Russia’s crypto legislation is taking a sharp U-Turn as the local experts do not rule out that it could effectively stop the people in the country from legally trading in Bitcoin, Ethereum and other major altcoins on domestic exchanges. Let’s find out more about the latest cryptocurrency news below.
The head of Fintech O2 Consulting, Daria Nosova explained:
“Until the full text of the amended bill is published, it is impossible to say anything for certain, especially as its terms have been changed more than once.’’
According to the Tass report, the experts understand that Russia’s crypto legislation will in fact ‘remove most common cryptocurrencies such as Ethereum and Bitcoin from the legal sphere, a factor that will force the market participants to operate outside the law.’’
A crypto trader from Moscow explained his view on the crypto regulation and told Cryptonews.com:
“All this political horse-trading over cryptocurrencies is getting pretty tiresome for everyone involved. Can politicians really not put this issue to bed once and for all?”
Nosova was quoted by Tass stating that this move could potentially lead to a de-facto ban on legal trading of Ethereum, Bitcoin and other altcoins in the country although the government would likely not move to actually block the citizens from trading cryptocurrencies. Nosova also stated that it was clear that no compromise has been reached on this crypto bill. The politicians are trying to draw a regulatory bill but have ended up with their heads against the wall with the Central Bank of Russia prohibiting them to move forward as it is strongly opposed to all things crypto-related.
Another popular company Finam, truly believes that while Bitcoin trading will not be criminalized with the latest crypto regulations, ‘’it will serve to further marginalize it, with traders left to negotiate the market at their own risk.’’ However, Nosova believes that there could be a silver lining at the end of the story. Trading could get a green light in certain exceptional cases such as in the case of Government-approved cryptocurrencies that the regulators rule to qualify as derivatives as we learned previously.
Ethereum Co-Founder: “We May Interoperate With China’s CBDC”
“I assume it is going to be exactly what Chinese leadership thinks is most beneficial to Chinese leadership. Hopefully that’s also open and we can interoperate with it, but I don’t know," the Ethereum co-founder explained in one of this most important thoughts.Furthermore, Lubin added that he would like to see increased participation from China in the Ethereum ecosystem. He also cited the case of the Belt and Road blockchain-based commerce platforms and noted that it uses one of the "weaker technologies" compared to the public blockchains such as Ethereum.
“I would love to help China get expert in Ethereum technology. [...] The main idea is that Ethereum is the strongest of the blockchain technologies and it’s a very positive virus to implant in people’s minds,” Lubin noted.The Ethereum co-founder who designed the network along with Vitalik Buterin also said that he expects China to continue undermining the US dollar and its status as the world reserve currency. However, he also noted that he believes that the China CBDC national currency will only have a minor impact in this regards.
“There are lots of reasons why American influence is shrinking and will probably continue to shrink. That may not be a bad thing but in some ways, it’ll be a bad thing. China’s particular cryptocurrency I don’t think is a major factor,” the Ethereum co-founder concluded.As a last resort, Lubin also address the willingness of China to obstruct access to digital currencies all because they will compete with its own. He explained that the government and its ability to impede access to ETH in China depends on progress in the deep packet inspection and how motivated the nation will be to this end.When asked about the China CBDC and whether he truly believes in its implementation, Lubin added:
“China is a business that writes its own rules and has an enormous customer base — 1.4 billion people. That’s a tough economic force to compete with. I do think there’s an instability. I think leaders are constantly terrified of revolution, so they have to keep the people relatively happy at some baseline level.”
Queen Of UK Rules Out Crypto As Currency: Official
“HMRC expects individuals to buy and sell cryptoassests with such frequency, level of organization and sophistication that the activity amounts to a financial trade in itself,” the statement continues.The policy paper also states that the employee salary and mining activity are subject to income tax. Speaking of, the mining activity by individuals can also be classified as a business activity - and the HMRC will review several factors to decide on the classification (degree of activity, risk, organization and commerciality).Supervised by the Queen of UK, UK based crypto companies are now subject to corporation tax on their profits and gains. However, if individuals pay income tax on crypto activities, they can also offset their losses from the trades against future profits or other income, the new legislature shows.
Crypto Exchange Financial Regulations Are Coming In Hong Kong
‘’The framework will enable virtual asset trading platforms to be regulated by the SFC, a major development which builds on a way forward I outlined at the same time last year.’’Last year, the crypto exchange financial regulations were not even a discussion despite the exchanges being in increased regulatory surveillance. At that time, the SFC revealed that it was developing a new approach to overlook the activities of the local crypto exchange platforms. According to Adler, the new regulatory framework will mostly focus on Know Your customer and custody requirements for the exchanges. This could pave the way for the emergence of formally legalized crypto exchanges in the city.Tweeting back on Wednesday, the Primitive Ventures co-founder and crypto insider Dovey Wan, remarked that the upcoming regulatory wave could see the likes of Huobi becoming the first legalized Chinese crypto exchange. With the emergence of regularized exchanges, the laws will also improve the stance that Hong Kong has on regulating rather than banning crypto trading. As previously reported, the former head of the SFC Carlson Tong Ka-Shing, stated that a ban on crypto trading would not work.Similarly to the ICOs, crypto trading is banned in mainland China and many of the crypto exchanges are forced to move outside of the country. Regulated crypto trading in Hong Kong will represent the departure from the policies operating in the country. While Hong Kong seems to be moving forward with the exchange laws, virtual currency regulations are not having its desired effect. Back in 2018, the SFC introduced a licensing scheme for the crypto fund managers but still, the report show that they are struggling to satisfy the requirements so they can freely invest in cryptocurrencies.
Hong Kong Regulator To Release New Crypto Exchange Rules
“The framework will enable virtual asset trading platforms to be regulated by the SFC, a major development which builds on a way forward I outlined at the same time last year,” said Alder.The Hong Kong regulator first established these guidelines for crypto funds and exchanges in November 2018. A year later (now), the regulator is taking the work forward, according to Alder.Commenting on the news, the private investor and analyst Dovey Wan says that this is quite a big deal for the entire crypto industry. She also pointed out that Huobi (in particular) may already be on its way to becoming the first licensed exchange in the country.“WOW this is BIG,” wrote Wan. “Hongkong SEC will announce detail in about an hour regarding cryptocurrency exchange application criteria.” She added:
“Considering Huobi has already backdoor listed on HKex, this will def play them a huge favor to be the first legalized Chinese crypto exchange.”Earlier this year in March, the Hong Kong regulator SFC also released its regulatory guidelines for Security Token Offerings. The agency then outlined that security tokens are "likely to be securities" under Hong Kong's Securities and Futures Ordinance. This is why they fall under the existing securities laws.Yesterday, the cryptocurrency news showed an increase in the BTC price and a momentum that leads the dominant cryptocurrency towards the $9,400 region. If this buildup continues, we might see BTC in the $10,000 (five digit) zone again very soon.On the other hand, the news from the Hong Kong regulator show that the country, just like its neighbour China, is growing its interest towards crypto.
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