South Korea’s crypto community alarms that the impeding 20% tax on crypto gains will drive away investors and can potentially ruin the market.
As South Korea‘s 20% tax on crypto gains looms, the local cryptocurrency community expresses its concerns, saying the controversial rate will force investors to leave the market. South Korea’s Ministry of Economy and Finance is planning to impose a 20% tax on the amount exceeding the basic deduction of 2.5 million won (around $1,800), plus an additional 2% local income tax.
Initially planned for 2021, the tax’s implementation has been repeatedly delayed and is now scheduled for 2025. According to the Chosun Daily, domestic exchanges like Upbit, Bithumb, and Coinone argue that trading volumes will significantly drop once the tax is enforced. They highlight the disparity in financial investment income tax, where traditional instruments like stocks, bonds, and funds are only taxed on gains above $36,250, whereas the crypto deduction is merely $1,800, making nearly all crypto investors liable.
Other than that, South Korea is set to implement the Virtual Asset User Protection Act, which will take effect on 19 this month, which will subject financial authorities to scrutinize the appropriateness of currently traded coins. An anonymous spokesperson from a crypto exchange told the Chosun Daily that the 20% tax “will deter investors,” and predicted that “many exchanges will probably shut down next year” if the tax is implemented as scheduled.
Additionally, as crypto.news reported earlier, South Korea’s financial regulator is establishing a system to monitor unusual crypto trading, urging exchanges to provide internal data. This system, targeting trades outside normal volume and price ranges, large transactions, and unusually delayed executions, could pose “significant challenges for altcoins that cannot promptly meet regulatory standards,” according to Matt Younghoon Mok, senior foreign attorney and partner at Lee & Ko in Seoul.
In April 2023, the European Union rolled out a comprehensive piece of legislation to finally reign in the crypto and blockchain industry. The Markets in Crypto-Assets Regulation (MiCA) is a bold and pioneering initiative aimed at applying a unified regulatory framework to the industry and establishing clearer laws for crypto asset service providers and token issuers.
Viewed as a milestone in the crypto regulatory landscape, MiCA recently approved a provision to address stablecoins, which have long been seen as complicated assets to regulate due to their unclear classification and common use in cross-border transactions. Following the approved provision, Circle, the issuer of the USDC stablecoin, became the first stablecoin issuer to formally be recognized as compliant under the EU’s crypto legislation.
Circle’s newly granted status has led many to ponder MiCA’s implications on the $160 billion aggregate stablecoin supply as well as the broader crypto and web3 economy.
While the idea behind the most thorough attempt to regulate crypto is to protect investors by placing liability on the organizations issuing digital assets and providing services, onboarding new users, and fostering innovation while ensuring competition, it will take some time to gauge its full impact.
The idea for MiCA was born out of a wave of ICOs in 2017 and 2018 that raised concerns about scams, frauds, and other manipulations that could upend financial stability within the European bloc. After years of research, due diligence, and good intentions, MiCA deserves a lot of credit for its approach to balancing regulation with innovation—a clear recognition of crypto and blockchain’s technological and business advantages. Furthermore, MiCA bolsters stability, investor trust, transparency, and oversight with its comprehensive legal framework.
But MiCA has some blind spots.
While the regulatory framework acknowledges the importance of bridging crypto asset service providers and traditional finance, it doesn’t offer much on how to make that a reality. Indeed, the growing overlap of tradfi and digital assets bodes well for boosting adoption and has likely contributed to a maturing crypto ecosystem, but MiCA places limitations on stablecoins that seem counterproductive.
Non-Euro-pegged stablecoins are not allowed to be used in transactions for goods and services and face daily limitations on the number of transactions (up to one million) and their total value (€200 million). This essentially puts usage limits on USDC and USDT, the two leading stablecoins, even if they are certified as MiCA compliant.
And since stablecoins are so crucial for facilitating transactions, enabling defi, and boosting nearly every aspect of the industry, these curbs could potentially impact liquidity and disrupt innovation and defi activity, undermining a core pillar of MiCA’s mission.
Moreover, these limitations are compounded because MiCA doesn’t emphasize interoperability, one of the industry’s most pressing needs, nor does it seem interested in encouraging crypto-fiat payment solutions—key avenues for bolstering liquidity and sparking innovation that stretch beyond crypto.
While it’s too early to understand how MiCA’s stablecoin approach will play out, Europe’s regulators can do more to address interoperability and cross-ecosystem payments to future-proof its economy and avoid market fragmentation. This can be improved by working with EU organizations like Horizon Europe and the European Innovation Council to find innovative startups that address areas MiCA has neglected.
For example, Kima, an asset-agnostic, peer-to-peer money transfer and payment protocol, provides an interoperable settlement layer for interchain and crypto-fiat transactions. By removing the barriers between blockchains and between traditional financial instruments and blockchain networks or decentralized apps, Kima’s protocol enables developers to access greater amounts of liquidity. This also benefits non-crypto native users and financial institutions by enabling funds to flow in all directions.
MiCA will undoubtedly serve as the standard bearer for crypto regulation, guiding other nations and economic blocs on how to regulate a burgeoning, complex, and volatile market that offers a lot of promise. It’s important that in its just desire to protect its monetary interests, it doesn’t overlook other areas that impact the industry’s ability to grow.
The EU has shown a willingness to adapt and study trends as they emerge, and in the fast-paced crypto world, this is needed to ensure appropriate measures are taken to protect investors as well as the integrity of the entire industry.
South Korean authorities are considering postponing the controversial 20% crypto tax after the local crypto community raised concerns.
Initially set to begin in 2021, South Korea‘s 20% crypto gains tax might now be delayed until 2028 amid fears that the tax could devastate the local market, the Korea Economic Daily reports, without disclosing its sources.
South Korea’s Ministry of Economy and Finance is planning to impose a 20% tax on the amount exceeding the basic deduction of 2.5 million won (around $1,800), plus an additional 2% local income tax. According to the report, South Korea’s ruling party might be considering postponing the crypto gains tax, scheduled for implementation early next year, until 2028, making it the third delay by the government.
The report notes that talks about the possible delay arose after Democratic Party leader Lee Jae-myung implied the country’s need to “reconsider the timing of its [crypto tax] implementation.”
The Korea Economic Daily also highlights that the crypto gains tax implementation is technically difficult due to inadequate system and institutional preparation, with some saying that institutional readiness for the tax is “still insufficient.”
As crypto.news reported earlier, Korean crypto exchanges like Upbit, Bithumb, and Coinone argue that trading volumes will significantly drop once the tax is enforced, with an anonymous spokesperson from a crypto exchange saying that “many exchanges will probably shut down next year” if the tax is implemented as scheduled.
Defi promises a future free from centralized control. It has unlocked a new world where you can borrow money without a bank, earn interest on your crypto holdings at rates exceeding traditional savings accounts, or trade assets directly, peer-to-peer, without relying on intermediaries. One of defi’s key incentives is to break down barriers that have excluded vast parts of the global population from financial services.
Neobanks, on the other hand, are digital-only banks that operate online, with no physical branches. Due to their user-centric approach, flexibility, and low fees, neobanks and crypto apps like Revolut, N26, Chime, and the Brighty App have become very popular, making banking more accessible and convenient for millions.
So what about the intersection of these two sectors? Could neobanks leverage their tech infrastructure and intuitive UX to tackle defi’s complexity and build a more inclusive financial system? Let’s explore how neobanks can democratize defi products by acting as intermediaries between traditional finance (tradfi) and defi.
Defi’s rugged terrain
In the past few years, the sector has attracted a wide range of tech pioneers, with the total value locked in defi protocols surpassing $195 billion by May 2024. Interestingly, traditional financial institutions have also been dipping their toes into decentralized finance, offering custody services for digital assets and exploring collaborations.
One of the latest key trends in the space is the integration of artificial intelligence (AI) and machine learning. These technologies are already making a significant impact in defi across several key areas, such as security, chatbots, operational efficiency, risk management, and personal financial advice.
Still, navigating defi’s uncharted territories can feel like scaling Mount Everest in flip-flops: its complexity and technical barriers remain quite high for the average user. Despite the recent advances, security also remains a significant concern. Additionally, despite the development of cross-chain bridges and interoperable solutions, defi protocols often operate in silos, hindering interaction; regulatory issues cannot be ignored either.
Here’s where neobanks, sleek and user-friendly fintech prodigies, have the potential to become the Sherpas of the new financial revolution.
Neobanks: Linking defi to the masses
One of the biggest hurdles to defi adoption is the inherent complexity of its protocols. Deciphering cryptic interfaces, managing unfamiliar wallets, and fear of irreversible mistakes create a significant barrier to entry, even for tech-savvy individuals. Neobanks, focusing on intuitive interfaces and user experience excellence, can be the game-changers in this domain.
Through seamless integration of defi functionalities within existing neobank platforms, users could access educational materials and explore different defi products—all within the familiar and trusted environment.
Tackling security: From the Wild West to Fort Knox
Security concerns are another major hurdle in defi adoption. Horror stories of hacked wallets and lost funds haunt the crypto space. Neobanks, with their robust security infrastructure and focus on regulatory compliance, can provide users with much-needed peace of mind.
Imagine a world where neobanks act as custodians of your defi assets, offering the same level of security you expect from your traditional bank. This includes secure storage of digital assets, advanced fraud prevention measures, and clear communication about potential risks associated with defi. By prioritizing security, neobanks can foster trust and encourage broader participation in the defi ecosystem.
Breaking down the silos, building trust
By acting as aggregators, bridges, and curators, neobanks have the potential to transform the fragmented defi landscape into a more unified and user-friendly ecosystem. First, they can leverage their user-friendly platforms to aggregate a variety of defi services. That way, users would have easy access to lending, borrowing, trading, and other defi functionalities in one app, simplifying their defi experience and eliminating the need to navigate a multitude of separate protocols.
Second, neobanks can act as bridges between different defi protocols, enabling seamless interoperability, such as initiating a loan using one protocol and seamlessly transferring those funds to another protocol for investment.
Third, neobanks can leverage their expertise to curate a selection of high-quality defi products for their users. This curation process would involve careful assessment of security, risk factors, and potential returns, providing users with a safe and convenient way to explore the world of defi.
Bridging the regulatory gap
One of the biggest challenges facing defi is the current regulatory landscape. Regulations vary significantly across jurisdictions, creating uncertainty for both users and developers.
Neobanks, with their established relationships with regulators and experience navigating financial compliance, can leverage their expertise to create tools and services that help defi projects comply with relevant regulations. This could include know your customer (KYC) and anti-money laundering (AML) solutions tailored explicitly for the defi space.
Beyond that, they can use their voice to advocate for clear and sensible regulations that foster innovation in defi while protecting consumers, working with regulators to create a framework that encourages responsible development and defi adoption.
A user-friendly gateway to a democratized finance
Neobanks and defi represent two sides of the financial innovation coin. While defi promises a democratized future, its complexity remains a barrier to entry. Neobanks, with their user-centric approach, have the potential to bridge this gap.
Today, I envision a future where neobanks transform from convenient banking apps to gateways to a secure, curated, unified defi experience. That future fosters financial inclusion, empowers individual users, and unlocks the true potential of decentralized finance. As defi continues to evolve, the collaboration between neobanks and defi protocols can make conquering the financial landscape so much easier.
JD Vance has held Bitcoin for years, criticized Gary Gensler and the SEC, and pushed for pro-crypto policies. In November, he could be a heartbeat away from the presidency.
After a shocking assassination attempt on Saturday, a defiant Donald Trump has returned to the campaign trail — and was pictured with a bandaged ear while attending the Republican National Convention in Wisconsin.
Now formally nominated as the party’s nominee in November’s presidential election, his first order of business was to select a running mate. Trump duly announced that Ohio senator JD Vance would be his vice presidential pick.
From a crypto standpoint, this is a positive development — and an extension of Trump’s pro-Bitcoin rhetoric. Back in 2022, Vance had disclosed that he held between $100,000 and $250,000 worth of BTC, meaning it’s fair to say he’s a believer.
Vance even went on to say that Gensler is “the worst person” to be tasked with overseeing this vast-moving industry — and argued that modern tech companies and social networks will increasingly need to have their own utility tokens.
Earlier this year, the Republican played an instrumental role in congressional efforts to repeal SEC Staff Accounting Bulletin 121, a controversial rule that effectively stops financial institutions from taking custody of crypto because it needs to be listed as a liability on their balance sheets.
Despite the vote clearing both the House of Representatives and the Senate, it was vetoed by President Joe Biden, who said he could not “support measures that jeopardize the wellbeing of consumers and investors.”
Vance also wrote to Gensler to demand answers following the SEC’s pursuit of Debt Box, which saw commission lawyers make “materially false and misleading representations” about the company that led to assets being frozen and the value of its native token falling by 56%. The letter said:
“It is unconscionable that any federal agency — especially one regularly involved in highly consequential legal procedures and one that, under your leadership, has often pursued its regulatory mission through enforcement actions rather than rulemakings — could operate in such an unethical and unprofessional manner.”
JD Vance
This language mirrors the criticism that the crypto sector has lodged against the SEC, with firms claiming that the commission has engaged in regulation through enforcement.
According to Politico, Vance has also been working on draft legislation that would overhaul how the U.S. regulates digital assets — joining the likes of Cynthia Lummis and Kirsten Gillibrand in pushing for change.
And back in 2022, he was highly critical of Canada’s decision to freeze or suspend bank accounts linked to the Freedom Convoy protests, arguing that it showed why BTC was needed.
This is why crypto is taking off. The regime will cut off your access to banking if you have the wrong politics. https://t.co/C88DCsehnN
Undeterred by Mt. Gox starting to move billions of dollars in Bitcoin ahead of repayments to creditors, the crypto markets reacted warmly to news of Vance’s selection — building upon the gains that were seen in the immediate aftermath of Trump’s assassination bid. CoinMarketCap data shows BTC came tantalizingly close to piercing $65,000 at one point. Stocklytics analyst Neil Roarty described him as a “long-time advocate” of crypto, adding:
“With Vance next to Trump in the White House — an outcome that’s looking increasingly likely — there is a sense that pro-crypto policy could be on the agenda come 2025.”
Neil Roarty
Bitcoin over the past seven days | Source: TradingView
All eyes on November
Just like Trump has changed his tone about digital assets, JD Vance has changed his tone about the former president.
Back in 2016, the politician had gone on the record as describing Trump as an “idiot” who was “reprehensible” — likening him to Hitler behind closed doors.
But over recent years, Vance has shifted to become one of Trump’s closest allies, and an ardent supporter of his policies.
Biden pointed to this in an NBC interview shortly after the nomination was made, saying:
“[Trump’s] gonna surround himself with people who agree completely with him, have a voting record, that support him.”
Joe Biden
Attention now turns to Nashville, where Trump is expected to speak at next week’s Bitcoin 2024 conference.
That’ll be a landmark moment for the sector — and could give crypto investors an idea of what to expect if he returns to the Oval Office.
With two pro-Bitcoin candidates at the top of the Republican ticket, the U.S. really is in unprecedented territory.
Will Trump’s potential choice of Jamie Dimon, a vocal critic of Bitcoin who said he’d close it down, mark the beginning of the end for cryptocurrency freedom in the U.S.?
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Former U.S. President and current Republican nominee Donald Trump, a man known for his bold and often controversial decisions, recently dropped another bombshell.
In an interview with Bloomberg, conducted in late June and published on July 16, Trump revealed that he is considering JPMorgan CEO Jamie Dimon for a key position in his cabinet if he wins the upcoming election. The role in question? Secretary of the Treasury.
Now, here’s where it gets interesting. Jamie Dimon, a name synonymous with JPMorgan Chase, has been one of the harshest critics of Bitcoin (BTC) and crypto.
Over the years, Dimon has not minced words, calling Bitcoin a “fraud” and warning investors to stay away from the volatile crypto market.
However, in the same interview, Trump hinted that Dimon might have had a change of heart. He referenced a recent meeting in June where he met with Dimon, top executives, and Republican lawmakers, and Trump showed ‘a lot of respect’ for him.”
This isn’t the first time Dimon’s name has surfaced in connection with a high-profile government role. Back in 2016, during Trump’s first term, Dimon was offered a position in the Treasury but ultimately turned it down.
Fast forward to December 2023, and whispers of Dimon heading the Treasury resurfaced, with reports emerging of the possibility based on sources close to Trump’s campaign.
Let’s dive deeper into who Jamie Dimon is, his past remarks on crypto, and what his potential appointment could mean for the future of Bitcoin and the broader crypto market.
Meet Jamie Dimon
Jamie Dimon is a big name in the banking world, known for his no-nonsense approach and strong leadership. Born in 1956, Dimon graduated from Tufts University with a degree in psychology and economics and earned his MBA from Harvard Business School.
Dimon’s career started at American Express, where he worked under Sandy Weill. He then moved to Commercial Credit and later Citigroup, following Weill, where he played a crucial role in building one of the largest financial services companies in the world.
In 2004, he joined Bank One, which was later acquired by JPMorgan Chase. By 2006, Dimon became the CEO of JPMorgan Chase, leading it to become one of the most influential banks globally.
Dimon is known for his straightforward and sometimes controversial statements. In 2012, he downplayed a major trading loss, calling it a “tempest in a teapot,” which drew stark backlash.
He’s also a vocal critic of regulators and has often sparred with them over financial rules.
But, he is also one of the staunchest critics of crypto and has made several remarks over the years. He has called Bitcoin a “fraud” and warned investors against it, predicting its eventual downfall.
Despite this, rumors of him softening his view have emerged, particularly with Trump considering him for the Treasury.
Dimon and crypto: a complicated relationship
Dimon has never been shy about expressing his disdain for Bitcoin and crypto. His most recent and striking criticism came in April 2024 during an interview with Bloomberg TV, where he labeled Bitcoin a “fraud” and a “Ponzi scheme.”
Dimon stated, “Crypto, if you mean crypto like Bitcoin, I’ve always said it’s a fraud. If they think there is a currency, there’s no hope for it. It’s a Ponzi scheme, it is a public decentralized Ponzi scheme.”
Dimon’s negative stance on crypto was reiterated just a few months earlier, in December 2023, during a Senate hearing. When questioned by Massachusetts Senator Elizabeth Warren, Dimon didn’t hold back.
“I’ve always been deeply opposed to crypto, Bitcoin, etc.,” he declared, arguing that crypto primarily serves criminals, drug traffickers, money launderers, and those avoiding taxes. Dimon even went as far as to say, “If I was the government, I’d close it down.”
This stance isn’t new for Dimon. He has been vocal about his negative views on Bitcoin and other crypto since at least 2014. In an interview with CNBC in 2014, Dimon criticized Bitcoin as a terrible store of value, arguing that it could be easily replicated and lacked the legitimacy of government-backed currencies.
He said, “It’s a terrible store of value; it can be replicated over and over. It doesn’t have the standing of a government.”
Another one of his infamous critiques came in September 2017 when he labeled Bitcoin a “fraud” and compared it to the infamous Tulip Mania bubble of the 17th century.
Dimon said, “I’d fire them in a second,” referring to any JPMorgan trader caught trading Bitcoin. He reasoned this decision with, “For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.”
Interestingly, while Dimon has been a staunch opponent of Bitcoin, he has shown some support for the technology behind it — blockchain.
In October 2017, just days before JPMorgan launched its blockchain initiative for interbank payments, Dimon acknowledged the potential of blockchain technology.
“The blockchain is a good technology. We actually use it. It will be useful in a lot of different things. God bless the blockchain,” he said.
Despite his harsh words about crypto, Dimon admitted, “I could care less about Bitcoin. I don’t know why I said anything about it.”
So, what does Dimon’s potential role as Treasury Secretary mean for the crypto market, and might his views influence U.S. financial policy?
What lies ahead?
If Trump returns to power and appoints Dimon as Secretary of the Treasury, the future of crypto in the U.S. could face significant changes.
Dimon’s track record as a banker is impressive. Under his leadership, JPMorgan Chase not only survived the 2008 financial crisis but emerged stronger. His firm stance on regulatory compliance and financial stability has made him a respected figure in traditional finance.
However, this same mindset could spell trouble for the crypto industry. Dimon’s past remarks, labeling Bitcoin a “fraud” and a “Ponzi scheme,” suggest that he could push for stricter regulations and oversight, potentially curbing the freedom that crypto currently enjoys.
Interestingly, this could create a conflict within Trump’s administration. Trump has recently positioned himself as a pro-crypto advocate, aiming to attract a growing number of young crypto investors.
Whatever the case may be, politics is a long and strategic game where thoughts, actions, and beliefs can change in the blink of an eye, with underlying motives often driven by gain.
As the election fever heats up, we will likely see more such headlines in the coming days, and crypto will remain an important topic of discussion.
An amicus brief filed by Iowa Attorney General Brenna Bird claims the United States Securities and Exchange Commission (SEC) is overstepping its authority in regulating the cryptocurrency sector.
The brief, backed by Arkansas, Indiana, Kansas, Montana, Nebraska, and Oklahoma, claims the SEC’s “power grab” is stifling innovation in the sector. It cautioned that the regulator’s approach could preempt state laws crucial for implementing adequate protections. Attorney General Bird said in an announcement:
“The Biden SEC is trying to prevent states like Iowa from doing their job to hold robbers to the law and protect families from the dangers of cryptocurrency scams.”.
The coalition raised constitutional issues, invoking the Major Questions Doctrine and federalism principles. They argue that regulating a multi-trillion-dollar industry like cryptocurrency requires explicit congressional authorization, which they believe the SEC lacks.
“The SEC’s attempt to regulate cryptocurrencies without proper congressional authorization is a direct threat to state authority and consumer safety,” the filing added.
According to the Coalition, the SEC’s current approach of regulating via enforcement actions rather than developing proper legislative frameworks violates the Administrative Procedure Act (APA).
The brief also criticized the SEC’s history of enforcement actions against cryptocurrency entities, citing the case of SEC v. SafeMoon LLC.
In this case, the SEC classified SafeMoon’s token as a security based on its price fluctuations. The coalition warned that this standard could allow the SEC to regulate any commodity that changes its value, not just cryptocurrencies.
“The Biden SEC is attempting to abuse its power and put itself in charge of regulating cryptocurrency, bypassing state consumer-protection laws,” the brief noted.
Further, the SEC’s classification of several cryptocurrencies as securities was also criticized.
The filing claims that most cryptocurrencies do not meet the criteria of an investment contract as defined by the Supreme Court’s Howey test, which requires an investment in a common enterprise with profits derived solely from the efforts of others.
This power grab will also hurt the free market and allow the SEC to take the regulatory reins over the cryptocurrency industry with no accountability,” Bird added.
At the time of publication, the SEC had not responded to the filing.
In Feb. 2024, Attorney General Bird joined other states in claiming the SEC had exceeded its authority in its case against Kraken. The joint statement also urged the court to reject the SEC’s securities claims.
“The court should reject categorizing crypto assets as securities absent an investment contract. The SEC’s exercise of this undelegated authority puts state consumers at risk by preempting state statutes better tailored to the specific risks of non-securities products.”
There had been hopes that California Governor Gavin Newsom may have been preparing to launch his own bid to be Democrat nominee, but he has bowed out.
Kamala Harris is working fast to try and secure the Democratic presidential nomination — one day after Joe Biden dropped out over concerns over his mental acuity.
And while she has won endorsements from several party grandees, not everyone is throwing their support behind her just yet.
Former president Barack Obama ruffled some feathers when he released a statement that called for an open contest to find Biden’s successor in the 2024 race.
Some pundits, reading between the lines, are pondering whether this could mean his wife Michelle will announce her intention to stand.
An Ipsos poll released earlier this month, when doubts were starting to emerge about Biden, suggested she might be the only Democrat capable of beating Donald Trump at the ballot box.
Source: Ipsos
But there’s a more specific question to be asked here: among Democrats, who would be likeliest to embrace pro-crypto policies?
If it does turn out to be Harris, crypto investors and entrepreneurs alike might end up disappointed.
During her time as VP, she has never gone on the record to discuss her views about digital assets — meaning we don’t know her thoughts on issues like Bitcoin and NFTs.
We do know that she hasn’t really voted on much crypto legislation during her time in Congress, and financial disclosures confirm she isn’t a HODLer.
From this, there are a couple of things we can deduce.
For one, it’s highly unlikely that Harris would end up regarding digital assets as much of a priority if she were to enter the Oval Office.
And if she was to make history by being elected, there’s a decent chance that her administration’s stance toward crypto might be a continuation of what we’ve had under Biden — with the Securities and Exchange Commission proving pretty heavy-handed in regulation.
There is one potential silver lining here: Harris has exceedingly close connections to tech giants in California.
During her successful attempt to be elected to the Senate, she received plenty of donations from entrepreneurs in Silicon Valley.
And as the importance of cryptocurrencies and blockchains continues to grow, these ties could prove particularly advantageous.
It’s also worth looking at Harris’s views on issues tangential to crypto — with privacy a core value that many investors value.
We got an insight into her thinking on privacy when she reacted to a leaked Supreme Court opinion related to overturning Roe v. Wade in 2022.
“If the right to privacy is weakened, every person could face a future in which the government can potentially interfere in the personal decisions you make about your life.”
Kamala Harris
There had been hopes that California Governor Gavin Newsom may have been preparing to launch his own bid to win the Democratic nomination — but he quickly nipped this speculation in the bud by endorsing Harris.
“With our democracy at stake and our future on the line, no one is better to prosecute the case against Donald Trump’s dark vision and guide our country in a healthier direction.”
Gavin Newsom
Newsom’s decision to sit this race out might be something of a disappointment to Democrats who believe in crypto — not least because he’s been pretty supportive of digital assets and blockchain technology in general. He was previously quoted as saying:
“Blockchain in particular is something that I see only becoming more and more predominant in our lives.”
Gavin Newsom
He’s also signed into law a crypto licensing bill that means California will now need to create a regulatory framework for crypto that will come into force on July 1, 2025. At the time, he declared:
“It is essential that we strike the appropriate balance between protecting consumers from harm and fostering a responsible innovation environment and I look forward to working with the author to achieve this.”
Gavin Newsom
Estimates from Security.org suggest that up to 40% of American adults now own at least one crypto — up to 93 million people.
But when it comes to the issues that Democrats and Republicans are worried about the most, inflation, the economy, and gun violence tend to top the list.
If chosen, Harris will likely attempt to run a sober campaign that doesn’t rock the boat too much — one that shows continuity with what Biden already started.
Italy is reportedly considering increasing fines for crypto crimes as part of measures to reduce market manipulations.
Italy‘s government is mulling tougher penalties for those who manipulate the crypto market, Reuters has learned, citing a draft decree.
The proposed legislation, if approved, would impose fines ranging from €5,000 to €5 million (,400 to .4 million) for crimes such as insider trading, unauthorized disclosure of inside information, and market manipulation. The decree designates the Bank of Italy and market regulator Consob as the primary overseers of crypto activities, with a mandate to maintain financial stability and ensure the orderly functioning of markets.
In early 2023, the Bank of Italy emphasized the need for a strong and risk-based regulatory framework surrounding stablecoins, aiming to avert a potential worst-case scenario of a destabilizing “run” on these digital assets. The financial regulator particularly highlighted the need for regulatory attention, particularly towards stablecoin issuers, due to their close ties with decentralized finance.
Later on, Italy’s central bank announced the creation of a supervisory environment in anticipation of the Markets in Crypto-Assets Regulation (MiCA), the European Union’s forthcoming regulatory standards for the crypto industry.
However, it remains unclear whether this supervisory framework has been fully implemented. At that time, Ignazio Visco, then-governor of the Bank of Italy, noted that the central bank’s surveys indicated only about 2% of Italian households held “modest amounts, on average” of crypto, with the exposure of Italian financial intermediaries to the crypto market also being very limited.
