Japan plans to amend its Foreign Exchange and Foreign Trade Act to bring crypto exchanges under the purview of laws that govern banks, a government official revealed on Monday. The proposed amendment is being carried out to prevent sanctioned countries from taking evasive actions using digital assets.
Chief Cabinet Secretary Hirokazu Matsuno in a press conference said that the government is planning to introduce a bill to revise the Foreign exchange laws to include crypto exchanges.
Fumio Kishida, the newly elected prime minister of the country, also supported the proposed revision and called for coordinated moves with Western allies to enforce the new laws. Under the revised foreign exchange laws, crypto exchanges, just like banks, will be required to verify and flag transactions associated with sanctioned Russian individuals or groups.
Japan, along with most of its Western allies, has conducted various financial sanctions against Russia after its actions in Ukraine. Earlier this month the financial regulatory body in the country has also asked crypto exchanges to refrain from allowing transactions for sanctioned targets.
However, a parliamentary amendment to the law would make it a legal compulsion for crypto exchanges to block transactions for various sanctioned Russian officials, oligarchs, banks and other institutions.
Rio de Janeiro will officially start accepting Bitcoin (BTC) payments for taxes related to urban real estate within their city limits, otherwise known as Imposto sobre a propriedade predial e territorial urbana (IPTU).
As reported by Cointelegraph Brazil, the new pro-crypto tax laws will be implemented from 2023, which was announced by the Secretary of Economic Development, Innovation and Simplification, Chicão Bulhões.
Work from anywhere = Rio! Welcome @binance… Rio on blockchain! @eduardopaes https://t.co/NJEArEvEXV March 26, 2022
Supporting this cause led by the Brazilian Mayor Eduardo Paes, Binance CEO Changpeng “CZ” Zhao announced to open a new office in the region, stating that “He‘s done his part. We are working on ours.”
9 days ago, I made a handshake deal with mayor @eduardopaes. Rio De Janeiro will accept crypto for tax payments, and @Binance will open an office in Rio. He's done his part. We are working on ours. https://t.co/HPJONtBfQ8 March 26, 2022
The rollout of this initiative will place Rio de Janeiro as the first Brazilian city to make BTC payments mainstream. According to the translated announcement:
“To enable the operation, the municipality will hire companies specialized in converting crypto assets into reais. In this way, the City Hall will receive 100% of the amount in the currency.”
Per the request of the United States Congress, the U.S. Government Accountability Office (GAO) laid out four policy options to help policymakers implement blockchain technologies while enhancing benefits and mitigating challenges.
The technology assessment shared by the GAO acknowledged the potential of blockchain technology in improving a variety of financial and non-financial applications despite raising concerns about introducing new challenges while trying to resolve issues related to traditional systems:
“A blockchain might both increase the speed of a title registry system and lower the cost of title insurance by making title registration simpler and more trustworthy.”
However, some of the challenges highlighted in the study include uncertain benefits, data reliability and legal compliance.
With the above flowchart, GAO aims to help policymakers — including Congress, federal agencies, state and local governments, academic and research institutions, and industry — determine the requirement of blockchain implementation.
This Daily Dose was brought to you by Cointelegraph.