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Crypto regulatory news around the world: June ‘22

USA. New York regulators confirmed that BTC and ETH are classified as commodities. The moratorium on bitcoin mining has also come into force, an exemption is granted only to companies using 100% renewable energy. The moratorium will be in effect for the next two years.

Lithuania. From January 1, 2023, crypto exchanges must register as a legal entity, with authorized capital of at least 125,000 euros. Top management of the company must be permanent residents of Lithuania. The regulation also established requirements for customer identification and introduced a ban on opening anonymous accounts.

Brazil. Starting the last week of May, crypto investors, whose capital gains exceed 35,000 BRLs (approximately $7,300), must pay income tax when converting one currency to another. Cryptocurrency trading is taxed, regardless of whether the conversion to BRL was made during the process, or not.

Paraguay. If the mining regulating bill is approved, miners must request permission for industrial electricity consumption and apply for a license. It also provides registration for persons providing crypto trading or custody services.

Kazakhstan. In 2022 a pilot project of the special economic zone will be launched. Crypto trading platforms will be able to legally work with banks. This project is part of a larger project to legalize mining and operations with tokens. In the future, this economic zone will become a large crypto hub.

Russia. The bill, which regulates the requirements for participants in “mining activities” is currently under consideration. If the bill is approved, mining operators will be taxed. Operators do not need to check their customers for MLA and illegal activities.

South Korea. The Specific Financial Information Act has already forced the largest crypto exchanges to delist Litecoins from their platforms. The reason is that the new LTC network upgrade, named MWEB, provides anonymity, and this goes against the requirements for transaction transparency.

Japan. A new bill on stablecoins has been passed. Stablecoins can only be issued by financial institutions and must be pegged to the yen or other legal tender. Also, the owner of stablecoins should be guaranteed a buyback at face value. The bill will come into force in 2023.

Read more research Crypto Regulatory News by May ’22 and Customer Experience on Centralized Crypto Exchanges: Likes & Dislikes in our blog

References:

  1. Attlee, D. “Law Decoded, June 7–13: Lummis-Gillibrand bill is finally here”, Cointelegraph, June 13, 2022
  2. Jha, P. “New York State Senate passes Bitcoin mining moratorium”, Cointelegraph, June 3, 2022
  3. Ministry of Finance of the Republic of Lithuania. “Amendments to the law have been made to increase transparency in the cryptographic sector”, finmin.lrv.lt, June 8, 2022
  4. Toppa, S. “Brazil Clarifies Taxes on Cryptocurrency Conversion”, The Street, May 26, 2022
  5. Engler, A. “Paraguayan Bill Regulating Crypto Mining and Trading Moves Closer to Law”, Coindesk, May 25, 2022
  6. Slavsky, D. “CryptoDigest: Kazakhstan will allow exchanges to open accounts”, iSpace, June 16, 2022
  7. Kuzmicheva, A. “A new version of the bill on mining was submitted to the State Duma”, RBC, May 24, 2022
  8. Khanzadaev, G. “Litecoin (LTC) Gets Delisted from Biggest South Korean Exchanges”, U Today, June 8, 2022
  9. Nagarajan, S. “Japan Passes Legal Framework for Stablecoins”, Blockworks, June 3, 2022

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