In our digest, we took a look at some important crypto industry news over the past week:
- New ERC-404 token standard: a solution to the NFT liquidity problem
- Thailand exempts crypto traders from VAT from 2024;
- Spain plans to confiscate crypto assets for tax debts;
- Spanish city of Torrevieja becomes the first in Europe to accept cryptocurrency payments;
- State Duma plans to legalise digital assets for international settlements.
Now for more details. Reading time: 6 minutes.
- New token standard ERC-404: solving the NFT liquidity problem
ERC-404 is a groundbreaking token standard that solves the liquidity problem in the non-replaceable token or NFT segment. This standard combines the features of the ERC-20 interchangeable tokens and the unique ERC-721 NFTs. The Pandora project, the first to use this standard, issued 10,000 ERC-404 tokens, each of which is tied to a unique NFT. Notably, when purchasing an ERC-404 token, an NFT with random characteristics is automatically generated, which adds an element of surprise and excitement to the process. When an ERC-404 token associated with an NFT is sold, that NFT is “burned” and a new one is created in its place. This allows for constant liquidity and prevents duplicate sales. It is important to note that ERC-404 is still in the experimental stage and has not been officially recognised as a universal standard. - Thailand exempts crypto traders from VAT from 2024
Thailand has taken a decisive step to support the crypto industry by exempting licensed crypto traders from paying Value Added Tax (VAT). The decision, effective from 1 January 2024, applies to all transactions involving digital assets. The country’s Ministry of Finance hopes that this tax policy will help stimulate the growth of the digital asset industry and provide the necessary boost to Thailand’s digital economy. Previously, the VAT exemption only applied to authorised digital asset exchanges, but now it includes licensed cryptocurrency brokers and dealers. The move by the Thai authorities underscores their desire to make the country a hub for digital assets and use them as an alternative tool for raising capital. At the same time, they emphasise that it is important to maintain financial stability and be attentive to the development of the sector. - Spain plans to confiscate crypto-assets for tax debts
The Spanish Ministry of Finance proposes to tighten control over crypto-assets of citizens in order to pay off tax debts. As part of the tax reform implemented from 2021, the authorities plan to expand the powers of tax services, allowing confiscation of digital assets for tax debts. On February 1, a Royal Decree came into force that includes cryptocurrency companies in the list of entities responsible for tax collection. This means they are obliged to freeze customers’ crypto assets upon government request, which was previously only supposed to be the case for banks and credit institutions. Spanish residents holding crypto assets on foreign platforms are required to provide information about their assets by the end of March. This requirement applies to individuals whose assets exceed €50,000. The authorities are seeking to actively monitor and control cryptoassets, strengthening fiscal policy towards digital currencies. - Spanish city of Torrevieja becomes the first in Europe to accept cryptocurrency payments
Torrevieja, Spain, is set to become the first city in Europe to be cryptocurrency friendly. The city authorities have announced a digital transformation project that will allow local shops to accept cryptocurrency payments. The initiative is being carried out in co-operation with the City Council’s Department of Commerce and the Association of Small and Medium-sized Entrepreneurs. The project will be conducted in three phases, including the use of digital assets in commerce, the use of blockchain in environmental initiatives and the financing of technology companies. As part of the project, the University of Alicante will launch specialised courses on digital payments for local businesses. This is a significant step forward for Spain, where, despite cryptocurrencies being grounded in 2015, no active steps have been taken to develop digital payments. - Duma plans to legalise digital assets for international settlements
In the near future, the State Duma plans to pass a bill that will allow digital financial assets (DFAs) to be used in international settlements. DFAs, such as gold or grain, will become a new tool to simplify the settlement process. The announcement was made in response to a number of changes in the international financial system. Anatoly Aksakov, head of the State Duma’s Financial Market Committee, emphasised that the move is important to ensure the continuity of international settlements. He also added that this initiative could be useful in cases when foreign banks want to co-operate with Russia. Alexander Linnikov, chairman of the board of the Association of Payment Services Market Participants, believes that in the medium term, DFAs could become an alternative to traditional financial messaging systems. Digital financial assets represent a new investment tool based on modern technologies such as blockchain and smart contracts.
Thank you for being with us. Crypto-industry news on Bit.team — always up to date.
