El Salvador’s President Nayib Bukele on Wednesday shared the news on Twitter that the country’s legislative assembly had approved new regulations on digital assets, with 62 out of 84 in attendance agreeing. The current law after ratification featured 47 articles seeking to protect cryptocurrency transfers and debt issues. A vocal Bitcoin advocate leader celebrated the victory and specifically commented on the “overwhelming majority” support.
El Salvador’s ‘groundbreaking’ digital asset law revitalizes bond issuance
Among other things, the enactment of this law paved the way for the issuance of $1 billion in Bitcoin-backed bonds. volcano bondPresident Bukele has pursued his Bitcoin adoption strategy with fortitude, to say the least. Mid-November 2022, Salvadoran leaders announced His government has promised to buy 1 BTC every day, but has yet to provide renewals.
“Today, El Salvador builds on its first-mover advantage by passing a landmark law that establishes a legal framework for all digital assets other than Bitcoin. The law also paves the way for Volcano Bonds, which are expected to begin issuing soon,” the National Bitcoin Office wrote Wednesday regarding the new law.
Plans for these Bitcoin-backed bonds surfaced in November 2021, along with plans to build Bitcoin City funded with $500 million raised through bonds. The issuance of these bitcoin-backed bonds had been slated for an earlier timeline, but the same was shelved due to economic uncertainty due to tensions in Europe.Bukele’s management said: We continue to work on raising another $500 million of him to acquire more assets.
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Argentina’s economy ministry considers tax cuts to boost declaration of held crypto assets
Meanwhile, fellow Latin Americans Argentina is seeking to motivate its citizens to be more outspoken about holding digital assets. A bill proposing to introduce preferential treatment was presented by the Argentine Ministry of Economy on 6 January. Local outlet Errepar report The minister in charge, Sergio Massa, has pushed ahead with a policy that, if approved, would require cryptocurrency holders to provide the government with an affidavit identifying their holdings.
The “Externalization of Savings in Argentina” draft explicitly outlines tax incentives for digital asset holders depending on the timing of their declarations. A holder who makes assets public during his first 90 days of implementation will only be subject to her 2.5% tax on capital gains on held assets. This number increases after a 90-day cycle until it is evened out at the standard tax rate of 15%. The bill urged citizens to declare their holdings of other taxable investment vehicles, such as stocks and real estate, besides digital assets. The draft will be considered at the next convened parliamentary session.
French Financial Markets Authority Calls for Rapid Surveillance Measures
Elsewhere, French regulators are accelerating the crypto regulatory process. Various jurisdictions around the world Digital assets that restrict or support policies necessitated by sector instability. Specifically, the regular lobbying For expedited licensing of crypto service providers and similar entities not currently registered. Marie-Anne Barbat-Layani, chairman of the Financial Markets Authority, said it would be good for the industry to require cryptocurrency service providers to obtain licenses that were previously not required. A bill to make a license mandatory as a business requirement will be considered by the House of Representatives.
In Italy, as part of the New Year’s budget approved on December 29, the Italian parliament has imposed a 26% tax on all capital gains from cryptocurrency transactions totaling over €2,000 ($2,122.28 at the time of writing). introduced.of Specification To encourage Italian residents to comply with the new tax requirements and encourage full disclosure, we have established an alternative income tax of 14% of the property value as of 1 January. The government can now carry forward her cryptocurrency investment losses in excess of €2,000 in a given tax period to the next tax period and set them off against taxable profits.
Similar to Italy, Portugal’s parliamentarians recently enacted a tax on profits from cryptocurrencies. Last October’s budget document showed that the government would impose his 28% capital gains tax on all crypto assets with a holding period of less than one year. The country’s budget plan specified that profits from cryptocurrency mining operations and the issuance of cryptocurrency tokens would also be taxable. The government imposes a 4% tax on free cryptocurrency transfers and also stamp duty where relevant. Portugal’s rejuvenation policy has effectively ended the country’s status as a crypto tax haven within Europe, forcing many crypto enthusiasts who have recently moved into government to adjust their strategies.
Hong Kong Seeks to Reclaim Crypto Hub Status
Meanwhile, in Hong Kong, the government has stepped up its efforts to make the region prosperous for companies operating in this sector by adopting a strong regulatory framework.
“Hong Kong has become a high-quality position for digital asset companies as certain cryptocurrency exchanges have collapsed one after another,” Hong Kong Finance Minister Paul Chan said. addition“The city has a robust regulatory framework that is consistent with international norms and standards while prohibiting free riding.”
In line with measures to make the region more friendly to developing companies, the region’s financial authorities say they are open to allowing small retail investors to participate in crypto trading. It is reported. Current regulations target only wealthy retailers, as evidenced by the requirement for bank assets of $1 million or more to participate.
