Perhaps one of the most compelling signs of the industry’s maturity is the growing number of court cases in which crypto firms are fighting perceived regulatory abuses. Last week we saw some important progress in that direction.
Digital asset manager Grayscale has filed its opening brief against the United States Securities and Exchange Commission to challenge its decision to deny Grayscale’s application to convert the Grayscale Bitcoin Trust (GBTC) into an exchange-traded fund (ETF). Bitcoin. According to Grayscale, the SEC must file its report by November 9.
Coin Center, a US-based cryptocurrency policy advocacy group, has gone ahead with its intention to take the Treasury Department’s Office of Foreign Assets Control (OFAC) to court for sanctioning the mixer. Tornado Cash cryptocurrency. Coin Center attorneys, as well as cryptocurrency investor David Hoffman, an anonymous human rights defender known only as John Doe, and software developer Patrick O’Sullivan filed a joint complaint against OFAC, Treasury Secretary, Janet Yellen, and OFAC Director Andrea Gacki. The complaint alleged that sanctioning Tornado Cash was “unprecedented and illegal,” in part due to privacy concerns about crypto transactions.
Meanwhile, Ripple CEO Brad Garlinghouse revealed that he expects the long battle between Ripple and the SEC to end in the first half of 2023. “Federal judges work at their own pace,” he stated, before adding: “With optimism, we are talking about three to four months. Pessimistically, it could be longer than that.” The fintech chief said that Ripple would consider a settlement with the SEC, as long as XRP is not classified as a security.
MiCA passes through the Committee of the European Parliament
Members of the European Parliament Committee approved the key cryptocurrency policy and framework, Markets in Crypto-Assets (MiCA), in a vote of 28 for and one against, with a final vote expected in a full session of the European Parliament. early. After the MiCA vote, Members of the EU Parliament also overwhelmingly approved a provisional agreement on the Funds Transfer Regulation, legislation intended to have compliance standards for crypto assets in an effort to crack down on money laundering. The two regulatory frameworks, if they receive final approval, would apply to EU member states, but would potentially serve as an example for global crypto lawmakers. Following all the procedures and verifications, the crypto policies could come into effect as early as 2024.
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OECD framework to combat international tax evasion using digital assets
The Organization for Economic Cooperation and Development (OECD) has published a framework aimed at helping tax authorities achieve greater visibility of crypto transactions and the users who carry them out.. The cryptocurrency tax framework proposes the automatic exchange of information on crypto transactions between jurisdictions on an annual basis, given an increase in the number of unregulated exchanges and wallet providers. If approved, the framework would likely make it easier to share cryptocurrency transaction information among the 38 OECD member countries, a list that includes the United States, Japan, South Korea, and many nations within Europe.
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Portugal Proposes 28% Tax on Crypto Profits
Long considered a cryptocurrency tax haven, the government of Portugal has proposed a 28% tax on capital gains from cryptocurrencies held for less than a year. The government’s 2023 state budget document featured a brief section addressing the taxation of cryptocurrencies which, to date, have not been touched by the Portuguese tax authorities, given that digital assets were not recognized as legal tender.
In the 444-page document, a proposal for income tax on operations involving cryptocurrencies through activities such as mining, trading and capital gains was presented. The State Budget also proposes a tax rate of 4% for free transfers of cryptocurrencies in cases of inheritance, as well as stamp taxes on commissions charged by intermediaries involved in the cryptocurrency sector.
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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.