Regulatory Trends

1. The development of digital currency is included in the national plan.

The recently released full text of the "14th Five-Year Plan" mentions "steadily promoting the research and development of digital currency." The plan suggests improving the modern central banking system, optimizing the monetary supply control mechanism, steadily advancing the research and development of digital currency, and improving 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 SAR Government's Financial Services and the Treasury Bureau recently released a consultation document to collect public opinions on amending relevant legislation. The document proposes to establish a licensing system for virtual asset service providers, requiring those engaging in virtual asset trading platform business in Hong Kong to apply for a license from the Securities and Futures Commission. Engaging in related activities without a license will constitute a criminal offense, with a maximum penalty of 7 years imprisonment and a fine of 5 million. Licensed institutions that violate relevant regulations may also face criminal prosecution.

3. Russia may require the declaration of cryptocurrency asset income.

The State Duma of Russia is discussing a new bill that may require citizens to declare their "electronic" asset earnings and holdings on overseas platforms. If the annual transaction amount exceeds $7,730, it must be reported to the tax authorities. This bill could affect cryptocurrency trading and grant relevant departments the authority to regulate crypto wallets and trading accounts.

4. The Netherlands issues cryptocurrency platform licenses for the first time

The cryptocurrency exchange BLOX has obtained a license to operate in the Netherlands, becoming the first approved retail cryptocurrency platform in the country following the implementation of the EU's 5th Anti-Money Laundering Directive. BLOX allows users to invest a minimum of 1 euro to purchase Bitcoin, which means that cryptocurrency remains accessible to the general public. In the Netherlands, all companies providing services for buying, selling, trading, and holding cryptocurrencies must register with the central bank.

5. South Korea plans to amend laws requiring cryptocurrency companies to disclose user identities.

The South Korean Financial Services Commission is seeking to amend relevant laws to require domestic virtual asset service providers to report customer names. The amendment aims to prevent money laundering and will require service providers to use real-name accounts for transactions, complying with multiple security and compliance requirements.

6. Venezuela launches state-owned crypto exchange

Venezuela has launched a state-owned cryptocurrency exchange called VEX, supporting the trading of Petro, Bitcoin, Litecoin, and DASH against the Bolívar. The exchange utilizes P2P technology and can be accessed through the government-issued crypto wallet application PetroApp.