The crypto industry has quickly reacted with backlash to the final regulations that classify several decentralized finance (DeFi) protocols as brokers, urging the incoming Congress to reverse the new rules.
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The crypto industry has quickly reacted with backlash to the final regulations that classify several decentralized finance (DeFi) protocols as brokers, urging the incoming Congress to reverse the new rules.
It was revealed on December 27 by the US Internal Revenue Service, new rules classify front-end protocols that enable digital asset transactions as brokers, necessitating Know Your Customer disclosures for transactions. The agency states that these regulations will impact up to 875 DeFi brokers.
The latest regulations have sparked considerable outrage on social media, with many legal professionals suggesting that the IRS may be overstepping its bounds and infringing on constitutional rights.
However, the Congressional Review Act (CRA) permits Congress to examine and possibly reject regulations introduced by agencies such as the IRS.
Despite the skyrocketing cryptocurrency values in 2024, Kyrgyzstan's economy experienced a notable drop in taxes from crypto mining.
According to a budget document released on December 25 by Kyrgyzstan's Ministry of Economy and Finance, taxes from cryptocurrency mining added over 46.6 million Kyrgystani soms, equivalent to $535,000, to the nation's economy this year.
Local media reports indicated that this represented a decline of over 50% from the crypto mining tax collected in 2023, which amounted to 93.7 million soms, valued at just over $1 million.
Cointelegraph has approached Kyrgyzstan’s Ministry of Economy and Finance for comment.
The European Union's cryptocurrency regulations are about to be fully implemented in a few days, yet there remains considerable uncertainty regarding Tether's USDt stablecoin.
In mid-December, United States crypto exchange Coinbase delisted Tether's USDt, citing the need to comply with the EU's Markets in Crypto-Assets Regulation (MiCA).
Despite the delisting, the stablecoin continues to be traded across the EU, with many exchanges waiting for further clarification from European authorities on USDt's compliance with MiCA.
Although EU regulators have not confirmed USDt's compliance with MiCA, it does not imply that the stablecoin is viewed as non-compliant in Europe, according to a member of the MiCA Crypto Alliance.