Selected Global Crypto Regulatory News - December 2024
Infocredit Group Ltd
Empowering Businesses with High-Quality, Flexible Solutions in Credit Risk and Regulatory Compliance
United States:
Texas Introduces Bitcoin Reserve Act: The US state of Texas introduced a bill[1] in the House of Representatives, cited as the “Texas Strategic Bitcoin Reserve Act”. This legislation proposes establishing a strategic bitcoin reserve, enabling the state to own Bitcoin as a financial asset, accept taxes and voluntary donations in bitcoin. This initiative positions Texas as a leader in state-level cryptocurrency adoption and could influence other US states’ approach to cryptocurrency legislation.
Criminal Tax Evasion Case on Bitcoin Gains: An early Bitcoin investor in Austin, Texas, was sentenced[2] to 2 years in prison for failing to report capital gains he earned from selling $3.7 million in bitcoin, bought as early as 2011. This marks the first criminal tax evasion case solely focused on cryptocurrency, signaling increased scrutiny from tax authorities.
EU and UK
MiCA Regulations Challenge USDT: The EU’s Markets in Crypto-Assets (MiCA) regulations, effective December 30, 2024, may force USD Tether (USDT) out of the EU, due to its reliance to US Treasuries as collateral, instead of EU reserves. Major global exchanges such as Coinbase, Binance, Bitstamp have delisted USDT in Europe, while others await regulatory clarity. This development could disrupt businesses that rely on USDT for transactions and complicate cross-border payment processes for European consumers. Meanwhile, stablecoins like USD Coin (USDC) and the euro-pegged EUR Coin (EURC) are MiCA compliant.
Bank of England Seeks Cryptoasset Exposure Disclosures: The Bank of England has mandated firms in the UK to disclose[3] their current and expected future cryptoassets exposures, by March 24, 2025. This requirement aims to monitory financial stability and help shape future crypto-related policies.
Malta Implements Travel Rule Guidelines: Malta’s Financial Intelligence Analysis Unity (FIAU) informed[4] Payment Service Providers (PSPs) and Crypto-Asset Service Providers (CASPs) of the adoption of the revised guidelines on the “Travel Rule”. These guidelines mandate detailed information requirements for fund and cryptoassets transfers, enhancing compliance and security.
Middle East and Asia
Hong Kong Offers Tax Exemptions for Crypto Gains: Hong Kong has reportedly[5] proposed tax exemptions on investment gains from cryptocurrencies and alternative assets, to attract crypto hedge funds, and investors. Meanwhile, Hong Kong’s Securities and Futures Commission (SFC) expedited[6] crypto licensing process, approving four additional cryptocurrency exchanges in December. These measures are likely to solidify Hong Kong’s position as a leading global crypto hub by fostering a favorable environment for investment and innovation.
UAE Launches Regulated Dirham-Pegged Stablecoin: UAE’s Central Bank of UAE reportedly[7] approved “AE Coin” a first-of-a-kind 1:1 Dirham pegged stablecoin. AE Coin, with reserves fully backed and held within the UAW, is poised to enable businesses to accept stablecoin payments, setting a precedence for regional stablecoin adoption.
South Korea Delays Crypto Tax Implementation: South Korea reportedly[8] postponed its cryptocurrency trading tax for the third time, now set to take effect in 2027. The tax initially planned for 2022, imposes a 22% tax on annual crypto income exceeding 2.5 million won. The delay reflects ongoing efforts to address structural issues and ensure fair taxation.
Türkiye Aligns Crypto AML Regulations with Global Standards: Türkiye reportedly[9] introduced stricter crypto anti-money laundering (AML) regulations, effective February 2025, to align with global AML/KYC standards. Key measures include mandatory identity verification for transactions over 15,000 Turkish lira (£425) and rigorous checks on unregistered wallets.
Singapore Updates E-Payment Guidelines: Singapore’s Monetary Authority (MAS) updated[10] E-Payment User Protection Guidelines, to clarify responsibilities for unauthorized and erroneous transactions, in relation to protected accounts[11]. Additionally, MAS announced[12] plans to support commercialization of asset tokenization, enhancing market infrastructures for cross-border transactions and deepening liquidity for tokenized assets.
Latin America
Argentina Invites Consultation on Proposed VASP Regulations: Argentina’s Comisión Nacional de Valores (CNV), has reportedly[13] issued General Resolution N°1025, inviting public consultation on a draft for new regulations governing Virtual Asset Service Providers (VASPs). This framework aims to establish clear guidelines for cryptoassets governance in the country. The consultation period is expected to conclude by early 2025, with regulations anticipated to be enacted later that year.
El Salvador Agrees with IMF on Bitcoin Usage: El Salvador and the IMF have reached a staff-level agreement[14] under the Extended Fund Facility (EFF) for US$1.4 billion in loans to support reforms. The agreement stipulates that Bitcoin acceptance by the private sector remains voluntary, while public sector participation in Bitcoin-related activities will be confined.
Africa
South Africa Mandates CASP Licensing: South Africa’s Financial Sector Conduct Authority (FSCA) reportedly[15] requires all Crypto Asset Service Providers (CASPs) to obtain licenses as financial service providers. As of December 2024, the FSCA has received 420 applications, approving 248, declining 9, and processing 56, while 106 applications were voluntarily withdrawn. This move strengthens regulatory oversight in the African crypto market.
Conclusion
December 2024 showcased significant strides in global cryptocurrency regulation. While regions like the EU and the UK grapple with stringent frameworks like MiCA, jurisdictions such as Hong Kong and the UAE embrace crypto innovation through progressive measures. These developments reflect a global effort to balance regulation with innovation, ensuring stability and fostering growth in the evolving crypto landscape.
[6] https://dig.watch/updates/hong-kong-speeds-up-crypto-licensing-process
[9] https://dig.watch/updates/turkey-to-enforce-strict-crypto-rules-by-2025
[10] https://www.mas.gov.sg/regulation/guidelines/e-payments-user-protection-guidelines
[11] Protected account” means any payment account that: (a) is held in the name of one or more persons, all of whom are either individuals or sole proprietors; (b) is capable of having a balance of more than S$1,000 (or equivalent amount expressed in any other currency) at any one time, or is a credit facility; (c) is capable of being used for electronic payment transactions; and (d) where issued by a relevant payment service provider is a payment account that stores specified e-money.
[15] https://www.cover.co.za/news/fsca-update-on-licensed-crypto-asset-service-providers