The UK’s tax authority has recently rolled out a significant move, requiring all crypto asset holders to provide their personal information to relevant service providers, including key details such as names, addresses, and tax identification numbers. Failure to comply will result in a fine of 300 pounds. Similarly, New York State is also busy formulating a new crypto taxation plan, which is expected to generate an additional 158 million US dollars in revenue annually. Clearly, governments around the world have set their sights on the lucrative field of cryptocurrency.
The UK’s new regulation is a crucial part of its overall crypto regulatory strategy. Since 2023, the country has been working on establishing a comprehensive crypto regulatory framework, aiming to foster innovation while protecting consumer rights and ensuring tax compliance. The mandatory information disclosure requirement is primarily intended to prevent tax evasion. After all, crypto transactions are highly concealed, and without forced disclosure, tax authorities would find it extremely difficult to track and verify relevant transactions.
New York State’s plan is even more stringent. It not only plans to levy taxes on crypto transactions but also intends to impose environmental taxes on cryptocurrency mining and special business taxes on crypto enterprises. Once this plan is approved, other states are highly likely to follow suit. Although the federal government in the US has somewhat relaxed its crypto regulations, states are showing a trend of strengthening taxation, which is a development worth noting.
The situation in Asia is more complex. Singapore has raised the entry barriers for crypto service providers, imposing stricter standards on capital requirements and risk management. However, this move has instead enhanced Singapore’s reputation in the crypto sector, attracting more high-end institutions. Japan has adopted a regulatory approach that combines relaxation and tightening, liberalizing crypto ETF trading while strengthening supervision over derivatives. It is evident that each country is striving to find a regulatory balance that suits its own national conditions.
The EU’s Markets in Crypto-Assets (MiCA) regulation will be fully implemented this year, representing the most comprehensive crypto regulatory framework globally. With unified standards across the 27 member states, this is undoubtedly a boon for crypto enterprises as they no longer have to deal with different regulations in each country. Nevertheless, the cost of compliance has also increased, which may pose a challenge for small businesses.
This round of global crypto regulatory fervor exhibits several notable characteristics.
Firstly, there is a convergence in regulatory directions, with countries focusing on areas such as anti-money laundering, consumer protection, and taxation.
Secondly, the regulatory scope has become more detailed, covering not only cryptocurrency exchanges but also decentralized finance (DeFi), non-fungible tokens (NFTs), and stablecoins.
Thirdly, technological means have been upgraded, with countries employing artificial intelligence (AI) and blockchain analysis techniques for regulation, significantly improving regulatory efficiency.
For investors and enterprises, this wave of regulatory changes presents both challenges and opportunities. Although the clarity of regulations has increased compliance costs, it ensures long-term business stability in the long run. At the same time, investors will feel more at ease, contributing to greater market stability. The key lies in closely monitoring policy changes and making proactive preparations in advance.
Author: BitcoinKOL，Source: https://bitcoinkol.com/a-major-transformation-in-crypto-regulation-the-uk-and-the-us-take-the-lead-in-tightening-policies/
