Major US Banking Regulators Finish “Policy Print” and Release 2022 Crypto Roadmap

Major US Banking Regulators Finish “Policy Print” and Release 2022 Crypto Roadmap

Top US banking regulator said on Tuesday that banks must seek and obtain written permission from their bank supervisors before engaging in cryptocurrencies.

The Office of the Comptroller of the Currency said that before taking on activities like providing custody services for crypto assets, banks must demonstrate they have appropriate risk management tools.

“I said the next few years will be the most important in the history of crypto policy,” commented Jake Chervinsky, head of Policy Blockchain Association. “Here’s proof: the major US banking regulators just finished a crypto “policy sprint” & say 2022 will be a big year. Get ready.”

On Tuesday, the Federal Reserve, Federal Deposit Insurance Corporation, and OCC released a joint statement, saying that they see the potential opportunities presented by the emerging crypto asset sector, but at the same time, they recognize the risks for banking organizations, their customers, and the overall financial system.

To provide clarity, the agencies recently conducted a series of inter-agency “policy sprints” focused on crypto and are now providing a roadmap of future planned work.

The focus of the sprint work included developing a commonly understood vocabulary, identifying and assessing key risks, including considering legal permissibility related to potential crypto activities conducted by banking organizations, and analyzing the applicability of existing regulations and guidance.

The staff also reviewed and analyzed activities banks may be interested in, such as crypto asset custody, facilitation of customer purchases and sales of crypto, loans collateralized by crypto, activities involving payments and stablecoins, and those that may result in the holding of crypto on a banking organization’s balance sheet.

The agencies said they would also evaluate the application of capital and liquidity standards to crypto for US banks. In addition, they will continue to engage with the Basel Committee on Banking Supervision and other relevant authorities.

“Based on this preliminary and foundational staff-level work, the agencies have identified a number of areas where additional public clarity is warranted.”

As a result, the agencies have developed this roadmap for cryptocurrencies. Throughout 2022, they plan to provide greater clarity on whether certain crypto-related activities conducted by banks are permissible, compliance with existing laws and regulations, and expectations for safety and soundness.

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Author: AnTy

Future of Digital Yen to Gain Clarity in 2022; CBDC Has Potential to Reshape Japan’s Financial Industry

Future of Digital Yen to Gain Clarity in 2022; CBDC Has Potential to Reshape Japan’s Financial Industry

Japan’s Central Bank could issue its central bank digital currency (CBDC) by the end of next year.

This was made known by Hideki Murai, who runs the Liberal Democratic Party’s panel on cryptos. Murai believes the country would have a clearer picture of what to expect concerning a digital yen by 2022, Reuters reports.

How CBDC Would Affect Financial Institutions

The lawmaker said there is no immediate decision regarding the issuance of a CBDC.

“If the BOJ were to issue CBDC, it would have a huge impact on financial institutions and Japan’s settlement system. CBDC has the potential to completely reshape changes occurring in Japan’s financial industry.”

Murai also spoke on issues concerning whether the digital yen will supersede or interfere with private business when issued.

The country’s financial industry is already facing major changes. This is because non-bank retailers are venturing into the turf of commercial banks by offering various online settlement services.

Murai said that if CBDC is designed in a way that makes banks key intermediaries, this could shift business and data away from such retailers back to the banks.

Away from internal issues, Murai noted that the Bank of Japan should ensure that the digital yen is compatible with CBDCs of other developed countries. This is to ensure it can compete with China’s digital yuan.

Bank Of Japan Trailing Behind China

Although several Central banks have hastened efforts to develop CBDCs in their various countries, China remains at the forefront.

The People’s Bank of China is currently launching trials across the country as it accelerates efforts to digitize its national currency. China expects to have its CBDC in circulation to an extent by the time the Winter Olympics in Beijing comes in February next year.

The Bank of Japan (BOJ), on the other hand, only began its CBDC project a few months ago. The bank introduced a liaison and coordination committee focused on CBDC in March. In April this year, it began the first phase of CBDC experiments with the second phase scheduled for next year.

The Bank of Japan had previously stressed its unreadiness in issuing a CBDC. However, this latest statement from a public official suggests the bank’s willingness to pursue a CBDC issuance sooner.

Murai’s comment also comes after former top Japanese financial regulator Toshihide Endo said when China launches its CBDC proper, negative perceptions around digital currencies will change.

According to him, China’s progress in issuing its digital yuan will push advanced economies into following suit.

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Author: Jimmy Aki

South Korea Approves Amendment to Push Crypto Tax Rule to January 2022

South Korea is set to enforce its upcoming crypto tax law in January 2022 instead of the earlier proposition of October 2021. This will give crypto stakeholders operating within its jurisdiction one more year to sort out in-house tax reporting infrastructure.

A South Korea local news agency dubbed ‘Yonhap’ reported yesterday that the National Assembly’s Strategy and Finance committee met on Nov 30 and agreed to include the amendment into the recently proposed tax code. Last week, the committee had raised this suggestion, and now it seems that there is consensus on the date of implementation.

This piece of legislation is expected to capture South Korea’s active crypto market in matters tax, an issue that remains complex for most jurisdictions. As we reported earlier, South Korea’s government’s tax code was finalized in July and was awaiting parliament approval.

Some of the pertinent highlights in this tax code are that crypto assets will be considered commodities, attracting a 20% income tax. However, this will only apply to above 2.5 million Korean Won ($2,000).

Other than crypto trading activity, the tax code also captures gains from mining and income attributed to ICO’s. While it is a financial reprieve for the government, some stakeholders believe that smaller players will be forced out given the activity in South Korea’s crypto markets.

Notably, South Korea had already begun intense crypto oversight, especially when it comes to KYC and AML practices by exchanges. The country legalized crypto trading in March this year, requiring that exchanges comply with the real-name trading account stipulations.

Meanwhile, they have taken a ‘watch first’ approach in the Central Bank Digital Currency (CBDC) space, with the digital Won test scheduled for next year. This initiative is currently in its second phase, where stakeholders are being consulted before token distribution rolls out next year.

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Author: Edwin Munyui

BTC Bull Tim Draper Says Bitcoin’s Value Could Climb to Over $250,000 By 2020

Prominent BTC maximalist Tim Draper has labeled his prediction for 2022 as “conservative”. Tim’s involvement with Hotmail, Coinbase, Twitter is well-known. Even though at times his outrageous statements are frowned upon, Draper’s faith in Bitcoin is famous.

Draper spoke of a bet he had with the Argentinian president, as they’d compare the achievements of the Peso and Bitcoin. However there’s a new underlying problem, “…they have made dollars illegal so everybody is stuck with these pesos…”. Due to “currency manipulation”, hundreds of Argentinian citizens have begun to learn more about cryptocurrencies.

He added:

“$250,000 means that bitcoin would then have about a 5% market share of the currency world and I think that maybe understating the power of bitcoin.”

Clarifying why purchasing digital currency at whatever point is consistent, Draper maintains:

“All occasions are great occasions to enter the crypto advertise. On the off chance that you are groundbreaking, you’re going to look and state ‘this is simply better cash’, so it’s simply a question of time before the world receives it. When all that I can do with fiat, I can do with Bitcoin.”

Pomp also added to the same narrative. Pompliano is a maximalist whose faith in the king coin is unrivaled. He is the co-founder and partner at Morgan Creek Digital that is based in New York.

Back in March, Bitcoin bull Tim Draper mentioned how people would use Bitcoin at Starbucks by 2022, and that people would laugh if a customer tried to pay with fiat.

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Author: Sritanshu Sinha