Logo
Avatar
|
38Views

Crypto regulation in the world: weekend update #52

UAE

Dubai's Virtual Assets Regulatory Authority (VARA) has introduced new licensing fees for cryptocurrencies, NFTs, and other virtual assets. According to new rules all proprietary traders will require a no-objection certificate to carry out the activity of proprietary trading in or from the Emirate of Dubai. VARA shall confirm its evaluation of a firm’s activity through the firm’s commercial licensor and firms assessed as carrying out the activity of proprietary trading will be required to pay an annual NOC fee of AED 1,000. For the avoidance of doubt, there is no additional fee payable in relation to the requirement for mandatory registration applicable to large proprietary traders.

The new fees also cover Whitepaper review and fees for amendments or withdrawal of licenses such as:

  • Issuers of Virtual Assets seeking VARA review under VARA’s Virtual Asset Issuance Rulebook will have to pay a whitepaper submission fee of AED 5,000. Firms will then be notified of the subsequent fee (of up to AED 50,000) to be charged for completion of a detailed review. The maximum amount payable for submission and review is therefore AED 55,000.

  • Submission of amendments to whitepapers (and the detailed review of such amendments) will also be subject to fees of AED 5,000 (for submission) and a further fee for completing a detailed review (of up to AED 50,000). The maximum amount payable for submission and review of an amendment is therefore AED 55,000.

The EU

The European Council has recently passed a new directive that mandates new measures for wealth confiscation and property seizure. The directive aims to achieve harmony and clarity across the European Union by defining property that can be frozen or seized broadly, which includes cryptocurrencies. The new rule allows for the confiscation of unexplained wealth without requiring a criminal conviction, which has been a contentious element of the directive.

The proposal reinforces the situations where assets can be confiscated without a conviction, such as in cases of death or immunity of the accused. The directive also aims to strengthen asset recovery and confiscation by bringing together rules scattered in three different EU laws into one single directive.

The proposal also reinforces the role of competent authorities in asset recovery and confiscation, and it also establishes minimum rules on freezing, confiscation, and management of criminal property.

The new directive aims to make confiscating and disposing of illegally acquired property and assets more effective and efficient. The Council's position on the draft directive on asset recovery and confiscation has been agreed upon by ministers of justice. The directive reinforces the situations where assets can be confiscated without a conviction, such as in cases of death or immunity of the accused.

Israel

The Israeli government has proposed a new bill that would exempt foreign residents from capital gains tax on the sale of digital currencies from Israeli-based companies. This bill has passed its preliminary reading in the Knesset, Israel's parliament.

In 2020, Israeli regulators proposed that Bitcoin be taxed as a currency, not an asset, and that digital currencies like Bitcoin would not be subject to capital gains taxes. However, under current income tax policy, Bitcoin is treated as an asset and taxed 25% whenever individuals convert their tokens into fiat, or 15% for short-term lenders.

The proposed bill aims to adapt the regulatory reality in Israel to the existing reality in the field and allow digital currencies to continue to be a growth engine that allows the Israeli high-tech industry to flourish and develop.

The bill could lead to digital currencies being taxed at a substantially lower rate, which could help the industry grow. The bill also aims to increase transparency, eliminate conflicts of interest, and impose commonsense measures to protect investors, consistent with regulations imposed on other financial services.

We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!

The TokenScope Team
#TokenScope #CryptoNews #UAE #AML #MiCA #EU #Israel
More about TokenScope cryptocurrency risk assessment & investigation platform at: