Crypto Chronicles: BitOK's Weekly Recap of Top Regulatory News

Previously, only income remitted to Thailand was taxed. The move aims to close this loophole and requires individuals to declare foreign income, regardless of its use in the local economy. The policy targets residents trading in foreign stock markets, crypto traders, and those with offshore accounts. While Thailand had imposed strict regulations on the crypto industry, the new prime minister's involvement in crypto investments may lead to a change in this stance.

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The Economic Crime and Corporate Transparency Bill is now in its final stages of approval, pending potential amendments from the House of Commons. Amendments were made to clarify its focus on proceeds from fraud and financial crimes. Once approved, it will become law through royal assent. The UK's Financial Conduct Authority (FCA) expressed its readiness to collaborate with crypto firms to establish regulatory frameworks, particularly related to Anti-Money Laundering and Counter-Terrorist Financing legislation.

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The Malta Financial Services Authority (MFSA) has initiated a public consultation on these changes, open until September 29. The revisions affect rules for exchanges, custodians, and portfolio managers, with adjustments such as the removal of certain requirements, updated outsourcing rules, and the incorporation of Markets in Crypto-Assets (MiCA) service-specific regulations. This alignment with MiCA aims to streamline Malta's crypto regulations with EU standards, facilitating a seamless transition for Virtual Financial Assets (VFA) license holders to comply with the universal MiCA laws. France is also making similar changes in preparation for MiCA's implementation in early 2024.

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Regulators are closely monitoring over-the-counter OTC crypto market activities due to money laundering risks. Deputy chief prosecutor Ki No-Seong and officials from the Financial Services Commission (FSC) recently discussed the need to regulate OTC crypto companies involved in converting illegally obtained digital currency into Korean won or foreign currency. Last year, the Korea Customs Service estimated the value of unlawful foreign exchange transactions using digital currency at $4 billion. South Korea has stringent crypto regulations and is taking proactive measures against crypto-related crimes.

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The bipartisan coalition includes Senators Peters, Durbin, Smith, Shaheen, Casey, Blumenthal, Bennet, Cortez Masto, and King. The bill has received endorsements from various organizations, and its provisions focus on regulating noncustodial digital wallets, expanding Bank Secrecy Act responsibilities, and enhancing Anti-Money Laundering measures to address the estimated "$50 billion crypto tax gap." Delaying tax policy updates could result in the IRS and U.S. Treasury missing out on approximately $1.5 billion in tax revenue for the 2024 fiscal year.

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