Expanding on previous mandates to encompass platforms like decentralized exchanges (DEXs). The United States Internal Revenue Service (IRS) published rules mandating that brokers record transactions using digital assets.
Once the regulations come into effect in 2027, brokers will be required to disclose information about taxpayers who transact in digital assets. Brokers must also disclose the total amount they made from the sale of Global Developments Crypto and other digital assets.
Under the new regulations, decentralized exchanges (DEXs) could be seen as intermediaries if the decentralized finance (DeFi) platform allows for the buying and selling of digital assets and has enough say over the deal.
Blockchain Groups Sue IRS
The Blockchain Association and the Texas Blockchain Council took legal action in reaction to the new regulations by suing the IRS, claiming that the restrictions violate the Constitution.
The CEO of the Blockchain Association, Kristin Smith, has stated that the organization is taking measures and is supporting American innovators in their efforts to “ensure the future” of decentralized finance (DeFi) and cryptocurrency in the United States.
The group contended that the regulation might put the nation’s digital asset market in jeopardy and is therefore in violation of the Administrative Procedure Act.
Turkey Enacts Crypto Reporting Laws
Turkey also adopted new Global Developments Crypto reporting laws to combat money laundering. Users will be required to disclose their information with service providers in the country. If their transactions exceed 15,000 Turkish lira, the new regime is approximately $425.
While larger transactions would be impacted, the Turkish government. Has stated that consumers whose transactions do not exceed $425 will not be subject to the new regulation. The Turkish government plans to implement the new regulation on February 25, 2025.
Do Kwon Extradited to U.S.
Do Kwon, co-founder of Terraform Labs, was granted extradition. The United States by the Montenegrin Minister of Justice Bojan Božović following the dismissal of Kwon’s appeal by the country’s constitutional court.
The decision to send the ex-crypto executive to the US is the culmination of a protracted legal struggle that saw multiple reversals of extradition. The prosecutions in the United States and South Korea have asked. For Kwon’s extradition so he can face charges in their respective countries.
With the denial of the appeal and the clearance granted to extradite Kwon. The US by the Ministry of Justice, the lengthy legal proceedings pertaining to his extradition should come to a close.
Hong Kong Advances Stablecoin Legislation
With its first reading before the Legislative Council. The highly anticipated measure regarding stablecoins in Hong Kong has advanced to the subsequent step. Before reaching the chief executive, who is empowered to sign the measure into law, it must first pass through three readings. Should the bill become law, it would mandate the Hong Kong central bank to grant licenses to stablecoin issuers.
license, issuers need to satisfy the standards set by the Hong Kong Monetary Authority. The regulator would review the stablecoin, its issuer, controllers, reserve assets, and value stabilization measures before granting licenses. Once the regulation is passed, the Hong Kong market will only accept stablecoins offered by approved issuers.
FAQs
What legal action did blockchain groups take against the IRS?
The Blockchain Association and the Texas Blockchain Council sued the IRS, claiming the new regulations violate the U.S. Constitution and could harm the digital asset market. They argue that the regulations are in violation of the Administrative Procedure Act.
What crypto reporting laws has Turkey enacted?
Turkey has introduced new crypto reporting laws requiring users to disclose their information with service providers if transactions exceed 15,000 Turkish lira (approximately $425). The new regulations will be implemented starting February 25, 2025.
Why was Do Kwon extradited to the U.S.?
Do Kwon, co-founder of Terraform Labs, was granted extradition to the U.S. after a lengthy legal battle. He faces charges in both the U.S. and South Korea. The decision came after Montenegrin courts dismissed his appeal, finalizing the legal process.
What is the current status of stablecoin legislation in Hong Kong?
Hong Kong is advancing a new law that would require the central bank to grant licenses to stablecoin issuers. The bill is still in its legislative process, needing three readings before potentially becoming law. If passed, only approved stablecoin issuers will be accepted in Hong Kong's market.
