Crypto Chronicles: BitOK's Weekly Recap of Top Regulatory News
Get a quick and easy update on last week's top headlines with BitOK.
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1. Lawmakers in the United States have proposed new legislation to hold bank executives accountable for failures and address risks in the banking industryThe bills were introduced by Democrats on the House Financial Services Committee in response to the collapse of Silicon Valley Bank, Signature Bank, and First Republic Bank. The proposed legislation includes measures to impose fines and ban bank executives from working in the industry if they contribute to their bank's failure due to negligence. Representative Maxine Waters, who announced the bills, emphasized the need for stronger regulations and executive accountability in the banking system. While some lawmakers have blamed digital assets for the bank failures, the proposed legislation does not specifically mention cryptocurrency or blockchain. The bills are yet to be reviewed and approved by the committee's Republican members.
Source - 2. FSMA has ordered Binance to stop offering crypto exchange and custody wallet services in BelgiumThe Belgian Financial Services and Markets Authority (FSMA)claims that Binance violated Belgian laws on Anti-Money Laundering and Combating the Financing of Terrorism by providing services from countries outside the European Economic Area (EEA). The regulator requested information from Binance regarding its non-EEA companies but did not receive satisfactory answers. As part of the order, Binance must return all crypto and private keys held for its Belgium-based clients.
Source - 3. A European Central Bank official, Fabio Panetta, criticized cryptocurrencies, calling them unsuitable for anything other than gamblingPanetta highlighted their high volatility and lack of societal benefits, suggesting that they should be treated as a form of gambling. He also mentioned the limitations of crypto transactions and the negative consequences of the crypto ecosystem. He warned policymakers about the industry's attempts to integrate into the traditional financial system without providing any real benefits. Panetta has previously supported research on a digital euro and proposed banning environmentally harmful cryptocurrencies.
Source - 4. Token issuers in Japan will no longer have to pay corporate taxes on unrealized gains from cryptocurrencies they holdThe National Tax Agency of Japan implemented a law revision that exempts token issuers from the 30% corporate tax rate on their cryptocurrency holdings. Previously, even unrealized gains were subject to taxation. The ruling aims to make it easier for companies issuing tokens to do business. Japan has been implementing stricter anti-money laundering measures and has limited stablecoin issuance to licensed banks and registered entities. Japan's crypto regulations are known to be among the strictest in the world, and the country was one of the first to legalize cryptocurrencies.
Source - 5. Australian banks are defending their restrictions on payments to local cryptocurrency exchanges, citing the high prevalence of scams involving cryptoDuring a panel discussion, representatives from major banks, including Commonwealth Bank and ANZ, revealed that a significant portion of scams, ranging from one-third to 40%, involve cryptocurrencies. As a result, the banks have imposed pauses, limits, and blocks on certain payments to crypto exchanges to protect customers from investment scams. The Australian government supports the banks' efforts to combat scams, acknowledging the unacceptably high levels of cryptocurrency-related fraud. While some customers and the crypto industry have criticized the restrictions, experts suggest that collaboration between banks and the industry is crucial to reduce scams and maintain trust in the financial system. According to the Australian Competition and Consumer Commission, losses from investment scams involving crypto as the payment method have increased by 162.4% in 2022.
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