A new crypto bill in California, Australian Treasury clarifies crypto tax treatment, Indonesian crypto stock exchange set to open, and why banning crypto is now impossible in the US. It's been a busy couple of weeks in the world of crypto. We've got all you need to know and more in the Koinly crypto news round-up.
Digital asset exchanges and crypto businesses will be required to seek a license to operate within California, according to a newly approved law.
The Digital Financial Assets Law (also known as California’s “BitLicense”) must be signed by California governor Gavin Newsom by September 30th for it to come into effect in January 2025. The bill, AB 2269, was introduced by California Assembly member Timothy Grayson and has been modelled after a similar law implemented in 2015 in New York.
The bill also places restrictions on stablecoin dealing by California-licensed companies until 2028. However, stablecoins issued by banks or companies with a licence would be exempt.
Alongside the current review by the Board of Taxation, the Australian Treasury Department has proposed the first legislative addition to crypto taxation.
The Australian Treasury is seeking to cement its current views that crypto assets (such as Bitcoin) should not be taxed as foreign currency for Australian income tax purposes.
Seeking input on the legislation, the Treasury stated, “The proposed legislation maintains the current tax treatment of crypto assets and removes uncertainty following the decision of the Government of El Salvador to adopt Bitcoin as a legal tender.”
Reports from a senior minister of the Indonesian Government reveal that a “crypto stock exchange” could be established by the end of 2022 as an effort to protect consumers due to increased interest in digital currencies.
With over 15 million crypto users in Indonesia, in 2021, crypto transactions totalled nearly US$58 billion, according to Bappebti - the Indonesian financial watchdog.
Indonesia’s deputy trade minister Jerry Sambuaga stated, “We will make sure that every requirement, procedure, and the necessary steps have been taken.”
United States congressman Brad Sherman, a noted crypto sceptic, stated that banning cryptocurrencies would not be an option at this point.
“We didn’t ban it at the beginning because we didn’t realize it was important, and we didn’t ban it now because there’s too much money and power behind it,” Sherman claimed in a statement to the LA Times.
In 2019, the Democratic representative demanded that crypto be banned. However, he has since come to accept cryptocurrencies are an investment option for some and instead wants to protect small and retail crypto investors. Sherman was also a recent proponent of the US Treasury's strict regulatory action on Tornado Cash.
Sherman pointed out that crypto lobby groups now make it impossible for a total ban of cryptocurrencies and also advocated for crypto to be brought under the jurisdiction of the US Securities and Exchange Commission (SEC).