- Apr 22, 2022
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For the crypto industry, 2021 is a year of rapid development and that new rising thing iterate quickly; the Meme, NFT, GameFi, meta-universe, and DAO have just stopped in one wave, and the new wave such as ETH2, algorithmic stable coins, BSC, Axie, Layer2, Web3, has followed on; the high return on investment has given the crypto investment and financing life, and also brought about a more explicit regulation; the innovation in the crypto world has attracted great attention and enthusiasm from the capital world, and the digital currency has become an hot topic of economic development and strongly penetrated to the popular brands.
With the new market value, new areas, new policy trends and new groups entering the market, crypto assets are resonating with people like never before, and the AEX Academy will provide you with a better understanding of current crypto regulatory trends, market conditions and annual investment events in this article, followed by more professional industry analysis and interpretation in crypto segments.
1. Regulatory Trends
In general, developing countries are trying to "shield" cryptocurrencies, while developed economies are strengthening their regulation of cryptocurrencies.
Global Cryptocurrency Regulation Tightens: 51 Countries and Regions Have Implemented Bans
With the expansion and compliance of the crypto market. As of December 2021, there are 9 jurisdictions with absolute bans and 42 jurisdictions with implicit bans internationally, for a combined total of 51.
Countries and territories with absolute bans include: Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia.
The countries and regions that published the implicit ban include: Kazakhstan, Tanzania, Cameroon, Turkey, Lebanon, Central African Republic, Democratic Republic of Congo, Indonesia, Bolivia and Nigeria. The so-called implicit ban refers to prohibiting financial institutions such as banks from trading cryptocurrencies or providing services to individuals or enterprises engaged in cryptocurrency business, and prohibiting cryptocurrency exchanges from operating in the jurisdiction.
Cryptocurrency Taxation, A Global Issue, Clear Implementation in South Korea
The number of jurisdictions implementing taxation of cryptocurrencies, anti-money laundering and anti-terrorist financing regulations (AML/CFT laws) has also risen sharply in the world, from 33 jurisdictions in 2018 to 103 in November 2021; and most of them, including EU member states except Bulgaria, as well as the US, Canada, Russia and other countries have have all of the aforementioned regulations in place at the same time.
South Korea proposes that the cryptocurrency trading profit exceeds 7.5 million won, and the crypto asset trading profit shall be taxed at 20%. In September of this year, the relevant financial departments strengthened the supervision of cryptocurrency exchanges. All South Korean cryptocurrency exchanges must register with the financial sector before a specific time, provide an Internet security agency’s compliance certificate, and cooperate with banks to ensure the real name of the account. Unregistered exchanges will close their services after September 24 . This measure led to the closure of hundreds of South Korean cryptocurrency exchanges. However, as the first country to legalize cryptocurrency, the South Korean authorities stated that the original policy was to maintain the healthy and orderly development of the crypto market.
The US Congress proposed the "Infrastructure Investment and Employment Act", which clearly requires "brokers" to report transaction information of more than US$10,000 to the US Internal Revenue Service. There are views that the bill’s definition of “brokers” is “too broad and vague” and may impose these requirements on miners and wallet developers, not just cryptocurrency exchanges such as Coinbase. Some crypto-friendly senators tried to fix the problem and proposed new amendments, but they were eventually rejected. Currently, the bill has been signed by Biden and will be formally implemented in 2022.
The Her Majesty’s Revenue and Customs (HMRC) issued a cryptocurrency taxation guide on March 30, involving companies or companies that buy and sell exchange tokens, exchange tokens, mining, provide goods or services in exchange for transaction tokens All are responsible for paying taxes, which may include one or more of capital gains tax, corporate tax, company income tax receivable, income tax, national insurance premiums, stamp duty, and value-added tax. In addition, these enterprises or companies must report to HMRC through self-assessment tax returns or corporate tax returns every year.
On March 25, the Canada Revenue Agency (CRA) won the lawsuit against the cryptocurrency exchange - Coinsquare. According to a federal judge's order on March 19, Coinsquare must hand over detailed information about its Canadian customers, crypto trading activities, and identifying information to the Canada Revenue Agency. Coinsquare said it will disclose information about 5% to 10% of its 400,000 customers to the Agency. In the Court documents,only high-asset accounts will be required to be transferred. It is reported that CRA believes that data is needed to check whether taxpayers are fulfilling their encrypted tax obligation.
The South African Revenue Service (SARS) included some clear questions about cryptocurrency transactions in its new audit requirements in early February. Taxpayers need to clearly disclose their purpose of purchasing digital assets and related transaction time. SARS emphasized that it is a crime not to report bitcoin transactions or lying, and that people who do not comply with the regulations may be sentenced to up to two years in jail.
According to the official statement of the Russian State Duma, the Duma State Construction and Legislative Committee approved a bill on cryptocurrency taxation on February 15. As part of the draft bill, the Russian government officially recognized Bitcoin and other cryptocurrencies as private property, aiming to tax crypto transactions.
CBDC Moving Fast, El Salvador Treats Bitcoin as Fiat Currency
CBDCs are digital currencies that are backed and issued by central banks. As cryptocurrencies become more popular, central banks around the world are spoiling for issuing CBDCs.
Currently, more than 90% of the world's economies are exploring central bank digital currencies. Of the world's four largest central banks (the Federal Reserve, European Central Bank, Bank of Japan and Bank of England), the Federal Reserve is the only one that has not committed to a digital currency testing program. Fourteen countries, including China and South Korea, are currently in the pilot phase of CBDCs and are preparing for a possible full launch.
Analysis of the Central Bank Digital Currency (CBDC) tracker, launched by the Atlantic Council's Center for Geoeconomics, shows that as of mid-December, 87 countries around the world (more than 90 percent of global GDP) were exploring CBDC, up from 35 in May 2020.
In 2021, China's digital RMB opened a wide range of pilots in Shenzhen, Suzhou, Chengdu and Shanghai, and has opened 140 million personal wallets and 10 million public wallets for digital RMB.
On March 31, 2021, the Eastern Caribbean Central Bank (ECCB) launched its central bank digital currency - DCash, thereby becoming the first monetary union central bank to issue a CBDC. and implemented Digital cash systems in the Caribbean, including the Bahamas, St. Kitts and Nevis, Antigua and Barbuda, St. Lucia and Grenada.
Nigeria launched e-Naira on October 25, 2021, becoming the first country outside the Caribbean to issue CBDCs and the first African country to officially launch a digital currency. Nigeria's inflation over the years has led to the devaluation of its currency, forcing its citizens to use alternatives to cryptocurrencies such as Bitcoin.
Saldova bitcoin bill went into effect (Sept. 7), making it the first country to declare bitcoin a legal tender. President Nayib Bukele said the volcano's energy could be harnessed to power BTC mining in the country, airdropping $30 in BTC to every adult in the country, and in late November announced the launch of Bitcoin City, a fully functional city built around bitcoin and initially funded by a $1 billion bitcoin bond.
2. Digital Currency Trends
Cryptocurrency Market Value Hits Record High, Bitcoin's Share Drops Sharply
On Dec. 28, the total market value of cryptocurrency stood at $2,341.4 billion, up 1200.4% from $779.5 billion at the beginning of the year. On November 10, BTC reached an all-time peak of $68,366 per coin and the crypto market value exceeded $3,000 billion for the first time.
With the rise of a large number of nascent public chain ecosystems, Bitcoin's market value share dropped to 39.1% from 70% at the beginning of the year. After July 2018, Bitcoin fell below 50% for the first time, which prompted public chains such as SOL, DOT, ANAX and BNB (BSC) to enter the top 10 of the market cap chart.
But as a direct competitor to the public chain, Ether's market cap share has risen sharply this year, from 11% at the beginning of the year to 19.61% currently (Dec. 28).
check more：https://hackernoon.com/preview/dVNol1ZTNaMFKdM4Wyjz
With the new market value, new areas, new policy trends and new groups entering the market, crypto assets are resonating with people like never before, and the AEX Academy will provide you with a better understanding of current crypto regulatory trends, market conditions and annual investment events in this article, followed by more professional industry analysis and interpretation in crypto segments.
1. Regulatory Trends
In general, developing countries are trying to "shield" cryptocurrencies, while developed economies are strengthening their regulation of cryptocurrencies.
Global Cryptocurrency Regulation Tightens: 51 Countries and Regions Have Implemented Bans
With the expansion and compliance of the crypto market. As of December 2021, there are 9 jurisdictions with absolute bans and 42 jurisdictions with implicit bans internationally, for a combined total of 51.
Countries and territories with absolute bans include: Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia.
The countries and regions that published the implicit ban include: Kazakhstan, Tanzania, Cameroon, Turkey, Lebanon, Central African Republic, Democratic Republic of Congo, Indonesia, Bolivia and Nigeria. The so-called implicit ban refers to prohibiting financial institutions such as banks from trading cryptocurrencies or providing services to individuals or enterprises engaged in cryptocurrency business, and prohibiting cryptocurrency exchanges from operating in the jurisdiction.
Cryptocurrency Taxation, A Global Issue, Clear Implementation in South Korea
The number of jurisdictions implementing taxation of cryptocurrencies, anti-money laundering and anti-terrorist financing regulations (AML/CFT laws) has also risen sharply in the world, from 33 jurisdictions in 2018 to 103 in November 2021; and most of them, including EU member states except Bulgaria, as well as the US, Canada, Russia and other countries have have all of the aforementioned regulations in place at the same time.
South Korea proposes that the cryptocurrency trading profit exceeds 7.5 million won, and the crypto asset trading profit shall be taxed at 20%. In September of this year, the relevant financial departments strengthened the supervision of cryptocurrency exchanges. All South Korean cryptocurrency exchanges must register with the financial sector before a specific time, provide an Internet security agency’s compliance certificate, and cooperate with banks to ensure the real name of the account. Unregistered exchanges will close their services after September 24 . This measure led to the closure of hundreds of South Korean cryptocurrency exchanges. However, as the first country to legalize cryptocurrency, the South Korean authorities stated that the original policy was to maintain the healthy and orderly development of the crypto market.
The US Congress proposed the "Infrastructure Investment and Employment Act", which clearly requires "brokers" to report transaction information of more than US$10,000 to the US Internal Revenue Service. There are views that the bill’s definition of “brokers” is “too broad and vague” and may impose these requirements on miners and wallet developers, not just cryptocurrency exchanges such as Coinbase. Some crypto-friendly senators tried to fix the problem and proposed new amendments, but they were eventually rejected. Currently, the bill has been signed by Biden and will be formally implemented in 2022.
The Her Majesty’s Revenue and Customs (HMRC) issued a cryptocurrency taxation guide on March 30, involving companies or companies that buy and sell exchange tokens, exchange tokens, mining, provide goods or services in exchange for transaction tokens All are responsible for paying taxes, which may include one or more of capital gains tax, corporate tax, company income tax receivable, income tax, national insurance premiums, stamp duty, and value-added tax. In addition, these enterprises or companies must report to HMRC through self-assessment tax returns or corporate tax returns every year.
On March 25, the Canada Revenue Agency (CRA) won the lawsuit against the cryptocurrency exchange - Coinsquare. According to a federal judge's order on March 19, Coinsquare must hand over detailed information about its Canadian customers, crypto trading activities, and identifying information to the Canada Revenue Agency. Coinsquare said it will disclose information about 5% to 10% of its 400,000 customers to the Agency. In the Court documents,only high-asset accounts will be required to be transferred. It is reported that CRA believes that data is needed to check whether taxpayers are fulfilling their encrypted tax obligation.
The South African Revenue Service (SARS) included some clear questions about cryptocurrency transactions in its new audit requirements in early February. Taxpayers need to clearly disclose their purpose of purchasing digital assets and related transaction time. SARS emphasized that it is a crime not to report bitcoin transactions or lying, and that people who do not comply with the regulations may be sentenced to up to two years in jail.
According to the official statement of the Russian State Duma, the Duma State Construction and Legislative Committee approved a bill on cryptocurrency taxation on February 15. As part of the draft bill, the Russian government officially recognized Bitcoin and other cryptocurrencies as private property, aiming to tax crypto transactions.
CBDC Moving Fast, El Salvador Treats Bitcoin as Fiat Currency
CBDCs are digital currencies that are backed and issued by central banks. As cryptocurrencies become more popular, central banks around the world are spoiling for issuing CBDCs.
Currently, more than 90% of the world's economies are exploring central bank digital currencies. Of the world's four largest central banks (the Federal Reserve, European Central Bank, Bank of Japan and Bank of England), the Federal Reserve is the only one that has not committed to a digital currency testing program. Fourteen countries, including China and South Korea, are currently in the pilot phase of CBDCs and are preparing for a possible full launch.
Analysis of the Central Bank Digital Currency (CBDC) tracker, launched by the Atlantic Council's Center for Geoeconomics, shows that as of mid-December, 87 countries around the world (more than 90 percent of global GDP) were exploring CBDC, up from 35 in May 2020.
In 2021, China's digital RMB opened a wide range of pilots in Shenzhen, Suzhou, Chengdu and Shanghai, and has opened 140 million personal wallets and 10 million public wallets for digital RMB.
On March 31, 2021, the Eastern Caribbean Central Bank (ECCB) launched its central bank digital currency - DCash, thereby becoming the first monetary union central bank to issue a CBDC. and implemented Digital cash systems in the Caribbean, including the Bahamas, St. Kitts and Nevis, Antigua and Barbuda, St. Lucia and Grenada.
Nigeria launched e-Naira on October 25, 2021, becoming the first country outside the Caribbean to issue CBDCs and the first African country to officially launch a digital currency. Nigeria's inflation over the years has led to the devaluation of its currency, forcing its citizens to use alternatives to cryptocurrencies such as Bitcoin.
Saldova bitcoin bill went into effect (Sept. 7), making it the first country to declare bitcoin a legal tender. President Nayib Bukele said the volcano's energy could be harnessed to power BTC mining in the country, airdropping $30 in BTC to every adult in the country, and in late November announced the launch of Bitcoin City, a fully functional city built around bitcoin and initially funded by a $1 billion bitcoin bond.
Post automatically merged:
2. Digital Currency Trends
Cryptocurrency Market Value Hits Record High, Bitcoin's Share Drops Sharply
On Dec. 28, the total market value of cryptocurrency stood at $2,341.4 billion, up 1200.4% from $779.5 billion at the beginning of the year. On November 10, BTC reached an all-time peak of $68,366 per coin and the crypto market value exceeded $3,000 billion for the first time.
Post automatically merged:
With the rise of a large number of nascent public chain ecosystems, Bitcoin's market value share dropped to 39.1% from 70% at the beginning of the year. After July 2018, Bitcoin fell below 50% for the first time, which prompted public chains such as SOL, DOT, ANAX and BNB (BSC) to enter the top 10 of the market cap chart.
But as a direct competitor to the public chain, Ether's market cap share has risen sharply this year, from 11% at the beginning of the year to 19.61% currently (Dec. 28).
Post automatically merged:
check more：https://hackernoon.com/preview/dVNol1ZTNaMFKdM4Wyjz
