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March 22 week 2


 

South Korea Elects Crypto-Friendly Yoon Suk-Yeol as President

https://foreignpolicy.com/


New Crypto friendly policies

Following a narrow victory for the presidency, Yoon Suk-yeol, leader of the South Korea’s People Power Party is on a mission to make good on his promise to make ICOs possible again by removing the ban which was enforced in 2017 amid much controversy and hype.


As the world's 3rd largest crypto trading market, this shift away from regulation may signal other countries to push for adoption and embrace virtual assets during their respective elections.


Crypto Tax free allowance improves

One of the changes proposed includes increasing the threshold for paying capital gains tax on earnings from Bitcoin and other cryptocurrencies from $2,000 to $40,000, making South Korea one of the most attractive countries to hold Crypto as an asset.


 

China Speeds Up Testing of Digital Yuan


Digital Yuan is not Crypto

Also known as the e-CNY, it’s designed to replace the cash and coins already in circulation. It is not a cryptocurrency like bitcoin, in part because it’s controlled and issued by the central bank.


The two dominant payment systems in China are Tencent’s WeChat Pay and Alipay, which is run by Alibaba affiliate Ant Group.

kr-asia.com

Digital Yuan is easily controlled by the government

CBDCs are not only trackable, they may also be programmable. After a natural disaster, for example, a government could send citizens digital money that could be spent on food and medicine, but not alcohol.

The digital yuan will give the government greater visibility into the financial transactions of its citizens.


A note by the Financial Stability Bureau of the Chinese central bank revealed that the global share of

Bitcoin transactions in China has dropped rapidly from more than 90% to 10%.


In conclusion, China is only supportive towards a centralised digital currency instead of a truly decentralised cryptocurrency with privacy protection features.


 

U.S. President Joe Biden signed an Executive Order on Crypto


Investor protection

To understand the technology underpinning digital assets and the weaknesses in the current financial system.


Future of money

To analyse cryptocurrencies’ impact on economic and financial growth, financial inclusion and national security


Digital Dollar

Evaluation in progress and US government has not put his foot down on privacy issue of their CBDC


National Security & International Cooperation

Strive to increase international implementation of anti-money laundering networks and frameworks with digital assets to prevent criminal financing activities.


The U.S. decided not to ban cryptocurrency completely but to face challenges inherited by the decentralised financial ecosystem in a centralised environment.


 

Dubai Adopts Initial Crypto Law

businessbecause.com

Establishes Independent Authority for Oversight

Under the new law, the UAE is establishing a Dubai Virtual Assets Regulatory Authority (VARA), which would be tasked with regulating these assets. The VARA is to serve as an independent authority under the Dubai World Trade Centre Authority, which will oversee the regulation, governance, and licensing of cryptocurrencies, NFTs, and other virtual assets.


VARA's duty is to quality control

The VARA’s main responsibilities include regulating the issuance of new crypto tokens, supervising and controlling the trading of virtual assets, ensuring that high standards of protection are in place, monitoring transactions, and more.


The transfer of virtual assets, management services, exchange services, operating virtual assets platforms, and virtual asset custody is also under VARA's domain.


Dubai is well positioned to be one of the preferred crypto hubs with all these measures in place.

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