Regulatory Trends

1. The Central Bank of Nigeria has completely banned cryptocurrency assets.

Recently, the Central Bank of Nigeria ordered a ban on cryptocurrencies such as Bitcoin and required local banks to immediately close customer accounts related to cryptocurrency exchanges. This ban may be related to the protests against police brutality in 2020. It is reported that protesters largely relied on Bitcoin donations to support the movement.

2. Estonia strengthens regulation of cryptocurrency licenses

The Estonian Ministry of Finance is developing a stricter cryptocurrency licensing system. Under the new regulations, the financial regulatory authority Finantsinspektsioon will take over the supervision of cryptocurrency businesses. The existing 381 licensed companies will need to reapply for operating licenses. The Ministry of Finance stated that the government is not opposed to cryptocurrencies, but it is expected that only 50 to 100 companies will be able to meet the new regulatory requirements. Previously, Estonia revoked the licenses of more than 1,000 crypto companies in 2020.

3. The Indian government clarifies its stance on cryptocurrency

The Indian Finance Minister recently responded to a parliamentary inquiry, stating that the government will not consider cryptocurrency as legal tender and will take measures to prevent these assets from being used for illegal activities or payment systems. At the same time, the government will actively explore the application of blockchain technology in the digital economy. Industry insiders believe this indicates that the Indian government is primarily focused on curbing illegal activities rather than a complete ban on cryptocurrency.

4. The South African Revenue Service requires disclosure of cryptocurrency transactions.

The South African Revenue Service has included specific questions about cryptocurrency transactions in its new audit requirements. Taxpayers are required to disclose the purpose of purchasing digital assets and the transaction timeline. The Revenue Service warns that failing to report or falsely reporting Bitcoin transactions constitutes a criminal offense, which may result in a maximum of two years in prison.

5. Spain Issues Cryptocurrency Tax Guidelines

The Spanish Tax Agency has issued guidelines to reduce the risk of tax evasion in cryptocurrency. Key measures include: requiring local exchanges to provide user information, system analysis of trading data, and strengthening international cooperation. These initiatives aim to encourage voluntary tax compliance and better regulate cryptocurrency transactions.

6. Córdoba Province in Argentina taxes cryptocurrency transactions

The province of Córdoba in Argentina has passed a new bill imposing a tax of 4% to 6.5% on cryptocurrency-related transactions. Individual traders and merchants accepting payments in crypto assets are also required to pay the corresponding taxes. This indicates that local governments are beginning to incorporate crypto assets into the tax system.

7. Beijing issues digital renminbi red envelopes

To promote the application of technology in the Winter Olympics, Beijing has launched a pilot program for digital RMB. A total of 50,000 lottery winners will receive a digital RMB red envelope worth 200 yuan each, which can be used at designated merchants and e-commerce platforms. This is another attempt to apply digital RMB in large-scale events.

Cryptocurrency Dynamics

1. PayPal increases investment in cryptocurrency business

PayPal's CEO revealed that the company is investing in new departments related to cryptocurrency, blockchain, and digital currency. PayPal plans to launch a feature this quarter that allows account top-ups using cryptocurrency. Currently, the volume of cryptocurrency transactions on the platform has exceeded expectations.

2. Tesla CEO Elon Musk expressed support for Bitcoin.

Tesla CEO Elon Musk publicly expressed his support for Bitcoin, stating that he should have bought Bitcoin eight years ago. Reports suggest that SpaceX executives participated in a Bitcoin summit to discuss the possibility of incorporating Bitcoin into the company's assets.

3. Forbes Releases Blockchain 50 List

Forbes released its list of the top 50 global blockchain companies for 2021, with 21 companies making the list for the first time. Seven companies from China were included, with Ant Group making the list for the third consecutive year. Forbes also announced a list of 11 cryptocurrency billionaires, with the co-founder of Coinbase topping the list with a net worth of $6.5 billion.

4. Canadian companies apply for Bitcoin ETF

The Canadian fintech company Accelerate has submitted a preliminary prospectus for a Bitcoin ETF to regulators. The ETF will be listed on the Toronto Stock Exchange, offering units denominated in USD and CAD, with a management fee of 0.70%.

5. The Filecoin network is about to upgrade.

The Filecoin network plans to undergo a mandatory upgrade to version v1.5.0 in the coming weeks. This upgrade will include two improvement proposals aimed at enhancing network performance and security, as well as alleviating network congestion and reducing miner costs through off-chain verification.

6. Cryptocurrency search popularity hits a new high

According to statistics from data provider The TIE, the search volume for "buy cryptocurrency" on Google hit a new high in January. This reflects the growing public interest in crypto assets.