European Union lawmakers have officially approved the controversial European Data Act, despite previous criticism from the crypto community. The act aims to promote the use of data resources for algorithm training purposes. However, its inclusion of a kill switch option for smart contracts has raised concerns as it contradicts the core concept of trust associated with smart contracts.
In contrast to this development, the European Commission has proposed a legislative plan for a digital euro. The goal is to make it widely accepted and easily accessible as a form of payment. The plan ensures accessibility by allowing individuals to obtain digital euros through their banks upon request. It also emphasizes privacy protection, offline payments, and provisions for free basic digital euro services. This move is expected to prevent citizens from being left behind in the digital economy.
On a positive note for crypto enthusiasts, the National Council of Slovakia recently approved an amendment to reduce personal income tax on profits gained from the sale of cryptocurrencies held for at least one year. The tax rate will be lowered to 7%, a significant decrease from the current sliding scale of either 19% or 25%. Additionally, payments received in cryptocurrencies up to 2,400 euros ($2,600) will not be subject to taxation.
In other news, Coinbase, the American cryptocurrency exchange, has filed a motion to dismiss the United States Securities and Exchange Commission’s (SEC) complaint against them. Coinbase argues that the SEC has overstepped its legal authority by misinterpreting securities laws. The motion claims that even if the allegations in the lawsuit are true, the SEC’s action violates Coinbase’s due process rights and constitutes an abuse of process.
Meanwhile, in the ongoing battle between the Internal Revenue Service (IRS) and crypto exchange Kraken, the U.S. District Court for the Northern District of California has ordered Kraken to provide account and transaction information to the IRS. The agency seeks to determine if any users have underreported their taxes. The court requires Kraken to disclose details of users involved in transactions exceeding $20,000 within a calendar year.
In New Zealand, the country’s Reserve Bank director of money and cash, Ian Woolford, stated that a regulatory approach to cryptocurrencies is not currently necessary. However, increased vigilance is recommended. The Reserve Bank is closely observing regulatory developments in other jurisdictions before making its own decisions. Currently, New Zealand ranks 108th out of 146 countries in the Chainalysis Global Crypto Adoption Index.
Overall, Europe continues to navigate the complex landscape of cryptocurrency regulations. While the EU progresses with the European Data Act and introduces a smart contract kill switch, individual countries such as Slovakia are implementing tax reductions to encourage crypto adoption. In the United States, Coinbase fights back against the SEC’s lawsuit, while the IRS tightens its grip on crypto exchanges like Kraken. New Zealand, on the other hand, takes a cautious approach and awaits the outcomes of regulatory actions in other parts of the world.