Namibia signs crypto exchange regulation bill into law

July 26, 2023 Coin Telegraph

The law will officially enter into force at a date determined by Namibia’s Ministry of Finance.

The Namibian Government officially signed a law to regulate Virtual Asset Service Providers operating in the country last week, reversing its original 2017 decision to ban cryptocurrency exchanges.

On July 21, the VASP-regulating law was inserted into the Gazette of the Republic of Namibia after previously being approved in Namibia’s National Assembly on July 6 and signed by President Hage Geingob on July 14.

The bill called the Namibia Virtual Assets Act 2023 aims to assign a regulatory authority to supervise crypto exchanges in the country. It is the first law laying out how the country should regulate cryptocurrency-related activities.

It will enter into force at a date determined by Namibia’s Ministry of Finance.

*The bill became law when it was put into the Gazette of the Republic of Namibia. Source: Namibia Government.*

Among the top aims of the law is to ensure consumer protection, prevent market abuse and mitigate the risks of money laundering and the financing of terrorism.

Non-compliant providers could reportedly face penalties of up to $671,000 (10 million Namibian dollars) and 10 years in prison. The country's central bank, the Bank of Namibia, maintains its position that cryptocurrencies will not hold legal tender status in the country.

Namibia’s legal U-turn started in May 2018 when the Bank of Namibia revised its original decision to ban cryptocurrency exchanges.

Earlier this month, South Africa’s financial regulator announced that all cryptocurrency exchanges in the country will be required to obtain licenses by the end of 2023 in order to continue operations.

Other African nations that have passed cryptocurrency laws include Botswana, Kenya, Mauritius and Seychelles. The Central African Republic made Bitcoin (BTC) legal tender in April 2022, however, that legislation was repealed less than 12 months later.

Cameroon, Ethiopia, Lesotho, Liberia, Republic of the Congo, Sierra Leone, Tanzania and Zimbabwe are among the African countries to have enforced a ban on cryptocurrencies according to the International Monetary Fund.

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South Korean legislature considering new licensing system for crypto

May 18, 2022 Coin Telegraph

Coin Telegraph

Regulators in South Korea have issued a new report that offers a bevy of recommendations for how to properly govern the country’s crypto industry.

A report commissioned by South Korea’s federal government recommends the domestic crypto industry adopt a licensing system for exchanges and token issuers as a way of protecting investors.

The report issued by the Financial Services Commission (FSC) to the National Assembly, the country’s legislature, also calls for new regulations to mitigate insider trading, pump-and-dump schemes and wash trading.

The new regulations would be stricter, and the penalties for failure to comply would be harsher than those in the Capital Markets Act that the domestic crypto industry currently abides by.

“The Comparative Analysis of the Virtual Property Industry Act” report obtained exclusively by Korea Economic Daily on Tuesday reveals a recommendation to establish a licensing system that would apply to coin issuers such as companies that operate initial coin offerings (ICO) and crypto exchanges. Varying degrees of licenses would be issued based on the risk involved.

Regulating coin issuers through a robust licensing system is considered to be the “most urgently needed protection” in the market today. That position may be underscored by the untimely market crash sparked by the fall of the Terra project, whose South Korean founder Do Kwon may find himself called before the National Assembly to explain what happened.

One recommended regulation would force coin issuers to submit a white paper to the FSC about their project that includes details about the company’s officers, how it plans to use funds raised through an ICO and what risks are associated with the project. Updates to the white paper would have to be submitted at least seven days before proposed changes could take effect.

Even companies with headquarters abroad that want their tokens traded on Korean exchanges would be required to adhere to the white paper rule.

It is likely that the FSC had stablecoins on their agenda well before problems arose last week for TerraUSD (UST), Dei (DEI) and Tether (USDT). However, there are recommendations to put requirements on stablecoin issuer asset management that would apply to how they use collateral and how many coins an issuer can mint.

The report also aims to curb shady trading activity which local exchanges and coin issuers have been accused of for years. It suggested regulations on insider trading, price manipulation, pump-and-dump schemes, wash trading and industry-standard transaction fees.

Cointelegraph reported in April that an industry insider speaking to local media acknowledged that provisions in the Capital Markets Act may not be adequate to properly govern the crypto industry.

South Korea’s new President, Yoon Seok-yeol, was elected in part due to his eagerness to understand the crypto industry. On May 3, he declared that his regime would push through a bill that extends the tax-exempt status of crypto investment gains until a proper legal framework is in place.

The report revealed today could be the beginning of the framework President Yoon had in mind for the crypto industry.

South Korean lawmakers inch closer to deal to delay crypto tax by one year

November 30, 2021 Coin Telegraph

Coin Telegraph

The long debate in the country’s legislature could soon be over meaning cryptocurrency gains made in South Korea may not be considered taxable events until 2023 at the earliest.

In what could be a big win for the local crypto industry, South Korean lawmakers are close to delaying taxation on digital assets for another year.

Representatives from the Tax Subcommittee in the National Assembly, South Korea’s legislative body, reached a bipartisan agreement on Nov. 29 by approving an amendment that could postpone the crypto tax by one year. If the amendment passes in a parliamentary session on Dec. 2, taxation will begin on January 1, 2023, not 2022 as previously planned.

Democratic Party lawmakers who have been pushing for this delay decried flaws in the information gathering procedures that would be implemented by the National Tax Service (NTS).

One such procedure would be to assume a 0 KRW ($0) cost basis for crypto assets that have been dormant on private wallets where the acquisition price could not be proven. This would create a significant tax burden for long-term holders who have been holding coins on private wallets before the tax legislation comes into effect. They would be effectively taxed on the full asset price, not just the gains made.

Representative Kim Young-jin, Chairman of the Tax Subcommittee, also pointed out the problem of demanding that citizens pay taxes on cryptocurrencies while the government has yet to adopt an official definition of what a cryptocurrency or virtual asset is.

“There is an inconsistent system for imposing taxes without a clear basis on how to legally define cryptocurrencies in our system… but only in Korea does taxation come before regulation.”

Proponents of tax implementation, most notably Finance Minister Hong Nam-ki, feel that the tax system should be equitable so that those who make gains on cryptocurrency trading contribute their fair share.

Over the past few months, Minister Hong has repeatedly shot down debate on the crypto tax topic in open session at the National Assembly.

The year-long battle over the status of the tax delay has led to misinformation and confusion among both citizens and lawmakers. Conflicting news reports about the tax have been issued periodically throughout 2021.

Most recently on Nov. 23, the Financial Services Commission (FSC) flip-flopped on their opinion that NFTs would not be taxable, and stated that they were working toward considering them the same as tradable cryptos.

Pakistan Government Not Against Crypto Investments, High Court Calls for Regulations

October 23, 2021 Bitcoin.com

national assembly