India plans to move entirely to China with cryptocurrencies from May 22-29

Are major emerging economies more likely to be attracted to crypto bans? China has set a precedent, and now it looks like India could consider a similar policy direction: a bill to ban all “private cryptocurrencies” will be presented to the country in the National Assembly this winter. The move is set to pave the way for India’s central bank to advance its digital currency agenda. Whether or not a sovereign central bank digital currency can coexist with a thriving “private” crypto market will be one of the central questions of the time. The CBDC is around the corner and it is clear that governments will be tempted to use their coercion to tilt the playing field in favor of centralized money that they control.

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Lok Sabha is considering political options

One of the 26 new bills that Lok Sabha, the House of Representatives of India’s Parliament, will pass in the winter session beginning this week is cryptocurrency and the regulation of the official digital currency law.

The document outlines a number of measures to facilitate the creation of a CBDC, including a proposed ban on all “private” digital assets, with a few exceptions. The exact effects of the law remain the subject of much speculation, with analysts interpreting the scope of the possible ban differently. However, the market reacted more consolidated when the price of the cryptocurrency rose on the news on the major Indian exchange, WazirX.

Powell stays, Omarova hovers in the air

US President Joe Biden has nominated Jerome Powell, the current Chairman of the Board of Governors of the Federal Reserve System, for a further four-year term at the helm of the Fed. In one of his recent appearances before Congress, Powell stated that a blanket ban on Chinese-style cryptocurrencies was not in sight, but said stablecoins needed more regulatory scrutiny. During Powell’s current tenure, slated to expire in February 2022, the Federal Reserve has been actively exploring the possibility of issuing CBDCs and working with federal regulators to implement crypto-focused “policy sprints” to fill loopholes in digital asset regulation identify and close.

NFT Policy of Korea

The taxation of cryptocurrencies remains a hot political topic in South Korea as the government is sending mixed signals whether the new rules, including a 20% tax on crypto revenues, will take effect on January 1, 2022. What types of digital assets are covered by the updated tax? Code remains cloudy. While the country’s Financial Services Commission previously stated that unusable tokens or NFTs are tax exempt, the agency’s president said the opposite last week. In addition, the regulator has introduced a series of strict reporting requirements for digital token issuers, with imprisonment for those who fail to comply.