US lays out international crypto rules

The U.S. Treasury Department has proposed a framework to uphold international rules for the crypto space.

The U.S. Department of the Treasury has proposed a framework to uphold international rules for the crypto space. The Terra investigation is also advancing in other countries.

International crypto rules: U.S. Treasury Department releases information brief

Since President Joe Biden declared crypto regulation a government task by executive order, policy wheels have been turning in Washington. Last Thursday, the Treasury Department unveiled the first results of its work: an information brief with proposals for collaboration with regulators in other states. The Treasury Department, led by Janet Yellen, worked on this with other U.S. agencies. The result is a framework designed to promote the development of digital assets while leaning on the U.S. democratic core values. At the same time, consumers, investors, and businesses should be adequately protected, and the risks of money laundering and terrorist financing should be minimized. To this end, the U.S. wants to work with the G7 and G20. There should be jointly developed uniform guidelines for cross-border payments and digital payment infrastructures. Collaboration is also planned with international bodies such as the Financial Action Task Force, the Financial Stability Board, and the Organisation for Economic Co-operation and Development.

U.S. and South Korea researchers share Terra data

Beyond the regulation debate, the U.S. is expanding international cooperation on crypto issues. Investigations targeting those behind the collapsed terra stablecoin are underway in both the U.S. and Terra’s home country, South Korea. Both countries now want to cooperate on prosecuting the crash and to share investigative data. The cooperation agreement followed a meeting between South Korean Justice Minister Han Dong-hoon and high-level American financial investigators in New York. Delegations from the two countries agreed on June 6 to work together on financial crime investigations. They also explicitly discussed the Terra case. While Korea investigates fraud, the U.S. Securities and Exchange Commission (SEC) is examining Terra’s marketing before the crash.

Italy pours millions into the blockchain sector

Meanwhile in Europe, the Italian government has underscored its belief in blockchain and the crypto space. Rome plans to fund projects using blockchain, as well as artificial intelligence and the Internet of Things (IoT), totaling 45 million euros. "We support companies’ investment in cutting-edge technologies to modernize production systems through increasingly connected, efficient, secure, and fast governance models," said Economic Development Minister Giancarlo Giorgetti. The subsidies are open to businesses of all sizes and can be applied for projects across a wide range of sectors.

Crypto-skeptic conference scheduled in London

While Italy doubles down on crypto tech, a brewing storm is on the other side of the Channel. High-profile crypto critic Amy Castor is inviting people to the Crypto Policy Symposium in London on September 5–6 — the first conference giving crypto skeptics a platform. The event is organized by software developer Stephen Diehl and Martin Walker, head of a management think tank. The Crypto Policy Symposium aims to empower crypto critics to engage directly with policymakers. The goal is to counter crypto lobbying groups, which organizers say are shaping the political debate on the topic. The conference will feature a series of panels, some of which will be held online.

India: massive downturn in trading since crypto taxation

The Indian case shows that excessive crypto scepticism can hurt the industry. Due to restrictive crypto legislation, trading volume on most Indian Bitcoin exchanges plummeted. The cause: a 30% tax on all crypto profits. A 1% transaction tax was recently added as a second law. A customer survey from the large exchange WazirX found that most traders blame the legal situation for the decline in trading activity. Without a legal framework change, the Indian crypto industry is in a bad spot. Traders are now turning to foreign offerings or products outside the regulatory framework.