An overview of current news in the crypto space

In our digest, we took a look at some important crypto industry news over the past week:

1. Bills on regulation of cryptocurrencies may be adopted in the first half of 2024, Anatoly Aksakov said
2. Japan exempts companies from tax on unrealised profits from crypto assets
3. Epic Games shop brings blockchain gaming back to its platform
4. Nigeria’s central bank lifts ban on cryptocurrency transactions
5. Argentina authorises separate bitcoin payments
6. Ledger promises to reimburse $600k stolen and improve the security of its hardware wallets

Now for more details. Reading time: 7 minutes.

1. Bills on regulation of cryptocurrencies may be adopted in the first half of 2024, Anatoly Aksakov said
   Anatoly Aksakov, chairman of the State Duma’s Financial Market Committee, said that bills on cryptocurrency regulation could be adopted in the first half of 2024. The Russian authorities have not yet been able to reach agreement on the fundamental issues of cryptocurrency regulation, but new discussions are planned for January. Aksakov noted that the cryptocurrency market in Russia is significant, and major players in this area are already asking to regulate it. He also mentioned the possibility of introducing an income tax on miners and the intention to pass legislation on the use of digital financial assets for international settlements. Aksakov also expressed support for the proposal to give miners the right to sell cryptocurrency as an export commodity. Documents regulating mining, cryptocurrency circulation, cross-border payments and taxation in this sphere are expected to be adopted in the first half of 2024.
2. Japan exempts companies from tax on unrealised profits from crypto asset
   The Japanese government has decided to exempt companies from paying tax on unrealised gains from cryptoassets. Under the new rules, Japanese companies will no longer pay taxes on unrealised gains if they hold cryptocurrencies for payment purposes or if those cryptocurrencies or tokens are owned by the same company that issued them. This decision by the government aims to make Japan competitive in the global cryptocurrency market and attract international companies looking for a favourable regulatory environment. This tax reform is expected to attract more institutional investors and promote the adoption of Web3 technology. Japan will be one of the few countries that tax companies based on the market value of their cryptocurrency assets, excluding self issued coins. The new tax rules should encourage companies to actively use cryptocurrencies in their business models.
3. Epic Games shop brings blockchain gaming back to its platform
   Epic Games, the shop known for creating Fortnite, has decided to bring back blockchain and Web3 games to its platform. The shop had previously banned all games with an “Adults Only” rating, but it has now made an exception for blockchain-related games that support non-fungible tokens (NFTs). However, such games must still comply with regulations and bans on pornography, gambling and hate content. As a result of these changes, two games – Unchained Gods and Striker Manager 3 – have returned to the Epic Games platform. Blockchain game developers welcome this decision and believe it is a recognition of the importance of Web3 games in the industry. Meanwhile, another online gaming platform, Steam, is still banning blockchain and NFT games from 2021. Despite this, developers are still finding ways to run such games on that platform. This change in Epic Games Store policy opens up new opportunities for blockchain game developers and confirms the importance of this trend in the games industry.
4. Nigeria’s central bank lifts ban on cryptocurrency transactions
   The Central Bank of Nigeria (CBN) has lifted its ban on cryptocurrency transactions, recognising the need to regulate the sector in line with global trends in digital finance. Under the new rules, banks and financial institutions are required to provide special current accounts and services to cryptocurrency companies, facilitating the flow of foreign currency into the country. However, banks themselves are still prohibited from conducting cryptocurrency transactions. The CBN also intends to bring order to the licensing procedures for the operation and issuance of digital assets within the country. The decision reflects the growing proliferation of cryptocurrencies among the tech-savvy and Nigeria’s desire to harmonise its regulation with global standards. It also allows the bank to proactively combat money laundering and terrorist financing issues, while ensuring that cryptocurrencies are used within regulations. The decision has a significant impact on cryptocurrency investors and companies in Nigeria by restricting their ability to do business and invest in this area. At the same time, it stimulates discussion on the need to balance regulation and support for innovation in digital currencies.
5. Argentina authorises separate bitcoin payments
   Argentina’s new government has decided to allow the use of bitcoin and other cryptocurrencies in official contracts. According to Minister of Foreign Affairs and International Trade Diana Mondino, a new decree aimed at economic reform and deregulation will allow the use of BTC and other cryptocurrencies in the country under certain conditions. The document “Fundamentals for the Reconstruction of the Argentine Economy,” adopted on 20 December, does not specifically mention cryptocurrency, but contains provisions allowing debtors to pay in currencies not recognised as legal tender in Argentina. Argentine President Javier Mealey appointed Mondino as foreign minister after his election victory. Mealey has long expressed support for the use of bitcoin and sees it as a tool in the fight against the inefficiency and corruption of centralised financial systems. Miley’s victory in the presidential election has raised hopes for the adoption of cryptocurrency in Argentina and his reforms to the country’s economy. While details of the new cryptocurrency-related measures have not been announced, the decision confirms new President Milei’s stance and commitment to economic reforms. Opening up to the use of bitcoin in official contracts could encourage investment and business development in Argentina, as well as serve as an example for other countries considering similar initiatives.
6. Ledger promises to reimburse $600k stolen and improve the security of its hardware wallets
   Ledger, a manufacturer of hardware wallets for cryptocurrencies, promises to reimburse $600,000 to users stolen as a result of the hack. In addition, the company will update the software on its devices to prevent further hacks. According to the update, users are expected to be able to view and verify transactions on the device before signing, instead of blind signing, which has been abused by hackers. Previously, Ledger also discovered and removed fake hardware cryptocurrency wallet code that was used to attack crypto services. The company promises to compensate the victims of the hack and stop using blind signature. The company plans to implement transparent transaction signing by June 2024 so that users can see all the details of a transaction before signing. This will improve security and minimise risks for Ledger hardware wallet users.

Thank you for being with us. Crypto-industry news on Bit.team – always up to date.