Crypto Assets Regulation and Market Dynamics

Regulatory Dynamics

The Central Bank of Nigeria has comprehensively banned Bitcoin and other digital assets, requiring local banks to immediately close customer accounts related to Crypto Assets exchanges. This ban may be related to the protests in 2020 when demonstrators widely used Bitcoin for donations.

The Estonian Ministry of Finance is developing a stricter encryption licensing system. The new regulations require cryptocurrency companies operating in the country to report to the Financial Supervisory Authority and reapply for licenses. It is expected that only 50 to 100 existing licensed companies will be able to meet the new regulatory requirements.

The Indian government has clarified its stance on Crypto Assets and the digital rupee, stating that it will not recognize Crypto Assets as legal tender, but will actively explore the application of blockchain technology in the digital economy. The government is focused on combating the illegal uses of Crypto Assets.

The new audit requirements from the South African Revenue Service clearly require taxpayers to disclose their Crypto Assets trading situation, including the purpose of purchase and the transaction timeline. Failure to report or false reporting may face a maximum of two years in prison.

The Spanish tax authorities have issued guidelines aimed at reducing the risk of Crypto Assets tax evasion. The measures include requiring local exchanges to provide holder information, analyzing transaction data, and strengthening international cooperation.

The province of Córdoba in Argentina has passed a new law imposing a tax of 4% to 6.5% on crypto-related transactions. Individuals or companies accepting payments in Crypto Assets are required to pay a tax of 0.25%.

Beijing has launched a pilot program for digital renminbi, which will distribute 50,000 red envelopes containing 200 yuan in digital renminbi for consumption scenarios during the Winter Olympics. The activity aims to enhance the payment service environment for the Winter Olympics.

Crypto Assets Market Dynamics

A certain payment platform is investing in its new digital currency department and plans to launch a feature by the end of this quarter that allows users to top up their accounts using Crypto Assets. The company's CEO stated that the trading volume of Crypto Assets exceeded expectations.

Tesla CEO Elon Musk expressed support for Bitcoin, considering it a good thing. He mentioned that he should have bought Bitcoin 8 years ago and believes that Dogecoin becoming a world currency would be an interesting outcome.

Forbes released the 2021 Global Blockchain Top 50, with 7 Chinese companies making the list. At the same time, the list of 11 crypto billionaires was announced, with a co-founder of a certain crypto assets exchange ranking first with a net worth of 6.5 billion dollars.

The Canadian fintech company Accelerate has submitted a prospectus for a Bitcoin ETF, intending to list it on the Toronto Stock Exchange. The ETF will offer units priced in US dollars and Canadian dollars, with a management fee of 0.70%.

The Filecoin network plans to upgrade to version v1.5.0 in the coming weeks, which includes two important proposals aimed at improving network performance and security, and alleviating network congestion through off-chain verification.

According to the data, the volume of Google searches for "buying Crypto Assets" reached a new high in January, reflecting the growing public interest in Crypto Assets.