Tag Archives: laws

Decentralized Platforms May Benefit From Strict US Crypto Tax Laws

Decentralized Platforms May Benefit From Strict US Crypto Tax Laws
For the first time, cryptocurrency transactions in the United States will become subject to third-party tax reporting requirements. This reflects growing interest driven by rising digital asset valuations. The shift could also lead investors to decentralized platforms, as analysts say.

According to the final regulation published by the US Internal Revenue Service (IRS), centralized crypto exchanges (CEXs) and other brokers will start reporting the sales and exchanges of digital assets, including cryptocurrencies,

As per IRS report issued in June 2024, this decision aims to help investors “file accurate tax returns with respect to digital asset transactions,” and to address potential noncompliance in digital currency.

Anndy Lian, author and intergovernmental blockchain said, some investors may see this as an overreach, which could drive more users to decentralized trading platforms.

There’s a “real risk of pushing users toward decentralized platforms like Uniswap or PancakeSwap,” Lian told Cointelegraph.

Swiss state-owned bank PostFinance launches ETH staking

A crypto-friendly retail bank, PostFinance, fully owned by the Swiss government, is offering Ether staking to its 2.7 million customers, who make up roughly a quarter of the Swiss population.

In a blog post on Jan 16, the bank said the service would offer investments using Ether

ETH $3,380.90 for a fixed minimum term of twelve weeks, with the opportunity to sell the credited staking rewards.

It comes as other traditional banks move into the crypto space. In December, Anchorage Digital became the first US federally chartered bank to support liquid Ether staking.

A minimum of 32 Ether is generally required to stake, worth roughly $106,000, according to CoinGecko. PostFinance says it will allow people to stake using 0.1 Ether, worth roughly $331.

Alexander Thoma, head of digital assets at PostFinance, said in a statement that the bank’s staking service will be based on native staking directly on the Ethereum blockchain.

He said, “The staking service is completely integrated into PostFinance’s existing services.”

“This means that customers can see their staking rewards directly in their asset statement, together with their other crypto assets,” Thoma added.

 

 

Source: https://www.outlookmoney.com/cryptocurrency/decentralized-platforms-may-benefit-from-strict-us-crypto-tax-laws

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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Decentralized platforms may benefit from strict US crypto tax laws

Decentralized platforms may benefit from strict US crypto tax laws

Cryptocurrency transactions in the United States will become subject to third-party tax reporting requirements for the first time, reflecting growing interest driven by rising digital asset valuations. This shift could lead investors to decentralized platforms, analysts say.

Starting in 2025, centralized crypto exchanges (CEXs) and other brokers will start reporting the sales and exchanges of digital assets, including cryptocurrencies, according to the final regulation published by the US Internal Revenue Service (IRS).

The decision aims to help investors “file accurate tax returns with respect to digital asset transactions,” and to address potential noncompliance in digital currency, according to the IRS’ report issued in June 2024.

Some investors may see this as an overreach, which could drive more users to decentralized trading platforms, according to Anndy Lian, author and intergovernmental blockchain expert.

There’s a “real risk of pushing users toward decentralized platforms like Uniswap or PancakeSwap,” Lian told Cointelegraph:

“This shift could lead to a paradoxical situation where the IRS’s desire for tax revenue might drive more users towards environments where tax enforcement is currently unfeasible.”

Showcasing the crypto industry’s backlash, the Blockchain Association filed a lawsuit against the IRS in December 2024, arguing that the rules are unconstitutional since they include decentralized exchanges (DEXs) under the “broker” term, extending data collection requirements to them.

Blockchain analytics could make DeFi transactions traceable by 2027

Crypto transactions on decentralized finance (DeFi) protocols are harder to trace for tax authorities since these platforms aren’t operated by central intermediaries.

However, DeFi protocols will likely become more traceable by 2027, thanks to advanced blockchain analytics, Lian said, adding:

“While decentralized systems currently pose challenges for tax enforcement, advancements in blockchain analytics and potential regulatory developments by 2027 could change this landscape.”

To prevent a potential exodus, Lian said the crypto industry needs specialized tax brackets that account for high volatility and significant retail participation. “Treating crypto gains the same as traditional capital gains may not always be fair,” he said.

The soaring cryptocurrency valuations have invited the attention of other jurisdictions as well.

European retail investors should also brace for taxation following the implementation of the Markets in Crypto-Assets (MiCA) framework, according to Dmitrij Radin, the founder of Zekret and chief technology officer of Fideum, a regulatory and blockchain infrastructure firm focused on institutions.

He told Cointelegraph:

“Retail users will be way more, obligated to provide information, data which will be screened. They will be accounted for. Most Europeans will see taxation.”

MiCA is the world’s first comprehensive regulatory crypto framework, which went into full effect for crypto-asset service providers on Dec. 30.

 

Source: https://cointelegraph.com/news/decentralized-platforms-gain-from-strict-us-crypto-tax-laws

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Blockchain Fest Singapore 2023- Cryptocurrency Laws and Regulations: Insights from experts

Blockchain Fest Singapore 2023- Cryptocurrency Laws and Regulations: Insights from experts

Blockchain technology and cryptocurrencies have gained immense popularity in recent years, with the potential to revolutionize various industries. However, with new technology comes the need for regulation to ensure its safe and effective use. The Blockchain Fest Singapore 2023 is a premier event that brings together industry experts, policymakers, investors, and entrepreneurs to discuss the latest developments in the blockchain and cryptocurrency industry.

The event promises to provide valuable insights into the regulatory landscape of the industry, its challenges and opportunities, and the future of blockchain technology and cryptocurrencies. With a focus on the legal and regulatory frameworks that govern the industry, attendees can expect to gain a better understanding of the current state of regulations and how they impact the growth of the industry.

The first panel for the event is “Blockchain & Cryptocurrency Laws and Regulations 2023”. The panel shares valuable insights into the regulatory landscape of the industry, its challenges and opportunities, and the future of blockchain technology and cryptocurrencies. With a focus on the legal and regulatory frameworks that govern the industry, attendees can expect to gain a better understanding of the current state of regulations and how they impact the growth of the industry. The panel is moderated by Surya Sarella, BlockSol Media, CEO and with a panel of experts:

– Anndy Lian, Best Selling Book Author “NFT: From Zero to Hero”
– Chris Holland, HM, Partner
– Mike Chiam, PDLegal Partner, ABA Founding Member
– Tuhu Nugraha, Executive Director Indonesia Blockchain & Metaverse Center (IBMC)
– Matthew Townsend, Partner, Reed Smith LLP

The moderator for the panel is Surya Sarela, CEO at Blog Soulmedia. Each speaker represents a crucial stakeholder, contributing to the debate from private, public, and policy perspectives. The panel discussion aims to answer the question: “Are countries or regulators around the world moving or heading towards banning or discouraging crypto?”

Chris Holland, the HM, partner, began by highlighting the lack of uniformity in crypto regulations worldwide. He emphasized the importance of having standard and consistent regulations to apply to the industry. However, tax laws are not the same globally, and similarly, crypto regulations will not be treated similarly worldwide. Brazil is relatively hostile towards crypto, whereas other countries like the UAE, Singapore, and the UK have more encouraging crypto regulations, including permitting crypto transactions while trying to foster financial stability.

Anndy Lian, best selling book author, added to the discussion by sharing his experience talking to different regulators and governments since 2018. He realized that most regulators and governments are very open to cryptocurrency, with only a few being anti-crypto. He added that big nations like India and many others are very receptive and open to cryptocurrency.

Mike Chum, PD legal partner and ABA founding member, added to the discussion by highlighting the importance of recognizing cryptocurrencies as a new asset class that requires new regulations. He believes the current regulations need updates to make them suitable for cryptocurrency.

Matthew Townsend, Reads Smith LLP partner, added to the discussion by emphasizing the need for clear regulations in the cryptocurrency industry. He believes that clear regulations would protect investors and facilitate useful investments.

Tuhu Nugraha, Executive Director Indonesia Blockchain & Metaverse Center echoed the sentiments of many industry experts when he emphasized the importance of understanding the regulatory framework for the blockchain and cryptocurrency industry. He highlighted that while innovation and growth are important, it is equally crucial to ensure that these developments are in line with existing laws and regulations.

The Blockchain Fest Singapore 2023 provides an excellent platform for industry experts, entrepreneurs, investors, and policymakers to engage in fruitful discussions and exchange ideas on the latest developments in the blockchain and cryptocurrency industry. With the rapid growth of the industry, it has become increasingly important to have a clear understanding of the regulatory landscape to ensure that blockchain technology and cryptocurrencies can reach their full potential. The event promises to be an exciting opportunity for attendees to gain insights into the current regulatory framework, its challenges, and future trends in the industry. With the participation of renowned speakers and industry leaders, the event is sure to provide valuable information and knowledge to all attendees, helping them stay ahead of the curve in this fast-changing industry.

 

Source: https://www.financialexpress.com/blockchain/blockchain-fest-singapore-2023-cryptocurrency-laws-and-regulations-insights-from-experts/2998970/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j