Blockchain security auditor Hacken is rolling out a new tool to automate security and compliance for web3 businesses as MiCA and DORA rules loom.

Hacken, an international blockchain auditor with Ukrainian roots, is rolling out a new solution that allows web3 businesses in an automated manner to comply with standards like Europe’s MiCA and DORA.

In a press release shared with crypto.news, Hacken co-founder and chief executive Dyma Budorin said the firm developed the so-called “Extractor” to address the “critical need for proactive monitoring and compliance in the crypto space.” According to the Tallinn-headquartered firm, Extractor brings compliance monitoring framework for web3 projects, making it easier to meet regulatory standards like MiCA, DORA, and ADGM.

Unlike other solutions available on the market, Hacken’s solution is said to be combining AML/CFT monitoring, transaction tracking, total value locked analysis, and circulating supply detection into a structured compliance approach. It also integrates real-time threat detection, automated safeguards, and post-incident reporting to ensure continuous protection and operational resilience, the press release reads.

Valentyna Kondratenko, Hacken’s legal counsel noted that beginning Jan. 17, 2025, DORA’s requirements “will become enforceable,” adding further that non-compliance “can result in severe penalties, such as fines of up to 2% of the total annual worldwide turnover or 1% of the average daily global turnover.”

It’s understood that the solution is compatible with multiple blockchain networks, including Ethereum and BNB Chain (formerly Binance Smart Chain), broadening its potential use.

MiCA regulations have created challenges for crypto companies aiming to expand in the European market. For example, crypto exchange Coinbase had to discontinue USDC rewards for EU clients due to MiCA, and later even delisted Tether (USDT) from its European platform.

The European Central Bank is urging faster action on the digital euro as legislative delays risk hindering progress amid growing global competition.

The digital euro project is facing delays in the European Union, with the European Central Bank urging faster action to prevent Europe from falling behind global competitors.

Evelien Witlox, the ECB’s project manager for the digital euro, told Euronews in an interview that Europe should speed up with the development to avoid falling behind, as global competitors like the U.K. and China are also exploring central bank digital currencies.

Thus far, there is no pan-European digital payment solution as 13 of the 20 countries in the eurozone lack a national card scheme, relying instead on international players like Visa and Mastercard, the report notes. Witlox noted that the European market remains fragmented, with “the ones that come closest to covering the whole of Europe are non-European.”

To address this, the ECB launched a CBDC exploration project in October 2021. However, before the digital euro can move forward, the European Parliament and Council must finalize the legal framework—a process that has yet to be completed nearly 17 months after the European Commission’s proposal. This delay has raised concerns within the ECB, Witlox noted.

Although discussions on the digital euro have made progress, Witlox reiterated the need for urgency to keep “sufficient pace in this process so that we can ensure that the digital euro will be there when we really need it.” Although there is no set timeline for the digital euro’s launch, Witlox remains optimistic, stressing that Europe is still “at the forefront of the development [of a CBDC].”

A recent research report by Coincub and Blockpit highlights how varying tax policies, from zero taxes in the UAE to high rates in the U.S., shape crypto investment strategies.

The crypto taxation landscape varies widely across the globe, as revealed by a research report from Blockpit and Coincub.

Data reveals that the UAE remains an attractive destination for crypto investors, with no personal income or capital gains tax on cryptocurrency gains for individuals. Similarly, Switzerland positions itself as a tax haven, offering zero personal income and capital gains tax on crypto gains.

In Europe, the situation is more mixed. While some nations provide favorable tax conditions for long-term holdings, others maintain elevated tax rates. For example, Denmark has one of the highest personal crypto tax rates globally, with up to 53% of long-term and short-term capital gains from crypto being taxed by the local watchdog.

The report notes that, on average, many European countries impose relatively high taxes on crypto gains, but the old continent “has the most tax breaks for long-term hodling your Bitcoin.”

Meanwhile, the United States has the highest total gains and average tax rates of 17.5% (long-term) and
23.5% (short-term), what could potentially bring in tax revenues approximately $1.87 billion, the analysts estimate. They warn that high taxation could “discourage investment,” pushing crypto activities underground, or force investors to relocate to more tax-friendly jurisdictions.

“Nations like Vietnam, Turkey, and Argentina might prioritize attracting crypto investment, fostering technological innovation, and providing alternatives to unstable local currencies over immediate tax collection.”

Blockpit

Analysts indicate that the global approach to crypto taxation is set to undergo significant changes starting in 2025, driven by international initiatives such as the Crypto-Asset Reporting Framework and the Tax Administration for the Reporting of Crypto-Asset Activities.

Developed by the Organization for Economic Co-operation and Development, CARF aims to enhance tax transparency and combat tax evasion by creating a global framework for reporting crypto transactions. In parallel, TARKA is designed to facilitate cooperation among tax authorities in the 48 participating countries, per the report.