The long awaited cryptocurrency by Facebook, the Libra Project, was officially announced yesterday. As the Libra whitepaper showed, the cryptocurrency would be launched in the first half of 2020. However, the latest cryptocurrency news show that a US Congresswoman does not like the plans that Zuckerberg has with Libra – and apparently wants to pause the entire project.
As reports from BBC featured in the altcoin news showed, the US House of Representatives’ Financial Services Committee wants the social media giant to put the plan on hold. We are talking about Rep. Maxine Waters (D-CA) who is the Committee’s Chairperson, arguing that the social media giant should wait for the legislators to examine the asset before making any new announcements.
The full report by the US Congresswoman Waters reads the following:
“Given the company’s troubled past, I am requesting that Facebook agree to a moratorium on any movement forward on developing a crypto-currency until Congress and regulators have the opportunity to examine these issues and take action.”
Right now, Waters’ fears are warranted. In times when Facebook has a torrid history over its privacy and information handling performances, the CEO of the company Zuckerberg and the COO of Facebook Sheryl Sandberg had to appear before the Congress last year for questioning.
The past that Facebook has, mixed with the US Congresswoman’s intentions, may definitely halt the very long-awaited project and send shivers down the spine of the crypto community. Right now, it is clear that the Congress wants the social media giant to take things slow.
Other lawmakers also said that they need more information regarding the project. The US Congresswoman and Chair Waters and her sentiment shows the following in a letter sent to the Rep. Patrick McHenry, who is another member of her committee:
“It is incumbent upon us as policymakers to understand Project Libra. We need to go beyond the rumors and speculations and provide a forum to assess this project and its potential unprecedented impact on the global financial system.”
We don’t know if Facebook responded to this letter. But as the coming altcoin news show, even if they did – lawmakers now want to hear more details about the Libra project.
Japanese Exchanges Demand Tax Reforms From Regulators
- Citizens who must pay tax on their cryptocurrency holdings should be granted a three-year grace period to obtain necessary documentation/registration information (before fines become applicable).
- Cryptocurrency derivative transactions should be taxed separately, and the transfer of losses should be allowed (as one of the main things Japanese exchanges need)
- Small-scale cryptocurrency transactions should not be subject to taxation.
- Cryptocurrency issuance from initial coin offerings (ICOs) should be recognized as a capital transaction rather than taxable income.
- Special tax laws and tax breaks should be introduced for certain investment deals involving cryptocurrency projects.
Circle Expands To Bermuda Due To Pro-Crypto Regulation
“While many governments around the world have not kept pace with the regulatory requirements driven by rapid innovation in digital asset businesses and crypto, Bermuda has leapt forward with an exceptionally well designed and comprehensive regulatory framework: the Digital Assets Business Act of 2018 (“DABA”). […]The Circle announcement goes further:
“Bermuda’s pioneering approach is the kind of regulatory framework we’ve long advocated to unleash growth in the crypto industry. Moreover, we’ve witnessed first hand that the Bermuda government is prepared to iterate and evolve new regulatory rules alongside the pace of technical innovation in the crypto and blockchain field.”The Bermuda subsidiary of Circle will offer all kinds of crypto services including custody. The company says it will be the first major company to approach this country since the DABA passage last year. Circle is the owner of Poloniex which is still a popular crypto exchange. The post also notes that the international users will be able to access the exchange via the new subsidiary called Circle International Bermuda. Circle expands to Bermuda mainly because of the great regulatory climate but they say that the upcoming features will not be immediately available for US customers due to the US regulations. Jeremey Allaire, the CEO of Circle, stated that the regulatory climate in the United States is muddy and is the reason why he had to lay off some of his employees. He also stated that the new Bermuda expansion will open 30 new job positions. As noted in some of the best cryptocurrency news sites, the volumes on Poloniex have fallen dramatically over the past few years and in the 24-hour period at press time, the exchange done just over $15 million. Some believe that this is a move to save Poloniex from crashing since its influence dropped after Binance joined the market. Binance had a trading volume which was at least 10 percent higher than Poloniex did in just a day.
Crypto Laws In Switzerland: What Makes This Country Special?
FINRA Prolongs Deadline For Companies To Report Crypto Activity
“As securities regulators continue to provide guidance to members regarding the unique regulatory challenges presented by digital assets – e.g., Joint Statement on Broker-Dealer Custody of Digital Asset Securities – FINRA believes it is important to keep the lines of communication with members open on this important topic.”FINRA suggests that the activities that should be reported include buying, selling and transacting digital assets, ICOs, and derivatives but also investing in digital assets and opening funds. Among others, the list also offers the advisory services or funds and offering custody services, mining cryptocurrencies and accepting the crypto as a mean of payment. Any other use of blockchain technology should be reported as well as the authority suggests. At the start of this month, FINRA and the Securities and Exchange Commission (SEC) issued a joint statement where they say there are a number of questions to be noted before they can approve crypto companies’ applications to become broker-dealers. One of the factor, why FINRA prolongs the date, is that the brokers need to prove that they engage with crypto in order to provide better regulation. According to a statement which we have in our altcoin news we can read that:
“The ability of a broker-dealer to comply with aspects of the Customer Protection Rule is greatly facilitated by established laws and practices regarding the loss or theft of a security, that may not be available or effective in the case of certain digital assets.’’
Join us on Facebook
UPCOMING EVENTS RECOMMEND BY DC FORECASTS
Bitcoin News3 days ago
Big BTC Price Boom Will Bring To Consolidation: Market Experts
Bitcoin News3 days ago
Banks Are Afraid Of BTC And They Are Chasing Their Customers Away
Bitcoin News2 days ago
Fiat Money Is Used 800 Times More Than Bitcoin To Launder Money
Bitcoin News3 days ago
Bakkt BTC Futures Reached “Critical Mass” And Expected To Launch Soon
Blockchain News4 days ago
Japan Will Create International Crypto Infrastructure Better Than SWIFT
Altcoin News3 days ago
Bank Of Thailand Is Open To Discussions With Libra
Blockchain News4 days ago
Former CEO Of WEX Crypto Exchange Gets Arrested In Italy
Analysis4 days ago
High Bitcoin Volatility Expected Soon: Price Analysis