Canada Adopts International Crypto Tax Reporting Standard
Canada is aimed at having the OECD standard for crypto asset tax reporting in place by 2027, as agreed with 46 countries.
According to ARK36 executive director, Central Bank Digital Currencies (CBDCs) won’t pose a threat to cryptocurrencies like Bitcoin, Ethereum, Litecoin, and other altcoins. However, they still might be linked to risks similar to stablecoins.
Mikkel Morch, the executive director at ARK36 – an EU-based digital asset hedge fund – has suggested that CBDCs and state-backed digital currencies won’t be competing for investor attention towards cryptocurrencies. As decentralized currencies, cryptocurrencies offer a different use-case and value incentive than central and government-backed digital currencies, according to the executive. He noted that digital currencies like Bitcoin, which are private from government control like fiat and traditional currencies, are designed to go further than simple transactions as we know them in the traditional sense.
While a CBDC might not threaten a cryptocurrency, it might still be associated with risks in regard to stablecoins. He noted that a central bank’s digital currency might reduce the need and role of private stablecoins. If there is a market for a stable token pegged to a fiat currency, a CBDC – backed by the country’s central bank – might threaten the demand for the private stablecoin.
Singapore’s crackdown on crypto
The comments came following Singapore’s financial regulation with the central bank cracking down on any “bad behaviour” from the cryptocurrency industry Singapore’s Monetary Authority (MAS) fintech officer Sopnendu Mohanty noted that there has been scepticism regarding the value of private digital currencies, saying that a state-backed alternative is looking to be launched in the next three years.
When questioned about the “brutal” approach to cryptocurrency, Mohanty noted that the “unfriendly” approach to cryptocurrency comes from a lack of belief in the market:
“We have been called out by many cryptocurrencies for not being friendly, my response has been: Friendly for what? Friendly for a real economy or friendly for some unreal economy?”