One of the most viral stories in the crypto news section of our site this week is the latest decision by the US Securities and Exchange Commission (SEC) to charge the famous boxer Floyd Mayweather and the popular hip-hop artist and producer DJ Khaled for promoting initial coin offerings (ICOs) in an illegal way.
Both of the celebrities had been amongst the most prolific ICO promoters, pumping various crypto tokens on social media and sometimes even failing to disclose that the posts were paid for advertisements.
On top of this, both Mayweather and DJ Khaled agreed to pay disgorgement, penalties and interest to the SEC, even though neither formally admitted or denied the findings. They also agreed to refrain from promoting securities for three years (Mayweather) and two years (DJ Khaled) accordingly.
Accordinf to the Enforcement Division Co-Director, Steven Peikin:
“Investors should be skeptical of investment advice posted to social media platforms, and should not make decisions based on celebrity endorsements. Social media influencers are often paid promoters, not investment professionals, and the securities they’re touting, regardless of whether they are issued using traditional certificates or on the blockchain, could be frauds.”
Aside from this, both of the popular celebrities have been named in a lawsuit over their involvement in promoting the Centra Tech ICO, which was ruled as illegal by a judge and whose founders the SEC charged with fraud.
CEO Of Allianz: Regulators Should Step In Harder And Outlaw Cryptocurrencies
“I am personally surprised that regulators haven’t stepped in harder.”He was especially addressing the head of Britain’s Financial Conduct Authority Andrew Bailey who was sitting right next to him at the panel discussion. Bailey noted that Utermann’s opinions were ‘’quite strong’’ but he did agree that cryptocurrencies don’t have intrinsic value. Bailey made sure that the FCA is watching closely and that they have the initial coin offering sector under surveillance. Utermann’s stance doesn’t leave any room for negotiation but some of his colleagues at Allianz are more optimistic about the use of blockchain technology. The chief economist at Allianz Mohamed El-Erian said that he also doesn’t believe that cryptocurrency will ever be able to replace fiat money but they will become more widespread. He said:
“Cryptocurrencies will exist. They will become more and more widespread, but they will be part of an ecosystem. They will not be dominant, as some of the early adopters believed them to be.”El-Erian explained that crypto is not dead and the technology isn’t dead also. He is sure that we are about to see more widespread adoption by the private sector but also from the public one. El-Erian concluded that the last year’s frenzy was ‘’unwarranted’’.
Danish Tax Agency To Go After Its Nationals Who Secretly Trade Bitcoin
“If you have traded with bitcoins on the specific Finnish bitcoin exchange and have not specified any winnings, then you can hear from us so we can get your taxes in place’’.The tax inspectors in Denmark are carefully going over each case so they can sum up the gains and losses made by these offshore trades. The chairman of the personal data department of SKAT explained that there are two types of trades, one called a curious trade where you invest a few thousand dollars and then there’s trading that involves huge amounts. Lawyers from Denmark confirm that bitcoin is taxable in the country and the country will impose charges when an asset such as BTC isn’t purchased properly or even sold properly for profits. Bergen noted:
“It’s probably just the tip of the iceberg. Although the Finnish company is a relatively small bitcoin exchange, the information they have revealed is a precious source, which clearly shows trends and patterns in the area.”
Japan: Tax On Crypto Will Reduce To Revitalize The Market
“If the rapid growth of the cryptocurrency sector in late 2017 is considered, 331 is a number that is simply too low to be true. A large portion of cryptocurrency investors probably did not declare their earnings to the government.”Takeshi Fujimaki, who is a Japanese congressman and lawmaker, proposed four major changes to the taxation policies surrounding the digital asset market with the objective of revitalizing the market. In order to reduce the burden on investors and in consideration of the characteristics of the cryptocurrency market, Fujimaki proposed the following changes:
- Reduction of crypto tax gains from up to 55 percent to a fixed 20 percent rate on gains.
- Carry forward losses across quarters and years, until the cryptocurrencies are cashed out
- No taxes in trading crypto-to-crypto
- No tax on small cryptocurrency payments
“In order to increase the volume of transactions between virtual currencies and to revitalize the virtual currency market, trading between virtual currencies should be tax exempt,” Fujimaki concluded.
Central Bank Governor Of China: STOs Are ‘An Illegal Financial Activity’
"I want to warn those who are promoting STO fundraising in Beijing. Don’t do it in Beijing. You will be kicked out if you do it.”Meanwhile, blockchain adoption has been relatively embraced in China and is in a completely different type of regulation and adoption compared to crypto. The legal basis of blockchain can be assumed to be the Chinese Supreme Court's ruling from September which saw blockchain legally authenticating evidence in the country.
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- Developers Tested Exchanging ERC-20 Tokens Using The Second-Layer LN Protocol
- Danish Tax Agency To Go After Its Nationals Who Secretly Trade Bitcoin
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