Is it likely that large developing countries will push for a general ban on cryptocurrency? China has set a precedent and it now looks like India may be pursuing a similar policy: a bill including a proposed ban on all “private cryptocurrencies” will be submitted to the country’s parliament around this winter. This initiative is designed to enable India’s central bank to advance its digital currency agenda. Whether a sovereign central bank’s digital currency can coexist with a thriving “private” cryptocurrency market will be a key question in an era of threats to central bank currencies, and it is clear that governments will tend to use their coercion to tip the field. in favor of the central money that they control. On it.
Below is a consolidated version of the latest Law Decoded newsletter. For full details on political developments over the past week, subscribe to the full newsletter below.
Lok Sabha will consider political alternatives
One of 26 new bills from the Lok Sabha, the lower house of Indian parliament, during the winter session starting this week is the cryptocurrency and official digital currency regulation bill. The document outlines a set of measures aimed at promoting CBD creation, including a proposed ban on all “private” digital assets, with a few exceptions. The exact implications of this law remain the subject of much speculation, with analysts offering varying interpretations of the scope of the potential ban. However, the market reacted more coherently as cryptocurrency prices on the major Indian stock exchange, WazirX, plummeted on the news.
Paul remains, Omarova is in the air
US President Joe Biden has appointed Jerome Powell, the current chairman of the Federal Reserve System, to a new four-year term as head of the Federal Reserve System. During one of his recent congressional speeches, Powell said there was no general ban on Chinese-style cryptocurrencies, but said stack coins needed stricter regulatory oversight. During Powell’s current term, which is due to end in February 2022, the Federal Reserve is actively exploring the possibility of issuing a central bank digital currency, and is also working with federal regulators on cryptocurrency-focused “political races” to identify and address vulnerabilities. … … in the regulation of digital assets.
NFT Policy in South Korea
Cryptocurrency remains a hot political issue in South Korea as the government is sending mixed signals about whether new rules, including a 20% tax on cryptocurrency income, will come into effect on January 1, 2022. What types of digital assets will become popular? The updated tax code also remains controversial. While the country’s Financial Services Commission had previously stated that non-fungible tokens, or NFTs, were tax-free, the head of the agency said the exact opposite last week. In addition, the regulator has imposed a number of strict reporting requirements for digital token issuers with imprisonment for those who do not comply.