Latest in Legislation 01

India's Reserve Bank takes a measured approach towards the implementation of a CBDC, while US senators introduce bill to challenge holes in SEC regulations.
  • Bitcoin Mercantile Exchange CEO sentenced for Bank Secrecy Act violation
  • Florida Rep. Donalds introduced Financial Freedom Act (FFA) last Monday
  • US senators Lisa Murkowski and Kirsten Gillibrand set to propose crypto oversight bill next month
  • Tax guidelines for crypto mining pass the first reading in Kazakhstan
  • Turkey’s parliament will require crypto exchanges to have offices in the country
  • India’s Central Bank plans 'graded approach' to digital currency

The Scoop:

Arthur Hayes, CEO of Bitcoin Mercantile Exchange (BitMEX) - an online cryptocurrency derivatives exchange - was sentenced on May 20th to six months of home detention and two years of probation for violating the Bank Secrecy Act. Hayes also agreed to pay a $10 million fine according to the US Department of Justice.

Florida Rep. Donalds introduced legislation last Monday called the "Financial Freedom Act (FFA)" as a response to Department of Labor's (DOL) compliance report raising objections to the inclusion of cryptocurrencies in 401(k) retirement plans. The DOL's concern is that cryptocurrencies are a very volatile investment and therefore should be excluded from the safe harbor protection of ERISA Section 408(b)(2), which exempts certain investments from ERISA regulation. According to Donalds - regardless of whether or not you believe in the long-term economic prospects of cryptocurrency - the choice of where you invest your retirement savings should be yours, not the government's.

US senators Lisa Murkowski and Kirsten Gillibrand have announced that they're set to introduce a bill that lays out clearer regulations for cryptocurrencies next month. The bill will challenge the Securities and Exchange Commission (SEC) to regulate these currencies and "anticipate and address risks in the market." The bill also asks Congress to set up a federal watchdog agency to oversee cryptocurrency companies and their managers, and encourages the Secretary of the Treasury to set up a committee that "will identify regulatory gaps and propose legislation to fill those gaps." The senators' announcement comes just days after reports from the New York State Department of Financial Services (NYDFS) indicated that it had found several holes in existing regulations that "may expose consumers and the financial industry to heightened risk."

On Thursday, May 25th - the lower chamber of Kazakh parliament, Mejlis - passed the first reading of the amendments to the national tax code, which would regulate the fiscal burden of crypto mining. The new rules will exempt mining activities from taxes and social contributions for the next five years. Kazakhstan’s deputy prime minister Kairat Kelimbetov noted that amendments to the tax code will stimulate the development of the crypto mining industry in Kazakhstan and attract foreign investors to the country.

The Turkish governing party is reportedly close to presenting draft legislation to regulate the cryptocurrency market in Turkey. This draft law is expected to be completed within the following months. The bill establishes clear classifications for tokens and cryptocurrencies, and also specifies rules for taxation and the prevention of money laundering and terrorist financing.  The new rules would require companies operating payment systems and cryptocurrency platforms to obtain licenses in Turkey and open local offices - so they can be taxed.

The Reserve Bank of India (RBI) said in its annual report that is planning “a graded approach” to the introduction of Central Bank Digital Currency (CBDC). This will “allow experimentation and innovation” in the financial sector without disrupting it too much, according to a government statement released on Friday. RBI governor Shaktikanta Das said that the central bank is on track to issue a fiat cryptocurrency - also known as a CBDC - with fiat being the legal tender of the country and cryptocurrency being the mode of exchange or transfer. "But, it will not be legal tender at the same time," Das added.

Reserve Bank of India to launch digital currency
India soon to launch its own digital currency.

New crypto adoption:

Decrypting Legalese:

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A legal tender is anything recognized by law as a means to settle a public or private debt or meet a financial obligation, including tax payments, contracts, and legal fines or damages. The national currency is legal tender in practically every country. A creditor is legally obligated to accept legal tender toward the repayment of a debt.

DISCLOSURE:

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. Charts, graphs and references to any digital assets are for informational and illustrative purposes only.

Finblox Blog is associated with Finblox - a reliable cryptocurrency earnings platform where you can buy and earn passive income on your digital assets.

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