USDRegulators Tighten Crypto Laws: India’s 70% Crypto Tax, Utah’s Bitcoin Bet, and EU Approvals
Utah Moves to Become First U.S. State with Bitcoin Reserves After 8-1 Vote
Utah is poised to become the first U.S. state to adopt Bitcoin reserves following the approval of a bill in the Utah House, which received an 8-1 vote. The bill allows the state to invest a portion of public funds in digital assets with a market cap over $500 billion and includes approved stablecoins as investment options. This legislative effort is expedited by Utah's 45-day legislative calendar, which is unmatched in speed and momentum compared to other states. The move has garnered significant political will, with Senator Cynthia Lummis and Dennis Porter from the Satoshi Action Fund emphasizing Utah's leading role in the Bitcoin initiative.
Notably, every recent bill from the House Economic Development Committee has become law, bolstering confidence in this proposal's success. Arizona is the only other state at a similar legislative stage, while states like Alabama and Florida have shown public support but lack formal proposals.
Thailand SEC to Launch Blockchain Platform for Tokenized Debt Trading
Thailand’s Securities and Exchange Commission (SEC) is set to launch a blockchain-based trading platform to enable securities firms to trade debt instruments via digital tokens, enhancing the efficiency of the local capital market. Deputy Secretary-General Jomkwan Kongsakul emphasized that the platform aims to reduce the current 14-day delay in trading bonds from the primary to secondary market by digitalizing settlement, trading, and investor registration processes. The initiative will introduce two types of digital securities: traditional bonds converted into digital form and electronic securities designed specifically for the new platform.
The SEC has already approved four digital token projects and is reviewing two additional ones. Furthermore, private sector firms may develop independent chains as long as they comply with SEC standards. The project is part of Thailand's broader goal to modernize financial infrastructure in response to growing interest in tokenized investments and digital assets.
Kraken and Coinbase Secure Regulatory Approvals to Expand Services in EU and UK
On February 3, 2025, Kraken and Coinbase, prominent U.S.-based cryptocurrency exchanges, secured crucial regulatory approvals to expand their services in the European Union and the UK. Kraken obtained a Markets in Financial Instruments Directive (MiFID) license by acquiring a Cypriot investment firm, enabling it to offer compliant derivatives products to advanced crypto traders in specific EU markets. Meanwhile, Coinbase was granted a Virtual Asset Service Provider (VASP) registration from the UK's Financial Conduct Authority, allowing it to provide crypto and fiat services in the UK.
This expansion is timely as the EU's Markets in Crypto-Assets (MiCA) regulations will become effective in late 2024, with the UK's comprehensive crypto regulatory framework expected in early 2025. Shannon Kurtas, Kraken's Co-GM, emphasized the acquisition's reflection of their confidence in the EU market and their dedication to creating a regulated environment for traders and investors.
India Introduces 70% Penalty on Undisclosed Crypto Gains Under New Tax Amendments
India's new crypto tax amendments impose a hefty 70% penalty on undisclosed cryptocurrency gains, effective retroactively from February 1, 2025. Classified under Section 158B of the Income Tax Act, these regulations highlight the government's commitment to increasing tax compliance and transparency in digital assets, equating crypto profits to traditional assets like jewelry and bullion. Traders who have not reported crypto profits since 2021 may face severe penalties and backdated tax liabilities.
The government also mandates reporting from cryptocurrency exchanges, responding to concerns regarding unpaid crypto taxes totaling $97 million as of December 2024. Major exchanges like Bybit have already suspended services in India due to heightened regulatory pressures, leading to increased uncertainty in the market.
Russia Launches Online Reporting for Digital Currency Miners in Taxpayer Accounts
On February 3, 2025, the Federal Tax Service of Russia announced a new functionality in taxpayers' personal accounts, allowing users to report the receipt of digital currency through an online service. This initiative aligns with the federal law on digital financial assets and cryptocurrency, obligating miners to report mined currencies by the 20th of the month following their acquisition. Taxpayers, including individuals and legal entities engaged in cryptocurrency mining, must utilize a qualified electronic signature to access this feature.
For individuals, reporting can be done in the "Mining" section, while legal entities will report in the "Mining of Digital Currency" section. Additionally, individual entrepreneurs and legal entities can submit reports only if they are registered in the official registry of miners and operators, ensuring compliance with the new regulatory requirements established for the taxation of digital currency in Russia.
This article has been refined and enhanced by ChatGPT.
