Latest news with #VASPs
FF News
2 days ago
- Business
- FF News
Republic of Nauru Becomes First Pacific Country to Launch Digital Asset Regulator
The Republic of Nauru has officially launched its digital asset regulator, becoming the first Pacific island nation to do so. This move positions Nauru as a regional pioneer in crypto regulation, signaling a growing interest in digital assets across Oceania. The Bill establishes the Command Ridge Virtual Asset Authority (CRVAA), named after the highest point of land in Nauru, as an autonomous regulator overseeing virtual assets, digital banking, and Web3 innovation. It will provide a licencing scheme that will allow virtual asset service providers (VASPs) to register and offer their services using Nauru as a base. Nauru President David Adeang said the regulation would pave the way for Nauru to be a digital asset leader in the region and is another step towards strengthening financial integrity, investing in future generations, and forging new pathways for resilience. He pointed out that Nauru is one of the Pacific's most at-risk nations, acknowledged under the United Nations Multidimensional Vulnerability Index (MVI), for its heightened exposure to economic and environmental shocks, and that the Government needed to embrace innovation. 'This bold step aims to harness the potential of virtual assets to diversify revenue streams and fortify economic resilience,' he said. 'By implementing robust oversight of VASPs, Nauru aims to foster sustainable growth, channel new financial inflows into strategic instruments such as its Intergenerational Trust Fund, and reduce its reliance on climate financing, which is often challenging to secure.' The President said Nauru aspires to secure a more sustainable and self-reliant economic future. 'We want to be a government of solutions and innovation, be proactive not passive, and positively approach the future with boldness,' he said. Minister for Commerce and Foreign Investment Maverick Eoe told Parliament that more countries are recognising the potential of virtual assets from blockchain technologies to decentralised finance. 'This Bill proposes to introduce a framework that will put Nauru on par with other countries leading in the development of their digital economies and generating revenue from such developments,' he said. 'The licensing framework….ensures Nauru becomes a competitor, attracting businesses that bring investment, job creation, and financial innovation,' he said. 'By regulating VASPs, token issuance, and secure digital transactions, we can position Nauru as a hub for these types of innovation and development within this part of the world. He said the legislation is a commitment to the future prosperity of the country and a statement that Nauru does not fear the digital transformation, but embraces it and leads within the Pacific region. CRVAA will be tasked with ensuring cybersecurity standards, monitoring financial transactions and enforcing compliance with international anti-money laundering and financial transparency protocols. The Bill, which provides unmatched legal certainty for the token-issuer, introduces a groundbreaking token classification system that provides long-awaited clarity for the global crypto industry, stating that: Cryptocurrencies are presumed commodities, not securities; Utility and payment tokens are excluded from investment contract status; Governance and reward tokens are protected from misclassification The Nauru law defines the activities subject to CRA authorisation as follows: Operation of centralised or decentralised virtual asset platforms Exchange services between virtual assets and/or fiat currencies Custodial and non-custodial virtual asset wallet services Issuance of virtual tokens, including ICOs, STOs, and NFTs Lending, staking, yield farming, and decentralised finance (DeFi) services Stablecoin issuance and cross-border payment solutions Operation of digital banks and digital payment platforms Issuance and management of E-money
Coin Geek
3 days ago
- Business
- Coin Geek
Spain tracks digital asset holdings for taxes under proposed law
Homepage > News > Business > Spain tracks digital asset holdings for taxes under proposed law Getting your Trinity Audio player ready... Spain is cracking down on tax evaders in the digital asset sector with a proposed law that requires exchanges to share user data with tax authorities. The proposal was submitted to Congress by the Council of Ministers, reports local outlet El Economista. It requires virtual asset service providers to report users' transactions and account balances to the tax authorities, enabling the tax agency—known as the Agencia Tributaria—to clamp down on tax cheats. The proposed bill aligns Spain's tax code with the 8th amendment to the Directive on Administrative Cooperation (DAC8). This EU-wide directive that mandates VASPs to report user transactions to EU tax authorities. It covers VASPs based in the region and offshore exchanges with EU users. By aligning with DAC8, Spain's proposed law will enable the Agencia Tributaria to receive data from other EU countries on digital assets held by Spanish investors. 'This will entail greater control over assets of this type located abroad and over balances,' the Ministry of Finance said in a statement. Beyond access to data, the proposal would enable the government to seize digital assets held by tax evaders as payment for arrears. According to Spanish digital asset lawyer Cris Carrascosa, the Finance Ministry consulted some industry stakeholders while drafting the bill. '…I trust that public-private collaboration in drafting regulations that affect evolving, yet highly technical, issues, such as innovation, is the only way to pass fair, sensible, and effective laws,' he stated on X. If legislators adopt the proposal, it would take effect in January 2026. Spain isn't alone in implementing the EU's DAC8. On Thursday, Slovakian lawmakers approved Bill No. 706, which aligns the country's tax regulations with the European framework. Providers who fail to report their users' data as required by the new law will face a €30,000 ($34,585) fine, while operators will face a €15,000 ($17,292) penalty. Kenya's digital asset sector decries proposed taxes In Kenya, stakeholders in the digital asset industry are waging a war against proposed taxes that they say could derail adoption. The East African nation is among the leading digital asset hubs on the continent, but regulators are still playing catch-up, including with taxation. The government proposed a 1.5% digital asset tax on every transaction two years ago. The uproar from the sector has kept the tax at bay, but in recent months, legislators have resumed debate on the proposals. The East African nation is among the leading digital asset hubs on the continent, but regulators are still playing catch-up, including with taxation. The government proposed a 1.5% digital asset tax on every transaction two years ago. The uproar from the sector has kept the tax at bay, but in recent months, legislators have resumed debate on the proposals. Industry stakeholders have been pushing back against the tax. Chebet Kipingor, the business operations manager at Busha exchange—one of only two licensed exchanges in Nigeria—says in one news outlet that the tax could drive startups to other friendlier jurisdictions and blow Kenya's fintech leadership. The Kenya Revenue Authority has previously stated that it collected $78 million in taxes from the sector in the 2023-24 financial year. The authority has set a target of $466 million, which would require an aggressive tax base expansion. Chebet says that while such an expansion is valid, 'the policy's current form could deliver unintended consequences for Kenya and financial inclusion efforts across the continent.' Other stakeholders have called for a more nuanced approach that accounts for digital asset complexity. Allan Kakai, who heads the local Virtual Assets Chamber of Commerce, says the best approach would be to tax on- and off-ramping transactions. Under the proposed framework, even transferring digital assets from one wallet to another would attract taxation. 'Stablecoins are utility assets. Bitcoin is speculative. Treating them the same makes no sense,' Kakai stated. The digital asset community has reiterated that it's not against regulations and taxation; all it seeks is a balanced approach that doesn't punish innovators. 'With the right regulations, those that promote innovation, attract investment, and expand economic opportunity, Kenya can lead the continent. Positive policies will unlock job creation, increase government revenue, and bring more traditional finance players into the space,' added Kakai. The tax framework could play a key role in whether Kenyan financial institutions support digital assets, with overly stringent requirements likely to put them off. According to the country's central bank, over 30% of the country's lenders are ready to integrate digital assets. Watch: Here's how Triple Entry Accounting guarantees trust in accounting
Coin Geek
5 days ago
- Business
- Coin Geek
1 in 3 Kenyan banks ready to venture to digital assets: report
Getting your Trinity Audio player ready... A few years ago, digital asset traders in Kenya couldn't get a bank to open accounts for them and had to resort to mobile money, whose daily transaction limits are much lower. Now, one in three banks is ready to venture into digital assets, according to a new report by the country's central bank. In its 2024 Innovation Survey, the Central Bank of Kenya (CBK) revealed that '31 percent of the respondents indicated that they were highly likely to undertake activities in the area of virtual assets,' including digital currencies like BSV, non-fungible tokens (NFTs), and other digital tokens. Kenya has been one of the global leaders in adoption, ranking first globally for peer-to-peer digital asset transaction volume in 2020 and 2021. It has also ranked highly for overall adoption every year since, with South Africa and Nigeria the only African countries with more users. However, like in most African nations, the banking industry has steered clear of the sector. For years, most Kenyan banks denied service to VASPs and any individual whose account was linked to digital asset platforms. In some cases, they shut down accounts they believed to be dealing in 'crypto.' Times have changed, and with adoption skyrocketing, the lenders are now warming up to the sector, CBK revealed. 'Financial institutions indicated their interest in virtual assets, noting the potential opportunities of virtual assets in enhancing financial access to the unbanked by providing alternative payment and investment channels, improving transaction speed, and reducing transaction costs,' the report noted. In 2022, the United Nations Conference on Trade and Development (UNCTAD) estimated that four million Kenyans owned digital assets. Other more recent reports put this number at over six million, which accounts for over 10% of the population. The country's tax agency chair has stated that in the financial year 2022, the total digital asset market turnover hit Kshs. 2.4 trillion ($19 billion). While the banks have warmed up to digital assets, they are wary of associated risks 'such as challenges in enforcing Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) controls, cybersecurity risks, fraud, and high volatility among others,' the CBK report stated. Kenya still lacks a comprehensive regulatory framework for the digital asset sector, which limits the involvement of highly regulated entities such as banks. Like most jurisdictions, authorities have had to apply general fintech laws to the sector. However, the nuances of digital assets, such as their decentralized nature or high volatility, hinder this application. This could change soon. Legislators are weighing a new bill to legalize digital assets and set guardrails to protect investors. However, the digital asset sector is fighting to have some sections amended, such as a 1.5% digital asset tax on each transaction before the bill passes. Beyond the banks, the innovation survey also noted that stablecoins' prominence in the East African nation has been steadily rising, especially in cross-border payments. Uber weighs digital asset payments Elsewhere, ride-hailing giant Uber (NASDAQ: UBER) is once again considering integrating digital asset payments, CEO Dara Khosrowshahi has revealed. Speaking at a tech conference, Khosrowshahi said the company is in the 'study phase,' but leaning more toward stablecoins. 'I think stablecoins are one of the more interesting instantiations of crypto that have a practical benefit beyond being a store of value,' he stated at the Bloomberg Tech Summit in San Francisco. 'Stablecoins seem quite promising, especially for global companies moving money around internationally. That's super interesting to us, and we're definitely going to take a look.' It's not the first time Uber has claimed to be exploring digital assets. In 2021, Khosrowshahi stated that the company was weighing digital asset payments but would not follow Tesla (NASDAQ: TSLA) into purchasing BTC on its balance sheet. However, nothing came of this pledge. Uber was also a member of Meta's (NASDAQ: META) ill-fated Libra-cum-Diem stablecoin project, which Mark Zuckerberg abandoned in 2022 after being frustrated by regulators globally. Whether Uber follows up on its recent stablecoin pledge remains to be seen. Meanwhile, dozens of other giants in finance, tech, and beyond are scrambling to integrate stablecoins into their businesses or launch new stablecoins themselves. Among those looking to challenge incumbents like Tether and the recently publicly listed Circle (NASDAQ: CRCL) is a conglomerate of the top U.S. banks. Led by JPMorgan (NASDAQ: JPM) and Citi (NASDAQ: C), the banks reportedly met a week ago to discuss a joint effort to launch a unified stablecoin. In Europe, Germany's largest lender, Deutsche Bank (NASDAQ: DB), is also exploring whether it should issue its stablecoin or launch a joint initiative with other top banks. Watch: Tech redefines how things are done—Africa is here for it title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
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Business Standard
13-06-2025
- Business
- Business Standard
CBDT sends emails over undisclosed crypto income in latest NUDGE drive
The Central Board of Direct Taxes (CBDT) has sent emails to thousands of individuals who may have under-reported income from crypto transactions, asking them to review and update their income tax returns (ITRs), according to CBDT sources. 'The department has recently sent emails to thousands of defaulting persons to review their ITR and update it if any income on account of VDA (virtual digital asset) transactions has not been properly declared. Those who fail to respond to the nudge may be picked for verification or scrutiny,' an official said. 'Using data analytics, the tax department has flagged cases where taxpayers either failed to file the mandatory Schedule VDA in their ITR or declared such income incorrectly by claiming lower tax rates or disallowed deductions such as indexation,' the source said. According to CBDT sources, the department is also matching income tax returns with tax deducted at source (TDS) returns filed by Virtual Asset Service Providers (VASPs), such as crypto exchanges, to identify discrepancies. Income from the transfer of VDAs is taxable at a flat 30 per cent under Section 115BBH of the Income Tax Act, 1961, without any deductions except cost of acquisition. Losses from such transactions cannot be set off or carried forward. This is the third NUDGE campaign by the CBDT in the past six months under its 'TRUST — Taxpayers First' initiative. Previous drives focused on non-disclosure of foreign assets and bogus deductions under Section 80GGC. The emails have been sent in relation to Assessment Years 2023–24 and 2024–25, based on discrepancies detected in crypto-related disclosures during these periods.
Coin Geek
12-06-2025
- Business
- Coin Geek
Brazil to relax proposed stablecoin laws as adoption spikes
Getting your Trinity Audio player ready... Brazil's central banks will relax proposed regulations that would have restricted the use of stablecoins in cross-border funds transfer and clamped down on self-hosted wallets, local reports say. In December, the Banco Central do Brasil published a consultation paper outlining proposed laws limiting cross-border digital asset transfers to VASPs with a foreign exchange (FX) license. The paper also laid out plans to prohibit the transfer of stablecoins pegged to foreign currencies to self-hosted wallets. Brazilians would also be barred from making local payments using these stablecoins. Six months later, the top bank said that after reviewing public feedback, it had decided to relax some measures as they would have stifled innovation. 'In the case of this consultation on virtual assets in the foreign exchange market, it was more exploratory, to gain a broader understanding of the market participants. We are dealing with issues from a new universe,' said Eduardo de Sousa, the bank's head of FX regulation. Speaking at a fintech event in Rio de Janeiro, de Sousa noted that the paper was mainly to 'explore possibilities' and that the regulator hadn't made any policy decision yet. He added that the bank's feedback has shaped its understanding of the sector and its needs. The watchdog is also reconsidering a proposal to bar Brazilians from withdrawing foreign-denominated stablecoins into self-hosted wallets. In December, the bank claimed that this would restrict individuals from sending the funds unchecked abroad since self-hosted wallets aren't actively monitored. It now says this provision would be an overreach and that VASPs are better suited to monitor their users. 'As we realized that service providers can monitor the quality of self-custody clients, we saw room for flexibility. What's important is to hold the institution accountable for knowing the customer using self-custody,' he stated. Global stablecoins, local laws Brazil is the latest in a long line of central banks working on stablecoin regulations as the sector records unprecedented growth. Stablecoins now have a market cap of $253 billion and, according to Standard Chartered, could hit $2 trillion in three years if enabling laws are implemented in key markets. This has forced regulators to take a keen interest in the sector. However, as with other facets in the vast digital asset sector, local laws struggle with its decentralized and global nature. In Brazil, the central bank acknowledged that this global nature makes it difficult to police exchanges and wallets. In their current form, Brazil's foreign exchange laws don't account for the nuances, de Sousa stated. 'Transactions made within a global ledger often do not have the purpose of an international transfer, even if they involve counterparties from different countries. It is a model that improves liquidity and price formation, and we need to understand how this fits into our regulatory framework,' he said. De Sousa echoed the views of Deputy Governor Renato Gomes, who, a week earlier, had sounded a warning over the global nature of digital assets and what it means for financial regulations. Gomes claimed that stablecoins 'offer a bypass instance, ' enabling users to sidestep FX checks. 'You can get the stablecoins, and when you get to the United States or anywhere else, you can cash out the stablecoin and essentially use an account in dollars without all the usual regulation,' he stated at an event in London. Tokenized short-term funds hit $5.7 billion: Moody's In other news, credit rating giant Moody's (NASDAQ: MCO) says tokenized short-term liquidity funds are growing rapidly and are now a $5.7 billion market. Tokenized short-term liquidity funds operate similarly to money market funds, but their management is done onchain, enabling fractionalization and enhancing accessibility, transparency, and efficiency. The first fund was the Franklin OnChain U.S. Government Money Fund (FOBXX), launched in 2021. 'Their adoption to date has largely been driven by near-term cash management benefits for investors and the bridge they create between the traditional finance and digital finance markets,' Moody's stated in its report. For asset managers, these funds expand the investor base and tap a previously unexplored market. For investors, they open up a new market where shares can be traded at will, around the clock, and all year round. Moody's says that these funds will continue to see rapid growth as an alternative to stablecoins, which don't offer yield. 'Independent consultant McKinsey & Company projects asset tokenization of $2 trillion by 20305 and tokenized short-term liquidity funds would likely be a core foundational tokenized product supporting the liquidity needs of this sector,' the Moody's report concluded. Watch | Spotlight On: Centi Franc—the truly stable stablecoin title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
