Payment Expert’s Blockchain Bulletin analyses how the world of blockchain is constantly evolving and having a major impact on the payment industry, with cryptocurrencies, NFTs and the metaverse revolutionising the space.
This week, several major countries, fronted by the UK, have agreed to a new law that would limit the threat of tax evasion relating to cryptocurrencies.
UK spearheads global fight against crypto tax evasion
Countries across the globe have agreed to implement guidelines set out by the Crypto-Asset Reporting Framework (CARF), developed by the OECD, in attempts to stamp out tax evasion in relation to crypto.
Headed by the UK, working alongside countries such as the US, Australia, Japan and more, will develop the CARF to further improve upon the guidelines to ensure a clamp down on tax compliance and tax transparency in a “first of its kind” global commitment.
“I am proud that the UK is once again demonstrating leadership on tackling global tax evasion, helping to secure the revenue that’s essential for the public services we all use,” said Financial Secretary to the Treasury, Victoria Atkins.
“Today we are sending out a strong message that we will not allow criminals to use crypto to avoid paying their fair share.”
Crypto scams are on the rise as Lloyd’s issues ‘urgent warning’
Crypto scams have risen 23% this year as scammers are increasingly targeting younger people according to UK bank Lloyd’s.
The bank has issued an ‘urgent warning’ to those who may be or are exposing themselves to potential crypto scams, as Lloyd’s revealed it is losing more than £10,000 due to the scams through methods such as mix of bogus ads, fake celebrity endorsements, and targeting through direct messages.
Liz Ziegler, Fraud Prevention Director at Lloyds Bank, said: “Crypto is a highly risky asset class and remains largely unregulated, which makes it an attractive area for fraudsters to exploit. If something goes wrong, you’re unlikely to get your money back.”
Dubai welcomes more crypto firms as Crypto.com gains licence
Crypto.com has become the latest exchange to seek a landing space in Dubai after receiving two out of three licences before it can become fully operational.
The exchange this week was granted a preparatory licence by Dubai’s Virtual Assets Regulatory Authority (VARA) adding to the provisional permit it received last March, only needing an operational licence to become fully regulated in the Middle Eastern country.
In order to receive the third and final licence, Crypto.com wil need to ‘fully satisfy select conditions and localisation requirements defined by VARA’ before the company can commence on offering its services in Dubai.
New UK City Minister to take over crypto regulation reigns
Bim Afolami has been named as the UK’s new Economic Secretary to the Treasury, taking over from Andrew Griffith to handle the country’s developing crypto regulation plans.
The news of Afolami’s appointment will be noteworthy for the UK’s crypto market, which has undergone a year of accelerated regulatory progression with new powers being granted by the Financial Service and Markets bill, as well as newly formed guidelines designed by the Financial Conduct Authority (FCA).
PayPal’s PYUSD to boost digital payments in Africa via Yellow Card
Regional fintech Yellow Card has integrated PayPal’s native stablecoin PYUSD to promote financial inclusion and bridging the gap between traditional and digital financial systems across Africa.
Nigeria, Morocco and Kenya are the notable countries that have embraced cryptocurrencies in the continent over the past several years, which has undergone a period of rapid growth of 1,200%.
