Are massive rising economies extra more likely to gravitate towards blanket crypto bans? China has set a precedent, and now it seems as if India may very well be weighing the same coverage course: A invoice containing a proposed ban on all “non-public cryptocurrencies” will go in entrance of the nation’s parliament someday this winter. The measure is designed to clear the way in which for India’s central financial institution to advance its digital foreign money agenda. Whether or not a sovereign central financial institution digital foreign money can coexist with a thriving market of “non-public” cryptos might be one of many central questions of the looming CBDC age, and it’s clear that governments might be tempted to make use of their coercive authority to tilt the enjoying area in favor of the centralized cash that they management.

Under is the concise model of the newest “Legislation Decoded” e-newsletter. For the complete breakdown of coverage developments over the past week, register for the complete e-newsletter beneath.

Lok Sabha to think about coverage choices

One of many 26 new payments that the Lok Sabha, the decrease chamber of the Indian parliament, will tackle through the winter session that kicks off this week is The Cryptocurrency and Regulation of Official Digital Foreign money Invoice. The doc outlines a set of measures meant to facilitate the creation of a CBDC, together with a proposed ban on all “non-public” digital belongings, with just a few exceptions. The precise implications of the laws stay a topic of a lot hypothesis, with analysts providing diverging interpretations of the scope of the potential ban. The market, nevertheless, responded in a extra consolidated means, as crypto costs on the most important Indian change WazirX tanked on the information. 

Powell to stay, Omarova up within the air

United States President Joe Biden nominated Jerome Powell, the present chair of the Federal Reserve System’s Board of Governors, for one more four-year time period on the helm of the Fed. Throughout one in all his latest appearances in entrance of Congress, Powell acknowledged {that a} China-style blanket ban on crypto was not within the playing cards however mentioned that stablecoins wanted higher regulatory oversight. Throughout Powell’s present tenure, which is ready to run out in February 2022, the Federal Reserve has been actively exploring the potential of issuing a CBDC, in addition to teaming up with federal regulatory companies for crypto-focused “coverage sprints” aimed toward figuring out and remedying gaps in digital asset regulation. 

South Korean NFT politics

Crypto taxation stays a hot-button political difficulty in South Korea, as the federal government is sending blended alerts on whether or not new guidelines, together with a 20% tax on crypto earnings, will go into impact beginning Jan. 1, 2022. Which varieties of digital belongings fall underneath the up to date tax code stays murky as properly. Whereas the nation’s Monetary Companies Fee had beforehand acknowledged that nonfungible tokens, or NFTs, are exempt from taxation, the company’s chairman acknowledged the precise reverse final week. Moreover, the regulator has come ahead with a set of strict reporting necessities for digital token issuers, with jail time prescribed for individuals who fail to conform.