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Regulation

Spain’s new bill proposal complicates crypto for citizens

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Awaiting parliamentary approval in Spain, a fresh bill draft intends to cut out illegal tax dealings, as first reported by Cointelegraph’s Spanish branch. This could mean smaller business transactions as well as mandatory crypto-asset reporting, even for assets held or transacted internationally.

The “Draft Law on Measures to Prevent and Combat Tax Fraud” recently received the green light from the Spanish Council of Ministers, Spain’s central governing entity, according to an Oct. 13 briefing from the country’s minister of finance, María Jesús Montero.

When cryptocurrency began to take more of a global spotlight in 2017, some countries began to step up their tax overwatch measures in an attempt to corral their share of any relevant profits made via the industry. Spain’s fresh bill draft requires the nation’s citizens to report any digital asset usage or holdings, even if such usage includes assets held or transacted outside of Spain.

The bill also bans all cash business transactions higher than 1,000 euros, down from the country’s former 2,500 euro limit. The latter amount remains in place for non-business transactions between persons however, Cointelegraph reporting detailed. Any business-related payment higher than 1000 euros must occur in electronic form, seemingly increasing the surveillance of Spain’s residents. If central bank digital currencies come into play, financial tracking could become even easier for countries, giving citizens less privacy and freedom.

A recent effort led to 350 of the country’s government workers receiving 1 euro-worth of crypto. This small sum was sent to each member of the country’s Congress of Deputies in an effort to educate them on this up-and-coming technology.



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Regulation

New York authorizes first Yen stablecoin operator in the US

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New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.