The 8th issue of our legal round-up.

We continue with a series of weekly round-ups prepared by Mercuryo Legal Counsel Adam Berker to keep you updated on cryptocurrency rules.

Cuba’s Central Bank Introduced Crypto Licensing

Cuba’s Central Bank has issued Resolution 215 of 2021 that recognizes crypto as legal tender and introduces licensing regime for virtual currency service providers.

Still, this should be the first step towards the adoption of crypto in the legal system of Cuba since the Resolution only includes some general provisions and makes references to law No. 362 on “Institutes of the Banking and Finance System” for the regulation of crypto services. For that reason, we may expect some special regulations in this area shortly.

Laos Authorized Crypto Trial Program

Laos’ government has removed the ban on crypto mining and authorized six companies to trade and mine Bitcoin, Ethereum, and Litecoin. The government has established a trial period for those companies while developing applicable regulations. 

Suppose the lawmakers introduce clear and mutually beneficial rules. In that case, Laos may become one of the most favorable jurisdictions for miners, especially taking into account that it is the most hydropower resource-rich country in Southeast Asia.

US Tax Plan Hits Crypto With New Rules

The US House of Democrats introduced a new regulation proposal that will help to raise about $16 billion in taxes over a decade. New provisions propose including crypto deals in the “wash sale” rule generally applied to the stock market. 

This initiative will prohibit US investors from using crypto to lower their capital-gain taxes by selling crypto in loss and immediately buying it back. If the proposal is approved, investors will have to wait for 30 days before buying back. 

Russia Plans to Block Emotional and Suspicious Crypto Deal

Russia’s Central Bank plans to block emotional and suspicious crypto activity. According to the Bank’s representative, Sergey Shvetsov, Central Bank has already started cooperating with Russian private banks to slow down crypto buy and sell transactions. 

It is not the first attempt of the regulator to control the crypto market. On September 6th, Central Bank issued a statement that recommended private banks block customers’ cards used for crypto peer-to-peer trading. Even though these measures are aimed at platforms that do not conduct customer identification, many expect a regulatory crackdown in this area soon.

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