Today’s financial world is becoming increasingly digitized, and naturally, central banks want to adapt to the changing environment. The use of cash is rapidly declining. Globally, the rise of digital payment apps and COVID-19 have only accelerated the decline in cash usage, fueling interest in digital currencies and demand for easier payment solutions. As crypto adoption continues to expand, the idea of central bank digital currencies (CBDCs) has also gained momentum. Governments across the world have been flirting with, and examining, the idea of issuing their own CBDCs, with a handful already launching. It isn’t clear when CBDCs will become …

Australia’s ministerial department of Treasury reached out to the public to seek consultation regarding draft legislation that would exclude cryptocurrencies from being taxed as a foreign currency if passed. In a press release, Assistant Treasurer Stephen Jones highlighted the Australian government’s intent to exclude crypto assets from being regarded as a foreign currency for tax purposes. However, the legislation would have no impact on the collection of capital gains taxes on crypto held as investments. The public has been provided with 25 days, from Sept. 6 to Sept. 30, to share their opinion on the proposed legislation. If signed into …

After a race to be the next leader of the Conservative Party, Secretary of State for foreign, commonwealth and development affairs Liz Truss has defeated f ormer chancellor of the exchequer Rishi Sunak to become the next prime minister of the United Kingdom. Boris Johnson, who served as the U.K. prime minister since 2019, will be on his way out of office and leaving Truss as the party leader, after she won the election with 57.4% of the vote from members compared to Sunak’s 42.6%. Truss has been the Secretary of State for Foreign, Commonwealth and Development Affairs in the …

What happens with unreported cryptocurrency? Not reporting Bitcoin despite the obligation to do so may have severe consequences for individuals’ lives and finances. The fine for making an incorrect declaration can be substantial and can even be considered a felony in certain circumstances. Individuals may wonder whether centralized cryptocurrency exchanges actively report to the IRS. Centralized exchanges do issue tax forms to the IRS. Likewise, the IRS has issued so-called John Doe Summons to exchanges, including Coinbase, to request people’s information and catch those who try to cheat on their tax obligations. But, such summonses are not the only law …

The Brazilian Securities and Exchange Commission is reportedly pursuing changes in the country's legal framework with regard to its regulation of cryptocurrencies. According to local media, one major concern is that the bill in question does not appear to consider tokens as digital assets or securities — and they therefore wouldn't fall under SEC regulation. The updated position of the nation's SEC follows the appointment of a new board and the increased relevance of the crypto sector in the financial services in the country. Brazilian lawmakers have been working on regulations for cryptocurrencies since 2015, but the Senate only approved …

Members of the Germany-based Bundesblock, otherwise known as the German Blockchain Association, updated the community on the upcoming Markets in Crypto-Assets (MiCA) regulations in a virtual panel held on Thursday, Sep. 1. According to the panel, the final legal text for the long-awaited regulations is set to be released in the upcoming 4-6 weeks. However, nonfungible tokens (NFTs) and stablecoins are still not covered, while crypto asset service providers (CASPs) are discussed in scope. @bundesblock panel discussion of #MiCAR with @DrStefanBerger, @SchildtMoritz, @paddi_hansen, moderated by Alireza Siadat. Key take aways: final text of MiCAR available in 4-6 weeks, MiCAR fully …

Carlyle Group co-founder David Rubenstein acknowledged on Sept. 2 that he has invested personally in a number of crypto companies, and is optimistic about the industry’s path to regulation in the United States. Speaking with CNBC'S Squawk Box on Thursday, the billionaire said he believes that government regulation will be positive for the industry, and that the U.S. Congress will tak a collaborative approach to boost an innovation environment in the country. "The crypto constituency is very strong in congress [and] they tend to be very Republican [or] very libertarian," he noted. "The industry is not likely to be soft …

As cryptocurrency investors know, the market moves in cycles. We had the up-cycle when Bitcoin (BTC) and Ether (ETH) hit their all-time highs, and now the bears are back in town. One of them mauled MicroStrategy founder and executive chairman Michael Saylor this week. In this case, it was a very powerful bear — Washington, D.C. Attorney General Karl Racine — suing the Bitcoin evangelist for allegedly owing $25 million in unpaid taxes. MicroStrategy’s stock price has fallen more than 13% on the news, from $251 on Aug. 29 to less than $220 on Sept. 1. Still, now isn’t the …

Studies show that most people who attempt to wash trade nonfungible tokens (NFTs) are unprofitable. But that doesn’t stop them from trying, which makes it a glaring regulatory and enforcement issue for the industry. In wash trading, manipulators buy and sell an asset between themselves to create the appearance that the asset is in higher demand and, therefore, worth more than it would be otherwise. With NFTs, wash trading is fairly straightforward: Imagine an investor holds $1 million in Ether (ETH). The investor mints an NFT and proceeds to sell it to themself for all the ETH they own. The …

Paraguay's president, Mario Abdo Benítez, vetoed a bill that sought to recognize cryptocurrency mining as an industrial activity on Monday. He reasoned that mining's high electricity consumption could hinder the expansion of a sustainable national industry. The decree stated that crypto mining uses intensive capital with low manpower usage, and therefore would not generate added value on par with other industrial activities. Around the world, cryptocurrency is one of the largest job creators. The LinkedIn's Economic Graph shows that crypto and blockchain jobs listing rose 615% in 2021 compared to 2020 in the United States. In accordance with the bill's …

United States House of Representatives member Tom Emmer has reportedly suggested that regulating and encouraging innovation in the crypto space should not be a political win for either Democrats or Republicans. According to an interview released Tuesday by Axios reporter Brady Dale, Emmer said many of his colleagues in Congress were treating cryptocurrencies as a risk which merited warnings, rather than an investment opportunity for the United States. The U.S. lawmaker added that encouraging figures like FTX CEO Sam Bankman-Fried to stay in the country will open more doors for residents rather than driving them away with regulatory uncertainty. Emmer, …

Regulators are tasked with balancing between protecting consumers and creating environments where entrepreneurs and the private sector can thrive. When markets face distortions, perhaps due to an externality or information asymmetry, regulation can play an important role. But regulation can also stifle entrepreneurship and business formation, leaving society and its people worse off. The United States Securities and Exchange Commission has been particularly hostile against cryptocurrency companies and entrepreneurs. For example, SEC Chairman Gary Gensler has remarked that he views Bitcoin (BTC) as a commodity but that many other “crypto financial assets have the key attributes of a security.” He …