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

If enacted, the bill would exempt foreign residents from capital gains taxes on the sale of digital currencies from Israeli-based companies. It would also reduce the current 50% tax on crypto bonuses for employees to 25%, aligning it with employee stock options. The bill also proposes using the term "digital currency" separately from "security" and comes in the wake of concerns raised by the Israeli Securities Authority's inclusion of digital assets under the "security" category in its proposed regulatory framework. The Bank of Israel has also shown interest in exploring the development of a central bank digital currency, with a special committee outlining potential scenarios for a digital shekel.

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It has established itself as a favorable location for crypto companies and currently contributes around 4% of Bitcoin's global hash rate. Abu Dhabi, in particular, has become a hub for mining activities due to its energy efficiency and status as a trade center. The UAE's shift towards solar and nuclear energy, along with its surplus electricity during certain months, makes it an attractive option for miners. Additionally, the country offers zero-tax policies in its free trade zones, allowing miners to avoid corporate tax and import duties.

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Currently, MiCA excludes DeFi and non-fungible tokens from its scope. AFME has expressed concerns that the exclusion of DeFi could lead to unintended risks and potential impacts on financial stability. They recommend creating a taxonomy for DeFi activities and digital assets, as well as a consistent regulatory framework with different levels of centralization. AFME's proposal aims to initiate a discussion and explore regulatory solutions for DeFi in collaboration with the public and private sectors. MiCA is currently in the consultation stage and will undergo approval by the European Commission, European Parliament, and European Council.

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The conditional license granted to BitOasis required the fulfillment of key conditions over a period of 30-60 days, which the exchange did not meet. While the details of the unmet conditions were not disclosed, VARA stated that BitOasis' license for institutional and qualified retail investors is currently considered "non-operational" until the requirements are fulfilled. BitOasis had previously received a minimum viable product operational license, but it must now meet the conditions of its current license in order to apply for a full market product license. VARA will continue to monitor the situation for regulatory compliance. Neither BitOasis nor VARA have provided comments on the matter.

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The FCA, along with other law enforcement agencies, inspected 36 crypto ATM locations using powers granted under money laundering regulations. In February, the FCA issued a warning to all crypto ATM operators, instructing them to comply with regulations or cease illegal operations. The FCA emphasizes that using crypto ATMs in the UK is risky, as it may involve handing money over to criminals. Victims of scams involving these ATMs are not protected by the government or the operators. Scammers often impersonate law enforcement officials to deceive individuals into transferring funds through crypto ATMs, but it is important to note that law enforcement agencies never demand payment over the phone or through cryptocurrency.

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