Regulatory Trends

1. The development of digital currency is incorporated into the national strategic planning.

The recently released full text of the "14th Five-Year Plan" proposal suggests to "steadily promote the research and development of digital currency." The document points out that it is necessary to improve the modern central banking system, optimize the currency supply control mechanism, conduct digital currency research and development prudently, and improve the market-oriented interest rate formation and transmission mechanism. This marks that the development of digital currency has been officially included in the national strategic planning.

2. Hong Kong plans to establish a licensing system for virtual asset service providers.

The Hong Kong Special Administrative Region Government's Financial Services and the Treasury Bureau has released a consultation document to solicit public opinion on amending relevant legislation. The document proposes the establishment of a licensing system for virtual asset service providers, requiring those engaged in virtual asset trading platform operations in Hong Kong to apply for a license from the Securities and Futures Commission and comply with relevant standards. Operating without a license or violating relevant requirements will face criminal penalties, with a maximum sentence of 7 years in prison and a fine of up to 5 million.

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

The State Duma of Russia is discussing a new bill that may require citizens to declare their "electronic" asset income and holdings on overseas platforms. The bill proposes that if a citizen's annual trading volume on overseas digital platforms exceeds a certain amount, they must report it to the tax authorities. This move could impact cryptocurrency trading.

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 after the implementation of the EU Anti-Money Laundering Directive. This means that the general public can still participate in cryptocurrency investment with a low threshold. In the Netherlands, all companies that provide cryptocurrency buying, trading, and custody services must register with the central bank.

5. South Korea plans to require cryptocurrency companies to disclose user identities.

The South Korean Financial Services Commission is pushing for amendments to relevant legislation, requiring domestic virtual asset service providers to report customer names. This initiative aims to strengthen anti-money laundering management. The new regulations will require relevant institutions to conduct transactions with customers using real-name accounts and to implement a series of measures to enhance customer fund management and data security.

6. Venezuela launches state-owned cryptocurrency exchange

Venezuela has launched a state-owned cryptocurrency exchange called VEX, which supports the trading of Petro, Bitcoin, Litecoin, and other cryptocurrencies against the Bolívar. The exchange uses P2P technology and can be accessed through a government-issued crypto wallet application. This move aims to further promote the use and development of cryptocurrency in the country.