Advances in Federal Bitcoin Regulations?

Christian Lindner gives impetus for Bitcoin regulation

Over the past few weeks, debates over the EU-wide rules have been in the news. But Bitcoin regulation is also advancing at the federal level, as Finance Minister Christian Lindner (FDP) recently invited industry representatives to the Digital Finance Forum. Politicians and the crypto industry exchanged information on needs and a general regulatory roadmap for cryptocurrencies in Germany, and working groups were formed. Other regular meetings are planned. Forum participants told BTC-ECHO that Lindner allegedly sent crypto-enabled signals. “I have the feeling that things are moving more,” said Professor Dr. Philippe Sandner of the Frankfurt School of Finance and Management. According to Ulli Spankowski of Stuttgart Stock Exchange Lindner wants to make the industry bigger. The objective is to strengthen pan-European competitiveness vis-à-vis Asia and the United States. In the meantime, no agreement could be reached on concrete measures.

The SEC wants more control over the Bitcoin market

Meanwhile, on the other side of the Atlantic, a familiar debate was gaining momentum. Because Gary Gensler, head of the United States Securities and Exchange Commission and well-known crypto bogeyman, reiterated his assessment on April 4 that cryptocurrencies should be classified as securities. In his speech at the Penn Law Capital Markets Association Annual Conference Therefore, Gensler reiterated that Bitcoin exchanges and crypto companies fall under the regulatory purview of his agency. Crypto investors should therefore be able to benefit from the same protection as everyone else. The SEC already issued a new guideline on March 31. US-listed companies that hold crypto assets for their clients must disclose those holdings and provide risk information. Gensler continued to negatively emphasize stablecoins in his speech. They would bypass the traditional banking system and are therefore a vehicle for money laundering and tax evasion.

UK wants to recognize stablecoins

A regulatory proposal from Britain shows that Gensler’s assessment of stablecoins is not the only correct one. Finance Minister Rishi Sunak pledged on April 4 to transform his island nation into a “global hub for crypto-asset technology.” This plan explicitly includes stablecoins “being included in regulations to pave the way for use in the UK as an accepted form of payment.” In addition, the UK plans to issue a government NFT and establish a “sandbox” of financial market infrastructure designed to drive innovation. The UK would like to work more closely with the Bitcoin industry on regulation going forward. There is also scope for improving the competitiveness of the UK tax system. The aim here is to check, for example, how DeFi loans should be classified under tax law. With all these measures, the government wants to attract investors and jobs to the UK.

Jamaica is on track for a CBDC

It will probably be years before the introduction of a digital euro, while Jamaica is on the home stretch with its own CBDC. Everything has been in place in the Caribbean island state since February to introduce the Jam-Dex. Final tests are scheduled for April. The Jamaican central bank hopes that its digital currency will particularly benefit socially disadvantaged citizens who do not have bank accounts and are therefore excluded from traditional financial services. The introduction of the CBDC also aims to announce a process of digital transformation for the entire economy of the island. The government promises a $16 airdrop to the first 100,000 users who create a wallet.

India: Drop in Bitcoin and Co. trading volume.

A hefty capital gains tax on crypto transactions came into force in India on April 1. Profits from trading Bitcoin or other cryptocurrencies are now subject to a 30% levy. After just three days, crypto trading volume crashed by 15%. WazirX, the largest crypto exchange in the country, even saw its daily trading volume increase from $208 million to $100 million. As if that were not enough, the Indian government will introduce a withholding tax in May. Hodler must then pay one percent of the transaction amount to the state for each crypto transaction. Industry representatives criticize these regulations, experts predict liquidity problems.