EU leaders disagree on cryptocurrency regulation

EU leaders debate crypto rules

The fight for European crypto rules MiCA (markets for cryptocurrencies) continues. Two months ago, the European Parliament presented a draft, which is now being discussed in a trialogue with the Council and the Commission. According to an unofficial letter available to BTC-ECHO, the European Commission is now opposed to a regulation affecting the prevention of money laundering and terrorist financing. The Folketing’s proposal contained a license ban for crypto providers from countries that are considered high-risk areas or do not collect corporation tax. According to the Commission, however, this is in breach of international trade rules and there are no similar bans elsewhere. It is therefore unclear why this regulation should apply to Bitcoin and Co. of all things. The Commission and Parliament, on the other hand, agree on the planned reporting obligation for all crypto transactions, which is of concern to society. Here in the trilogue, there is only disagreement about a registry that should list incompatible crypto service providers.

The Ministry of Finance approves the intervention period

While EU regulatory plans are causing discontent among bitcoin holders, the political handling of digital currencies in Germany is moving in a more benevolent direction. The Federal Ministry of Finance (BMF) announced on 11 May that the 10-year holding period for efforts and lending is a thing of the past. Cryptocurrencies can therefore be resold tax-free after one year of ownership, regardless of whether they have previously been used for staking or lending. The German crypto industry reacted positively to the decision. It is also gratifying that the authority clearly defines Bitcoin and Co. as financial benefits in his letter. This is the only way it can be classified under German income tax law. On the other hand, BMF distinguishes between active and passive efforts. Anyone operating their own staking node will therefore be considered a service provider in the future. He then has to pay business tax on his income.

Higher cryptocurrencies for India

Unlike the German tax relief, India wants to tighten the thumbscrews for Hodler. According to media reports, the Indian government plans to increase the tax on goods and services on all crypto services. The tax comparable to value added tax must be raised from 18 to 28 percent. Bitcoin and Co. would thus be on par with lotteries, horse racing tracks and other forms of gambling. It is still unclear when the responsible government committee will debate the tax increase. According to insiders, however, the necessary preparations have already begun behind the scenes.

El Salvador buys the dip

The past week has sent the crypto market plummeting. But one person apparently did not let this deter him: El Salvador’s President Nayib Bukele. On May 9, the controversial leader announced on Twitter that he had bought 500 bitcoin for $ 15 million. His country paid an average of $ 30,744 per. coin. In 2021, El Salvador was the first country in the world to make Bitcoin a recognized national currency. With the recent acquisition, the Central American state holds over 2,000 BTC in the digital treasury.

The Bitcoin adjustment in the population is sluggish at best. Nevertheless, Bukele announced last week first pictures of the construction plan for his prestigious project: Bitcoin City. According to the gilded floor plan, the city is to be arranged in star shape around a monument to the key cryptocurrency. In addition to sights and an airport is a natural feature of special interest. For the city is being built next to a volcano, which is to provide not only energy for Bitcoin mining, but also electricity for the planned cryptometropol.

U.S. environmental groups worried about cryptocurrency mining

Discussion of the environmental impact of Bitcoin mining continued in the United States over the past week. For May 9, a number of environmental organizations like Green peace and Environmental working group a letter to it United States Office of Science and Technology Policy A body advising the President on technological issues. In the letter, environmentalists demand strict measures from the White House to limit energy consumption through cryptocurrency operations. They argue that exploration leads to greater use of fossil fuels and hinders the transition to renewable energy. The electronic scrap generated during mining is also mentioned as a problem factor.

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