Are large emerging economies more likely than others to favor blanket crypto bans. China set the standard, and it seems that India is following suit. A bill proposing a ban on all “private cryptocurrency” will be presented to India’s parliament this winter. This measure will allow India’s central bank digital currency agenda to move forward. It will be crucial to determine whether a digital currency issued by a sovereign central bank can coexist with the “private” crypto market. This will be the core question of the CBDC age. It is obvious that governments will try to use their coercive power to tilt the playing fields in favor of the central money they control.
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Lok Sabha will consider policy options
The Cryptocurrency Regulation and Official Digital Currency Bill is one of 26 new bills the Lok Sabha (the lower chamber of India’s parliament) will be taking up during the winter session which begins this week. This document describes a series of measures that will facilitate the creation and operation of a CBDC. It includes a proposal to ban all “private” digital assets. There are a few exceptions. Analysts have differing views on the implications of the legislation, and there is much speculation about their exact meaning. However, the market responded more strongly to the news, with crypto prices falling on WazirX, an Indian major exchange.
Powell to stay, Omarova in the air
The President of the United States, Joe Biden, has nominated Jerome Powell to serve a fourth-year term as the Fed’s Board of Governors chair. In a recent appearance before Congress, Powell said that a blanket ban on crypto like China was not possible but that stablecoins need more regulatory oversight. The Federal Reserve is currently in the midst of Powell’s term, which expires in February 2022. It has been exploring the possibility to issue a CBDC and working with federal regulatory agencies on crypto-focused “policy sprints” that aim at identifying gaps in digital asset regulation.
NFT Politics in South Korea
The issue of crypto taxation is still a hot political topic in South Korea. However, the government is not clear on whether new rules will be implemented, which include a 20% tax on crypto income. It is still unclear which types of digital assets will fall under the new tax code. The nation’s Financial Services Commission previously stated that NFTs (nonfungible tokens) are exempted from taxation. However, last week the chairman of the agency stated the opposite. The regulator also has imposed strict reporting requirements on digital token issuers. Those who don’t comply will be sentenced to jail.