Happy Monday! Start your week with Binance Bytes, a snapshot of the latest market developments.
Highlights 🧵:
1/ Russia to officially recognize cryptocurrency as a currency asset and open market access to all investors. Under the proposed regulatory framework by the central bank, ordinary citizens are permitted to trade cryptocurrencies on regulated platforms with limits for non-qualified investors. This move supports wider use of Russian-issued digital financial assets and bolster crypto services offered by existing financial firms. Notably, Sberbank has piloted a loan secured by cryptocurrency collateral, marking a significant milestone in the country’s adoption of digital assets.
2/ U.S. House lawmakers introduce a draft on digital asset taxation for stablecoins and staking, aiming to eliminate compliance burdens on small daily transactions. The proposed bill seeks to exempt transactions under US$200 involving regulated, U.S. dollar-pegged stablecoins from capital gains taxes. Only stablecoins issued by permitted issuers under the GENIUS Act, maintaining a price within 1% of US$1.00 for 95% of trading days in the past year, qualify, excluding brokers and dealers. Additionally, taxpayers may defer taxation on mining and staking rewards for up to five years, after which they would be taxed as ordinary income at fair market value.
3/ Hong Kong proposes to open up crypto markets to insurers under stringent capital requirements. The Hong Kong Insurance Authority (HKIA) is proposing new regulations that would permit the city’s 158 authorized insurers to invest in digital assets. While this marks a cautious institutional embrace of crypto, the regulator maintains a conservative risk framework. Under the proposal, insurers must hold a one-to-one reserve for every dollar invested in crypto which serves as a protective buffer against the well-known volatility of digital assets.
