US Lawmakers Fight CBCC, Advocate for Banks’ Crypto Custody: Legislation Passed
Five US senators have joined forces to fight President Joe Biden's plan to issue a “digital dollar” by signing legislation that would ban central bank digital currencies (CBDCs). Senators Ted Cruz, Bill Hagerty, Rick Scott, Ted Budd, and Mike Brown introduced the CBCC Anti-Surveillance Act, challenging the Federal Reserve's authority to enforce the CBCC. The bill expressly prohibits the Federal Reserve from “providing certain products or services directly to individuals, using central bank digital currency for monetary policy and other purposes.”
Meanwhile, the US House Financial Services Committee (HSFC) has backed a resolution that seeks to overturn the US Securities and Exchange Commission's (SEC) directive, barring banks from participating in crypto prisons. Introduced in March 2022, the SEC's Staff Accounting Bulletin No. 121 is a set of guidelines requiring regulated entities to record crypto assets as liabilities on their balance sheets. “Overturning SAB 121 will protect consumers by removing roadblocks that prevent highly regulated banks from acting as custodians of digital assets,” HFSC said in a press release.
Less centralization, looser regulation. According to SEC Commissioner Hester Perce, that's what the United States needs. Speaking at the ETHDenver conference, Peirce, also known as “Crypto Mom”, said that decentralization will bring strength and stability to the financial system. “The whole concept of decentralization is the opposite of what we at the SEC are used to,” she added. The SEC commissioner also spoke about a variety of crypto-related topics, including the future of the agency following the 2024 US presidential election, Bitcoin exchange-traded funds (ETFs), CBDCs and government financial oversight.
Indonesia may reassess its crypto tax.
Indonesia's Commodity Futures Trading Agency (Bapebti) has reportedly asked the country's finance ministry to review its stance on cryptocurrency taxes. Executive members at Babbitt have asked to review the government-imposed value-added tax of 0.11% on every crypto transaction and 0.1% income tax on crypto in Indonesia. Tirta Karma Senjaya, head of the market development and development office at Bapebti, explained the reason behind this: crypto is on its way to becoming a major part of Indonesia's wider economy in the near future.
Total government revenue from crypto taxes in Indonesia reached approximately $2.49 million in January. Although these crypto taxes have been in place in Indonesia for about two years, Senjaya said they should undergo an annual review similar to other tax laws.
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Nigeria rejects $10 billion Binance fine
A Nigerian government official has dismissed speculation of a $10 billion fine for crypto exchange Binance. The Special Adviser on Information and Strategy to the Nigerian President, Bio Onanuga, says the allegations reported by the BBC are based on a misquote. Onanuga did not say whether Binns was informed of the fine or whether it would be $10 billion. He only mentioned the possibility of a fine as nothing is final yet. The statement comes as crypto exchanges face growing regulatory scrutiny in Nigeria, with many platforms recently banned to protect the country's national currency, the Nigerian naira. On Wednesday, February 28, Binance removed the naira from its peer-to-peer (P2P) service amid an attack on the crypto exchange.
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South Korea's ruling party has delayed crypto liberalization
South Korea's ruling People's Power Party has indefinitely delayed a proposal to ease cryptocurrency restrictions, including lifting a ban on Bitcoin (BTC) ETFs. The cancellation of the party's commitments may be connected to the challenges of the government and financial authorities on cryptocurrency policies. Earlier this month, there were reports that the ruling party was making election promises to delay the tax on crypto profits and allow local institutions to introduce Bitcoin ETFs and invest directly in cryptocurrencies.
The People Power Party has reportedly dropped virtual assets from its policy priorities, as the party led by Jun Chang-hyun planned to announce a virtual asset pledge last week, but postponed it indefinitely. Meanwhile, the opposition Democratic Party, which has reportedly made similar promises regarding crypto ETFs, has publicly announced its crypto campaign promises.
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