- UK law enforcement agencies will no longer need to wait for the seizure of crypto
- EU parliament tries to regulate crypto and adopts anti-money laundering rules
- J. Biden administration introduces the proposal for 44.6% capital gains tax
UK law enforcement agencies will no longer need to wait for the seizure of crypto
Since the popularity of digital currency rocketed to the highest highs, various agencies and individuals started to come up with rules and regulations for this industry. It is the only unregulated thing that attracts attention, and investors like it for this reason.
However, eventually, agencies, governments, and leaders need to put some handcuffs on this. Many of them have tried and had some success. Recently, UK law enforcement agencies decided to present rules that would mean the seizure of crypto might happen right away[1].
New powers could help law enforcement agencies seize cryptocurrency used for crime. According to officials in the UK, these rules should come into effect over the weekend. The police in the country can now take people's cryptocurrency without having to arrest them first. The police now have special advisors to deal with cryptocurrency in different parts of the country.
They have already taken hundreds of millions of pounds worth of cryptocurrency. In January, they worked with the U.S. Drug Enforcement Administration to investigate a drug group and seized $150 million in cash and cryptocurrency. Authorities can put the cryptocurrency they take into a special wallet. If they think it's better for the public, they can destroy it instead of using it.
The Home Secretary, James Cleverly, said these new rules will also help keep the country safe from terrorist groups like Daesh, which use cryptocurrency to obtain money. The Chief Crown Prosecutor, Adrian Foster, said it's important for investigators and lawyers to keep up with new types of crime. He thinks these new rules will help them deter criminals from using cryptocurrency.
EU parliament tries to regulate crypto and adopts anti-money laundering rules
The new set of laws should be adopted in the EU. European Parliament voted to allow this new package of laws that could tighten money laundering and terrorist financing measures in the union. These rules target large-scale cash payments specifically and crypto firms, football clubs, and other entities related to them.
The European Union, which consists of 27 countries, agreed on a new set of rules that will apply to all EU countries. They also decided to create a new agency in Frankfurt to ensure that these rules were followed. This agency will focus on stopping money laundering, especially in areas the EU sees as high-risk [2].
The new rules include requiring banks, asset managers, real estate agents, and others to check their customers more carefully. If they see something suspicious, they must report it to financial authorities. Some people worry that these rules might be too tough on digital money compared to other types of money.
The new rules also say that certain people and groups, like journalists and civil society organizations, can see information about who owns companies. This information helps track down people who might be doing something wrong. In March, a group of politicians voted on these rules, and on Thursday, the full parliament voted on them. However, before they become official, the EU Council, which has lawmakers from each country, still needs to agree.
J. Biden administration introduces the proposal for 44.6% capital gains tax
Cryptocurrency is popular in the United States. Many NFT creators and meme coin investors reside in the country, where such things become popular. However, governments, leaders, and lawmakers want to regulate these things and control processes. Now, President Joe Biden wants to raise the capital gains tax rate in the United States to 44.6% for some people.
This would be the highest rate ever in the country. However, for most people who invest in cryptocurrency, it might not make much of a difference. Matthew Walrath, who started Crypto Tax Made Easy, said Biden's tax plan probably won't affect many crypto investors, even if it becomes law[3]. He called it a "big, fat nothing burger" for 99.9% of them because it's just a suggestion at this point.
The idea of a 44.6% tax rate has caused a lot of talk online, but it's been public knowledge for over a month. It would only happen if two different tax proposals were approved. M. Walrath explained that the plan aims to raise the tax rate for people who earn over $1 million a year. So, it mainly targets very high-income earners. For most crypto users, it's not likely to change much.
Another person in the crypto world, known as SqueezeTaxes, agreed with Walrath. They said Biden's tax plan mostly focuses on people who earn a lot of money, like $400,000 or $1 million per year. It won't affect the average earner much.
Data from TripleA, a crypto payment company, shows that the typical crypto investor makes around $25,000 a year worldwide. However, this number includes data from countries where people earn less than in the United States. These rules, taxes, and regulations are not universal and, in many cases, are not set by looking at such data and statistics.
