Regulatory Dynamics

1. Italian banking sector launches digital euro trial

The Italian Banking Association (ABI) has launched a digital euro experiment based on distributed ledger technology. The association brings together over 700 Italian banking institutions to explore the technological feasibility of the digital euro and its potential innovative applications.

The experiment is divided into two phases: first, to study the infrastructure and distribution model, assessing technical feasibility; second, to explore how programmability can create unique use cases that distinguish central bank digital currencies from existing electronic payment systems.

ABI stated that this move aims to promote public discussion and help Italian banks prepare for future development.

2. Hong Kong Bitcoin community calls for a re-examination of cryptocurrency regulations

The Hong Kong government previously announced plans to restrict retail cryptocurrency trading and regulate Bitcoin ATMs, drawing industry attention. The Hong Kong Bitcoin Association has urged regulators to reconsider the impact of these regulations on the city's digital innovation process.

The co-founder of the association stated that restricting retail Bitcoin trading may contradict the government's goals of promoting innovation and inclusive finance.

3. The Central Bank of Turkey Plans to Test Digital Currency Project

The President of the Central Bank of Turkey, Naci Ağbal, revealed to the Parliament that the country will start a previously undisclosed digital currency project in the second half of 2021.

He stated: "We have completed the conceptual phase of the digital currency R&D project. We plan to launch pilot testing in the second half of 2021."

4. Israeli tax authorities focus on cryptocurrency holders

The Israeli tax authorities are issuing notices to domestic cryptocurrency holders, requiring them to fully disclose their holdings of crypto assets for appropriate taxation.

The tax authorities have also issued notifications to multiple domestic and foreign cryptocurrency exchanges, requesting detailed reports on the trading of digital assets by Israeli citizens globally.

Legal experts believe that the recent Bitcoin bull market may prompt many investors to cash out, and authorities hope to take this opportunity to impose taxes and fill the fiscal gap. The current notice is only in the preliminary stage, and as the popularity of Bitcoin continues to rise, the government may strengthen tax enforcement.