- High taxes in India and the US have deterred new investments and interest in crypto, stifling innovation in these markets.
- Russia's crypto ban is pushing developers towards black markets, potentially strangling legitimate crypto development.
- China's 2017 crypto ban has led to a tepid ETF market, reflecting the long-term impact on innovation and investment in the sector.

The United States boasts the largest cryptocurrency market in the world, with its ETF market cap surpassing $72 billion as of May 14, 2024, driven by strong demand. Nevertheless, the US government has taken extensive measures to stifle the growth of the domestic crypto economy.
One significant move was New York's two-year ban on crypto mining, enacted despite the fact that much of the energy for crypto mining in the US is sourced from renewable resources. The New York Department of Financial Services implemented this ban, reflecting some of the toughest anti-crypto policies in the nation.
For those unfamiliar, crypto mining, particularly through proof of work, is a critical method for securing blockchain networks against hacks and exploits. This technology has ensured Bitcoin's resilience and security over the years.
In addition to the mining ban, there is a proposal to increase taxes on the electricity supplied to crypto miners by 30%, a move that would render Bitcoin mining economically unsustainable. This tax, introduced by the Biden administration, is referred to as the Digital Asset Mining Energy Tax (DAME).
Looking internationally, India imposed a 30% income tax on crypto earnings starting in April 2022, one of the highest such taxes globally. This law does not allow for offsetting profits with losses, meaning a $100 profit and a $100 loss in crypto transactions still incurs a $30 tax. This has severely impacted the crypto ecosystem in India, particularly harming NFT developers and entrepreneurs, leading to the decline of advanced NFT token standards like ERC 1155 and ERC 6551.
In Russia, the government has almost completely banned cryptocurrency to support the ruble, as reported by Anatoly Aksakov, Chairman of the Committee on Financial Affairs. While crypto mining is still permitted due to its potential to generate foreign exchange, the broader ban has adversely affected developers reliant on cryptocurrencies like Ethereum and Solana. This has also led to the rise of black markets and financial crimes, as many are forced to turn to these illicit avenues to redeem their earnings.
China's crypto ban from 2017 continues to have long-term repercussions. On April 30, 2024, Hong Kong launched its first spot Bitcoin ETF. However, investor confidence was low, influenced by the lingering fear of the 2017 crackdown. The ETFs attracted only $112 million on their first day, starkly contrasting with the $4.6 billion inflow seen by US spot Bitcoin ETFs on January 11, 2024.
Disclaimer: Voice of Crypto aims to provide accurate and current information but is not responsible for any missing facts or inaccuracies. Cryptocurrencies are highly volatile financial assets, so please conduct thorough research and make informed financial decisions.

#Russia #China #India #US #Crypto2024

In a decisive move against cryptocurrency-related crime, Chinese authorities have arrested six individuals involved in a $300 million crypto exchange fraud, signaling a stringent approach to regulatory enforcement. The operation, conducted by the Public Security Bureau of Panshi City in Jilin Province, targeted a sophisticated scheme exploiting the anonymity of digital currencies for illegal financial exchanges.
The Operation: Uncovering the Illicit Exchange Network
The fraud operation focused on illegal transactions between the Chinese renminbi (RMB) and the Korean won, leveraging underground banks and the decentralized finance (DeFi) sector. These activities were primarily aimed at facilitating unregulated exchanges across South Korea and China, highlighting the challenges posed by the borderless nature of cryptocurrencies.
The masterminds behind this extensive network, identified as Jin Moudong and Shen Mou, utilized the decentralized platforms to obscure their activities and evade law enforcement. The authorities' investigation revealed a complex web of transactions and banking activities that pointed directly to the perpetrators, leading to their eventual capture.
Detailed Investigation Leads to Arrests
Through meticulous analysis of transaction records and surveillance of suspicious activities, the Chinese authorities were able to dismantle the illegal operation. This network was not only involved in currency exchange but also in over-the-counter (OTC) trading of virtual currencies, which facilitated a broad range of illicit activities including transactions for Korean purchasing agents and various cross-border trading companies.
Implications of the Crackdown
This crackdown is part of China's broader effort to control the potential risks associated with digital currencies and maintain financial stability. The operation underscores the Chinese government's resolve to combat financial fraud, particularly in the burgeoning field of cryptocurrencies. It also serves as a stern warning to others involved in similar illicit activities, emphasizing the need for compliance with crypto regulations.
Moving Forward: Regulatory and Market Impact
As China continues to tighten its grip on the cryptocurrency market, this successful enforcement action highlights the importance of vigilance and legal compliance within the crypto community. Market participants are urged to adhere strictly to regulatory requirements to avoid the severe consequences of involvement in fraudulent schemes.
The Chinese authorities' proactive stance serves as a model for regulatory enforcement in the digital age, aiming to safeguard market integrity and protect investors from sophisticated crypto-related frauds. As the landscape of digital finance evolves, such measures are crucial in fostering a secure and stable financial environment.
#crypto #fraud #China

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“