US lawmakers fight CBDC, advocate crypto custody for banks: Law Decoded

David Attlee3 hours agoUS lawmakers fight CBDC, advocate crypto custody for banks: Law DecodedFive United States senators have joined hands to fight President Joe Biden’s plans to issue a “digital dollar.”2591 Total views22 Total sharesListen to article 0:00NewsletterOwn this piece of crypto historyCollect this article as NFTJoin us on social networksFive United States senators have joined hands to fight President Joe Biden’s plans to issue a “digital dollar” by co-signing legislation demanding a ban on central bank digital currencies (CBDCs). Senators Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd and Mike Braun introduced the CBDC Anti-Surveillance State Act, challenging the Federal Reserve’s authority to implement a CBDC. The bill goes explicitly against the Federal Reserve’s authority “to offer certain products or services directly to an individual, to prohibit the use of central bank digital currency for monetary policy, and for other purposes.”

Meanwhile, the U.S. House Financial Services Committee (HSFC) has voted in favor of a resolution that seeks to overturn a U.S. Securities and Exchange Commission (SEC) guideline that has prevented banks from engaging in crypto custody. The SEC’s Staff Accounting Bulletin No. 121, introduced in March 2022, is a set of guidelines requiring institutions that custody crypto assets to record crypto holdings as liabilities on their balance sheets. “By overturning SAB 121, the Resolution will ensure consumers are protected by removing roadblocks that prevent highly regulated banks from acting as custodians of digital assets,” stated the HFSC in a press release.

Less centralization, softer regulation. According to SEC Commissioner Hester Peirce, that’s what the United States needs. Speaking at the ETHDenver conference, Peirce, also known as “Crypto Mom,” proclaimed that decentralization brings resilience and strength to the financial system. “The whole concept of decentralization stands very much in contrast to what we’re used to at the SEC,” she added. The SEC commissioner also spoke about a wide range of crypto-related topics, including the agency’s future following the U.S. presidential election later in 2024, spot Bitcoin exchange-traded funds (ETFs), CBDCs and the specter of state financial surveillance.Indonesia may reassess its crypto taxes

Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti) has reportedly asked the nation’s Ministry of Finance to assess its stance on cryptocurrency taxation. Executive staff members at Bappebti have requested to reassess the government-imposed value-added tax of 0.11% on each crypto transaction in Indonesia and the 0.1% income tax on crypto. Tirta Karma Senjaya, head of the Bureau of Market Development and Development at Bappebti, explained the reason behind this is that crypto is on track to becoming an integral part of Indonesia’s broader economy in the near future.

Total government revenue from crypto taxes in Indonesia reached the equivalent of approximately $2.49 million in January. Although these crypto taxes have been in effect in Indonesia for nearly two years, Senjaya stated they should undergo an annual review similar to other tax laws.

Continue readingNigeria denies $10 billion Binance fine

A Nigerian government representative has refuted speculation about a $10 billion fine for crypto exchange Binance. Bayo Onanuga, a special adviser to the Nigerian president on information and strategy, says the allegations reported by the BBC result from a misquotation. Onanuga said he did not state that Binance was informed about the fines or that it would be $10 billion. He only mentioned the possibility of a fine, as nothing is final yet. The statement comes as crypto exchanges face growing regulatory scrutiny in Nigeria, with multiple platforms banned recently to safeguard the country’s national currency, the Nigerian naira. Binance removed the naira from its peer-to-peer (P2P) service on Wednesday, Feb. 28, amid a crackdown on the crypto exchange.

Continue readingSouth Korea’s ruling party delays promised crypto liberalization

South Korea’s ruling People Power Party has indefinitely delayed its proposal to ease cryptocurrency restrictions, including lifting the ban on local spot Bitcoin (BTC) ETFs. The party’s reversal of pledges could be linked to challenges in aligning with the government and financial authorities on cryptocurrency policies. Earlier this month, there were reports that the governing party was crafting election promises to delay taxing crypto profits and permit domestic institutions to introduce spot Bitcoin ETFs and invest directly in cryptocurrencies.

The People Power Party reportedly removed virtual assets from its policy priorities as the party, led by Yoon Chang-hyun, intended to announce a virtual asset pledge last week but has postponed it indefinitely. Meanwhile, the opposition Democratic Party, which had also reportedly vowed similar pledges regarding crypto ETFs, officially announced its crypto campaign promises.

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