Regulatory Dynamics

1. The Italian Banking Association Launches Digital Euro Experiment

The Italian Banking Association (ABI) recently launched a digital euro trial based on distributed ledger technology. This study, involving more than 700 Italian banking institutions, aims to explore the technological feasibility of the digital euro and to delve into the potential value-added services brought about by the programmability of this technology.

The experiment is divided into two phases: first, assess the technical feasibility of the infrastructure and distribution model, and then explore how programmability can provide unique application scenarios for central bank digital currencies, distinguishing them from existing electronic payment systems.

ABI stated that the purpose of this initiative is to promote public discussion and help banks operating in Italy prepare for the future.

2. Hong Kong Bitcoin Association Calls for a Re-examination of Cryptocurrency Regulations

The Hong Kong government announced a regulatory plan in November to restrict retail trading of cryptocurrencies and regulate Bitcoin ATMs. In response, the Hong Kong Bitcoin Association urged regulators to reconsider the potential impact of these regulations on the city's digital innovation process.

The co-founder of the association stated that restricting retail Bitcoin trading may contradict the government's goal of promoting innovation and achieving financial inclusion. This appeal reflects concerns in the industry about the potential negative impacts of the new regulations.

3. The Central Bank of Turkey plans to test digital currency in 2021

Naci Ağbal, the governor of the Central Bank of Turkey, recently revealed to members of parliament that Turkey will begin a pilot program for a previously undisclosed digital currency project in the second half of 2021.

Ağbal stated: "We have initiated a digital currency research and development project. Currently, the conceptual phase of the project has been completed. Our goal is to begin pilot testing in the second half of 2021." This initiative demonstrates Turkey's active exploration in the field of central bank digital currency.

4. Israeli Tax Authorities Strengthen Tax Collection on Cryptocurrency Holders

The Israeli tax authorities are issuing notices to domestic cryptocurrency holders, requiring them to fully disclose their cryptocurrency assets for appropriate tax administration. Meanwhile, the tax department is also requesting multiple domestic and foreign cryptocurrency exchanges to provide detailed reports on Israeli users' trading of digital assets worldwide.

Legal experts believe that this move may be related to the recent rise in Bitcoin prices. The government may wish to take this opportunity to levy taxes to ease public financial pressure. Although the current notification is only in the preliminary stage, as Bitcoin continues to heat up in the bull market, the government may further strengthen tax enforcement.

This initiative reflects the growing concern of governments around the world regarding cryptocurrency trading and holding, as well as efforts to establish effective tax systems in this emerging field.