Cryptocurrencies were widely discussed at this year G20 summit. Major cryptocurrencies dropped significantly in value over this weekend on regulation fears which could materialize after the summit. Nothing radical has clarified thought. Cryptos are recovering.
So, what's all the hassle is now about?
It seems like finance ministers from the biggest countries are reaching some consensus that cryptocurrencies are not currencies after all, but assets. As such cryptocurrencies could be subject to capital gains tax (some jurisdictions already treat foreign currencies as assets, so no change for them).
Klaas Knot, president of De Nederlandsche Bank NV, said:
“I don’t think any of these cryptos satisfy the three roles money plays in an economy.”
Some developments:
- Brazil: Cryptos lack the stability and ease of payment that characterize currencies
- USA: bans all transactions using Venezuelan crypto
- UK: will set a body to investigate risks posed by cryptocurrencies
- Japan: protect consumer and investor, prevent money laundering
- France: we need rules to protect consumer. Crypto not a currency but an asset
- Saudi Arabia: Crypto not stable medium of exchange
Residence in some countries may end up paying higher taxes on their capital gains.
And that's pretty it. Is anyone still concerned?
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