Regulierungs-ECHO KW42 – A crypto currency for Hamburg?

In the past week, a lot has happened around the globe in terms of regulation. In our regulation ECHO we look back to the end of the week and summarize what was said, thought or decided when, where and by whom.

Germany: CDU Hamburg demands its own crypto currency

The Hamburg Christian Democrats are playing with the idea of their own crypto currency for the Hanseatic city. This was reported last week in the Hamburger Abendblatt with reference to the CDU member of parliament and spokesman for the digital economy, Carsten Ovens. According to him, the „Hamburg Coin“ has above all a marketing character. So far, however, the ruling SPD has not heard anything about this proposal.

Iran: US authority wants to slow down use of crypto in Iran
The use of crypto currencies has recently become more and more popular for companies in Iran. The reason for this lies in the trade sanctions of the USA against the country. These should be avoided with the use of crypto currencies. But this should now be an end. As the US authority against financial crime, the Financial Crimes Enforcement Network (FinCEN), announced, the use of crypto currencies in Iran is classified as „illegitimate and malicious“ and therefore wants to prevent it.

Hong Kong: New regulatory approach planned

The Hong Kong Securities and Futures Commission (SFC) would like to regulate crypto currencies more strongly in the jurisdiction. As chairman Carlson Tong Ka-shing revealed to the local media, the new regulation is intended to protect potential investors. However, this is not a policy of bans, as is the case in mainland China. Rather, one would like to design a well-regulated counter-model to the rest of the People’s Republic.

USA: Former CFTC chairman for ICO regulation as securities
Gary Gensler, former chairman of the US Commodity Futures Trading Commission (CFTC), has taken a stand on Initial Coin Offerings. Crypto currencies, which emerge from ICOs, were therefore generally considered securities in the USA. Basically, he is positive about crypto currencies and blockchain technology. However, he stresses the need for a regulatory framework for sustainable growth. In the past, Gensler had already classified Ether and XRP as securities.

Russia: Hackers in court over minings on government servers
A young Russian hacker was put on trial this week. He is accused of illegally mining crypto currencies. He is alleged to have used the computing power of servers operated by the Russian government for this purpose without permission. Local media report that the Russian domestic intelligence service FSB has become aware of the inconsistencies on Russian government servers. The 21-year-old hacker is now threatened with up to five years imprisonment.

USA: SEC sets up new department for dialogue with ICOs
The US Securities and Exchange Commission (SEC) has ordered the creation of a new department. The aim of this group is to improve coordination with crypto start-ups. In particular, it should make it easier for those who want to start an initial coin offering to comply with the legal framework. From now on, the Strategic Hub for Innovation and Financial Technology (FinHub) will act as a contact point for FinTech companies.

Japan: Tax committee to facilitate crypto taxation
The Japan Taxation Committee has discussed how to simplify the taxation of crypto currencies in the island state. Local media report that the current tax system is unnecessarily complex and discourages many Japanese citizens. The committee, which advises the government on tax issues, therefore wants to make it easier to include crypto currencies in tax returns. This would also create an even more crypto-friendly environment in Japan.