Denmark’s Tax Law Council has proposed a bill that could tax unrealised gains and losses on crypto assets, potentially starting in 2026. The Council’s report outlined three possible taxation models, leaning towards “inventory taxation,” where entire portfolios are taxed annually, regardless of asset sales.
The proposed law aims to address perceived unfairness in the current taxation of crypto under the capital gains system. Danish Tax Minister Rasmus Stoklund is keen on clearer rules for crypto assets, though the bill is not expected to be introduced to Parliament until 2025.
If approved, the law would take effect in 2026, aligning Denmark with a global trend of tightening regulations for both crypto and traditional financial assets.
Japan’s financial regulators remain cautious about approving spot crypto exchange-traded funds (ETFs), even as other markets like the US and Hong Kong move forward with similar products. Oki Shiozawa, investment director at Sumitomo Mitsui Trust Asset Management, explained that Japan’s Financial Services Agency (FSA) is conservative and not yet ready to allow such ETFs, despite global advancements.
While Japan aims to position itself as a crypto-friendly hub, strict regulations and high tax rates have limited the growth of digital assets. Crypto gains in Japan are taxed as high as 55%, compared to the 20% tax rate for traditional assets like ETFs. Keisuke Kimura, from the Japan Cryptoasset Business Association, noted that past scandals, like Mt. Gox, have made both regulators and the public wary of crypto investments.
Despite the challenges, companies like Franklin Templeton and SBI Holdings are preparing for potential regulatory shifts, while others, like Nomura, have already launched crypto-related products for institutional investors. As global markets embrace crypto ETFs, Japan faces increasing pressure to adapt.
The US Securities and Exchange Commission (SEC) has once again prioritised cryptocurrencies in its 2025 examination plans. According to the Division of Examinations, the focus will be on the offer, sale, and trading of digital assets, with particular attention to Bitcoin and Ether exchange-traded products. The regulator will also monitor the technological risks posed by blockchain and the security of crypto assets.
Despite potential leadership changes in 2025, with Chair Gary Gensler possibly leaving, the SEC appears committed to maintaining its approach to regulating crypto markets. Gensler has defended the commission’s efforts to protect investors while facilitating market growth. However, the SEC’s enforcement actions, including lawsuits against major players like Coinbase and Ripple, have sparked criticism.
Institutional investors in the US have significantly embraced Bitcoin exchange-traded funds (ETFs), with $13 billion in Bitcoin ETF shares acquired since January. A report reveals that 1,179 institutions now hold a combined 193,064 BTC across various spot ETFs, which were initially met with scepticism by legacy finance firms.
Asset management giants such as Millennium Management and Jane Street account for 20% of the total Bitcoin ETF assets. Notably, BlackRock’s Bitcoin ETF became the fastest-growing in US history, marking a major milestone for cryptocurrency integration into traditional finance.
Experts predict that rising institutional demand for spot BTC ETFs will continue to fuel Bitcoin’s price, with projections suggesting the cryptocurrency could surpass $100,000 by early 2025. Despite anticipated short-term volatility, Bitcoin advocates remain confident of its long-term potential, forecasting even higher values by 2045.
Argentina launched QuarkID, an innovative blockchain-based digital identity system designed to enhance privacy and security for its 3.6 million citizens in Buenos Aires. The pioneering initiative marks a significant milestone as the world’s first government-backed decentralised identity system.
By utilising advanced zero-knowledge (ZK) cryptography through the ZKsync-powered Era layer 2 blockchain, QuarkID enables users to verify their identities without exposing sensitive personal data. Moreover, the system is integrated into the existing MiBa digital platform, allowing residents to securely manage and share verified documents such as birth certificates and tax records.
Starting on 1 October, all MiBa users received decentralised digital identities (DIDs), which empower them to confirm their identity without disclosing unnecessary personal details. Furthermore, with plans for future expansion to include additional documents like driver’s licenses and public permits, QuarkID demonstrates the Argentine government’s commitment to improving public services and setting a new standard for personal data ownership.
Why does it matter?
Argentina launched this initiative to enhance privacy and security and position itself as a model for global initiatives aimed at modernising identity verification processes. Consequently, the success of QuarkID could provide valuable insights and frameworks for other countries exploring the benefits of blockchain technology in digital identity management. By prioritising privacy, security, and user control, Argentina is thus setting a precedent for how digital identities can be effectively managed in the future, ultimately empowering citizens and revolutionising how personal data is handled.
Elon Musk, CEO of Tesla and SpaceX, addressed the potential of cryptocurrency during a town hall in Pittsburgh, emphasising its role in safeguarding individual freedom. Although he stopped short of directly endorsing XRP, Musk highlighted how cryptocurrencies like it could be crucial in resisting centralised control. His comments were met with enthusiasm from XRP supporters, with Ripple’s ongoing legal battle against the SEC remaining a hot topic.
The legal dispute over whether XRP is a security continues, as Ripple defends its position that XRP is a cryptocurrency. Ripple’s CEO, Brad Garlinghouse, agreed with Musk’s view, stressing that crypto and XRP are no longer niche concerns but essential issues for voters who want policies that foster innovation.
Musk’s involvement in the crypto space remains significant, with Tesla recently transferring $765 million worth of Bitcoin to new wallets. While Tesla stopped accepting Bitcoin for payments over environmental concerns in 2021, the company continues to engage with the crypto market, also accepting Dogecoin for some merchandise.
Russia is taking significant steps to establish a domestic payment system that will allow for trade and international transactions independent of Western financial institutions. Prime Minister Mikhail Mishustin announced this initiative at the Moscow Financial Forum, emphasising the need for a principles-based approach to international trade. He highlighted that the government, the Bank of Russia, and the financial community will collaborate to create a new settlement infrastructure.
Mishustin explained that this system aims to enhance the transaction experience for Russian businesses and their international partners by ensuring equality among countries, maintaining payment confidentiality, and enabling instant transactions at minimal costs. Notably, he revealed that a substantial portion of settlements between Russia and China are already conducted in national currencies, accounting for around 70% of their transactions.
However, existing sanctions have disrupted trade flows between Russia and its key partners, such as Turkey and China, potentially affecting the nearly $300 billion in annual trade with these nations. While Mishustin did not specify whether the new system would differ from the BRICS Pay network recently tested by the bloc, he reiterated the importance of creating a robust alternative to foreign systems.
Japan’s Democratic Party for the People (DPP), led by Yuichiro Tamaki, has announced a plan to lower the tax on cryptocurrency gains to 20% if elected. In a recent post on X, Tamaki outlined that crypto assets should be taxed separately, contrasting the current regime where gains can be taxed up to 55% as ‘miscellaneous income.’ The DPP aims to treat digital assets similarly to stock market profits, which are taxed at a maximum of 20%.
The party’s proposals also include measures to enhance the token economy in Japan, promoting the use of non-fungible tokens and cryptocurrencies to invigorate the economy. Tamaki indicated that trading crypto assets would not incur tax liabilities under their plan, emphasising the need to foster a robust web3 business environment in Japan.
Additionally, the DPP intends to introduce cryptocurrency exchange-traded funds and enhance leverage in trading from two-fold to ten-fold. The proposal includes the introduction of digital regional currencies by local governments to stimulate local economies. Despite these ambitious plans, recent surveys suggest that the DPP may struggle to gain traction in the upcoming elections, as the ruling Liberal Democratic Party maintains a strong lead in voter support.
Australia’s corporate regulator has charged Grant Colthup, the former CEO of Mine Digital, with fraud involving a A$2.2 million transaction. The Australian Securities and Investments Commission (ASIC) claims that a customer paid this amount to ACCE Australia, which operated the crypto exchange, to purchase Bitcoin in July 2022. However, the customer allegedly received no cryptocurrency in return.
ASIC alleges that Colthup used the funds to cover ACCE’s liabilities or acquire cryptocurrency for others. Mine Digital, active from 2019 to 2022, shut down following financial issues. Investigations revealed that the company had only A$20,000 in assets, far below the A$16 million owed to creditors.
The charges come amid ongoing scrutiny of the collapsed exchange and growing concerns over the accountability of cryptocurrency platforms. Colthup’s case sheds light on the challenges of regulating the digital asset sector and ensuring transparency.
The Magistrates Court in Ipswich will hear the case next on 16 December 2024. Legal proceedings are expected to explore Colthup’s role and whether funds were misappropriated to benefit others.
The Indonesian Commodity Futures Trading Regulatory Agency, known as Bappebti, has extended the deadline for crypto exchanges to secure their Physical Crypto Asset Traders licenses until the last week of November 2024. This extension is part of a revised government bill, Bappebti Regulation Number 9 of 2024, which only applies to crypto exchanges already listed as Prospective Crypto Asset Physical Traders.
Under the new regulations, crypto exchanges must establish partnerships with local government bodies and implement Know Your Transaction standards while providing trading opportunities for institutional entities. Oscar Darmawan, CEO of INDODAX, one of Indonesia’s leading crypto exchanges, welcomed the extension, stating that it will strengthen the industry by ensuring compliance with the new standards.
The revised bill also expands eligibility for digital asset trading to include legal and business entities, not just individuals. Furthermore, licensed exchanges must partner with the Directorate General of Population and Civil Registration and list on the National Crypto Asset Futures Exchange to avoid having their licenses revoked. Bappebti aims to create a robust and transparent crypto ecosystem that meets the dynamic market needs.
