Regulatory News
United Kingdom (UK)
Bim Afolami takes the reins on UK crypto policy as new Economic Secretary: Under the government reshuffle of UK Prime Minister Rishi Sunak former Economic Secretary Andrew Griffith is set to become the next minister of state in the Department for Science, Innovation, and Technology. Concurrently, Member of Parliament Bim Afolami has been approved by King Charles II to assume the role of economic secretary to the Treasury of the United Kingdom. In his new capacity, Afolami will oversee various policies that impact the adoption of digital assets and central bank digital currencies within the UK. Former Economic Secretary Andrew Griffith had been instrumental in shaping policies aimed at positioning the country as a crypto hub, which included the introduction of stablecoins.
UK leads international crackdown on crypto tax evaders: The UK, in partnership with the OECD, has spearheaded the creation of the Crypto-Asset Reporting Framework (CARF), establishing a novel global standard for automatically sharing information among tax authorities regarding crypto assets. Anticipated to come into force in 2027, this pioneering initiative marks the first of its kind. Under CARF, crypto platforms will be mandated to disclose taxpayer information to tax authorities, a practice they presently do not engage in. This measure aims to facilitate the exchange of information among tax authorities, empowering them to enforce tax compliance and combat the escalating instances of tax evasion spurred by the rapid expansion of the global crypto market.
MENA
Dubai’s crypto regulator VARA switches leadership as it ramps up operations: Dubai's specialized crypto regulator, the Virtual Asset Regulatory Authority (VARA), is undergoing a leadership transition in anticipation of advancing to the next stage of its operational expansion set for 2023. In an announcement made this week, VARA revealed that its current CEO, Henson Orser, will be succeeded by Matthew White, a seasoned global adviser who held various positions at PwC. VARA clarified that Orser will continue to assist the regulatory body in a consulting capacity despite stepping down from the CEO position.
Global News
IOSCO: The International Organization of Securities Commissions (IOSCO), a global regulatory body overseeing securities markets worldwide, has published a comprehensive report outlining policy recommendations for crypto and digital asset (CDA) markets. These recommendations are pivotal in devising a unified global regulatory strategy to mitigate substantial risks to investor protection and market integrity attributed to centralized crypto asset intermediaries, known as crypto asset service providers (CASPs). IOSCO's precise and targeted suggestions offer a detailed framework for regulatory standards. As per the report, these standards can be met by either applying existing regulations or devising new ones, contingent upon the jurisdiction. The primary objective is to address the identified areas of significant concern within these markets.
Singapore central bank to trial live wholesale CBDC for settlements: Singapore's central bank, the Monetary Authority of Singapore, has revealed its initiative to introduce an operational wholesale Central Bank Digital Currency (CBDC) for settlements among local banks. The central bank has disclosed a pilot program for a live Singapore dollar-denominated CBDC, intending for this digital currency to be utilized by local banks specifically for settlements.
Australia to impose capital gains tax on wrapped cryptocurrency tokens: The Australian Taxation Office (ATO) has released guidance concerning the treatment of capital gains tax (CGT) regarding decentralized finance (DeFi) and the process of wrapping crypto tokens for individuals. The ATO has affirmed its intention to continue taxing Australians on capital gains arising from the wrapping and unwrapping of tokens. In May 2022, the ATO identified crypto capital gains as one of its primary focus areas. Expanding on this initiative, the Australian tax authority has recently clarified various actions subject to taxation within its jurisdiction. According to the ATO's statement, the transfer of crypto assets to an address not under the sender's control or one that already holds a balance will be considered a taxable CGT event.
Kazakhstan officially launches digital tenge: Binur Zhalenov, the chairman of Kazakhstan's National Payment Corporation (NPC), conducted the inaugural transaction using the nation's recently launched central bank digital currency (CBDC), known as the digital tenge. Zhalenov officially introduced the digital tenge to Kazakhstan's retail market and pledged significant advancements for the platform's expansion by 2024. He noted that Kazakhstan collaborated with Visa, Mastercard, and local banks to incorporate the CBDC into plastic cards. Zhalenov emphasized the digital tenge's potential for programmability, envisioning its application in smart contracts, innovative financial services, and digital asset transactions. Plans for 2024 include a focus on developing offline payment capabilities for the CBDC, while by 2025, the NPC anticipates the digital tenge's integration into cross-border trade.
