SecondIn fact, everything in the United States revolves around a large-scale infrastructure package owned by the President of the United States. Joe Biden Hope to see Congress pass it as soon as possible. However, in the course of this package, there is also a draft called “Digital Asset Market Structure and Investor Protection Law of 2021”. Don Beyer, a Democrat from Virginia, introduced it. The declared goal is to eliminate all the gray areas that still exist in U.S. law—and some.
The legal definition of digital assets and digital securities will be adopted so that the CFTC and SEC can clarify regulatory issues. In addition, these should be recognized as funds, similar to the situation in Germany.What needs to be clear is that investment Digital currency There is no hedging, similar to what happens in the stock market. In addition, the way out for the digital dollar is to eliminate it, and the U.S. Treasury Department should have the power to prohibit stablecoins linked to the U.S. dollar.
So far, everything is good and worth looking forward to. But the current discussion revolves around one word: brokers. There are no plans to impose a tax on digital currencies, but every broker-in German, a broker-is subject to comprehensive information obligations. Because only when this information is available, can investors be tracked and taxed. Congress estimates that the annual revenue is as high as 30 billion U.S. dollars.
Who is the broker?
Initially, all companies that “process blockchain transactions,” “develop digital currencies,” or use mining programs or equipment were classified as brokers. However, observers estimate that the entire company simply cannot fulfill these information obligations. This is why there are various initiatives from different political camps that understand this definition in different ways. The government supports a definition that includes as many companies as possible, while others support a more relaxed system. Critics worry that if interpreted strictly, many entrepreneurs will migrate to other countries.
But where can companies go? In Europe, regulation is more towards strict interpretation. China has just significantly tightened its reins, halted its domestic industry, and withdrew approximately 90% of the computing power of the global cryptocurrency sector from the market. However, in the city-state of Singapore, the government is trying to lead this movement. It is progressive, wants to track trends in all modern economic sectors, is open to new developments, and uses itself as a test site. This also applies to digital currencies.
Singapore is working on infrastructure
“Very few countries (if any) have such a complex digital ecosystem,” said Ravi Menon, chairman of the central bank. “This gives Singapore a clear advantage in the emerging global digital economy.” Menon avoided even mentioning the word “Bitcoin” in his speech on the future of Singapore’s country. Even so, there is no doubt that the Southeast Asian financial center warned private investors not to speculate with Bitcoin companies, but the state is building infrastructure. “The most important thing is that we believe that Bitcoin is unlikely to become a transaction currency. Cryptocurrencies that can become transaction currencies should be stable and efficient-attributes that have nothing to do with Bitcoin,” Nanyang Technological University (NTU) Commercial Law, Singapore Professor Hannah Yee-Fen Lim warned.
