Dubai’s VARA grants WadzPay ‘initial approval’ of trading license

Japanese Crypto Firm Pafin to Introduce DeFi Asset Management PlatformA Japanese company specializing in cryptocurrency services is preparing to launch a DeFi asset management platform.Photo by Shubham Dhage on UnsplashDeFi asset managementPafin, the company behind Cryptact, a service that automates cryptocurrency profit and loss (P&L) calculations, is set to introduce Defitact on June 5. Defitact is a platform designed to consolidate transactions involving decentralized finance (DeFi) assets and NFTs, complemented by illustrative charts. Pafin claims that it is the first provider of crypto P&L calculations to offer blockchain asset management in the Japanese language.The company envisions a broad array of services through Cryptact, from asset management to P&L calculations, to support all Web3 activities in today’s digital landscape.Beta test for subscribersStarting from May 29, Pafin will roll out a beta test for Defitact, exclusive to Cryptact newsletter subscribers. Subscribers will be able to access the service by entering their wallet addresses in the URL provided with the newsletter, which will be sent on the beta test launch date. The newsletter will be sent to those who sign up by May 28, and registration for a Cryptact account is free.This service emerges amidst the growing prominence of Web3, with DeFi — a financial service leveraging blockchain technology — standing out as one of its most rapidly evolving sectors. As of the close of 2021, the DeFi market had a near $100 billion valuation, according to a report by the Japan Research Institute.The nature of DeFi, lacking a centralized administrator, places the onus of crypto wallet management on individuals. The Defitact service seeks to resolve the inconvenience of monitoring and managing real-time transactions on DeFi platforms, typically operating outside crypto exchanges.Available in Japanese and EnglishAs a free, bilingual (Japanese and English) service, Defitact provides a transaction history and displays crypto market capitalization in three fiat currencies: the Japanese yen, the US dollar, and the euro.Pafin’s future plans include integrating Defitact with Cryptact, adding an NFT management service, and enabling the aggregation of multiple wallets for efficient digital asset portfolio management.

Recognition of Donald Trump’s victory in the U.S. presidential election on Nov. 6 has led to many crypto proponents in Asia foreseeing a positive outcome for crypto within the Asian region, and globally.Photo by Kevin Lanceplaine on UnsplashBright future for cryptoAccording to a report published by the South China Morning Post (SCMP), crypto proponents in China are expectant of a bright future for crypto both on the Chinese mainland and in Hong Kong. The mindset seems to be that a pro-crypto stance in the U.S. will lead to other jurisdictions taking a similar approach. HashKey CEO Livio Weng expressed such a view, stating:“Trump’s pro-crypto stance is expected not only to invigorate the US virtual-asset industry, but also to encourage Hong Kong to further relax its own virtual-asset policies in its quest to become a global Web3 hub.”  Prior to being elected, Trump had promised to fire Gary Gensler, who as Chair of the Securities and Exchange Commission (SEC) has pursued a strategy of regulation by enforcement, a course of action that has been broadly criticized by crypto market participants in the United States. Ripple CEO Brad Garlinghouse wasted no time in calling on Trump to act, and to fire Gensler. Influencing regulatory attitudesThere seems to be a consensus among commentators that the regulatory approach to crypto in the U.S. is going to become crypto-friendly. Crypto analyst Miles Deutscher suggests that “a Trump victory is a WIN for US tech innovation, as it would solidify [the United States’] status as a crypto powerhouse.” Weng believes that “this shift could also positively influence regulatory attitudes toward virtual assets in mainland China.” That view is mirrored in South Korea by KP Jang, head of Xangle Research. Jang asserts that “if Trump implements bold virtual asset policies while improving existing regulations, it is expected to accelerate regulatory reforms in Korea as well.” Sumit Gupta, CEO and co-founder of India’s largest crypto exchange, CoinDCX, outlined on X that Trump’s victory is a pivotal moment for global crypto, adding:”The direct effects of Trump’s policies might not alter India’s regulatory environment right away. However, global sentiment and investor behaviour will be influenced, eventually reaching India.” The CoinDCX CEO believes that should Trump now appoint regulatory leadership that’s crypto-positive, any resultant crypto regulatory framework adopted by the U.S. could become a blueprint for use by other nations. Gupta identified further potential upside insofar as the implementation of positive crypto policies by Trump would lead to a more attractive environment for crypto, “potentially opening up enhanced funding opportunities and partnerships for Indian startups as investors seek global growth.” Bitcoin price surgeAt the time of writing, the Bitcoin unit price is up 0.64% over the course of the past 24 hours, at $74,884. American business news channel CNBC reported that Bitcoin could reach $100,000 before Trump even takes office.  Matthew Hougan, chief investment officer (CIO) at crypto asset fund manager Bitwise, said that Trump’s election victory could herald in a “golden age of crypto,” with a friendlier regulatory environment leading to greater institutional investment and mainstream adoption.

A number of reports published by local Russian media in recent days suggest that the Russian authorities are implementing taxation and regional controls on cryptocurrency mining.Photo by Michael Parulava on UnsplashRegional mining banA report published by the Moscow Times on Nov. 19 suggests that Russia’s Deputy Prime Minister, Alexander Novak, has led a government commission that plans to implement a ban on cryptocurrency mining in specific Russian regions.  The authorities have been motivated in enacting such a ban in order to combat power shortages. With that, a ban is being implemented on a temporary basis during the heating season. The restrictions will apply to miners located within six regions within the North Caucasus, as well as the Zabaikalsky region in Siberia and territories now controlled by Russia in Ukraine. The ban will apply from December through to mid-March 2025, with this seasonal restriction to be applied subsequently each winter until 2031. Back in August, Russian President Vladimir Putin signed into law legislation which legitimized cryptocurrency mining within the Russian Federation. That law recognized mining activities and the concepts of mining pools and mining infrastructure operators. The legislation requires mining operators to register with the government. Individual miners can mine without registering so long as they stay within specified energy-use limits. Earlier this month, the authorities set a power consumption limit of 6,000 kWh per month for those unregistered miners.  The legislation also recognized the ability of stakeholders to trade in foreign digital assets on Russian blockchain platforms, with Russia’s central bank, the Bank of Russia, retaining the ability to ban specific digital assets from being traded if such trading is deemed to be a threat to Russia’s financial stability. 15% tax proposalEarlier this week Russia’s Interfax news agency reported that the Russian government had approved draft amendments to a bill concerned with the purchase and sale of digital currencies relative to crypto mining activity.  According to those proposed legislative amendments, digital assets will be classified as property from a taxation perspective. Income derived from mining activities will be assessed in terms of taxation based on market value at the time of receipt of the asset. The legislative amendments propose a 15% tax rate for cryptocurrencies. Furthermore, crypto transactions will not be subjected to value-added tax (VAT). However, income derived from such transactions will be taxable in the same way as income from transactions involving securities. Crypto mining operators will be permitted to deduct operating expenses from their taxable income. Russia’s Finance Ministry is understood to have clarified that the taxation approach would strike a balance between Russian government interests and those of commercial operators. With the introduction of legislation to recognize cryptocurrency mining activity earlier this year, Ki Young Ju, CEO of on-chain and market data analytics firm CryptoQuant, noted the country’s growing involvement and national-level engagement with digital assets. The coming months will determine if these latest crypto mining restrictions will dampen the level of involvement of Russia-based crypto miners.