It is 10 years since the collapse of Bear Stearns and Selva Ozelli sees this as the event that paved the way for the emergence of a crypto economy. The anniversary coincides with blockchain technology being a hot topic of discussion amongst global organisations like OECD, the EU and G20.
At G20, world leaders agreed that cryptocurrencies and the blockchain “given its borderless and intangible nature, are fundamentally reshaping the global cross-border financial connectedness, and its increasing ability to automate cognitive tasks,” should be defined as ‘property’. They announced their commitment to “implementing Financial Action Task Force (FATF)’s anti-money laundering (AML) and terrorist financing standards as they apply to crypto-assets to mitigate concerns over security, consumer protection, and financial crime.”
The European Union decided to postpone its long-term aim of taxing digital firms until 2020, but has come up with at least two new tax rules for consideration by the Commission. Ozelli says: “The first one suggests a common reform of the EU’s corporate tax rules to enable member states to tax digital profits that are generated in their territory, even if a company does not have a physical presence there. The second rule will impose a “temporary interim tax of three percent to companies with total annual worldwide revenues of €750 million and EU revenues of €50 million on specified digital revenues.”
The OECD has already published a framework for taxing the digital economy and 113 countries have signed up to this and agreed to implement it by 2020 with July 2018 being an agreed date for the deadline for proposals about cryptocurrency regulations.
Ozelli suggests that this friendly approach to crypto by these large organisations has helped move the digital economy forward with “a new type of Fintech business- crypto-asset lending has been surfacing all over the world.”
Lendo is one of the blockchain-based businesses she is talking about!