Regulatory Trends

1. The European Commission seeks public opinion on cryptocurrency tax standards.

The head of the OECD's tax policy and administration center stated that the organization plans to introduce a universal reporting standard for crypto asset taxation in 2021, which will be similar to existing anti-avoidance standards. Relevant proposals were released on November 23, and public feedback will continue until December 21. The new rules are expected to be launched in the third quarter of 2021.

2. Kazakhstan Research on Introducing Central Bank Digital Currency

The Central Bank of Kazakhstan is studying the launch of a central bank digital currency. It is reported that 80% of central banks worldwide have begun research or pilot projects on digital currency. Kazakhstan is collaborating with the Bank for International Settlements and the International Monetary Fund to study regulatory methods and is participating in observations of multi-country digital currency pilot projects. The country plans to release a related report in the second half of 2021.

3. Nigeria establishes a new regulatory framework for cryptocurrencies and blockchain.

The Nigerian Ministry of Finance is collaborating with the securities regulatory agency to establish a new regulatory framework for blockchain and cryptocurrencies. This could accelerate the adoption of cryptocurrencies in the country. The Nigerian Securities and Exchange Commission stated that the regulatory objective is to create standards that encourage ethical norms to establish a fair and efficient market.

4. Suzhou will launch a digital RMB red envelope test.

It is reported that Suzhou will launch a digital RMB red envelope test on December 12. Currently, many merchants in the Xiangcheng District of Suzhou have installed NFC QR codes, and some testers have experienced digital RMB payments, including "offline" and "tap-to-pay" functions. In addition, Chengdu is also conducting internal testing, using an invitation system to download the digital RMB wallet.

5. The Queen of England has expressed interest in blockchain.

Queen Elizabeth II of the United Kingdom recently expressed interest in blockchain. This interest stems from her receiving Volume 6 of the Journal of the British Blockchain Association, which is the first open-access blockchain research journal available in both print and online formats.

Industry News

1. The PlusToken case involving $4.2 billion in cryptocurrency has been processed.

The criminal ruling of the Intermediate People's Court of Yancheng City, Jiangsu Province shows that a large amount of cryptocurrency was seized in the PlusToken Ponzi scheme, with a total value of approximately $4.2 billion. These digital assets have been processed in accordance with the law, and the funds and profits obtained will be turned over to the national treasury. It is reported that most of the assets were sold between the end of 2019 and mid-2020, but there are still about 15,000 bitcoins that have not been sold.

2. The launch conditions for the Ethereum 2.0 genesis block have been met.

The Ethereum 2.0 staking contract has reached the minimum staking amount of 524,288 ETH required to launch the genesis block. This means that Ethereum 2.0 will be able to launch as planned on December 1.

3. Facebook's cryptocurrency Libra may have a limited release in January 2021.

According to informed sources, Facebook plans to launch its cryptocurrency Libra in a limited form as early as January 2021. Initially, it may only issue a single stablecoin pegged to the US dollar, with versions pegged to other fiat currencies to be launched later. The specific issuance time depends on the approval of Swiss financial regulators.

4. China Construction Bank Labuan Branch cancels digital bond issuance plan

The Hong Kong fintech company Fuso Securities Trading Platform announced that, at the request of the issuer, it has canceled the issuance of Ethereum-based digital bonds initiated by the China Construction Bank Labuan Branch. The exchange has suspended the relevant listing procedures and started refunding investors' funds.

5. Development of the South Korean Cryptocurrency Market