Legal Round-Up (23/08-27/08)

Adam Berker

The 5th issue of our legal round-up.

The 5th issue of our legal round-up.

We continue with a series of weekly round-ups prepared by Mercuryo Legal Counsel Adam Berker to keep you updated on cryptocurrency rules.

Cuba Plans to Recognize and Regulate Crypto

Just like El Salvador, Cuba is planning to regulate cryptocurrencies and recognize them as payment methods. 

Thereby, we should be expecting some amendments in the local Anti-Money Laundering regulation, obliging merchants who receive payments in crypto to identify their customers and report on such transactions. Furthermore, Cuba may also regulate crypto service providers by introducing specific licensing requirements.

Treasury Will Not Target Miners 

The new provision that would require brokers to report their cryptocurrency gains got many crypto enthusiasts worried. 

Even though the Infrastructure Bill is set for a vote by September 27 with no changes to crypto tax provisions, the US Treasury announced that it would not target crypto companies unable to comply with tax reporting rules like miners, hardware wallets, and software developers. This measure leads to some uncertainty in regulation, as the treasury may change its approach at any moment.

Thai SEC to Enhance Investor Protection

While trying to protect crypto investors, the Thai SEC imposes new obligations and restrictions on virtual currency custodians. 

Therefore, custody services may not use their clients’ crypto for the benefit of other persons. This obligation shall not affect the custodians. Nevertheless, it may impose certain additional reporting obligations so that crypto services will have to file their account records. 

Iran is Lifting Crypto Bans

Iran is continually developing its crypto infrastructure. First, Iran’s Tax Authority announced that it would legalize crypto exchanges, now we see the government lifting the mining ban. Still, the country needs to address the issue of being included in the FATF’s High-Risk countries list to attract foreign crypto service providers.

SEC Signs Deal to Investigate DeFi

In early August, SEC Chairman Gary Gensler noticed that DeFi projects are not immune to regulatory oversight. 

Now, the Commission is taking steps to control this area. Such blockchain analytics may help the Commission disclose operations in DeFi that involve US nationals. As a consequence, the SEC will be able to oblige those DeFi to follow the US regulations.

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