There is a lot of steam regarding regulation of cryptocurrencies and blockchain in 2018, mostly because of the involvement of government bodies and agencies that are constantly reviewing the crypto space. In the latest cryptocurrency news in the US, the US Representative Tom Emmer (R-MN) is officially planning to introduce three bills to support blockchain and crypto.
The news are in accordance to a press release that was published on September 21st, where the three upcoming bills are entitled the “Resolution Supporting Digital Currencies and Blockchain Technology”, the “Blockchain Regulatory Certainty Act,” and the “Safe Harbor for Taxpayers with Forked Assets Act.”
This legislation is also focused on the support and development of blockchain technology as well as the establishment of a safe harbor for the taxpayers with “forked” digital assets.
The bills, on the other hand, would prompt the government to provide a “simple legal environment” and restrict any fines for people who report “forked” digital assets – up until the Internal Revenue Service (IRS) presents formal guidance on the appropriate means of reporting.
As Emmer said, “taxpayers can only comply with the law when the law is clear.”
He also announced:
“The United States should prioritize accelerating the development of blockchain technology and create an environment that enables the American private sector to lead on innovation and further growth, which is why I am introducing these bills.”
Earlier this week, many US lawmakers called on the IRS to issue clarified and “comprehensive” crypto taxation guidance. They also argued that while the IRS is proactive in reminding taxpayers of the pentalties for non-compliance with its guidance, they are also failing to introduce a more robust taxation framework that will meet their obligations.
India Reveals A Regulatory Draft For The Cryptocurrency Sector
‘’ Serious efforts are going on for preparation of the draft report and the draft bill on virtual currencies, use of distributed ledger technology in (the) financial system and framework for digital currency in India.’’The affidavit reveals that the draft bill will be forwarded to members of the finance ministry committee. The committee will hold meetings about the draft. Back in 2017, the finance ministry formed another committee that was given a task to examine the global regulatory frameworks for cryptocurrencies and that same committee suggested proposing a regulatory framework for crypto trading and crypto using in India. The ongoing ban which was enforced by the central bank, banned banks from providing services to all crypto exchanges and this decision has massively blocked the industry in India. Crypto exchanges saw no reason why they should continue operations in the country and many of them including the largest one Zebpay moved to Malta.
China: Cryptocurrency Exchange Huobi Creates Communist Party Committee
“Under the cordial care of the Party Working Committee of Haidian, the party branch of the Beijing Lianhuo Information Service Ltd. was gloriously established.”The laws of the Communist party make it compulsory for enterprises, especially state-owned companies (with at least three Communist Party members as employees) to set up a branch of this party. Huobi, however, is not the first one to set up such a committee - before it we saw similar ones from companies like Tencent and Alibaba Group. The Chinese government is still friendly to blockchain while ignoring the crypto space and putting a hold of it. As you probably remember, it was the Communist party that put a blanket ban on crypto earlier last year - leading to an exodus of exchanges to the neighbouring conutries.
CHFC: Cryptocurrencies Should Be Regulated To Prevent Money Laundering
“Cryptocurrency transactions may be used by parties to swiftly move large amounts of wealth across borders, and that regulating (exchanges of fiat currencies for cryptocurrencies) would address the (anti-money-laundering) concerns of the cryptocurrency space.”The last recommendation is to regulate all crypto-wallets to make tracking easier. The government is required to provide an answer to these suggestions in 120 days. Crypto regulation is a major subject around the world and many countries are implementing the regulation.
SEC’s Paragon Ruling And The Possibility Of Sending ICOs To Bankruptcy
“Both companies have agreed to return funds to harmed investors, register the tokens as securities, file periodic reports with the Commission, and pay penalties.”Aside from this, another issue for ICOs is the right to sue projects to be compensated for their losses, which the SEC clearly outlined. In other words, if an investor invested in a token and recorded a 80% loss, they are eligible to file a lawsuit against the initiator of the token sale and eventually receive the funds back.
“On a date no later than sixty (60) calendar days… distribute by electronic means reasonably designed to notify each potential claimant, notice and a claim form, both of which shall be in a form not objected to by Commission staff, informing all persons and entities that purchased PRG potential claims under Section 12 (a) of the Securities Act, including the right to sue “to recover the consideration paid for such security with interest thereon, less the amount of any income received thereon, upon the tender of such security, or for damages if [the purchaser] no longer owns the security.”Upon this crackdown, the co-director of the SEC's Enforcement Division, Stephanie Avakian, heavily emphasized that the SEC will continue to investigate token sales which violated federal security laws with the intent of bringing down ICOs considered as securities by the commission.
“We have made it clear that companies that issue securities through ICOs are required to comply with existing statutes and rules governing the registration of securities. These cases tell those who are considering taking similar actions that we continue to be on the lookout for violations of the federal securities laws with respect to digital assets," she concluded.
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- India Reveals A Regulatory Draft For The Cryptocurrency Sector
- Early 2017 Crypto Investors Are Rapidly Starting To Sell Bitcoin
- BitMEX Research: The BCH “Hash War” Costed Miners $6.1 Million In Lost Revenue
- China: Cryptocurrency Exchange Huobi Creates Communist Party Committee
- Bitcoin Takes A New Beating, Goes Below $4,500 As Market Loses $25 Billion
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