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House of Representatives Passes Broad Crypto Bill FIT21 – DL News

BlockChainBulletin Staff

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House of Representatives Passes Broad Crypto Bill FIT21 – DL News
  • The crypto regulation bill passed in a bipartisan vote in the United States House of Representatives.
  • The FIT21 bill promises to give commodity regulators greater oversight over digital assets.
  • The bill may not make it to the next stage in the Senate.
  • President Joe Biden does not support the bill but has said he would not veto it.

The US House of Representatives has voted to pass a landmark crypto bill as digital assets become a political football just months before the presidential election.

The Republican Financial Innovation and Technology for the 21st Century Act, known as the FIT21 Act, passed with a bipartisan vote of 279 in favor and 136 against. Notably, 71 Democrats supported the bill, including former House Speaker Nancy Pelosi. Another 133 voted against.

Among Republicans, only three voted against. Another 208 people supported the bill.

FIT21 promises to establish clear rules for digital assets long sought by the crypto industry.

Hours before the vote, the Biden administration declared itself against the bill, but did not threaten to veto it — a relief for the industry.

The bill would end the crypto “food fight for control” between the Securities and Exchange Commission and the Commodity Futures Trading Commission, said Republican Rep. Patrick McHenry of North Carolina, co-sponsor of the bill. law and chairman of the House Financial. Services Committee.

“This is the most important moment in crypto policy and legislation in U.S. history thus far,” said Rashan Colbert, head of policy at the open source software developer and platform. decentralized trading dYdX Trading. DL News.

Upcoming Senate Challenge

The FIT21 bill will then have to be adopted by the Senate. The looming election means priorities could change.

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“There’s a good chance that progress will stop after this vote, but that doesn’t mean it’s a pointless exercise,” said Colbert, a former member of the U.S. Senate.

This progress is symbolically important, Colbert said, and shows political will to regulate the digital asset market. It also creates a reference point for bipartisan agreement on how to regulate crypto.

And even if the bill doesn’t pass in its current form, its provisions could end up in other laws.

What’s in the bill

The bill is tailored to digital assets and provides an unprecedented framework for the industry. It was removed from the House Financial Services and Agriculture committees with bipartisan support in July.

FIT21 establishes definitions for crypto assets and divides responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission.

The rules would give the CFTC, seen as more industry-friendly, more jurisdiction over the sector. The definitions determine whether an asset would be subject to SEC or CFTC oversight.

Decentralized finance does not fall within the scope of the bill.

The rules would provide “an increased level of comfort knowing that we have the explicit authority to continue doing what we’re doing, which is really all they want at the moment,” Colbert said.

The vote follows another political victory for crypto. Last week, the U.S. House and Senate voted to repeal the SEC’s controversial accounting guidelines, called SAB121.

At the same time, the industry expects regulators to approve Ethereum spot exchange-traded funds.

More negative reactions

The White House wrote in a brief Wednesday, the bill “in its current form does not have sufficient protections for consumers and investors who engage in certain digital asset transactions.”

But the White House notably said it would work to develop a regulatory framework for digital assets with Congress.

Democratic Rep. Maxine Waters of California called FIT21 “a wish list of big cryptocurrencies and does not deserve any of our support.”

The bill’s impact isn’t limited to crypto, Waters said Wednesday.

FIT21 would move crypto as well as some traditional securities from SEC oversight to a “regulatory no man’s land, without a primary regulator,” she said. She called it “the worst and most harmful proposal I’ve seen in a long time” and predicted a recession if it passed.

So does Massachusetts Democrat Stephen Lynch, who called it “a radical rewrite of this country’s securities laws.”

As crypto markets and traditional financial markets begin to merge, he predicted that volatility in the crypto market would lead to disaster in the traditional financial market.

“This will ultimately wreak havoc on our financial markets,” Lynch said.

While Wednesday’s comments also fell along party lines — with Republicans supporting the bill and Democrats urging their colleagues to vote “No” — several Democrats expressed support.

Rep. Wiley Nickel, a North Carolina Democrat, said the U.S. was “relying on a 90-year-old securities law that was written before the Internet was even invented.”

“We can’t wait for the next FTX to act,” he added.

SEC Chairman Gary Gensler, seen as an enemy of the industry, said the bill poses a risk to markets and investors.

FIT 21 “would undermine decades of precedent for oversight of investment contracts, exposing investors and capital markets to immeasurable risks,” Gensler said in a statement. statement Wednesday.

The SEC has charged key players in the industry, including ConsenSys, Coinbase, KrakenAnd Robinhood Marketplace crypto companies, with securities violations.

Industry experts say the SEC’s requirements are not enforceable or designed for issuers of digital assets.

“For too long, the U.S. digital asset ecosystem has been plagued by regulatory uncertainty that has stifled innovation and left consumers unprotected,” McHenry said in a statement. statement earlier this month.

Industry Support

“The lack of clear rules leads to market confusion for businesses and leaves users and consumers unprotected,” says the Blockchain Association. wrote in a letter to Senate lawmakers Monday.

“This lack of clarity hinders innovation and cripples businesses, hurting America’s position in the global technology race.”

Last week, dozens of crypto companies – including Coinbase, Andreessen Horowitz and Kraken – sign an industry letter organized by the Crypto Council for Innovation in support of FIT21.

“The United States lags behind other major jurisdictions in developing a regulatory framework for digital assets,” the letter said, adding that American innovators may migrate elsewhere.

“It is crucial that the United States maintains its leadership in financial innovation. »

McHenry echoed that sentiment Wednesday.

“We are lagging behind Europe,” he said. “This bill catches up [us] so that we do not lose out on innovation policy to the Europeans, the British, Singapore, Japan and Hong Kong.

Update, May 22: This story has been updated to include the partisan divide in Congress’s vote for FIT21.

Inbar Preiss is DL News’ regulation correspondent. Contact the author at inbar@dlnews.com. Aleks Gilbert is DL News‘ DeFi correspondent based in New York. You can reach him at aleks@dlnews.com.

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We are the editorial team of Blockchainbulletin, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on Blockchainbulletin, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Regulation

Crypto community gets involved in anti-government protests in Nigeria

BlockChainBulletin Staff

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Crypto Community Engages in Nigeria's Governance Protests

Amid the #EndBadGovernanceInNigeria protests in Nigeria, a notable shift is occurring within the country’s cryptocurrency sector. As the general public demands sweeping governance reforms, crypto community leaders are seizing the opportunity to advocate for specific regulatory changes.

Rume Ophi, former secretary of the Blockchain Stakeholders Association of Nigeria (SiBAN), stressed the critical need to integrate crypto-focused demands into the broader agenda of the protests.

Ophi explained the dual benefit of such requirements, noting that proper regulation can spur substantial economic growth by attracting investors and creating job opportunities. Ophi noted, “Including calls for favorable crypto regulations is not just about the crypto community; it’s about leveraging these technologies to foster broader economic prosperity.”

Existing government efforts

In opposition to Ophi’s call for action, Chimezie Chuta, chair of the National Blockchain Policy Steering Committee, presents a different view. He pointed out The Nigerian government continued efforts to nurture the blockchain and cryptocurrency industries.

According to Chuta, the creation of a steering committee was essential to effectively address the needs of the crypto community.

Chuta also highlighted the creation of a subcommittee to harmonize regulations for virtual asset service providers (VASPs). With the aim of streamlining operations and providing clear regulatory direction, the initiative involves cooperation with major organizations including the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN). “Our efforts should mitigate the need for protest as substantial progress is being made to address the needs of the crypto industry,” Chuta said.

A united call for support

The ongoing dialogue between the crypto community and government agencies reflects a complex landscape of negotiations and demands for progress.

While actors like Ophi are calling for more direct action and the inclusion of crypto demands in protest agendas, government figures like Chuta are advocating for recognition of the steps already taken.

As protests continue, the crypto community’s push for regulatory reform highlights a crucial aspect of Nigeria’s broader fight to improve governance and economic policies. Both sides agree that favorable regulations are critical to the successful adoption and implementation of blockchain technologies, signaling a potentially transformative era for Nigeria’s economic framework.

Read also : OKX Exchange Exits Nigerian Market Amid Regulatory Crackdown

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Cryptocurrency Regulations in Slovenia 2024

BlockChainBulletin Staff

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Cryptocurrency Regulations in Slovenia 2024

Slovenia, a small but highly developed European country with a population of 2.1 million, boasts a rich industrial history that has contributed greatly to its strong economy. As the most economically developed Slavic nation, Slovenia has grown steadily since adopting the euro in 2007. Its openness to innovation has been a key factor in its success in the industrial sector, making it a prime destination for cryptocurrency enthusiasts. Many believe that Slovenia is poised to become a powerful fintech hub in Europe. But does its current regulatory framework for cryptocurrencies support such aspirations?

Let’s explore Slovenia’s cryptocurrency regulations and see if they can propel the country to the forefront of the cryptocurrency landscape. My expectations are positive. What are yours? Before we answer, let’s dig a little deeper.

1. Cryptocurrency regulation in Slovenia: an overview

Slovenia is renowned for its innovation-friendly stance, providing a supportive environment for emerging technologies such as blockchain and cryptocurrencies. Under the Payment Services and Systems Act, cryptocurrencies are classified as virtual assets rather than financial or monetary instruments.

The regulation of the cryptocurrency sector in Slovenia is decentralized. Different authorities manage different aspects of the ecosystem. For example, the Bank of Slovenia and the Securities Market Agency oversee cryptocurrency transactions to ensure compliance with financial laws, including anti-money laundering (AML) and terrorist financing regulations. The Slovenian Act on the Prevention of Money Laundering and Terrorist Financing (ZPPDFT-2) incorporates the EU’s 5th Anti-Money Laundering Directive (5MLD) and aligns with the latest FATF recommendations. All virtual currency service providers must register with the Office of the Republic of Slovenia.

2. Cryptocurrency regulation in Slovenia: what’s new?

Several notable developments have taken place this year in the cryptocurrency sector in Slovenia:

July 25, 2024:Slovenia has issued a €30 million on-chain digital sovereign bond, the first of its kind in the EU, with a yield of 3.65%, maturing on 25 November 2024.

May 14, 2024:NiceHash has announced the first Slovenian Bitcoin-focused conference, NiceHashX, scheduled for November 8-9 in Maribor.

3. Explanation of the tax framework for cryptocurrencies in Slovenia

The Slovenian cryptocurrency tax framework provides clear guidelines for individuals and businesses. According to the Slovenian Financial Administration, the tax treatment depends on the status of the trader and the nature of the transaction.

  • People:Income earned from cryptocurrencies through employment or ongoing business activities is subject to personal income tax. However, capital gains from transactions or market fluctuations are exempt from tax.
  • Companies:Capital gains from cryptocurrency-related activities are subject to a 19% corporate tax. Value-added tax (VAT) generally applies at a rate of 22%, although cryptocurrency transactions that are considered as means of payment are exempt from VAT. Companies are not allowed to limit payment methods to cryptocurrencies alone. Tokens issued during ICOs must follow standard accounting rules and corporate tax law.

4. Cryptocurrency Mining in Slovenia: What You Need to Know

Cryptocurrency mining is not restricted in Slovenia, but income from mining is considered business income and is therefore taxable. This includes rewards from validating transactions and any additional income from mining operations. Both individuals and legal entities must comply with Slovenian tax regulations.

5. Timeline of the development of cryptocurrency regulation in Slovenia

Here is a timeline highlighting the evolution of cryptocurrency regulations in Slovenia:

  • 2013:The Slovenian Financial Administration has issued guidelines stating that income from cryptocurrency transactions should be taxed.
  • 2017:The Slovenian Financial Administration has provided more detailed guidelines on cryptocurrency taxation, depending on factors such as the status of the trader and the type of transaction.
  • 2023:The EU adopted the Markets in Crypto-Assets (MiCA) Regulation, establishing a uniform regulatory framework for crypto-assets, their issuers and service providers across the EU.

Endnote

Slovenia’s approach to the cryptocurrency sector is commendable, reflecting its optimistic view of the future of cryptocurrencies. The country’s balanced regulatory framework supports cryptocurrency innovation while protecting users’ rights and preventing illegal activities. Recent developments demonstrate Slovenia’s commitment to continually improving its regulatory environment. Slovenia’s cryptocurrency regulatory framework sets a positive example for other nations navigating the evolving cryptocurrency landscape.

Read also : Hong Kong Cryptocurrency Regulations 2024

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A Blank Sheet for Cryptocurrencies: Kamala Harris’ Regulatory Opportunity

BlockChainBulletin Staff

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A Blank Sheet for Cryptocurrencies: Kamala Harris' Regulatory Opportunity

photo by Shubham Dhage on Unsplash

As the cryptocurrency landscape continues to evolve, the need for clear regulation has never been more pressing.

With Vice President Kamala Harris now leading the charge on digital asset regulation in the United States, this represents a unique opportunity to start fresh. This fresh start can foster innovation and protect consumers. It can also pave the way for widespread adoption across industries, including real estate agencies, healthcare providers, and online gaming platforms like these. online casinos ukAccording to experts at SafestCasinoSites, these platforms come with benefits such as bonus offers, a wide selection of games, and various payment methods. Ultimately, all this increase in adoption could propel the cryptocurrency market forward.

With this in mind, let’s look at the current state of cryptocurrency regulation in the United States, a complex and confusing landscape. Multiple agencies, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Financial Crimes Enforcement Network (FinCEN), have overlapping jurisdictions, creating a fragmented regulatory environment. This lack of clarity has stifled innovation as companies are reluctant to invest in the United States, fearing regulatory repercussions. A coherent and clear regulatory framework is urgently needed to realize the full potential of cryptocurrencies in the United States.

While the US struggles to find its footing, other countries, such as Singapore and the UK, are actively looking into the cryptocurrency sector by adopting clear and supportive regulatory frameworks. This has led to a brain drain, with companies choosing to locate in more conducive environments.

Vice President Kamala Harris has a unique opportunity to change that narrative and start over. Regulation of cryptocurrencies. By taking a comprehensive and inclusive approach, it can help create a framework that balances consumer protection with innovation and growth. The time has come for clear and effective regulation of cryptocurrencies in the United States.

Effective regulation of digital assets is essential to foster a safe and innovative environment. The key principles guiding this regulation are clarity, innovation, global cooperation, consumer protection, and flexibility. Clear definitions and guidelines eliminate ambiguity while encouraging experimentation and development to ensure progress. Collaboration with international partners establishes consistent standards, preventing regulatory arbitrage. Strong safeguards protect consumers from fraud and market abuse, and adaptability allows for evolution in response to emerging trends and technologies, striking a balance between innovation and protection.

The benefits of effective cryptocurrency regulation are multiple and far-reaching. By establishing clear guidelines, governments can attract investors and mainstream users, driving growth and adoption. This can, in turn, position countries like the United States as global leaders in fintech and innovation. Strong safeguards will also increase consumer confidence in digital assets and related products, increasing economic activity.

A thriving crypto industry can contribute significantly to GDP and job creation, which has a positive impact on the overall economy. Furthermore, effective regulation has paved the way for the growth of many businesses such as tech startups, online casinos, and pharmaceutical companies, demonstrating that clear guidelines can open up new opportunities without stifling innovation. This is a great example of how regulation can allay fears of regressive policies, even if Kamala Harris does not repeal the current progressive approach. By adopting effective regulation, governments can create fertile ground for the crypto industry to thrive, thereby promoting progress and prosperity.

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South Korea Imposes New ‘Monitoring’ Fees on Cryptocurrency Exchanges

BlockChainBulletin Staff

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South Korea Imposes New 'Monitoring' Fees on Cryptocurrency Exchanges

Big news! The latest regulatory changes in South Korea are expected to impact major cryptocurrency exchanges like Upbit and Bithumb. Under the updated regulations, these platforms will now have to pay monitoring fees, which could cause problems for some exchanges.

Overview of new fees

In the latest move to regulate cryptocurrencies, the Financial Services Commission announced on July 1 the revised “Enforcement Order of the Act on the Establishment of the Financial Services Commission, etc.” update “Regulations on the collection of contributions from financial institutions, etc.” According to local legislation newsThe regulations require virtual asset operators to pay supervisory fees for inspections conducted by the Financial Supervisory Service starting next year. The total fees for the four major exchanges are estimated at around 300 million won, or about $220,000.

Apportionment of costs

Upbit, which holds a dominant market share, is expected to bear more than 90% of the total fee, or about 272 million won ($199,592) based on its operating revenue. Bithumb will pay about 21.14 million won ($155,157), while Coinone and GOPAX will contribute about 6.03 million won ($4,422) and 830,000 won ($608), respectively. Korbit is excluded from this fee due to its lower operating revenue.

Impact on the industry

The supervision fee will function similarly to a quasi-tax for financial institutions subject to inspections by the Financial Supervisory Service. The new law requires any company with a turnover of 3 billion won or more to pay the fee.

In the past, fees for electronic financial companies and P2P investment firms were phased in over three years. However, the taxation of virtual asset operators has been accelerated, reflecting the rapid growth of the cryptocurrency market and increasing regulatory scrutiny.

Industry reactions

The rapid introduction of the fee was unexpected by some industry players, who had expected a delay. Financial Supervisory Service officials justified the decision by citing the creation of the body concerned and the costs already incurred.

While larger exchanges like Upbit and Bithumb can afford the cost, smaller exchanges like Coinone and GOPAX, which are currently operating at a loss, could face an additional financial burden. This is part of a broader trend of declining trading volumes for South Korean exchanges, which have seen a 30% drop since the new law went into effect.

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