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Italy launches digital euro trial, Hong Kong Bitcoin Association calls for a review of encryption regulations.
Regulatory Trends
1. The Italian Banking Association Launches Digital Euro Experiment
The Italian Banking Association (ABI) recently launched a digital euro trial based on distributed ledger technology. The association is composed of more than 700 Italian banking institutions and aims to explore the technological feasibility of the digital euro and its potential value-added services.
The experiment is divided into two phases: first, to study the infrastructure and distribution model, and evaluate technical feasibility; second, to explore how programmability can provide unique application scenarios for central bank digital currencies, distinguishing them from existing electronic payment systems.
ABI stated that this move aims to encourage public discussion and help Italian banks prepare for the future.
2. The Hong Kong Bitcoin Association Calls for a Re-examination of Cryptocurrency Regulations
Recently, the Hong Kong government announced a regulatory plan to prohibit retail investors from trading cryptocurrencies and intends to implement regulations on Bitcoin ATMs. In response, the Hong Kong Bitcoin Association has called on regulatory agencies to reconsider the impact of these regulations on the city's digital innovation process.
The co-founder of the association stated that restricting retail Bitcoin trading may contradict the government's goals of promoting innovation and achieving financial inclusion.
3. The Central Bank of Turkey Plans to Test Digital Currency Project
The Governor of the Central Bank of Turkey, Naci Ağbal, recently revealed to members of parliament that Turkey will begin a pilot program for a previously undisclosed digital currency project in the second half of 2021.
He stated: "We have completed the conceptual phase of this digital currency project. We plan to start pilot testing in the second half of 2021."
4. Israeli tax authorities focus on cryptocurrency holders
The Israeli tax authority is notifying cryptocurrency holders in the country to fully disclose their cryptocurrency holdings for appropriate taxation.
According to reports, the tax authorities have issued notifications to multiple domestic and foreign cryptocurrency trading platforms, requesting detailed reports on Israeli citizens trading digital assets globally.
Legal experts believe that due to the recent rise in Bitcoin prices, authorities expect that many citizens may cash out after prices reach new highs, and thus hope to take this opportunity to levy taxes to fill public finance gaps.
Currently, the Israeli tax authorities have issued notices to some cryptocurrency holders and trading platforms. Considering the scale of the funds involved, Bitcoin holders appear to be their main focus.
As Bitcoin continues to gain popularity in this bull market, it is expected that the government may further strengthen tax enforcement.