Regulatory Dynamics

1. The Russian Ministry of Finance plans to ease the reporting requirements for crypto assets.

The Russian Ministry of Finance recently proposed new amendments to the upcoming cryptocurrency asset law, which may reduce the reporting requirements for cryptocurrency taxpayers. According to the latest draft, individuals are required to report their held assets when their annual cryptocurrency transaction volume exceeds 600,000 rubles (approximately $7,800), a relaxation from the previous threshold of 100,000 rubles (approximately $1,300). The bill is planned to be passed in January next year, and the Ministry of Finance hopes that taxpayers can complete their first asset disclosure by April 30, 2022. The value of the reported cryptocurrency will be calculated by the tax authorities based on the market price at the time of the transaction.

2. New Jersey, USA advances cryptocurrency regulatory legislation

New Jersey in the United States is advancing cryptocurrency regulatory legislation. Recently, a proposal called the "Digital Asset and Blockchain Technology Act" was submitted to the state Senate. The bill aims to regulate cryptocurrency service providers, requiring relevant entities to obtain a license before engaging in activities such as trading, storing, purchasing, and selling digital assets. This regulatory framework will be implemented by the New Jersey Department of Banking and Insurance.

3. Beijing plans to establish a legal digital currency pilot zone.

Beijing recently held a financial policy briefing, revealing the city's development plans in the field of digital currency. According to the "Overall Plan for the China (Beijing) Pilot Free Trade Zone", Beijing will support the establishment of a legal digital currency pilot zone and a digital financial system, as well as support the implementation of major projects in financial technology. The plan proposes to enhance the service level of financial infrastructure around payment and clearing, registration and custody, credit rating, and other links, while carrying out financial technology innovation under the premise of controllable risks.

4. Spain Approves Fintech Regulatory Sandbox

The Spanish Senate recently unanimously passed a resolution to approve the launch of a new fintech regulatory testing platform. This platform, known as a "regulatory sandbox," will allow companies to conduct pilot projects related to blockchain, Bitcoin, and other crypto-related initiatives. This move aims to promote financial innovation while ensuring an appropriate regulatory framework.

5. Argentina advances digital currency legislation

The Argentine Congress is advancing a bill related to digital currency, aimed at providing a legal framework for digital currencies and encouraging their use. If passed, this bill would allow banks and businesses to choose to use digital currencies. The background of this initiative is that Argentina is facing severe inflation issues, with the country's legal tender, the peso, depreciating by approximately 40% in 2019.

6. The Central Bank of Lebanon plans to launch a digital currency next year.

The Governor of the Central Bank of Lebanon stated that the country plans to launch a Central Bank Digital Currency (CBDC) in 2021. This initiative aims to restore public confidence in the banking system and promote the transition to a cashless society. At the same time, the central bank governor also called for a restructuring of the banking sector, including a 20% capital restructuring plan.

Industry Trends

Bitcoin's market value jumps to 20th place globally.

Recent data shows that Bitcoin's market capitalization has approached $300 billion, ranking 20th in the global asset market capitalization. This achievement has allowed Bitcoin's market value to surpass that of several well-known companies, including American retail giant Home Depot, telecommunications giant Verizon, and payment service company PayPal. The rapid growth of Bitcoin's market capitalization reflects the booming development of the cryptocurrency market and the increased confidence of investors.