What impact will multinational encryption regulation have on the market in 2022

In recent years, with the mainstreaming of the crypto market, more and more countries have begun to pay attention and have introduced crypto regulatory policies, which will affect the crypto market at any time. Today, we will take stock of the regulatory policies brewing in several countries that have a greater impact on the encryption field, and gain insight into what changes will be brought to the encryption market by regulation in 2022…

America

What impact will multinational encryption regulation have on the market in 2022

As of mid-February 2021, there have been no new changes in U.S. crypto regulatory policies, but judging from the implementation of crypto-related policies throughout 2021, the regulatory situation has become more severe . The U.S. SEC and CFTC have repeatedly mentioned cryptocurrencies in their press releases, and fines against related industries have also totaled more than $1.279 billion in 2021. Sanctions on related industries are continuing to increase.

The other side of strict supervision and increased fines is that due to the enforcement of the US judicial system, more than 70% of cryptocurrency-related cases end in settlements and fines, and do not really involve criminals. The SEC’s prosecution of Ripple has not made substantial progress throughout 2021. In this regard, strict regulation and increased fines in the United States cannot have a big impact on the global cryptocurrency field.

Another US regulatory information is the taxation of crypto assets, which was proposed by the US Congress in April 2021. The “Infrastructure Investment and Jobs Act” requires the US Internal Revenue Service to investigate and tax transaction information above $10,000. . Including miners, basic equipment and basic technology providers, trading platforms, etc. are all included in the taxation object of the taxation bill. But after the bill was vetoed in June 2021, Biden has until the end of 2021 to re-sign the bill . Whether to implement the bill in 2022 still requires a further vote in the US Congress.

From the listing of Coinbase in the United States to the entry of Bitcoin ETFs into the traditional capital field, although the regulatory policies in the United States have been trying to weaken the influence of cryptocurrencies , such as restricting the spot listing of ETFs, these actions have not had much impact on the cryptocurrency market. As a new financial situation, cryptocurrencies are still rapidly integrating into traditional capital and becoming part of the U.S. economic landscape .

South Korea

Recently, Lee Jae-myung, a candidate to run in South Korea’s presidential election in March, tried to attract young voters with a series of pro-crypto policies and talked about creating an international cryptocurrency center through pro-business strategies.

What impact will multinational encryption regulation have on the market in 2022

In fact, as early as the end of 2021, Li Zaiming said at the “Youth Talk on Crypto Assets” event, ” We need to create a foundation for issuing and circulating virtual assets recognized by the world. This is a revolution, it is similar to creating a a new currency “.

Another presidential candidate, Yin Xiyue, promised to create an environment where crypto-asset investors can invest with confidence . “

What impact will multinational encryption regulation have on the market in 2022

The two candidates as rivals are understandably trying to win the support of cryptocurrency investors in terms of their attitude and commitment to cryptocurrency. The real purpose of the two candidates may include measures aimed at “protecting investors” and policies aimed at supporting the nascent NFT and Metaverse fields.

The current South Korean implementation of a 20% tax on cryptocurrency trading profits, South Korean cryptocurrency investors are seeking to delay the law or cancel the policy and return cryptocurrency transactions to peer-to-peer trading.

The four major digital asset trading platforms in South Korea are also seeking policy loosening, but the candidate’s statement is only the candidate’s statement after all. Whether they can take office, and whether their promises after taking office can be fulfilled, are still the worries of South Korean cryptocurrency investors.

Singapore

What impact will multinational encryption regulation have on the market in 2022

Singapore has introduced a relatively friendly cryptocurrency regulatory policy . Currently, major global trading platforms and project laboratories, including Binance and Huobi, have landed in Singapore. At the same time, Singapore ‘s sovereign wealth fund GIC and related investment companies have made extensive arrangements in the cryptocurrency field.

As early as 2017, the Monetary Authority of Singapore (MAS) has issued the relevant regulations of the “Digital Token Issuance Guidelines”, which stipulates the payment methods, storage methods and transaction methods ofcryptocurrencies . RMO license, and identify Bitcoin and Ethereum as electronic currency for payment of goods and repayment of debts.

Beginning in 2020, MAS has further refined its regulation in the field of cryptocurrencies, launching and enacting the Payment Services Act, which allows the purchase and payment of cryptocurrencies in Singapore and provides a platform for exchanging cryptocurrencies.

Although all cryptocurrency companies have so far failed to apply for a license for crypto payment services from the Singapore government , more than 20 related companies including Paxos, Coinbase, Genesis, etc. have obtained exemptions for crypto payment services in Singapore.

So far, Singapore-based securitization token platform ISTOX has been publicly listed and provides a series of secondary trading services. In 2022, we may see more market operators join the cryptocurrency payments space in Singapore.

Japan

What impact will multinational encryption regulation have on the market in 2022

Japan’s regulatory policy has become more severe after the bankruptcy of the Mt.Gox platform . In 2016, Japan’s “Funds Settlement Law” clearly defined cryptocurrency as a means of settlement and payment, and recognized its value . However, only companies registered with the Japan Financial Services Agency can engage in cryptocurrency-related services.

Around 2017, Japan successively issued licenses to 16 cryptocurrency trading platforms, but then stopped issuing licenses due to the financial security problems of some platforms, and issued rectification warnings, fines and even shut down almost all the platforms that obtained the licenses.

In 2021, Japan completed the registration of 31 crypto companies, but crypto companies including Binance and Bybit are prohibited from engaging in crypto services in Japan . For cryptocurrency companies that have obtained relevant service qualifications, Japan’s “Funds Clearing Law” also imposes many restrictions, including that all cryptocurrency service providers (trading platforms or wallet providers) must have the same amount of funds as the amount of encrypted assets. Funds are guaranteed, and cryptocurrency service providers that have not obtained trading licenses will be prohibited from engaging in related businesses.

Beginning in 2022, the Japanese government has formulated a detailed taxation mechanism in the relevant regulations for cryptocurrency investors. Individuals with annual salary income exceeding 20 million yen or non-salary income exceeding 200,000 yen need to declare their cryptocurrency trading profits. Income, tax rates range from 15% to 55% . This undoubtedly increases the burden of transaction costs for traders, but from the perspective of compliance, Japan’s relevant regulatory policies ensure the safety of traders’ funds to a certain extent.

UK

The UK Financial Conduct Authority (FCA) began to oversee how crypto asset companies manage money laundering and counter-terrorism financing risks in 2020. Since then, UK crypto asset companies must comply with the Money Laundering Regulations (MLR) and register with the FCA.

As of February 2022, more than 5 crypto companies have been registered , and more than 80 other crypto companies are on the provisional registration list awaiting further regulatory review. It is expected that in March 2022, more than 6 encryption companies will obtain temporary operating rights.

If an encryption company is not on the temporary registration list, it is not allowed to carry out any encryption business activities . The FCA also published a list of hundreds of unregistered encryption companies on its official website, including Binance, which has been repeatedly warned.

In addition, during 2021, the British government consulted on stablecoins as a means of payment. Unfortunately, this proposal has not been passed , which means that at least in 2022, the UK’s relevant cryptocurrency services regulatory policy Still will continue to tend to be harsh. The FCA’s many regulatory policies will continue to restrict cryptocurrency service providers from conducting related businesses around e-wallets, mobile payments, and global remittances.

Thailand

Thailand ‘s regulatory system for cryptocurrencies is one of the most relaxed countries. The “Digital Assets Decree” promulgated in 2018 divides digital assets into cryptocurrencies and digital tokens, while encouraging technological innovation and supporting cryptocurrencies. business development.

The Act has formulated detailed license application rules for the issuance, trading, storage and other aspects of cryptocurrencies . As of 2022, Thailand has issued trading platform licenses to 8 cryptocurrency service providers. Issued ICO licenses to 4 cryptocurrency issuers.

In the relevant regulations for personal transactions of cryptocurrencies, the Thai SEC has formulated relevant tax policies, which are 7% value-added tax and 15% return capital gains tax. Its tax rate is lower than that of the UK.

Of course, under the seemingly relaxed regulatory policy, Thailand has a stricter attitude towards NFT, DEFI, and fantoken, and explicitly prohibits the circulation and trading of such tokens in the country.

Russia

On February 8, according to the Russian newspaper Kommersant, the Russian government and the central bank have reached an agreement on the regulation of cryptocurrency, and the time is ripe for Russia to treat cryptocurrency as currency.

According to a report by CCTV News, the Russian government has approved the legislative concept of digital currency circulation supervision . The relevant departments of the Russian government will strictly supervise the market circulation of encrypted digital currency in the country, and will further protect the rights of ordinary investors. The Russian Ministry of Finance and the Central Bank will formulate relevant bills before February 18.

This means that Russia ‘s previous policy of comprehensively banning cryptocurrencies has become invalid, and a comprehensive regulatory framework advocated by the financial sector led by the Russian Ministry of Finance is taking shape . Cryptocurrency transactions will be guaranteed in Russia, and related taxation and management policies will not be It will affect the use, exchange and circulation of digital currency in Russia.

What impact will multinational encryption regulation have on the market in 2022

According to data from the Russian government analysis report cited by Russian media The Bell, Russia’s cryptocurrency development is far faster than traditional finance, and its cryptocurrency share accounts for 12% of the world’s total . Calculated at the peak of the global cryptocurrency market in 2021, Russian cryptocurrency The total is over $240 billion. Russia will be able to collect up to 1 trillion rubles (about 13 billion US dollars) in various taxes from the crypto market every year after implementing a more relaxed cryptocurrency regulatory framework.

In addition, the Russian State Duma is formulating relevant tax policies for crypto miners. It is reported that in the future, after the formulation of the cryptocurrency tax framework, Russia will collect at least 15% tax on crypto miners.

There is no doubt that the real purpose of Russia’s move is entirely for taxation. Whether it is to treat encrypted assets as currency or to collect taxes on encrypted miners, the core basis of its policy is actually the more critical “development of cryptocurrency”. far beyond traditional finance.” From a macroeconomic point of view, Russia has just experienced restrictions on its resource exports from the European Union and the United States. Affected by global energy price fluctuations and the political environment, Russia’s GDP in 2021 will be $1.23 trillion, which is $460 billion less than the $1,699.88 billion in 2019. Equivalent to two years, the economy not only stagnated, but even fell sharply, and one-third of GDP “disappeared” in two years.

So it’s not hard to guess that Russia itself is in dire need of more taxation and financial dynamism to boost the economy right now . Therefore, it is not difficult to understand why Russia will break the policy line of completely banning cryptocurrencies, and adopt more tolerant management and taxation to try to industrialize and standardize cryptocurrencies.

What impact will multinational encryption regulation have on the market in 2022

And the aspect of Russia ‘s view of cryptoassets as currencies that has the greatest impact on the digital asset market may lie in the foundations of cryptocurrencies – miners . Although the relevant tax policies formulated by the Russian Duma on crypto miners may cause the cost of cryptocurrencies to rise, the construction of large-scale mining farms can also be completed with Russia’s strong energy support, laying the foundation for the stable growth of the digital asset market in 2022.

In the short term, Russia-related positive news will help the uptrend in the mainstream market, but it is difficult to predict how much this help will play a role in the current widespread negative sentiment in the market.

Other countries

Germany’s government draft to implement the “Revision of the European Union’s No. 4 Money Laundering Directive” has officially entered into force. At the same time, all crypto custody companies that manage digital keys for investors are subject to the supervision of the German Federal Financial Supervisory Authority. Coinbase is the first to obtain this license. ‘s enterprise.

El Salvador has legally recognized Bitcoin as its legal tender.

One of the amendments to Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act came into effect, confirming the asset properties of cryptocurrencies such as Bitcoin, and placing cryptocurrency exchanges, payment processors and other cryptocurrency companies in the law Recognized as a money services business (MSB) and brought into regulation.

The Australian Securities and Investments Commission (ASIC) said it will solicit market opinions on a series of crypto market regulatory proposals, and Australia has not yet effectively regulated crypto-related businesses. The relevant regulatory policies are also still unclear and are in an unregulated state.

Summarize

What impact will multinational encryption regulation have on the market in 2022

According to data released by the Financial Action Task Force (FATF) in 2021, 58 of the 128 jurisdictions in the world have indicated that they have implemented the revised FATF standards, of which 52 jurisdictions regulate virtual asset service providers, 6 One jurisdiction prohibits the operation of virtual asset service providers.

Many governments have issued warnings to some cryptocurrency trading platforms, mainly because they offer derivatives trading and are not registered in their own countries. It also reflects that more and more countries are no longer laissez-faire towards cryptocurrency trading and are starting to take the initiative.

At present, encrypted assets are playing an increasingly important role in the global financial market, so more and more countries are formulating corresponding regulatory mechanisms. further regulatory measures.

The transaction and issuance mechanism of encrypted asset Tokens, and the issuance of security tokens by cryptocurrency trading platforms have gradually replaced traditional financial securities.

With the rapid development of new things such as DeFi and NFT, the regulatory issues of the encryption market faced by countries and regions around the world are becoming more and more complex. The regulation and development of cryptocurrency will test the governance capabilities of governments.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-impact-will-multinational-encryption-regulation-have-on-the-market-in-2022/
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