EU's MiCA Enforcement Begins; Bolivia Legalizes Crypto; Coinbase Sues SEC & FDIC
Summary:
The European Union's Crypto-Assets Market Regulation (MiCA) begins partial enforcement in June, possibly leading to delisting of noncompliant stablecoins by crypto exchanges. The IRS reveals final regulations for crypto broker rules while exempting decentralized exchanges from new reporting rules. Bolivia's central bank lifts Bitcoin ban to modernize payment systems but does not accept cryptocurrencies as legal tender. Meanwhile, Coinbase files lawsuits against the SEC and FDIC for noncompliance with Freedom of Information Act requests.
As of June, the European Union's Crypto-Assets Market Regulation (MiCA) began to partially come into force, instating measures involving stablecoins by June 30th. This could lead to non-EU compliant stablecoins being pulled from crypto exchange lists, or services limited for those residing in the EU or European Economic Area (EEA). Several crypto exchanges already operating within the EU have undertaken actions in preparation of these new regulations. Crypto exchanges including Uphold, Binance, Kraken, and OKX have begun removing stablecoins like Tether (USDT), and Bitstamp is intending to remove Euro Tether (EURT) from its list. Ex-chairman of Iceland's Central Bank supervisory board, Jón Egilsson, spoke to Cointelegraph, giving his view that issuers of noncompliant stablecoins might consider leaving the EU market completely, leading to an increase in demand for euro-backed stablecoins within European markets. The MiCA regulations affecting crypto asset service providers will be applied in December 2024.
Final regulations on crypto broker rules have been revealed by the US Internal Revenue Service (IRS. The new crypto broker reporting requirements will not apply to decentralized exchanges and self-managed wallets. The IRS noted in a recent update that, after reviewing comments and complaints from industry respondents, it requires "more time to consider the nuances" of completely decentralized networks. There are no exceptions for stablecoins nor tokenized real-world assets from the new reporting requirements and these will be regarded as other digital assets. IRS Commissioner Danny Werfel expressed concern over the crypto tax escape route and possible non-compliance from high-net-worth individuals.
Bolivia's central bank, Banco Central de Bolivia, has lifted a ban on Bitcoin and crypto transactions. The new regulations permit financial institutions to execute digital asset transactions in an effort to modernize the payment system. However, the central bank stated that cryptocurrencies are not considered legal tender. Banco Central de Bolivia also announced a public awareness program outlining potential risks and responsible handling of cryptocurrencies under their Economic and Financial Education Plan.
Coinbase has lodged litigation against the United States Securities and Exchange Commission and the Federal Deposit Insurance Corporation (FDIC) alleging noncompliance with the Freedom of Information Act (FOIA) requests which were submitted to the U.S. District Court for the District of Columbia. Coinbase requested information about the SEC's outlook on Ethereum, specifically its transition to the proof-of-stake consensus mechanism through the FOIA. Coinbase requested records regarding Ethereum 2.0 and past investigations involving Zachary Coburn and Enigma MPC through its consultant firm, History Associates Inc. The lawsuits accuse the SEC and FDIC of concerted efforts to curb digital-asset firms' access to crucial banking services.
Published At
7/1/2024 10:01:00 PM
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