Regulatory Trends

1. China Incorporates Digital Currency Research and Development into National Planning

The recently published full text of the "Central Committee of the Communist Party of China on Formulating the 14th Five-Year Plan for National Economic and Social Development and Long-Range Objectives Through the Year 2035" mentions "steadily advancing the research and development of digital currency." The planning suggestions point out that it is necessary to improve the modern central banking system, optimize the monetary supply control mechanism, steadily promote the research and development of digital currency, and enhance the market-oriented interest rate formation and transmission mechanism.

2. Hong Kong Plans to Establish a Licensing System for Virtual Asset Service Providers

The Hong Kong Special Administrative Region Government's Financial Services and the Treasury Bureau has released a consultation document seeking opinions on amending the "Anti-Money Laundering and Counter-Terrorist Financing Ordinance." The document suggests establishing a licensing system for virtual asset service providers, requiring those engaging in virtual asset trading platform operations in Hong Kong to apply for a license from the Securities and Futures Commission and comply with relevant regulations. Engaging in regulated virtual asset activities without a license or violating relevant requirements will constitute a criminal offense.

3. Russia may require the declaration of cryptocurrency transaction income

The Russian State Duma is discussing a new bill that may require Russian citizens to declare their "electronic" asset earnings and holdings on overseas platforms. The bill proposes that if citizens' annual trading volume on foreign digital platforms exceeds a specific amount, they must report it to the tax authorities. This regulation may impact cryptocurrency trading.

4. The Netherlands Issues Licenses to Cryptocurrency Platforms for the First Time

The cryptocurrency exchange BLOX has obtained a license to operate in the Netherlands, becoming the first retail-focused cryptocurrency platform approved after the country's implementation of the EU's 5th Anti-Money Laundering Directive. This means that the general public can still participate in cryptocurrency investment with a low threshold. In the Netherlands, all companies that allow users to buy, sell, trade, and hold cryptocurrencies must register with the central bank.

5. South Korea may require cryptocurrency companies to disclose user identities

The Financial Services Commission of South Korea is seeking to amend laws to require domestic virtual asset service providers to report customer names. The amendment aims to prevent money laundering and will require relevant companies to use real-name accounts when conducting financial transactions with customers. Additionally, it includes other regulatory measures such as separating customer deposits and obtaining data security certifications.

6. Venezuela Launches State-Owned Cryptocurrency Exchange

Venezuela has launched a state-owned cryptocurrency exchange called VEX, which supports trading of cryptocurrencies such as Petro, Bitcoin, Litecoin, and DASH against the Bolívar. The exchange utilizes P2P technology and can be accessed through a government-issued cryptocurrency wallet application. This move aims to further promote the development of the country's cryptocurrency ecosystem.