Regulatory News
European Union (EU)
Spanish Treasury to seize crypto for tax debts - Spain's Ministry of Finance unveils tax reforms granting financial entities authority to collect taxes on behalf of the government. The ministry plans to amend the General Tax Law, empowering the Spanish Tax Agency to seize cryptocurrency assets to settle overdue tax debts. With a recent royal decree expanding entities with tax collection powers, the Treasury aims to intensify efforts against tax evasion by requiring reporting on all card transactions.
United Kingdom (UK)
European Markets Organization cautions UK on stablecoin regulations and securities - The Association of Financial Markets in Europe (AFME) caution the UK on stablecoin regulations and securities, as the Bank of England (BoE) and the Financial Conduct Authority (FCA) released discussion papers (BoE, FCA) in November. The BoE addressed issues regarding sterling-backed stablecoins in payment systems, while the FCA focused on auditing, custodianship and regulatory principles. AFME praised certain aspects of the proposals but urged for securities tokens to be consistently treated as securities throughout their lifecycle. AFME also advocated for international coordination on stablecoin regulations before implementing rules for stablecoins issued overseas. The deadline for feedback on the BoE's Discussion Paper on the Regulatory regime for systemic payment systems using stablecoins and related service providers is extended to Monday, February 12, 10 am.
LATAM
New CVM directors emphasize tech advancements and tokenization - The Brazilian Securities and Exchange Commission (CVM) introduces new directors Daniel Maeda and Marina Copola, focusing on technological progress and tokenization during their inauguration ceremony. Led by CVM President João Pedro Nascimento, the event underscores the significance of a fully staffed board and highlights the directors' commitment to leveraging technology for investor empowerment and market safety.
New CVM Book discusses regulation of Decentralized Finance (DeFi) - The Brazilian Securities and Exchange Commission (CVM) has released a new book titled "Building the Foundations of Modern Financial Regulation in Brazil," which highlights decentralized finance (DeFi). The article on DeFi, written by Jorge Alexandre Casara, discusses the role of the CVM and recommends actions to address this emerging technology, recognizing the risks and the need for regulation to protect investors. The author emphasizes that while decentralized architectures can bring efficiency and inclusion, they also present new challenges, requiring an adapted regulatory approach.
Global News
Belarusian National Bank plans blockchain-based Digital Ruble - The National Bank of Belarus has announced plans to introduce a digital currency, the digital Belarusian ruble (CBR), based on blockchain technology. Settlements using the digital ruble will be classified as non-cash transactions, providing advantages such as enhanced security for individuals, lowered entry barriers for businesses and banks through smart contracts, and expanded integration possibilities with partner countries' payment systems for the state. A demo version of the CBR platform has already been created, with promising test results indicating the project's potential. The digital ruble is expected to facilitate international payments and may also be used by the population, following similar initiatives in China and Russia.
Thailand removes VAT on crypto trading in digital investment push - Effective immediately, Thailand has eliminated value-added tax (VAT) on cryptocurrency trading to spur digital investment and enhance competitiveness in the global digital economy. Previously subject to a 7% VAT, cryptocurrency transactions are now VAT-free, aligning Thailand with other nations fostering favorable environments for crypto trading. The move is expected to catalyze growth in the cryptocurrency market and attract more investors to engage in digital asset trading activities.
Industry News
European Union (EU)
B2C2 obtains VASP registration in Luxembourg ahead of MiCA implementation - UK-based digital asset liquidity provider B2C2 has secured a Virtual Asset Service Provider (VASP) registration in Luxembourg, expanding its operations in anticipation of the Markets in Crypto Assets Regulation (MiCA) coming into effect in Europe this year. This registration allows B2C2 to offer over-the-counter spot crypto services to institutional clients and collaborate with local VASPs and traditional financial institutions. Denzel Walters has been appointed to lead the Luxembourg team, bringing extensive experience from roles at institutions like the Bank of England and Prudential Regulatory Authority. B2C2's move aligns with the broader regulatory landscape, with ESMA opening a feedback window on MiCA guidelines and speculation arising regarding potential restrictions on Proof-of-Work blockchain networks in the European Union.
LATAM
Brazil's largest bank, Itaú, accelerates digital asset expansion in 2024 - Brazil Crypto Report talked to Guto Antunes, head of digital assets at Itaú about the bank's ambitious crypto and blockchain agenda for 2024. Itaú adopts a comprehensive strategy across tokenization, custody services, distribution and participation in the Drex CBDC project. Antunes emphasizes the importance of intuitive and secure products to cater to a new generation of digital asset users. With a dedicated team of 60-70 employees, Itaú leverages its governance and security expertise to provide retail and institutional investors with confidence in custody services. Partnerships with fintechs like Liqi facilitate bi-directional knowledge sharing, while Itaú remains proactive in regulatory compliance and product development, anticipating significant adoption with the expected launch of new crypto regulations and licenses in 2024.
MENA
ADGM and Solana Foundation Forge Strategic Partnership to Advance Blockchain Innovation - Abu Dhabi Global Market (ADGM) has announced a Memorandum of Understanding (MOU) with the Solana Foundation to enhance Distributed Ledger Technology (DLT) solutions and advance blockchain innovation. The partnership aims to explore joint initiatives and projects to develop the blockchain company ecosystem in Abu Dhabi, aligning with ADAM's vision of becoming a central hub for technology-driven financial services. The collaboration underscores the UAE's position as a global hub for blockchain innovation and aims to foster industry engagement and feedback to support the growth of Abu Dhabi's blockchain and Web3 ecosystem.
Global News
Cathie Wood foresees Bitcoin overtaking gold as a store of value - In a recent YouTube video, Cathie Wood, the CEO of ARK Invest, expressed her belief that Bitcoin is poised to surpass gold as the premier store of value. Wood points to Bitcoin's resilience during economic turmoil, noting its 40% surge amidst a banking crisis last year. She suggests that Bitcoin's recent correction following the introduction of ETFs was merely a short-term market reaction. Wood highlights Bitcoin's potential to capture a significant portion of the global gold market, citing its decentralized nature as a key advantage. This aligns with her previous statements predicting Bitcoin's role as a decentralized and private alternative to traditional currencies.
Lugano's second digital bond settled using CBDC amid growing demand - The City of Lugano has recently issued its second CHF 100 million native digital bond, settling it using the Swiss franc wholesale central bank digital currency (CBDC) as part of the Project Helvetia III initiative. The bond can be held in both digital and conventional securities depositories, listed on the SIX Digital Exchange (SDX) and the main SIX exchange. Despite being restricted to banks, the demand for digital bonds is soaring, with ZKB closing its order book in just 17 minutes and receiving significant interest from various sectors, reflecting a growing trend towards digitalization in capital markets.
BitGo acquires Brassica, expanding into Private Securities Market - BitGo, a leading digital asset company, has acquired Brassica, a provider of investment infrastructure for private securities and alternative investments. This strategic acquisition bridges the gap between traditional private securities and blockchain-based assets, enabling comprehensive infrastructure support for both sectors. The integration of Brassica's technology stack with BitGo's platform aims to advance the digitization of the alternative asset industry and provide accessible and compliant opportunities in real-world assets. The acquisition positions BitGo as a major player in providing infrastructure solutions for both traditional and digital investing, fostering innovation in the financial services industry.
