Global Crypto News Updates: U.S., Australia, South Korea, and India's Recent Moves in Crypto Regulation
Summary:
The U.S. House of Representatives has passed a bill counteracting an SEC ruling that restricts banks from owning cryptocurrency. Meanwhile, the Australian Taxation Office plans to collect data from 1.2 million crypto exchange users for potential tax obligation checks. In South Korea, the ruling Democratic Party of Korea will request a review of the legal status of Bitcoin ETFs by the FSC. Lastly, Binance has gained approval to offer its services in India, after being blocked since January 2024.
A bill designed to reverse contentious guidelines from the Securities and Exchange Commission (SEC), which currently prohibits banks from having cryptocurrency ownership, has been approved by the U.S. House of Representatives. The H.J. Res 109 bill, which saw bipartisan support, effectively reverses the SEC's rule - referred to as Special Accounting Bulletin 121 or SAB 121 - stating banks must include clients' cryptocurrency assets in their balance sheets, a standard not applied to traditional assets like securities. Mike Flood, a Representative of the Republican party who put forward the bill, criticized the SAB 121, asserting that custodian assets are typically regarded as "off-balance sheet". President Joe Biden's office however, prior to the vote, opposed such a joint resolution impacting SEC's cryptocurrency policies and plans to veto the bill if it were to reach him. The statement from the White House criticized members of the House for attempting to pass a joint resolution it believes would obstruct the SEC's protective measures for crypto investors and the wider financial stability.
In another news, the Australian Taxation Office (ATO) is aiming to obtain personal information and transaction specifics from an estimated 1.2 million users of cryptocurrency exchanges as part of a potential clampdown on cryptocurrency tax duties. The ATO believes this information will aid in pinpointing traders who might have overlooked paying their cryptocurrency transaction taxes. The process will involve collecting numerous personal details such as date of birth, social media handles, phone numbers, and transaction data which includes wallet addresses, types of coin trades, and bank account specifics. As cryptocurrencies are seen as taxable assets by the Australian authorities, traders are obliged to pay capital gains tax on any profit made from selling cryptocurrency assets.
In a separate development, South Korea's governing party, the Democratic Party of Korea, is looking to urge the Financial Services Commission (FSC) to review its current legal understanding of spot Bitcoin Exchange-Traded Funds (ETFs). Following the National Assembly's reopening in June, the stance of the party, which controls 175 of the 300 seats, will be communicated to the FSC. Previously, following the U.S.'s approval of spot BTC ETFs, the FSC cautioned that Korean security firms could be in violation of the Capital Market Act by listing foreign spot ETFs.
On the international front, Indian financial overseer, the Financial Intelligence Unit, has given global cryptocurrency exchange Binance the green light to resume operations in India. With this recent approval, Binance joins KuCoin as the second offshore cryptocurrency exchange to be authorized to return. Both Binance and KuCoin were part of an nearly dozen overseas crypto platforms given noncompliance notices in December 2023, and have been subsequently blocked by the Indian IT department since mid-January 2024. Other platforms that received the notice include Huobi, Kraken, Gate.io, Bittrex, Bitstamp, MEXC Global, and Bitfinex.
Published At
5/13/2024 10:05:00 PM
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