Bitcoin layer-2 project Elastos sees ELA token surge

The United Arab Emirates (UAE) is updating its tax policy such that cryptocurrency-related transfers and conversions will be exempt from value-added tax (VAT).  News of the policy change emerged via the UAE’s Federal Tax Authority (FTA), which published an Arabic version of the updated tax code on Oct. 2, followed by the publication of an English version on Oct. 4.Photo by Darcey Beau on UnsplashExemption backdated to 2018British multinational consulting firm PricewaterhouseCoopers (PwC) published a review of the UAE tax code update on Oct. 4. The auditing firm noted that virtual assets are defined within the UAE tax code as a “representation of value that can be digitally traded or converted and can be used for investment purposes.”It noted that Article 42 of the update dealt with the crypto VAT exemption. The firm suggested that entities dealing with crypto should “analyze the impact of the exemption on their (retrospective) VAT position, especially in respect to their input tax recovery,” adding that voluntary disclosures may be required to correct previous tax returns. Additionally, a VAT exemption has been introduced on services extended to fund managers relative to licensed funds. Younis Haji Al Khoori, a UAE Ministry of Finance official, stated that the amendments have been made with a view towards easing the burden on businesses. He stated:“These amendments help minimise misunderstandings, simplify procedures, and ultimately contribute to an improved quality of life for all.”  Crypto-friendlyAbdulla Al Dhaheri, CEO of the Blockchain Center in Abu Dhabi, commented on the development on X, stating:”The UAE, driven by visionary leadership, continues to set the global standard by becoming the number 1 destination for blockchain innovation. With the elimination of VAT on crypto transfers and conversions, the UAE reinforce their commitment to building a world-leading digital economy, attracting the best talent and investment from around the globe.” The UAE, and particularly Dubai and Abu Dhabi, have taken great strides forward in ensuring regulatory clarity for the virtual assets sector over the course of the past two years. Regulatory frameworks have been put in place, leading to many participants in the crypto sector praising the regulatory stance taken within the UAE.  This latest addition has equally being welcomed within the crypto sector. Many crypto sector participants have highlighted it as a wake-up call for other jurisdictions to follow suit or see crypto enterprises move to the UAE.  The Indian authorities, in particular, have an unfavorable tax policy in place relative to digital assets, with a 1% tax deducted at source (TDS) being applied. This latest development in the UAE prompted some to consider if India would learn from the UAE’s example. Earlier this year, the Indonesian tax framework, which subjects crypto assets to both income tax and VAT, was cited as the main reason for a slump in crypto trading. A recently published report by blockchain data platform Chainalysis found that the Middle East & North Africa (MENA) region accounts for 7.5% of crypto trading volume, with the report noting that the UAE, alongside Saudi Arabia, is showing a strong interest in decentralized platforms.

Incheon City Surveying Residents for Blockchain-Based Public ServicesIncheon Metropolitan City is surveying its residents to gather their opinions on the prospect of transforming the city into a thriving blockchain hub, according to a press release.The survey comprises 14 questions, delving into various aspects such as individuals’ experiences with public services, their perspectives on blockchain technology, and their specific needs pertaining to blockchain-based urban services.Photo by Lei Jiang on UnsplashUnderstanding the publicThe objective of this survey, which began yesterday and will run until June 30, is to discern the public’s preferences and requirements concerning blockchain-based services. As an incentive for participation, 100 lucky respondents will have the opportunity to win coffee shop gift cards. The outcomes of this survey are anticipated to play a pivotal role in shaping the city’s four-year plan for establishing a blockchain hub, with an estimated cost of 14 billion KRW ($10.8 million).Other promotion effortsIncheon has been taking a range of blockchain promotion initiatives, including dedicated educational programs and international conferences. Recently, the city hosted Incheon Metanomics 2023, an event that featured distinguished speakers from renowned companies such as global crypto exchange Binance, online game platform Roblox, and chip manufacturer AMD.Furthermore, Incheon Metropolitan City is collaborating closely with Incheon Technopark (ITP) to offer tailored support programs specifically catering to blockchain startups. These initiatives encompass funding for technology development as well as accelerator programs, all aimed at nurturing the growth and success of emerging blockchain ventures.Son Hye-young, the head of the city’s data industry division, underlined the growing importance of blockchain technology in shaping the future economy and the overall industrial ecosystem. Incheon is dedicated to fostering a business-friendly environment where its residents can tangibly experience the benefits of technological advancements firsthand.

Tether Alters ToS in Singapore Restricting USDT RedemptionTether, the issuer of the world’s largest stablecoin, USDT, has made substantial revisions to its Terms of Service (ToS), which may have a significant impact on its user base in Singapore.News of the change emerged on Monday, with Dr. Julian Hosp, CEO of Cake Group, the project team behind Singapore-based Cake DeFi, taking to social media and providing a copy of an email from Tether’s Compliance Department, confirming the change. That notification read:”Tether has changed its terms of service to, among other things, restrict its onboarding standards. Corporates controlled by; another entities, directors, shareholders residing in Singapore are no longer permitted to be Tether customers.”In his commentary, Hosp stated that he wouldn’t be in a position to confirm “if redeeming $USDT into $USD is actually possible, due to being in #Singapore.”Photo by DrawKit Illustrations on UnsplashToS Change in ContextWithin the cryptocurrency ecosystem, eyebrows have been raised regarding the timing of Tether’s ToS change, as it has coincided with a major instance of crypto-related money laundering. Conversely, some argue that the issue could be specific to Cake DeFi. The DeFi protocol had been flagged for enhanced due diligence (EDD), suggesting that the modification in Tether’s ToS might potentially be a result of a partnership issue between the two entities.Stablecoins like USDT play a pivotal role in the digital asset ecosystem, serving as a bridge between the volatile world of cryptocurrencies and the stability of traditional fiat currencies like the US dollar. Any disruption in their usage can trigger a domino effect in the crypto markets.The cryptocurrency sector is grappling with regulatory uncertainties worldwide, and Singapore is no exception. The Monetary Authority of Singapore (MAS) has been actively reviewing and updating its crypto-related regulations to align with international standards and mitigate risks to financial stability.The precise motive behind Tether’s decision to restrict USDT redemption for specific customers in Singapore remains unclear. Notwithstanding that, Tether’s Chief Technology Officer (CTO) Paolo Ardoino expressed the view that the matter is being misunderstood. He tweeted:Spreading FUD”Before spreading FUD [fear, uncertainty and doubt] it would be great if you guys did take a look at webarchive… This is Jan 2022…. And if you open the link below: Last updated: May 12, 2020… Again, take a moment to search and verify information before YOLO [you only live once] posting.”Clearly Ardoino is making the point that the ToS change is consistent with existing compliance policy which has been in place since 2020. Notwithstanding that, in reviewing related records, media outlet Protos found that USDT issuance and redemption after May 2020 demonstrate that the firm continued to do business with Singapore-based entities. The publication cited UQPAY specifically, a Singapore-based payments processor. It was found to have issued USDT between May 14 and May 18 in 2020.