KYC Bill, 'Stablecoin Transperency' And UK As A Crypto Hub?

EU passes a KYC bill that stops anonymous crypto transactions. U.S. lawmakers present a ‘stablecoin transparency’ bill. U.K. aims to become a crypto hub via recognising stablecoins and creating an NFT.

APR 07, 2022

Key Takeaways

Last Thursday, the EU parliament voted in favour of imposing KYC on unhosted crypto wallets, despite industry criticism and privacy concerns. The new legislation, which essentially prohibits anonymous crypto transactions, would require crypto service providers to collect user information for even the smallest transactions.
Rising concerns about stablecoin security have prompted U.S. lawmakers to introduce the ‘Stablecoin Transparency Act’, a bill that would require stablecoins to be “backed by government securities with maturities less than 12 months or U.S. dollars” and have issuers publicly release audited reports of their reserves.
On Tuesday, the U.K. government announced plans to turn the nation into a ‘global crypto asset technology hub’. The moves include making stablecoins a recognised form of payment, exploring ways of making the U.K. tax system more competitive, and working with the Royal Mint to create a non-fungible token (NFT).
Indonesia is set to start charging a value-added tax (VAT) of 0.1% on both crypto transactions and capital gains, starting on 1 May.

Highlights

G20’s Regulatory Heatmap

G20’s Crypto Taxation

Country / Region	Classification	Type of Tax	Tax Rate
Argentina	Unspecified	N.A.	N.A.
Australia	Asset	Progressive Income Tax, and Progressive Capital Gains Tax (CGT)	0-45%
Brazil	Asset	Progressive CGT	15-22.5%
Canada	Asset	Progressive Income Tax / CGT	15-33%
China (Mainland)	Virtual Commodity	Progressive Income Tax (for international trading)	3-45%
China (Hong Kong)	Digital Asset	N.A.	N.A.
France	Movable Asset	Income Tax	Occasional traders – Flat Tax of 30% Professional traders – BIC tax of 45% Crypto miners – BNC Tax of 45% (Effective from 2023)
Germany	Private Asset	Income Tax	0-45%
India	Digital Asset Financial Service	CGT Income Tax Goods & Services Tax (GST) Tax Deducted at Source (TDS)	CGT: 30% Income tax: 30% GST: 18% TDS: 1% (from 1 July 2022)
Indonesia	Digital Asset	CGT Value-added Tax (VAT)	CGT: 0.1% (from 1 May 2022) VAT: 0.1% (from 1 May 2022)
Italy	Others	Unspecified	Unregulated
Japan	Property	Miscellaneous Income Tax	Under JPY 200K: 0% Residents: 5-55% Non-residents: Flat 20%
Portugal	Unspecified	N.A.	N.A.
South Korea	Property	CGT	20% (Effective from 2023)
Spain	Assets	Income Saving Tax	Below EUR 50,000: 0% Otherwise: 19-26%
Mexico	Virtual Asset	Income Tax	Unregulated Residents: 30%
Netherlands	Asset	Wealth Tax	Below EUR 50,000: 0% Otherwise: 31%
Russia	Unspecified	N.A.	N.A.
Saudi Arabia	Unspecified	Unspecified	Unregulated
South Africa	Asset	Income Tax	18-45%
Turkey	Commodity	Income Tax	15-40%
U.K.	Crypto Asset	Corporation Tax Individual Tax	Corporations: 19% Individuals: 0-45%
U.S.	Property	Short-Term / Long-Term Tax	Short-Term: 10-37% Long-Term: 0-20%

* G20 countries here do not include all EU members, but selected ones only

To view a full picture of G20’s cryptocurrency policies, please subscribe to Crypto.com Research’s Weekly Regulatory Update on Substack.

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Source: Crypto.com