Compliance Wednesday: Latest Regulatory Updates in Crypto
Hey everyone,
Welcome back to Compliant Wednesday with the latest batch of policy updates from our around the world:
- SEC ends Ethereum investigation 🇺🇸
- Brazil targets crypto tax compliance 🇧🇷
- Turkey introduces new crypto transaction tax 🇹🇷
The United States Securities and Exchange Commission (SEC) has decided to end its investigation into Ethereum, a popular cryptocurrency. Consensys, a company involved in Ethereum development, has stated that the SEC’s Enforcement Division informed them about closing the investigation into Ethereum 2.0. This means that the SEC will not bring charges against Ethereum for being classified as a security. Consensys sees this as a significant victory for Ethereum developers and the industry as a whole. The decision comes after Consensys sent a letter to the SEC requesting the end of the investigation.
Our take:
The SEC closing its Ethereum investigation is a huge win for the crypto world. This decision helps pave the way for more innovation without the looming threat of regulatory crackdowns.
Read more here.
The Federal Revenue of Brazil is planning to request information from foreign cryptocurrency exchanges to ensure compliance with the country’s new tax laws. The tax authority is concerned about potential illegality and aims to gather data on Brazilians’ wealth subject to taxation. A law passed last December mandates a 15% income tax on cryptocurrency profits and dividends earned on foreign exchanges. The tax authority aims to collect around $4 billion in the 2024 financial year. Major cryptocurrency exchanges operating in Brazil include Binance, Coinbase, OKX, and KuCoin.
Our take:
Brazil’s move to crack down on tax compliance with foreign crypto exchanges is a step towards ensuring fair play and regulation in the growing market. It also helps build trust and aligns with our values of promoting secure, compliant financial practices.
Read more here.
Turkey has implemented a 0.03% tax on cryptocurrency transactions as part of a larger fiscal reform to address budget deficits caused by recent earthquakes. The move is intended to generate revenue in the face of economic challenges. The government estimates that this tax will bring in 3.7 billion liras annually. Overall, the tax reforms are expected to generate 226 billion liras, approximately 0.7% of the country’s GDP. The introduction of this transaction tax signifies a significant change in Turkey’s tax policies, marking the largest tax reform in two decades.
Our take:
Turkey’s new crypto transaction tax aims to tackle economic challenges while showing the country’s growing engagement with the crypto market. It’s a pragmatic approach to raise revenue and address budget gaps.
Read more here.
And that’s it! What do you think about this week’s news? Let us know in the comments!
