange Commission. Therefore, Do Kwon will have to report to the Securities and Exchange Commission about his Mirror protocol. This protocol is decentralized finance platform (DeFi) which allows Users to create and share Matching Assets (mAssets) that correspond to US stock prices.

However, the blockchain project Terra is a project to follow closely in 2022, in particular due to 160 projects which will be launched at the beginning of the year.

Have a nice week in the Journal du Quin!

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