The Singapore crypto scene is one of the main attractions in the unregulated digital currency landscape due to the country’s friendliness towards the new financial revolution. 

Unfortunately, the country’s regulator’s tightening on digital finance in[ June](https://cointelegraph.com/news/brutal-and-unrelentingly-hard-singapore-regulator-s-clampdown-on-crypto) contradicts Tharman Shanmugaratnam, a senior minister in the Cabinet who saw a lot of positives in digital assets in the sovereign island country and this has sent shockwaves across the markets. 
On Thursday, June 23, the central bank and financial regulator of one of Asia’s booming economies pledged to be unrelentingly hard and brutal on any transgression from major stakeholders in the digital currency industry. 

These comments were made by Sopnendu Mohanty, the Chief Fintech Officer of the Monetary Authority of Singapore (MAS) who explained in an interview with the Financial Times (FT) which was highly monitored by [MoniTalks. ](/news)

The Fintech Officer also criticized market participants who believe the country is losing its status as a friendly state for alternative finance. 
He responded that his country should not be friendly with decentralized finance because it can only deal with actors in a real economy and not some “unreal economy”.

To many firms in the space, this is a complete turnaround from what cabinet minister Shanmugaratnam said in October 2021. 
At the peak of the markets during the first month of the last quarter of 2021, he pointed out that digital tokens may have a role in future finance that goes beyond illicit finance and pure speculation. 

He added that the country was laying the foundation for becoming a crypto-technology hub which will make it easy for tokenization, trading, and custody services to be provided by companies. 

With that said, Chief Fintech Officer, Sopnendu Mohanty believes the current financial crisis can be attributed to the world being lost in private currency. 

As a result, the Asian state has enacted a painfully slow due diligence process that grants licenses to businesses associated with the digital currency market. 

Singapore crypto became a mainstay in the space because firms enjoyed low taxes. 

Unfortunately, the view in which the minister sees a place for crypto in the Asia hub has been replaced by regulations that aim to pave the way for the introduction of central bank digital currency (CBDC) which could be launched in the next three years. 


Singapore Regulator’s Clampdown on Crypto

Commenting on crypto tax, UK Conservative MP Matt Hancock said that the country needs to be more liberal in its approach to regulation. He argued it should introduce an “attractive” regime so it can maintain its position as the cryptocurrency hub of Europe. 
“The tax and regulatory regime needed to be dealt with quickly”, Hancock stated.

His words were heard by the ex-Chancellor Philip Hammond who said England is slowly trotting after its competitors regarding the regulation of digital assets since some countries, such as Korea, already decided on a [crypto tax](/news/article/south-korea-crypto) that would be optimal for consumers.
He stated the UK must activate itself quickly since, for now, it doesn’t look like it will maintain its position as a global cryptocurrency center.
 “It isn't too late for us to catch up and recover, but we are getting very close to the point where it will be too late,” he said and added development around legislation of the whole digital asset industry moves pretty slowly. 

Hammond stated that the FCA should have been faster in employing the industry experts. “We need the industry, to provide us with the talent to work up the regimes we need to introduce,” he said.


## Crypto tax, UK free zone

Still, there are more possibilities and reasons why we think the UK could become the real global hub when it comes to cryptocurrencies. Let's look at the advantages of being headquartered in the UK Channel Islands. The [Isle of Man](https://www.digitalisleofman.com/sectors/blockchain/) gives investors a pretty good opportunity for their crypto-based, with 0% standard rate of corporate tax, no capital gains tax and personal tax rates that are among the lowest in Europe.

The self-governing British Crown dependency has been a famous IT and financial hub for years and with it being more welcoming towards the cryptocurrency industry – UK Channel Islands seem like an attractive home to the crypto participants.

Also, according to a new PwC Channel Islands report, one in five British citizens already own cryptocurrency. With that in mind and Tether recently [launching a stablecoin pegged to the British pound](/news/article/best-crypto-exchange-uk)  - these are supportive signs that the UK that bodes well for the future prospects of the UK being a crypto hub.



Crypto tax UK situation may propel the country into crypto haven

Elon Musk, the CEO of Tesla and SpaceX, was sued for $258 billion by a [Dogecoin](/coins/doge) investor on Thursday, alleging him of operating a pyramid scheme to support the cryptocurrency.
 
Plaintiff Keith Johnson filed a case in federal court in Manhattan accusing Musk, electric vehicle firm Tesla Inc, and space tourism company SpaceX of racketeering for promoting Dogecoin and pushing up its price, only to see it plummet.
 
## Plaintiff Keith Johnson's Statement

"Defendants were aware since 2019 that Dogecoin had no value yet promoted Dogecoin to profit from its trading," 

"Musk used his pedestal as World's Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement."
 
According to the complaint, Warren Buffett, Bill Gates, and others have [questioned the worth of Bitcoin](https://news.sky.com/story/elon-musk-sued-for-258bn-over-claims-he-ran-a-pyramid-scheme-to-promote-dogecoin-12635334). Tesla, SpaceX, and Musk's lawyer did not immediately respond to the request for comment.

Johnson's lawyer did not reply to requests for comment on what proof his client has or expects to have that indicates the dog focused meme coins worthless, and the defendants conducted a pyramid scheme.

Johnson is claiming $86 billion in damages, which he claims represents the fall in Dogecoin's market value since May 2021 and wants it tripled. He also demanded Elon Musk and his firms be barred from marketing Dogecoin, and a judge to decide that trading Dogecoin is illegal under federal and New York law.

According to the lawsuit, the selloff of Dogecoin began around the time Musk presented the NBC show ‘Saturday Night Live’ and, playing a fictitious financial expert on a ‘Weekend Update’ segment, called cryptocurrency "a hustle." Tesla said in February 2021 that it had purchased $1.5 billion in bitcoin and had temporarily accepted it as payment for vehicles.

Dogecoin was trading at around 5.8 cents on Thursday, down from its top of almost 74 cents in May 2021.




Elon Musk Dogecoin debacle: The ‘Dogefather’ sued for $258bn 

As the global cryptocurrency landscape evolves, so do crypto regulations governing it. Keeping up to date with the rules and regulations in different countries is not always easy, but it is essential for anyone looking to trade or invest in cryptocurrencies.

Here are some key regulatory developments in the space over the past year and what we can expect in the year ahead.

## United States

The Securities and Exchange Commission (SEC) in the United States has been ramping up its scrutiny of the cryptocurrency space.
In 2020, the SEC brought many enforcement actions against companies and individuals involved in illegal activity, including fraud and money laundering. The SEC also issued several investor warnings about the risks of investing in cryptocurrencies.

In 2022, the SEC is expected to continue its crackdown on illegal activity in the cryptocurrency space. The agency is also likely to release more guidance on what types of digital assets will be considered securities. This could significantly impact how cryptocurrencies are traded and sold in the United States.

The Internal Revenue Service (IRS) considers cryptocurrencies a digital representation of value that serves as a store of value, unit of account, and a medium of exchange. Still, it does not consider them to be legal currency. As a result of this guidance, the IRS has issued cryptocurrency-specific tax rules.

## Europe

As the European Union looks to 2022 and beyond, cryptocurrencies will continue to play a significant role in the digital economy. In light of this, the EU is taking steps to ensure that crypto assets are regulated to promote innovation and protect consumers.

The Fifth Anti-Money Laundering Directive (5AMLD), brought into force in January 2020, is a vital part of the EU's efforts to regulate cryptocurrencies. 5AMLD brought cryptocurrency-fiat currency exchanges under EU anti-money laundering legislation to prevent the use of crypto assets for illicit purposes.

The European Commission is considering proposals to extend 5AMLD to cover custodial wallet providers and peer-to-peer (P2P) exchanges. The Commission is also considering introducing a pan-EU licensing regime for cryptocurrency service providers.

The European Union is also working on developing its digital currency, known as the Digital Euro. The Digital Euro would be a new form of central bank money, available to all citizens and businesses in the EU. The European Commission is currently exploring the feasibility of launching a Digital Euro and is expected to present its findings before the launch.

## China

In Asia, China has been one of the most active countries when it comes to regulating cryptocurrencies. In 2017, China banned initial coin offerings (ICOs) and shut down cryptocurrency exchanges. Since that time, the Chinese government has taken a more cautious approach to space.

In 2020, China launched its digital currency, known as the "digital yuan." The digital yuan is not entirely decentralised like other cryptocurrencies. However, it is still seen as a significant step forward for the adoption of digital currencies.

The Chinese government is also working on a blockchain-based system to track and trace digital assets.
This year, we can expect more regulatory clarity from the Chinese government. The digital yuan is expected to launch in a pilot program sometime this year. And the [blockchain-based tracking system](https://finance.yahoo.com/news/cbdc-launch-first-2022-093011347.html) could be up and running very soon. And it will be legalised as payment for tolls, transport fares, bills, and goods.

## South Korea

As the global cryptocurrency market matures, governments and financial institutions pay increasing attention to digital assets. Cryptocurrencies are not treated as legal money in South Korea. While exchanges are legal, they operate in a carefully regulated environment.

Cryptocurrency transactions are currently tax-free in the country because they are considered neither currency nor a financial asset. However, the Ministry of Strategy and Finance has stated that it will consider imposing a tax on cryptocurrency earnings to provide clarity for investors.

The South Korean government announced a new bill in March 2021 that requires cryptocurrency investors to use the same name on their digital wallet accounts as they do on their bank accounts. That requires cryptocurrency exchanges to provide information to banks to confirm customer identities.

The Tax on Cryptocurrency in South Korea was supposed to go into effect in January 2022, but it has been delayed until January 2023. South Korea has also committed to maintaining the tax framework to foster international financial transparency. In addition, the country has stated that it will continue working toward aligning the industry with FATF's anti-money laundering standards.

## Final Thoughts

The United States, Europe, China, and South Korea are all taking different approaches to regulating cryptocurrencies. Here's a breakdown of what each country is doing and how it will impact the future of crypto.

•	The United States has been relatively hands-off when it comes to cryptocurrency regulation. However, the SEC recently clarified that they consider some digital tokens to be securities. Companies issuing or selling these tokens must comply with federal securities laws. 
•	Europe is taking a more rigorous approach to crypto regulation than the US. The EU has classified Bitcoin as a currency and virtual asset, which subjects it to certain regulations like anti-money laundering and terrorist financing laws. Additionally, new rules proposed by the European Commission would require exchanges to verify customer identities and report suspicious activity. 
•	China has taken a hard line on cryptocurrency regulation, banning ICOs and exchanges. However, the Chinese government is still researching blockchain technology and its potential applications. 
•	South Korea is another country that has taken a tough stance on crypto regulation. The government has banned anonymous trading, required exchanges to verify customer identities, and limits how much money Koreans can invest in cryptocurrency.

These different approaches to regulating cryptocurrencies will have a big impact on the industry's future. In the US, crypto companies will need to comply with securities laws if they want to sell digital tokens. In Europe, crypto exchanges will need to verify customer identities and report suspicious activity. And in China and South Korea, crypto trading is more difficult due to the restrictions placed on exchanges.

As the world grapples with crypto regulations, it will be interesting to see how these different approaches play out.


Crypto Regulations 2022 and Beyond

The Black Swan events of December may have knocked Bitcoin, the world’s most popular crypto-currency, down 30% in value this month. But, judging from the resilience of the mining activity around the world, which has experienced a full recovery since the Chinese “_ban_”, the cryptocurrency investment community has further evidence to suggest that digital currencies will continue to rebound from whatever may get thrown at them.

## The 'Mecca' of Crypto-Mining

Once upon a time, China was _the_ mecca of cryptocurrency mining with reliable estimates putting the country’s slice of the global crypto-mining pie at the 65% to 75% mark.  Then, September 2021 happened.  The communist nation with a population of 1.4 billion [essentially banned all cryptocurrency transactions](https://www.reuters.com/world/china/china-central-bank-vows-crackdown-cryptocurrency-trading-2021-09-24/), including any mining activity that was happening in the country.  The Chinese ban was thought to be the sound of the death knell for digital currencies, but, again, the cryptocurrency market has shown remarkable “comeback” potential.

The recent rebound in global cryptocurrency mining was declared by measuring what’s referred to as the [_hashrate_](https://www.yahoo.com/now/hash-rate-cryptocurrency-calculated-172307967.html#:~:text=The%20hash%20rate%20is%20the,part%20of%20the%20mining%20operation.), a term that’s used to describe the computational power of all the mining activity taking place on the bitcoin network.  Specifically, it refers to the amount of computing power per second that the cryptocurrency mining process requires.

Getting back to China, once the ban was announced last summer the cryptocurrency market may have plummeted, but the miners simply folded up their tents, packed their gear, and took their operations to countries that demonstrated a more amiable attitude towards digital currencies.  For example, the United States has been a big beneficiary of the Chinese ban – The US is a provider of plentiful, inexpensive electricity and even Kazakstan, where electricity is _even less_ expensive saw a huge migration in cryptocurrency miners.

Cryptocurrency mining has certainly received its fair share of press, especially now that the effects of the Chinese ban have been eclipsed by the market’s recent global mining activity, so it’s worth taking a moment to understand what cryptocurrency mining really is.

## What is cryptocurrency mining?

Most of society believes the cryptocurrency mining process is just a way of creating new coins.  That’s true, but there’s more involved.  Crypto mining is deemed successful once miners have validated cryptocurrency transactions on a blockchain network and then successfully add them to a distributed ledger.  Most importantly, the mining process prevents the “[double-spending](https://www.gemini.com/cryptopedia/double-spending-problem-crypto)” of digital currency.  In the most basic sense, cryptocurrency mining is the process of solving very complicated mathematical puzzles.  If you can solve them fast enough, you’re rewarded with a coin.  However, cryptocurrency miners that solve these puzzles slower than their competition _don’t_.  It’s a process called “[proof of work](https://www.investopedia.com/terms/p/proof-work.asp#:~:text=Proof%20of%20work%20(PoW)%20is,transactions%20and%20mining%20new%20tokens.).”

The most remarkable thing about this story is that a global superpower instituted a countrywide ban of cryptocurrency transactions, and less than six months later the cryptocurrency market is making a “chest thumping” statement with a full recovery.


China Crypto Ban Brushed Off as Mining Recovers

The cryptocurrency _brain trust_ got a chance to speak in front of congress at a House Financial Services Committee hearing this week.  A collection of six of the most influential CEOs in crypto passionately lobbied lawmakers to adopt a “_mostly_ hands off” approach in terms of new regulatory measures being considered as Washington tries to determine how best to regulate a $3 trillion digital assets market – an environment that the Securities and Exchange Commission (SEC) has compared to the “Wild West.”

Since the inception of the cryptocurrency market a decade ago, it’s safe to say that a majority of the adults living in the U.S. now have a basic understanding of what cryptocurrencies like Bitcoin and Ethereum are, and [16% of them have actually invested](https://www.pewresearch.org/fact-tank/2021/11/11/16-of-americans-say-they-have-ever-invested-in-traded-or-used-cryptocurrency/) in the digital assets – this is especially true for men in the 18 – 29 age bracket. 

## A Global Force for Good

The overall tone of the hearing was undoubtedly “pro-crypto” as there wasn’t a single detractor among the witnesses that did speak.  Essentially, the crypto CEOs promoted the digital asset market as a global force for good and urged congress to lead the world in embracing it.

The talking points were many, but one of the most profound messages was that the technology _powering_ the cryptocurrency market can not only expedite and cut the costs of financial transactions, but lawmakers were urged to look at blockchain technology as a “revolutionary innovation” that the U.S. could step in and lead _globally_…if it so chooses and with the right leadership in place.

During the hearing republicans and democrats both showed clear signs of skepticism toward the financial risks associated with the cryptocurrency market, _but it was the Republicans_ who sided with the CEOs in their viewing the approach that the SEC has taken toward the industry as being “distasteful,” at best.  The recent clashes between the SEC and major crypto firms are well documented as agency chair, Gary Gensler, has long tried to paint digital assets as a security or a type of investment contract that merits SEC regulatory oversight.

## Cryptocurrency Leaders Disagree

A future in which the SEC would actually be considered for regulatory oversight means a clear misinterpretation of the market by lawmakers.  Their argument against SEC regulation rests on the fact that blockchain tokens _are not_ securities but rather digital property or a way to record ownership.  Clearly, we are still very early in the regulatory process if the two sides still haven’t been able come up with a list of agreed-upon definitions for key terms like “what _is_ a digital asset?”

All of the rifts discussed at the hearing could be a signal that it may still take years to put together a solid and permanent regulatory framework for cryptocurrencies, but there were very specific comments that would give cryptocurrency investors hope.

For example, Rep. Patrick McHenry (R-N.C.), poised to chair the committee if the GOP wins back the House, said it is a priority to ensure that the "cryptocurrency revolution" happens in the U.S. rather than overseas.

Hopefully, lawmakers will take McHenry’s advice.


Latest Moni

#LEGAL

Read the latest Crypto Legal news.

Singapore Regulator’s Clampdown on Crypto

Crypto tax UK situation may propel the country into crypto haven

Elon Musk Dogecoin debacle: The ‘Dogefather’ sued for $258bn

Crypto Regulations 2022 and Beyond

China Crypto Ban Brushed Off as Mining Recovers

Top Crypto CEOs Engage Lawmakers at Hearing

Russia using crypto to bypass sanctions

Mark Cuban believes crypto bear market will reverse when apps become useful

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