Coinbase to Terminate USDC Rewards Program in EEA Due to MiCA RegulationsCoinbase will end its USDC rewards program for users in the European Economic Area (EEA) on December 1, 2024, due to compliance with the upcoming Markets in Crypto-Assets (MiCA) regulation. EEA users have until November 30 to earn their final rewards, with payouts occurring in early December. MiCA classifies stablecoins as E-money tokens, requiring exchanges to adapt to stricter rules. Other crypto firms, like Tether and Bitstamp, are also adjusting their operations to comply, with Bitstamp already delisting non-compliant stablecoins. This regulatory shift significantly impacts the management and trading of digital assets in Europe. Hong Kong Introduces Crypto Tax Exemptions for Hedge Funds to Compete as Financial HubHong Kong plans to implement tax exemptions for hedge funds, private equity funds, and high-net-worth investment vehicles on crypto gains to enhance its offshore financial hub status. The proposal aims to create a favorable environment for asset managers and includes expanded exemptions for private credit, overseas property, and carbon credits. This initiative comes amid competition with Singapore, Luxembourg, and Switzerland to attract wealthy investors. Analysts note that family offices in Hong Kong often allocate up to 20% of their portfolios to digital assets. Currently, over 450 open-ended funds have launched, leveraging Hong Kong's evolving regulatory landscape. Putin Signs Law to Recognize Cryptocurrencies as Property and Exempt VAT on Mining and TradingPresident Vladimir Putin has signed a significant law recognizing cryptocurrencies as property in Russia. This legislation exempts mining and trading of digital assets from value-added tax (VAT) while allowing their use in international trade under a regulatory framework. Taxation for personal income from mining follows a progressive scale, with 13% for income up to 2.4 million rubles and 15% beyond that. Corporate income from crypto mining will be taxed at 25% starting in 2025. The Central Bank will oversee this new framework, aiming to enhance Russia's resilience against Western sanctions by advancing its digital asset capabilities. Vancouver Mayor Proposes Bitcoin Reserve to Strengthen City FinancesVancouver Mayor Ken Sim has proposed creating a Bitcoin reserve to enhance the city's financial strategy, with plans to present the idea on December 11. This initiative aims to explore Bitcoin's potential for resource diversification and as a hedge against economic instability. Vancouver aspires to become a leading Bitcoin-friendly city, supported by a robust local crypto community. Globally, governmental Bitcoin adoption is rising, exemplified by El Salvador's success since legalizing Bitcoin in 2021. Discussions in the U.S. include proposals to use Bitcoin as a federal reserve asset, reflecting a broader trend in recognizing Bitcoin's strategic financial value. Taiwan Enforces Stricter Crypto AML Rules Effective November 30Taiwan's Financial Supervisory Commission (FSC) will enforce new anti-money laundering (AML) rules for crypto service providers on November 30, 2024, a month earlier than expected. All virtual asset service providers (VASPs) must complete AML compliance registration or face penalties, including fines of NT$5 million (approximately $153,700) or up to two years in prison. Overseas VASPs must establish a local entity before operating. Recent fines against MaiCoin and BitoPro underscore the emphasis on enhancing customer due diligence and transaction monitoring. The new regulations promise stricter oversight of trading practices, information security, and consumer protection measures. UK to Introduce Comprehensive Crypto Regulations Including Stablecoins and Staking Services by 2025The U.K. is poised to implement a comprehensive regulatory framework for the crypto sector by early 2025, confirming the inclusion of stablecoins—digital currencies pegged to stable assets—and staking services. Economic Secretary Tulip Siddiq indicated that there would be no special exemptions for staking, as it is integral to blockchain operations, akin to earning interest. Additionally, a new bill aims to classify crypto assets like Bitcoin and NFTs as “personal property,” offering enhanced legal protections. This regulatory push is aimed at fostering clarity and security in the rapidly evolving cryptocurrency landscape in the U.K.. Switzerland Approves Study to Explore Benefits of Bitcoin Mining and Energy UtilizationSwitzerland has approved a motion to study the feasibility of Bitcoin mining, focusing on surplus energy utilization and economic potential. This initiative, backed by the Council of State, aims to analyze the benefits and challenges of mining for stabilizing the regional electricity grid in Bern. Key considerations include identifying unused energy sources and potential collaborations with local miners, promoting economic growth. However, officials note concerns about energy resource strain and lack of electricity usage data. The decision reflects Switzerland's commitment to balancing innovation with sustainability amidst rising electricity demands from various sectors. Morocco to Legalize Cryptocurrency After 2017 Ban, Explores Central Bank Digital CurrencyMorocco is reportedly set to legalize cryptocurrency after a ban instituted in 2017, due to concerns over illicit activities. The central bank, Bank Al Maghrib, is drafting legislation to regulate crypto assets, with the governor, Abdellatif Jouahri, noting that the law is in the adoption process. Additionally, Morocco is exploring the introduction of a central bank digital currency (CBDC) to foster financial inclusion. This shift comes as 134 countries examine CBDCs, highlighting a global trend towards regulating digital currencies while recognizing their potential benefits despite past skepticism regarding cryptocurrency’s volatile nature and risks associated with illegal use.This article has been refined and enhanced by ChatGPT.